im seeing this all over the internet and on tv and lots on yahoo answers. i mean i have some cards but dont overuse at all..and i have evrythign trasfered on one card so i can have one payment a month and also pay more than minimum payment. is it because decide to spend thier money on stuff they dont need? dont people have enough money to pay the minimum balance on time? it sounds ridicoulous to me.
2007-02-27 09:27:32 · 6 answers · asked by justsomeone 1 in Business & Finance ➔ Credit
i totally agree on people spending more than they can afford and living paycheck to paycheck......also people claiming cc are evil...i dont liek to use them..but they are usefull and are helping me out for 2 months..and planning to pay more than minimum payment evry month
2007-02-27 09:43:31 · update #1
People live paycheck to paycheck and many buy more car or house than they can afford. Some get laid off of work and have no emergency savings. I pay my credit cards off on time and in full every month. I don't spend what I don't have... people who think credit cards are evil have generally missed payments, have maxed out their cards, and screwed up their FICO scores. The average American is $8,000 in credit card debt.
2007-02-27 09:37:04 · answer #1 · answered by Anonymous · 1⤊ 0⤋
people go into debt b/c they buy crap they can't afford or use their ccs as an emergency fund instead of saving for a "rainy day". a shocking number of people also try to start businesses on credit. i have done all three of these things in my life, but now i only use cash (or debit). Studies performed by the credit industry indicate that people spend 12-35% more (depending on the study) when swiping a card rather than paying cash. they just do not "register" emotionally that they have just spent money. that is why i usually use prepaid debits for online stuff (can't blow the budget on a Visa gift card) & cash for absolutely everything else. i am a supernerd, so i use dave ramsey's little envelope system to keep my budget in order. it avoids me having to take out a huge "gangster roll" every time i buy a beverage at sonic. :) one last thing, do you know how long it actually takes to pay off a card paying only the minimums? ages! that is why i am a strictly cash girl...no interest, no lost or misapplied payments, no stolen cards...you get the idea.
2007-02-27 09:42:53 · answer #2 · answered by Tom's Mom 4 · 1⤊ 0⤋
People get greedy and buy a lot of things they cant afford. They buy the plasma tv or a lot of dvds or just more car than they can afford. Some even do it to buy new clothes or eat out all the time. They want a larger lifestyle than they can afford.
Some get trapped into getting cash advances a lot (higher interest rate) or they lose their jobs and get behind on payments.
And if you only pay the minimum payments, interest and finance charges keep adding up. They get more cards and transfer balances and before they know it they are thousands of dollars in debt.
You are very wise to use your credit responsibly. Not everyone does.
2007-02-27 09:36:30 · answer #3 · answered by mslider2 6 · 0⤊ 1⤋
People go in to debt on cc all the time for lots of reasons. Like the first house you move into doesn't have anything so you go get a few appliances. That hits most folks. But people sometimes lose their jobs and they use the cc to pay some bills for temp. instead of burning up savings. Others are just not responsible at all. Everyone is different and everyone has different circumstances.
2007-02-27 09:32:43 · answer #4 · answered by samantha s 3 · 1⤊ 0⤋
If you have a balance to transfer to one card, YOU are in debt. Anything less than paying the FULL balance every month is DEBT. If you can afford that, use a DEBIT card, not a credit card.
2007-02-27 11:47:49 · answer #5 · answered by STEVEN F 7 · 0⤊ 0⤋
buy to much at high intrest rates, and pay minimum
2007-02-27 09:32:12 · answer #6 · answered by Anonymous · 0⤊ 0⤋