How might credit problems be avoided?

a. Open bank accounts with overdraft protection.

b. Make minimum payments on credit cards.

c. Use savings to pay monthly bills.

d. Ensure monthly cash flow is on target for expenditures.

D! Spend less than you have coming in! There's an old saying that earning 1 penny more in a year than your expenses is a recipe for happiness, earning 1 penny less, a recipe for misery.

credit is a very powerful tool, but should probably be used sparingly. In general, spend enough less that what you make to build up a cushion for emergencies, so you don't have to borrow for them, either. We call ours the "oops fund" and it's a life saver when something breaks and has to be replaced - - these things never happen at a time when extra money is floating around.