12 thoughts on “Credit Card Fun

  1. I read that the average American has something like 8 credit cards and somewhere north of $10,000-15,000 of credit card debt. If the creditors were to call in all of that, there most certainly will be a lot more hurting people out there. But, they are just taking their cue from their government – spending money they don’t have and thinking about paying it off later (maybe). And then when the debtors get in waaayyy over their heads, they just go to some company that will arrange for a payoff of pennies on the dollar, or, even worse, walk away from it declaring bankruptcy. No wonder this country is in financial trouble. It is just another nail in its financial coffin.

  2. Credit cards are pits for debt slavery besides inflated property loans. The first car i bought was on credit, payed it off and i don’t think i will buy another one on credit but cash only, it’s easy to do it when you have a nice cushion of liquid capital to serve you. 😉

  3. Credit cards are not bad and turn people into slaves. People do this to themselves through the creation of bad debt rather than good debt. Lesson: Never spend beyond your means.

  4. George, the sole temptation of credit limit that can sometimes be in tens of thousands of dollars is enough to put many in debt slavery. Only thing i see credit cards worth for are cashback ones that give you the return of 1-2% at the year end. Having only debit cards gives you the limit on what you can or can’t do. Relying on cheap credit to buy stuff, house, invest is just poor way to do it. Money must be earned not borrowed. Sure we use leverage in trading but still the foundation of that trading must be on personally earned real wealth otherwise you don’t respect the money earned or lost because you got hold on it the cheap way.

  5. Patrick,

    I appreciate your feedback. I go not agree. In my opinion, your argument seems like the ones I heard concerning gun control. The argument is the same: “Guns kill people.” Wrong, people kill people! A gun is simply a tool like a rake or shovel in your garage. It has a purpose just like every other tool. If you really wanted to kill somebody then a baseball bat is fine as well. The point is you have a choice: Use the bat to hit balls or human heads and other vital organs.

    Credits cards are the same thing. They are tools nothing more. Like all tools, if misused or abused, there are consequences. You make it sound as if people are victims. They make themselves victims through lack of education and stupidity in general. Frankly, I do not feel sorry for these people. They brought it on themselves.

    If you use credit for an emergency every once and a while, fine but if you start using them everyday to fund vacations, dinners, cars you cannot afford, or some other unnecessary desire then it is your fault that you are in the situation that you are in. Since most Americans fit into the desire category of wanting to live beyond their means then is it any wonder that they are in trouble now?

    People have a choice Patrick. In the majority of cases, they choose wrong.

  6. George my point exactly. People just don’t know how to control them selves. Only thing i see credit cards fit for IMHO are as i said before cash-back & point rewards and balance should be payed in full at the end of month. But most people falter, they get some unpredictable expense and go revolving.. after that step by step they get suckered in using CC as cash machine 😉 instead of useful tool, just like they end up using house as ATM instead as using it as a “tool” that keeps them warm & safe.

  7. Yes they are pretty much sidelining with slight upward trend but American Express still in short mode. You should watch trend when major US banks go nationalized, it will be a swift turn in trend of CC companies. They are making more money now because of revolvers, when revolvers get squeezed to the last drop you will see the sharp drop in revenues. People had just begun to loose jobs and CC’s are the last resort fund options in general public.

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