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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: Saving vs. Paying credit card debt Date:  4/23/1997  5:48 PM
Author:  TMFBogey Number:  13 of 312293

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.

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.

# 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.

So, pay them darn cards off!


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