Am I wrong in my thinking?

Question

It appears to me that the whole country is living off of credit cards, borrowed money, plus interest. Personally, I never use one, except to spread mastic on the back of tile to make a mural.
I honestly don't understand how alot of the younger generation survive these days. If they are being paid minimum wage, how on earth do they survive?
My rule of thumb is if you don't have the cash, then you don't need it.
People that are shopaholics, whats up with all the materialist values? Don't they realize that they will never get out of debt?

OK, your right, you do have to have credit to purchase a new car or a home or even home repairs.
I am not financially wealthy by no means. But I am pretty much comfortable.
I do need a new boat though, but I will save my cash and buy second hand. I would never purchase a boat straight off of the show room floor. It decreases in value as soon as you sign the papers.

OK, your right, you do have to have credit to purchase a new car or a home or even home repairs.
I am not financially wealthy by no means. But I am pretty much comfortable.
I do need a new boat though, but I will save my cash and buy second hand. I would never purchase a boat straight off of the show room floor. It decreases in value as soon as you sign the papers.

Now that was weird. When I attempted to post the above memo, it said my scribe was out to lunch, that I would have to post my note later. I clicked it once again and ended up with it being doubled!!

Answer 1

I agree. My son is one of them.

When I was in my mid-30s, I would have nightmares over having a balance of $750 on my Visa charge card! I had cards for all the local retail stores and I used them. Then I decided, this is crazy and took out a consolidated loan to pay off the higher debts, then slowly paid off the smaller ones with my check. For a while now I have been debt-free. I use the card every now and then but can now pay it off if I have to. (yeah!). Mostly I use my debit card. Like you said, if you don't have the cash, you probably don't need it.

Answer 2

There are many interesting points above...here is what I have found:
1) credit cards...maintain a low balance and make VERY regular payments monthly, on or before time....gives you a credit history, whether you need to use the card or not!
2) Keep about 3 credit cards busy, Pay regularly, purchase with them even if you have the cash in hand..just don't spend the cash..use it to pay the card debt. If you pay the card debt within 30 days, no interest is charged. But keep a running balance on at least one card for a credit rating
3) I agree with the used car thing...cars that are two years old are usually a very good buy. I never buy new! If you have no credit rating, puchase it on a plan to pay over a period of 12 or 24 months...make sure you have the money to pay EVERY payment on time or early...Good credit rating.
4) Once you have a credit rating, you need to maintain it...by doing as above. Funny, the more you have owed, and paid, the higher your rating is.
Good luck And PS...my credit cards are paid off monthly...I hate the high interest rates these things charge. But that is easy for us older folks...we have had everything we have wanted at one time or another, and have very few "needs" today. IF you are going to remodel a home, it is probably wise to take out a 2nd on the house (or line of credit if you can get one), and use the money to do the house. The interest is relatively low.

Answer 3

The people who have been saying that if you don't have credit cards your credit rating will be low are absolutely wrong. My husband and I are living proof of it. We've been married for almost 30 years and haven't had a credit card. Our credit is excellent. We've done this by paying our bills and loans on time, and paying them off - seeing them to the end. Sure we've made a lot of sacrifices, and there have been things we've had to put off having, but at least we can sleep at night knowing we're not in credit card debt up to our eye balls. Credit cards can be a good thing if used wisely, but too many people see them as a way to spending crazy, buying things they really can't afford, just because they want it NOW! There are ways to live comfortably without credit cards, people just aren't willing to make the effort.

Answer 4

My son never uses credit cards. He's just saved up enough money-in cash-to put a down payment on his first home. Most of our family has lived this way. It was the way our parents did things and the way it works for us too. There really are a lot of people out there who do the same thing. They're probably too busy to make much noise.

Answer 5

No credit cards here and absolutely no charge accounts. If I cant pay cash for an item I don't buy it until I can save the money. My car was purchased at auction and it was a great deal, nice car with no mechanical problems. I have only utility bills and have to stretch one paycheck to the next. Don't know how the rest of the world lives under mountains of debt.

Answer 6

I have two credit cards. I don't like using cash and I don't like writing checks. I use credit cards all the time. Mine have very low interest rates. I keep a reasonable balance on them most of the time but completely pay them off occasionally. I pay much, much more than minimum amt. due, every month as early as possible, without fail. It does wonders for your credit score. Credit is essential today, it is just a matter of having the intelligence and control to use your credit wisely.

Answer 7

The sad fact is that if you don't have credit cards, your credit rating will be low. You don't have to use them to accrue a debt, of course, but is still an insane system. The 'reasoning' behind it is that by using a credit card without getting into debt, you show you are probably able to handle bigger loans. I know some people who were refused mortgages and were told to go out and get some store cards, credit cards etc to boost their credit rating.

As for the materialism, it's nasty to behold. My family get a lot of mileage out of freecycle and rarely end up having to buy stuff. We do this mostly to be green, but it still saves a hell of a lot of money.

Answer 8

People of my generation are obsessed with "things" all of my friends (were in our 30s) live on credit cards and hire purchase...they just buy stuff to keep from thinking too much...our culture is all about advertising and they buy into it.
My husband and I dont earn a lot...but by buying furniture and things second hand and shopping for clothes in the sales...we are now able to send our child to a private school.
My friends say they could not afford it....yet they earn more than us....but guess what? They have a brand new leather sofa and all the latest DVDs computers etc....
I'm not looking down on them, but I wish that they would see that things dont make you happy.

Answer 9

You are not wrong in your thinking and the people who use credit for items they could save for are not wrong. My family used credit cards because my husband traveled in his job. He had to be able to get where he had to be without notice or plans. It was easier to get the children what they needed at the beginning of the school year without saving the year before. When events came up you used credit to enjoy life more. Things needed not wanted is the best rule to follow when charging.

Answer 10

I have only one credit card, but its the fact of life, you need credit cards to get what you need in the future. Its called credit! The only way to really build credit is a credit card. I had to have a credit card in order to get the credit I needed to get a new car. Enjoy life without ever buying a house or a new car without a co-signer or cash. But just like everyone else, everyone wants nice things once in a while. My mom used her credit cards to buy me things, becuase she wanted to be able to, even if she couldn't afford it financially, and she did fine, just have to be smart about it. But you have to have it.