What's Wrong with Credit Card Debt?

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pastorwesh's picture

I thought the article was balanced. I agree with one of the commentors who said that the argument about 'presumption upon God' is a little far fetched.

My wife and I spent several years trying to get out of our credit card debts that occured because of bad timing and poor choices. It is a wonderful feeling to be able to say, "I'm debt free!!" Or to be able to scream it (Dave Ramsey follwers)!

Serving the Savior, Pastor Wes Helfenbein 2 Cor. 5:17

Susan R's picture

EditorModerator

Good guidelines for spending/debt. Don't borrow more than you can pay back before the next billing cycle, as far as unsecured debt goes. Although when it is unsecured debt, I think one has to ask "Why" the need to borrow at all. It's one thing to replace a broken fridge, and quite another to buy a big honkin' flat screen tv. Our ideas of necessity vs. luxury are often skewed.

However, today's credit cards offer some great opportunities with their points and reward systems. The problem is that most of us don't have the discipline to pay them off every month. A couple of friends of mine use credit cards for literally everything, including utility bills, and pay them off each month. They chose cards that give cash back on their purchases, so they are choppin' in high cotton. Most folks could not do that though.

Daniel's picture

Susan, my wife and I use CC exclusively and pay them off like your friends. For us, it has more to do with ease of use; I hate carrying cash. My wallet has my ID, one credit card, and my work badge. Smile

Susan R's picture

EditorModerator

Daniel wrote:
Susan, my wife and I use CC exclusively and pay them off like your friends. For us, it has more to do with ease of use; I hate carrying cash. My wallet has my ID, one credit card, and my work badge. Smile

I've heard Clark Howard talk about not carrying too much ID with you, like check books, because that gives a thief all your information, and using credit cards also add a layer of protection against bad guys and your bank account.

I know some other folks (who are not friends) that can't stay out of credit card debt. They had around $40,000 in unsecured debt, and when they sold their house, they had enough equity to pay off that debt. They paid it off, but have again racked up about $15,000 in unsecured debt. Since they have enough savings to pay that off, they consider themselves in good shape. Oy vey.