Why do people utilize so many lines of credit? Is it impatience or greed?

Question

A few years ago, I came to the conclusion, that if I couldn't save enough money to purchase something, I wouldn't buy it. I have friends and family who have thousands of dollars outstanding in credit for LUXURIES. Although they're uptodate with payments, they usually pay more than they are using in interest ect.

Unless someone is using credit for medical bills to save or improve their life, or possibly extend higher education(within reason), the only reason I can see for having thousands of dollars worth of credit, is lack of patience and greed. Too much credit can be a nightmare. Also, sometimes people fall on bad luck, and make the mistake of getting in a bad situation. We all make mistakes. But when does it stop? Does anyone else feel this way? Or am I just a money pincher?

I do understand necessity. As mentioned earlier, sometimes there is no other option when it comes to education, health, ect.

However, if credit is being used to live above one's financial means it seems like it puts stress on the family financially. Of course everyone is free to do as they choose, I'm just curious if it is mostly due to need or other.

For instance, a friend of mine has twin boys. For $500 she could have gone to walmart, target, or other reasonable retailer, and purchased everything she needed without owing a debt. Instead, she chose Marshall Fields, got half the items, and still owes on the clothing, simply to buy name brand. I just don't get it.

Answer 1

I completely agree with your analysis of the debt situation in America. No double maybe 20% of the people truly do not make enough money to have the basic living needs like food, clothing and shelter. And not because they are lazy, but circumstances arrived, like a friend of mine with a kid with mental challenges which prevent her from working full time to make enough money.

However, I do believe 80% of the situation is truly greed and impatience. It's a sense of entitlement. The thinking that if my friends or people on TV can have this and that, why can't I? And this not just apply to uneducated people, this apply to people who are educated and somewhat wealthy as well. There is always a sense of what I have is never good enough. It's not about just having a solid car or good clothing, it's about having the newer, better car and clothing..as you said, pure luxuries.

Is this all going to change, well, not likely, I think it will take a major recession in the US for people's mind to change.

Answer 2

You are 100% right about your views. Credit and debt are necessary evils of our financial society. However, we must be very smart and careful to deal with them. My position is that using credit when you can not afford the payments is seldom justified. For instance, if you can not afford to buy the new TV you should not buy it on credit. There are exceptions: buying a home requires a long term debt that has to be managed intelligently; a medical emergency would warrant a credit charge whether you can afford it or not. However, if you have too many of those 'emergencies', eventually you will choke on debt. So the only smart thing to do should be: to live within our own financial means and limits. To answer your question: "Is impatience or greed?" I would say it in a different way: It is mostly ignorance for not understanding the negative impact of credit cards; rarely a necessity that can be justified; and more rare yet when we are smart enough to use the credit card company's money and not have to pay a cent for service charges.

Answer 3

People these days want things, HERE AND NOW AND DON'T WANT TO WAIT. It's a social mentallity that's seen many a family go under financially. Ive got a family member that is $25000 in debt and it pains me to see them struggle. Personally, I'd rather save for what I want and pay $800 for it instead of taking a loan or hire purchase for it and it costing me $1200 in the long run. I've been there and done that with the credit companies, now Im out of debt for many years and wont have another credit card, they are too easily used. I do't think it's so much "greed" as it is just outright impatience.

Answer 4

I used to use credit all of the time.

I got into a great deal of debt,I stopped using credit,paid the debts and now never buy on credit unless I can pay the bill in full when it comes.

I understand some people struggle with money,but credit is not the answer.

Answer 5

With the exception of what you listed it is greed..
and Greed is becoming a lifestlye it's not nessasarry making them bad people they are just making Lifestyle choices. figure there brain thought well most of them i make this amount of money should i not buy something i want that i earned the money for just for seck of not being called greedy... so it's weird i feel that it is greed that they don't Want to help others or not have enought of something.. but it does keep the people making the luxuries with a job.. so if all the rich people stop spending would the low end or blue collar people have a job..
my views.
hope it helped..
Mad luv

Answer 6

I don't feel its patience or greed, but nessecity. Most of us have to put items on our credit cards because we just don't make enough money. So many Americans are living paycheck to paycheck because items are just getting expensive! I'm not talking about the big screen TV or a new car, but things like clothes for the kids, car repairs, medical expenses etc.

Answer 7

It's not impatience or greed, it's debt. The propensity to get into debt is rampant in America, and people who do so get themselves into this situation because they are irresponsible.