The stupid heads are the ones that 'live beyond their means', mortgage everything to the hilt and then get burned on the back-end; bankruptcy and all that. no sympathy for them!
i am in debt $16000 but i certainly aint stupid i could pay off my debt in one go but i prefer to just to pay the monthly repayments as the $16000 in my bank makes good interest
Well i dont own a house yet my Dad does and he paid cash for it. I have paid cash for cars all the time now if i could not afford that GX470 then i would get a car that i could afford and i am sure everyone can afford and pay cash for some 1995 toyota camry or something like that, It is going to fulfill all your needs and it will work same as a new 2007 camry correct me if i am wrong. Thats exactly what i meant by stupidity... You are paying some interest right? If you can afford that $16000 right now then why chose the other way unless you are using that money to make money
Ummmm...Am I missing something here? What sort of interest rate are you getting at your bank that makes you more money then the interest rate you are paying to your credit card? Unless you have some crazy scheme worked out, that's impossible...
That's exactly what I was thinking as well. Don't get me wrong, I have debt as well, but the banks always have the upper hand the bastards! There's a reason why they make billions every year.
Well, then I will call you ignorant . Not every one that has debt is "stupid". Unplanned life events, like an illness, having a child, etc. can easily put you in debt. My dog got really sick and it cost me over $5000 at a time when I was a full time student and working part time. Did I just let him die? No, I put the vet bills on my credit card and had that debt for a couple years. When I bought my 1st car, I didn't have any money for the down payment (let alone money to buy a running vehicle), but I had good credit so I financed it. No biggie. It isn't stupid to have debt, sometimes it is unavoidable. But you guys are right that people that use credit to live beyond their means are dumb.
No debt ~ yeah! Yes, it is possible some cards offer "6 month's interests free balance transfer"\ Let the money sit in your FD account for interest
I understand that but my point is same that why spend more and get caught into debt when its not needed. Debt only become a problem when you pass the range of affordability and need
Agreed. If you are getting lets say, $300 a year in interest, but your credit cards cost you $600 a year in interest, then you are losing money by keeping it in the bank. Maybe it just looks pretty in the bank account :-p
Okay, so you're going to spend $16000 on a credit card, pay monthly payments and then pay it off before the interest kicks in, so you can make $40 a month for 6 months max by keeping the money in a bank? I guess whatever floats your boat (but there are hundreds of better ways to invest your money).
The $16000 is in a high interest savings account so i wont touch it i make more than enough money so don`t need to use my savings and it is not credit cards because i don`t have one its a loan that payed for the wedding
That's still $240 you didn't have to work for. I've also loaned out money at higher interest rates than my CC charges. The rate I gave was better than the person could get but enough to earn a few hundred myself on interest over the duration of the loan. I have a 7.9% fixed APR on my best credit card with a high limit. There are a lot of ways to invest but playing banker is one of the safest if not the most lucritive when dabbling with smaller amounts.
Student loan is killing me the most but I don't have to start repaying that till I'm done school. jaree - I think that your comment was stupid ..if I didn't take out a loan for school I wouldn't have been able to pay for it. And unfortunately not all of us have mommy's and daddy's who will pay for a house or education in cash. I would rather get into some debt and get a decent education. Also I racked up my credit cards when starting out with online business and lost a couple thousand. I am now making close to a full time income online. That was a stupid idea too right? Personally I like to take risks even if that means getting in debt because in the end I know I'll succeed. However, getting in debt for things you DON'T need is a no no. Although I can't say I haven't been guilty of that myself once in a while.
maybe you live in the middle of nowhere.. where house costs 30k LOL People, who live in California can't afford to pay 550k (average!) in full. (just an example, don't be stupid) So paying cash for everything, isn't realistic.. Unless you live in South Africa