Comments on: Ten Big Mistakes #3: Lifestyle Funded by Credit Cards

By: cash queen

cash queen — Tue, 14 Sep 2010 03:58:30 +0000

I really love this post because of its honesty. He really painted a clear picture on how he got himself into huge credit card debt. You see this simple “nothing unmanageable” attitude is the main culprit why people sink themselves into credit card debt. And worst is when they procrastinate on their credit card payments while they continue swiping. And indeed beating yourself up for every mistake without taking active measure to resolve the problem will only depress you. And nothing will happen too if you only plan all these lovely solutions but not put them into action. You’re certainly not doing anything to save yourself cash fast.

By: the Tropes

the Tropes — Tue, 27 Jul 2010 18:15:12 +0000

Luckily, this is one mistake I’ve never made. I’m 29 years old, and have one credit card. I don’t think I’ve ever paid interest on it. I pay that sucker off in full every time.

By: penelope

penelope — Sun, 25 Jul 2010 19:00:41 +0000

trent, i’m in a similar situation. i came out of college with some debt and over the last decade, that debt has accumulated to a peak of $40,000. i have a solid job that pays $70,000/year, but with my credit card debt and day to day bills i’m having trouble footing a grocery bill these days. moreover, i recently entered into a serious relationship that i believe could lead to marriage. i’m too afraid to tell him about my debt and not even sure where to begin to go about dealing with my own situation. i realize i am to blame for this whole debacle but would appreciate any insight you have to share.

By: novatedlease calculator

novatedlease calculator — Fri, 23 Jul 2010 23:58:12 +0000

It is always a trap to go on shopping with credit card on the side because of tendency to engage on impulse purchases. You have to be more disciplined so as to gain self control over your shopping habit. Setting personal limitations can guard you from such kind of unneeded buying.

By: MoneyGreenLife

MoneyGreenLife — Fri, 23 Jul 2010 16:51:38 +0000

yeah, i never use credit card if i know i won’t be able to pay it off during when the bill arrives. I have never carried a balance and I never plan to. the interest rates so so ridiculously high that it’s really not worth it.

By: Mary W

Mary W — Thu, 22 Jul 2010 23:21:21 +0000

Jenna – CCs and students have been going on much longer than that. I got my 1st CC standing in line at college registration in the early 1970s. $150. limit though, lol. Even then you couldn’t get in too much trouble with that limit although you could buy 4 tires for a compact car.

By: Stephan

Stephan — Thu, 22 Jul 2010 21:59:39 +0000

good tips, but selling old dvd’s and videogames and books will do nothing. i sold 2 textbooks back at school for 2$ each and i rarely get more than 5$ for a videogame

By: Sandy L

Sandy L — Thu, 22 Jul 2010 20:46:57 +0000

#20 wow..I hope not again. 2 kids is a handful.

I’ve had 2 mortgages (one that is paid off and another that is not). My mom lives in one of the homes. Looking at another house meant I would have to refinance something that we just spent a decade paying off. I think the feeling I had was where the term “gut reaction” must come from.

My mom has never had debt, so it really was a leap for me to embark into the world of credit.
I wrote an article about it if you care to look.

By: Stacy

Stacy — Thu, 22 Jul 2010 20:25:25 +0000

I love this post. This is where I am now. I buy stuff and then realize it all came adding up. Credit cards are like weight, they go on so easily but are so hard to get rid of. I need to pay off my debts, but it is very hard to get comfortable not having for awhile and cutting back in order to make a dent in the debt.

By: Amanda

Amanda — Thu, 22 Jul 2010 19:54:14 +0000

#20 LOL

By: soultravelers3

soultravelers3 — Thu, 22 Jul 2010 19:53:31 +0000

“The solution is simple: never, ever put a balance on a credit card that you can’t already afford to pay at the end of the month”

That’s it in a nutshell. I only wish more Americans would do this and that we’d all educate our children about this, starting at a very early age.

