There is a mistaken belief that bad credit can ruin your life. Fortunately, this belief is not true. It is possible to live a great life, regardless of one's FICO scores by learning one simple trick. Buy everything with cash.In today's world, it seems as if borrowing money is the norm. When a family needs a new car, home or wants to go out to eat, most people will use some form of borrowing, whether it is pulling out the plastic or getting a loan or mortgage from the bank. There is another option. Learn Wholesale Air Compressor With Air Tank to live with cash.Many people seem to have forgotten that borrowing money costs money. Normal interest on that MasterCard or Visa may be 18 percent.

 Get behind one to two payments and the interest rate can escalate to 25 percent or higher. It is a fact of life for many families that a major portion of the monthly income goes to pay the interest on these cards.Living on cash and not on borrowed money will take some planning. For most families, this can mean setting up a budget. The budget is a spending plan for meeting fixed expenses and how to use any disposable income. With proper use of a budget, it is possible to still have money left at the end of the month.One key to living within one's means is to start a savings plan. This can give the family the money to meet those immediate emergencies that they used borrowed money to cover in the past. The truth of the matter is that with the problems they are now experiencing due to borrowing money, it may no longer be possible to get the cash that is needed anyway. Thus, the family should start saving now for those eventual emergencies everyone faces.There are times that families facing this type of problem may also need to take action to increase their income or lower their expenses.

One of the problems that can lead to this type of financial crisis is that there are more expenses than income. The problem comes when easy credit becomes away to avoid facing reality. The decision makers continue to borrow money instead of taking steps to increase income or lower expenses.A better solution might be to find a second job or take steps to lower expenses. Expenses can often be lowered by taking lunch to work instead of eating our or eating at home more often. For some individuals, it could simply be cutting out one gourmet coffee per day.While these steps may seem quite drastic, often persons with bad credit are forced to make them. With nowhere else to turn to borrow money, the family can only spend what they have. There is some good news at the end of the tunnel. The family that begins to live without borrowing can have all the negative marks removed from their FICO report within the next seven years. As the report begins to improve, they can then make wise use of borrowed money to rebuild the score.