Five Step Model of Critical Thinking
HUM/114 Samuel Dale
Every day we are faced with decisions. Some we may know a head of time, others can come at us at any time. The Five Steps of Critical thinking can help guide us in making the right decisions. The first step is identifying the problem at hand. In this step we should gather up all the information we know about this problem, define it, and decide what results we are aiming for. Step two is finding alternatives to the problem as well as the boundaries. Step three is defining the advantages as well as disadvantages of each alternative. Step three is figuring out the steps to take in order to find a solution. Step five is finding out whether or not the solution is working and if any adjustments are necessary.
The problem I have when it comes to Finances is using a credit card when I really cannot afford it. I would like to build my credit score to at least and get out of my credit card debt as soon as possible.
One alternative to my (sometimes) impulsive spending is leave my Credit Card at home and use cash for the goods I plan to purchase. An advantage of doing this is I will stick with my list and be less likely to go outside of it. I will also stick to my budget. A disadvantage could arise if I end up not having enough cash on hand and end up having to put back some items. Another alternative is to stop paying the minimum monthly payment and double up on it. Most of my cards are a $25 a month payment but if I double I will be paying $50. In turn, I will pay less interest and have the card paid off quicker. I cannot find any disadvantage to that alternative.
The solution that I feel is best fit to solve my problem is paying $50 a month as oppose to $25. I will save $25 from one of my paychecks on week, then the following week put the rest into my bank account and pay the bill. Interest is what racks up the most on credit cards. So it is best to pay more than the monthly....