By: SLCCOM

SLCCOM — Thu, 22 Jul 2010 18:08:01 +0000

Sandy L, Getting physically ill at the thought of getting a mortgage is pretty extreme. That will keep you from using a mortgage to leverage your money into (eventually) paid-for housing. Rents will always go up, and if you let that kind of extreme reaction keep you renting for your whole life it will cost you a LOT of money.

Are you sure you aren’t pregnant instead?

By: Amanda

Amanda — Thu, 22 Jul 2010 17:56:21 +0000

Sandy, I agree with you. You’re not crazy! I’m working hard to pay off my mortgage, something probably 95% of American’s don’t do let alone think about. However, sometimes I feel there is a purpose to mortgages. If we get a duplex to take care of my MIL for instance. But I wish I had cash to pay it off!!

Johanna, why are you always telling people they think it’s morally wrong to have debt? I’m an accountant I just flat out feel it’s wrong to have debt. There is no moral issue involved.

Tracy, I don’t think anyone here is talking about a credit card you pay off every month. I have $1000-2000 on my card at all times. But I pay it off every month!!!

By: Milt

Milt — Thu, 22 Jul 2010 16:53:11 +0000

I love it how people comment about what we should do when they finish reading insightful articles – “you should only pay with cash”. Well, yeah! of course, we should only pay with cash. That would have solved all our problems. I think the point he is making, which others have commented on, is it doesn’t take much to get knee deep in consumer credit card debt. So here’s how it happens and beware. He didn’t go out and buy a $20K motorcycle on credit. It happens, over time with poor money management, unplanned emergencies, stresses of life etc that cause us to buy thing we can’t afford and dont need, and to spend more than we have in the bank. I’m sure there are countless examples of this situation. I’m still in the process of reversing this and YES, for the last three years I have paid this debt down only paid with cash. Great article! Thanks for sharing. It makes us realize others are humans.

By: Modern Day Serf

Modern Day Serf — Thu, 22 Jul 2010 16:24:55 +0000

One of my big concerns with debt is that it changes every decision I make. When paying down debt is at the front of your mind, every other decision is made under its influence. Talk about a recipe for a difficult life. That said, not using CCs and/or paying them down can be nearly impossible for many.

By: Jenna

Jenna — Thu, 22 Jul 2010 16:08:48 +0000

I agree w/ the “unmanagable” comments being from that perspective of time b/c I went through the exact same beliefs at that exact same stage of life. I believe those of in our mid/early 30′s were the first cohort to be solicited by cc companies on school campus. Started school w/ no knowledge of personal finance (mom is bad w/$)and high school doesn’t teach anything on it. So yeah, at that age if the bank believed I could “manage” the debt, I did too. It didn’t help that I never actually figured out how long it would take to pay stuff off..just looked at the amount due. Hard lessons to learn, I am thankful I have found my way. Thanks Trent for your help in that :)

By: Gal @ Equally Happy

Gal @ Equally Happy — Thu, 22 Jul 2010 15:43:50 +0000

I would go a step further and say that financing any depreciating assets is a bad idea. Actually, with the possible exception of loans for school, I’m starting to think that any debt is bad.

By: Reasonable

Reasonable — Thu, 22 Jul 2010 15:37:13 +0000

I know a couple who financed a household’s worth of furniture through an IKEA credit card. They claimed that the interest rate was too amazing to pass up! The temptations are out there, some people just can’t help themselves.

By: Tracy

Tracy — Thu, 22 Jul 2010 15:01:18 +0000

@Johanna – I second that. Debt isn’t a good idea, but it doesn’t make you a bad person.

I like my CCs – I generally have a balance of between 500-1k at any one time and pay them off the balance every month so I never get charged interest, but it’s an easy way to track specific kinds of spending habits.

Plus the protection plans (lost/damaged/disputed items) that most CCs offer make me more comfortable than paying with a check.

And between various rewards, I make more off of them (if only SLIGHT amounts) than they do off of me.

By: Melody

Melody — Thu, 22 Jul 2010 13:05:22 +0000

My husband and I were both laid off from our jobs right before our wedding. We had a very inexpensive wedding but put the whole honeymoon on our credit cards. It took us years to pay that off.