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Author: jabberwock One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308230  
Subject: Re: Saving vs. Paying credit card debt Date: 5/6/1997 12:16 AM
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On Wed, 23 Apr 1997 17:48:39 -0400, 'David Forrest)' wrote:
<<I tend to agree that credit cards are the 'evil debt'. I mean, when it comes down to it, there are only three uses for cards.

1. Convenience - 'I have the money to pay this and will at the end of the month'

2. Emergency - 'I need this, but don't have the money right now. I absolutely must have it though' (Car Repairs, etc.)

3. Indulgence - 'I want this, yet I don't have the money. I'm gonna do it anyway though and pay 20% interest for the next 6 years.'

Now, if # 1 is true, then either get a debit card, or make darn sure that you pay the balance each month in full.>>

But ATM cards are still not accepted in very many
places yet, and the MC/Visa debit cards often carry
fees with them. I shouldn't have to pay to use
money that's already mine--I'd rather use a no-fee
card for convenience and track my debt *religiously*.
Of course, I always pay up at the end of the month.

<<If # 2 is correct, then credic cards are somewhat useful as short-term loans. However, you'd better do your best to pay that off as quickly as possible else you'll get swampped with debt.>>

Which is why even people with no-fee cards should
try to get the lowest rate they can. 'Cause you just
never know...

<<# 3 is the situation I imagine most people get themselves into (myself included in college). DON'T DO IT! :) Material things are cool and all, but when you figure out what you actually paid for it, you'll be sick.>>

If you pay the minimum every month on a credit
card, doesn't it ultimately come out to something
like three or four times what you ostensibly paid
for the thing? *shudder*

Which means that paying cash is equivalent to card
holder's finding a 75% off sale! Chew on *that*
next time you pull out the plastic.

Dave Tepper
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