Are you stupid enough to borrow from your credit card company?

delllat · 07-06-2009 08:37PM #1

I have been chatting with a friend whos gotten himself hopelessly into debt on an assortment of credit cards that he has no chance of clearing

hes paying a small amount monthly but hes up to his tits and this is going to continue for the rest of his life as the interest is constantly building

ive talkled to him about transferring balances to lower interest rates and stuff but hes feels like he has no choice but to continue paying them their inflated interest rates

the funny thing is i asked him what he actually bought to amass such debts ON CREDIT and he doesnt really know

does anyone else buy things on credit they cant afford ?

07-06-2009 08:38PM

Yup, used to do it all the time. Young and foolish but what can you do? I've been to Vegas, Moscow, Dubai, all over Europe .. I'm living life.

No question I'm starting to pay for it a bit now though.

trout · 07-06-2009 08:39PM

Your friend is not alone.

galwayrush · 07-06-2009 08:42PM

Simple rule here, if we don't have the cash, we don't use the card.

07-06-2009 08:42PM

Nah, I have a small limit and am happy to leave it there. I'd be worried if I left any balance on it longer than a month.

tech77 · 07-06-2009 08:42PM

trout wrote: »

Your friend is not a loan.

No, but he needs one.

humbert · 07-06-2009 08:48PM

Same as Galwayrush, I don't spend what I don't have(I do spend a fair bit of what I do have though

).

phasers · 07-06-2009 08:51PM

I have a pre pay credit card so that cant happen

The Pontiac · 07-06-2009 08:56PM

I once had three credit cards with loads on em that I counldn't repay. I went to the credit union and got a loan to cover the debts. If OP's friend would qualify for a loan then this is the best option.

I now have only one card with a low limit and pay it off weekly.

TPD · 07-06-2009 08:56PM

I've a debit card, no overdraft here. Cant stand being under the pressure of a debt, so if I cant afford something or cant save for it, I wont buy it.

trout · 07-06-2009 08:58PM

TPD wrote: »

I've a debit card, no overdraft here. Cant stand being under the pressure of a debt, so if I cant afford something or cant save for it, I wont buy it.

Recession-proof thinking right there.

delllat · 07-06-2009 08:59PM

most of the thinngs he bought he cant even rememeber so theyre probably not the kind of things youd want to get into ever increasing debt over

He could have bought it all twice if hed at least chose not to buy things he knew he couldnt afford to bay back within the 30 interest free period

missingtime · 07-06-2009 09:13PM

Stupid is the wrong word.

**** happens, sometimes you need access to quick cash and a credit card provides this.

I'd prefer to owe it to the bank rather than friends or relatives.

dr.bollocko · 07-06-2009 09:16PM

Need I remind you all of the finite nature of our human existance? I'd rather die impoverished having lived than rich after a life of counting the pennies.

Aidric · 07-06-2009 09:17PM

TPD wrote: »

I've a debit card, no overdraft here. Cant stand being under the pressure of a debt, so if I cant afford something or cant save for it, I wont buy it.

Hi Bertie.

bronte · 07-06-2009 09:17PM

I've just gotten into a habit of not spending it if it ain't there to spend. Less stress all round!

Wibbs · 07-06-2009 09:24PM

I have a credit card in my company's name, but not a personal one. I could in a real pinch use it, so it is there for that. I personally see a credit card as a parachute. If the plane is in trouble I'll jump, but I don't see the appeal of parachuting as a sport*

I come from a time where credit was considered a bit shameful in a way. Getting things on the drip. Yep that's fine for a house or a car or student loans, or even a holiday, but for non essentials? Nope. And a helluva lot of stuff is non essential. I see credit cards and easy personal credit itself as a scam(it's the lifeblood of biz but not personal). I liken it to people paying more for a tee shirt that has a manufacturers name on it. You're paying more to advertise their product. They should be paying you. Genius the person who came up with that notion. Credit cards are a similar mad layer of abstraction to my mind.

I was beside a woman at the bar a few weeks back and she was paying for two cocktails wit a credit card. No sorry, if you can't stump up the cash for beer, well then you're living beyond your means and sooner or later you will be screwed. Go home. I don't agree with the excuse or explanation of being paid monthly either. If you're short at the end of the month then again you're living outside your means.

*Daftest metaphor of the day:D

TPD · 07-06-2009 09:26PM

dr.bollocko wrote: »

Need I remind you all of the finite nature of our human existance? I'd rather die impoverished having lived than rich after a life of counting the pennies.

And I'd rather my time on earth be as stress and worry free as possible.

I liked that metaphor Wibbs :P

07-06-2009 09:27PM

missingtime wrote: »

I'd prefer to owe it to the bank rather than friends or relatives.

I'd prefer to owe it to people who don't shaft me on interest payments.
Or even better, not owe it at all.

delllat · 07-06-2009 09:29PM

missingtime wrote: »

Stupid is the wrong word.

