I know some people who have decent jobs, and good incomes, but always live beyond their means and have terrible credit. Why? Is it insecurity? Irresponsibility? Just a mental defect?
I'm not talking about situational problems - like if someone has a car accident, or medical bills. I'm talking about forever and always.
2007-02-07 07:44:24 · 13 answers · asked by MBA Grad Student 1 in Business & Finance ➔ Credit
Because we have better things to spend our money on.
2007-02-07 07:47:51 · answer #1 · answered by Hi 7 · 1⤊ 1⤋
Many people have multiple credit cards and use them quite regularly with the intent to pay when the bill comes in. Because they owe so much, they can never pay off a card and the interest continues to build so that , even if they quit using the card, they have a very high balance. Then they have credit card debt which leads to a very bad credit history, Yes, you are correct, they are irresponsible with money and they definitely do live beyond their means. Also, many apparently do not understand how percentages work. They should not have been napping during math class.
2007-02-07 07:52:53 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Its like you said people live beyond their means and try to keep up with the joneses so just don't be like that. Other people are very irrisponsible because they have so much stuff on their mind they can't keep track of paying the bills. These people should have a calendar they look at everyday and do what they wrote. If you want something bad enough, save for it and pay cash or use the card and pay the card immediately. There is no need to let bills go if your a responsible person. Learn from other peoples mistakes. Take care Heather
2007-02-07 07:50:35 · answer #3 · answered by Anonymous · 0⤊ 0⤋
MENTAL DEFECT: Most people believe that they can't do without something. They are convinced that they have to pay $2.89 for a cop of coffee at STARBUCKS or the sun will freeze in the sky. When these people can not do anything other than pay $0.69 for a cup of coffee at M-D, there mental defect start to recede.
Most of us get into credit problems because we insist on extending ourselves in ways that we have choices. The first choice that most of us don't make is to save. If we saved we would eliminate 75% of the credit problems that most of us face.
2007-02-07 07:53:31 · answer #4 · answered by whatevit 5 · 0⤊ 0⤋
I think credit cards make people feel they have money when they dont. So credit card companies give credit out too often and consumers get , use and abuse the cards to the point it gets into thier daily living money and thats when things dont get paid on time and bad credit rating soon follows.No budget control.
2007-02-07 07:51:32 · answer #5 · answered by stephenmwells 5 · 0⤊ 0⤋
Yes. Besides the good reasons you've described (losing a job, divorce, medical emergency, etc.), a lot of people are in debt and have bad credit simply because they buy before than they earn.
Even some rich people do this.
It's irresponsible and stupid, in my opinion.
2007-02-07 07:48:13 · answer #6 · answered by Jay 7 · 0⤊ 1⤋
i used to have excellent credit. then i got married. i used to get cedit card apps in the mail every day. my lovely wife filled them out and signed my name. got the cards and the pin nos. maxed em all out. never paid a dime. when the credit ran out so did she. moved out 1.5 yrs ago. stuck me with over 30k in credit card debt plus i was dumb enough to sign for a car loan several yrs ago that she owes over 20k on. that car was turned into beer cans a yr. ago. she still owes the money. im the one they call when she misses a payment. im paying on the cards i knew about. i cant pay on the ones she got illegally. my house needs shingles i cant get the money. my 1993 truck with 213000 miles needs work. i cant get it fixed. it was not my irresponsibility that caused all this. it was not me living beyond my means. it was caused by someone i loved and trusted. thats why my credit sucks. my advice is that if you live with someone keep a close eye on what is going on. view your credit reports as often as you can. never ever trust anyone. that includes spouse mates girlfriends children etc.
2007-02-07 18:16:14 · answer #7 · answered by Anonymous · 0⤊ 0⤋
I guess you wont understand it until you live throuh it...... Its not a choice for most people its unfortune, and devastating.......Pleople loose jobs (not their fault) get ill (not their fault), stuff happens (not in control of that) cars nned repair, animals get sick, family members need a helping hand and imajine all this happening at once. Most people live on some one of a budget and in alot of cases there is little money to go beyound..So bills get backed up and up and once in that situation it is hard to get out......If these people choose this life style thats on them......I guess some people wanna live......and not worry about a score.............
2007-02-07 07:58:15 · answer #8 · answered by onlyme 3 · 1⤊ 0⤋
Some people have no clue, regardless of the reason
2007-02-07 08:02:45 · answer #9 · answered by whatelsewhatever 3 · 0⤊ 0⤋
they like to live beyond their means
2007-02-07 07:48:07 · answer #10 · answered by i hate undies! 4 · 0⤊ 0⤋