The Descent into Credit Card Debt

Debit cards ftw

Thanks for sharing such good information, most of the people will get clear idea about credit card debt from this great post.

CC Companies suck unless you can pay off 100% each month avoid them like the plague

Wow, someone doesn’t like credit cards. I can safely label every one of these ‘facts’ an exaggeration (read: lie)

Or…Just don’t live beyond your means and stop blaming credit card companies for your irresponsible spending. Credit cards are a loan with no collateral. They need to have high rates to cover the idiots who don’t pay for what they buy.

Take responsibility for yourself and stop blaming credit card companies. I’ve never once been charged a penalty or fee, as I only spend what I know I can pay off.

The best way to avoid having these problems is to live on less than you make (no credit!). Its a super simple premise, but we in the “want it now” society forget it. No credit cards is the only sure way. Yes you’ll pay a little more for insurance, and you might have to put down deposits on things, but in the long run, you’ll save tons of cash and live a debt free lifestyle.

Taking out a cash advance would be stupid regardless. I would presume that people would know that it’s tantamount to taking out a loan with a loanshark only instead of physical threats to your life, you get serious financial implications like insane amounts of interest.

Isn’t the answer to simply live below your means and then you never fall into the pit in the first place.

I have seen this from a first person perspective. It gets ugly. Luckily my family bailed me out. Good to have rich parents I do not use anything but my 1 $800 limit card now and it is paid off every month.

My preferred solution is to not pay and ignore them forever. Time is on your side. After years of absolutely nothing I am getting offers to settle the accounts for 30% or less. Obviously it is a situation you should do your best to avoid, but life happens. And I am not going to sacrifice my health and struggle to pay accounts that leapfrogged from avg. rates of 5% to 35%, because a single payment was not made “timely” to them. I went from paying multiple accounts perfectly to not paying a single one. I have completely lost faith in the credit system and I will never have the level of trust I once did.

Eventually I will rebuild myself to that 720+ credit score I once had, but I am in no rush and neither should you.

I am at the very bottom of the fiery pit and I find I sure prefer the authenticity, honesty, and integrity of it.

The only thing I have of use now is an ingdirect savings account with electric checking and a sharebuilder account with a few of my favorite stocks.

People, credit cards are NOT sound “financial strategy.”

Sound financial strategy is *living within your means* which means you save up your money before making a purchase! If you can, always pay in cash. Credit card payments are NOT FREE! The company simply inflates the price to cover the cost of handling those types of transactions. You’ve probably seen gas stations with a 10 cent discount *per gallon* for cash payments. It’s unfortunate we don’t get that same discount for other purchases.

Good credit is NOT a prerequisite for purchasing the ‘necessities of life.’ Saving up your money before making a purchase is the only prerequisite. Anything else is always destructive to yourself, and destructive to everyone else when you default.

“Here’s an idea: Save for things you cannot afford.”

you obviously do not have a family or have ever really needed a credit card..

Sure as hell never used credit in the past forty years, never gonna start now, not ever. People say I earn a pittance, but I live a simple yet cozy life.

If you don’t have something of value (even if you consider money to be valuable, which I sure’s hell don’t) to trade *now* for the thing you want *now, you ain’t ready for it and you sure’s hell don’t deserve it.

All these advices to stick to what you can pay and leave under your means sound great and good sense, but what about credit rating going downhill if you don’t have any credit card? When I considered getting a mortgage (in UK), I was actually told to get a credit card and start spending on it, or else credit agencies consider me a risk (they don’t know if I can repay a credit, as I don’t have an credit history…) Awesome…

That’s very nicely explained than with some boring words. I personally believe there must be a good-will show at the credit card companies end to make an attempt to reach out to the customer before reporting to the credit agencies to see if the customer is legitimate in willing to make the payment.

You know, I didn’t read the “credit cards can be the cornerstone of a sound financial strategy” correctly the first time… I don’t see a world where credit cards are the cornerstone of anything but costing you money and messing up your life.

Please people, stay away from credit cards – and if you have one, pay it off quickly. Saving up for things, and not paying someone for the privilege, is actually rewarding. Living on what you make is easy, as long as you can let go of giving a crap what others think of you.

I drive a 1989 Mitsubishi Montero, and my wife a 2001 PT Cruiser (both paid for). Our mortgage is less than 1/4 of our take home pay, and we’re saving 15% of our income for retirement. We have plenty of toys (just paid cash for our basement finishing and the air conditioner (new house)).

Get a debit card, and use that. Hook it in to Mint so you can track expenses, but don’t mess with credit cards. They’re no good for you.