**** happens, sometimes you need access to quick cash and a credit card provides this.

I'd prefer to owe it to the bank rather than friends or relatives.

i dont think it is TBH

Its like buying a 2000 product for 4000 and pay it off over 10 years

am i the only one who thinks thats retarded ?

if you cant afford something just dont "buy" it

tman · 07-06-2009 09:30PM

Visa debit card all the way!
Went straight to the credit limit of my card when I first got it 4 years ago, and spent the following year and a half paying it off, felt like crap at the time but at least it was a lesson well learnt.

TheInquisitor · 07-06-2009 09:33PM

I'm 22 and i refuse to even get a credit card. You can buy top up ones if your badly need them. CASH CASH CASH CASH CASH

L1011 · 07-06-2009 09:34PM

I rate tarted for a while, thats close to impossible now so cleared it.

delllat · 07-06-2009 09:36PM

Wibbs wrote: »

I have a credit card in my company's name, but not a personal one. I could in a real pinch use it, so it is there for that. I personally see a credit card as a parachute. If the plane is in trouble I'll jump, but I don't see the appeal of parachuting as a sport*

I come from a time where credit was considered a bit shameful in a way. Getting things on the drip. Yep that's fine for a house or a car or student loans, or even a holiday, but for non essentials? Nope. And a helluva lot of stuff is non essential. I see credit cards and easy personal credit itself as a scam(it's the lifeblood of biz but not personal). I liken it to people paying more for a tee shirt that has a manufacturers name on it. You're paying more to advertise their product. They should be paying you. Genius the person who came up with that notion. Credit cards are a similar mad layer of abstraction to my mind.

I was beside a woman at the bar a few weeks back and she was paying for two cocktails wit a credit card. No sorry, if you can't stump up the cash for beer, well then you're living beyond your means and sooner or later you will be screwed. Go home. I don't agree with the excuse or explanation of being paid monthly either. If you're short at the end of the month then again you're living outside your means.

*Daftest metaphor of the day:D

there are possible reasons where it would be beneficial to buy drinks with a crediti card like some cards offer a % of cash back or vouchers if card is used above certain levels each month so that girl may not have been putting the drinks on credit because she was skint

although i do HATE to be behind someone whos wasting everyones time buying a single pint or a cup of coffee with a credit card

Woden · 07-06-2009 09:43PM

Wibbs wrote: »

I was beside a woman at the bar a few weeks back and she was paying for two cocktails wit a credit card. No sorry, if you can't stump up the cash for beer, well then you're living beyond your means and sooner or later you will be screwed. Go home. I don't agree with the excuse or explanation of being paid monthly either. If you're short at the end of the month then again you're living outside your means.

That doesn't really hold water though. I use my credit card to pay for almost everything and never use cash. I've never paid interest on it and it is often in credit. Its a matter of convienence mostly

Degsy · 07-06-2009 09:43PM

I got a rebate just before christmas,the firsts thing i did was clear my credit card bill(two and a half grand)..if i hadnt done that i'd be fcucked..it was costing 300 a month just in interest.

mickydoomsux · 07-06-2009 09:44PM

delllat wrote: »

am i the only one who thinks thats retarded ?

if you cant afford something just dont "buy" it

I agree with you. Too many people buy stuff that they really don't need using credit cards because they just don't use their heads.

I was raised to believe that if you need to get a loan for anything other than a house then you can't afford what you're trying to buy, so don't buy it.

Simple really.

Wibbs · 07-06-2009 09:47PM

delllat wrote: »

there are possible reasons where it would be beneficial to buy drinks with a crediti card like some cards offer a % of cash back or vouchers if card is used above certain levels each month so that girl may not have been putting the drinks on credit because she was skint

True but in her case she was. She tried the "I'm wearing a short skirt so buy me a drink, but I've no actual interest in you, you freak with ears" angle on me later on. Her skirt wasn't short enough, nor her legs good enough so I demured....

although i do HATE to be behind someone whos wasting everyones time buying a single pint or a cup of coffee with a credit card

God yes. Oh GOD yes. I remember being in the states in the 80's and a lot of shops had a cash only till/line. Good plan I reckon.

Wibbs · 07-06-2009 09:52PM

Woden wrote: »

That doesn't really hold water though. I use my credit card to pay for almost everything and never use cash. I've never paid interest on it and it is often in credit. Its a matter of convienence mostly

It doesn't hold water for you, but clearly you're different and disciplined and rare in my experience. Fair play too. The credit card companies don't like your sort.

Woden · 07-06-2009 09:55PM

Yeah but my point was without the additional information provided by yourself anyone paying with a cc would fall be under your assumption that they shouldn't be using it

dr.bollocko · 07-06-2009 10:04PM

TPD wrote: »

And I'd rather my time on earth be as stress and worry free as possible.

I don't have any major debts. I've put plenty on credit cards to finance travel before and I probably will again. If the debt gets moved to a medium term loan it's manageable to repay without much impact on the lifestyle. It's all about how you handle it. I just want to question this fear of debt people have in this modern economic climate. Some times things are worth more than what you have in liquid assets right now.

Are you stupid enough to borrow from your credit card company?

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