Burn Your Mortgage: 8 Do’s and Don’ts for Credit Cards

This week’s post is a guest post by Sean Cooper. Take it away Sean…

A little over a year ago I achieved the ultimate dream of financial freedom when I paid off my 30-year mortgage in just 3 years – and I did this by the ripe old age of 30. I celebrated by burning my mortgage papers on national TV. My story went viral, making headlines around the world. I received dozens of emails both congratulating me and wanting to follow in my footsteps. This inspired to me write my new book, Burn Your Mortgage: The Simple, Powerful Path to Financial Freedom for Canadians.

With home prices skyrocketing in cities like Toronto and Vancouver, many feel like the dream of homeownership is out of reach. I’m here to tell you that it’s not. I may have paid off my mortgage in 3 years, but that doesn’t mean you have to. There are simple yet effective lifestyle changes that anyone—from new buyers to experienced homeowners—can make to get their foot in the door of the real estate market and pay down their mortgage sooner.

Credit Cards: A Powerful Financial Tool When Used Responsibly

Before you can think about buying a home, you need to have your financial affairs in order. It’s hard to qualify for a mortgage, let alone afford monthly mortgage payments, when you have a ton of credit card debt weighing you down. Here’s an excerpt from my book on credit card spending.

Looking to get your credit card spending under control? Here are some simple do’s and don’ts.

1. Do purchase only what you can afford to pay off in full once your statement comes due.
2. Do read the fine print. Make sure you know everything there is to know about your credit cards, from fees for missing a payment to the length of your interest-free grace periods.
3. Do check your statement weekly. This may seem excessive, but keeping an eye on your spending is a good way to keep it in check.
4. Don’t carry a balance on your credit card.
5. Don’t sign up for too many credit cards. It can tempt you to overspend and lower your credit score.
6. Don’t do cash advances. Not only are you dinged with fees, the interest rate can be upward of 30%.
7. Don’t use your credit card as an emergency fund. Have three to six months’ living expenses readily available in your savings account for a rainy day.
8. Don’t make purchases just to earn reward points. Spending to earn 1% rewards while paying 18% interest just doesn’t make sense.

Do you want more great credit and mortgage-burning tips? Be sure to check out my new book, now available at major bookstores and online.

Sean Cooper is the author of the new book, Burn Your Mortgage, which offers frugal living tips to help anyone—from new buyers to experienced homeowners—pay down their mortgage sooner and live well while doing it. It’s available now at Chapters, Indigo and other major book retailers and online at Amazon.