quote:

Originally posted by Krypton I got 2 credit cards and I told myself I would pay the balance every month. That lasted less than a month. I maxed both of them out and defaulted on one of them. I cut them up last year but I'm still paying the higher balance off, but I'm no where close to a $0 balance.

I seriously hope you don't have stocks or any other asset while carrying a balance on credit cards. If so, ask yourself.."If I were completely debt-free, would I borrow money at 20% to buy that stuff?" Cuz that's essentially what you are doing.

quote:

Originally posted by gehzumteufel In the US culture and society, this is flat out dumb. You will never own a house. And owning a car through your own means, will take forever. Credit is great, when used wisely. Use it for massive purchases (ie: buying a car, house, or 20k worth of equipment) but make sure you can pay it off within 3-4 months max. If you can't, then you are doing yourself a disservice. I am currently debt free. I dunno if the one credit card I have is still even open. I haven't used it in like 2-3 years.

My dad buys all of his cars with cash.

Granted he uses loans to buy houses, but other than that he hardly uses his credit. If he does use a credit card he pays off the balance immediatly. His credit score has actually suffered because of this.

I think credit is a good concept. I just do not want to play the game. Its stupid.


*edit*

I am not saying doing this would work for everyone. I am luckily in a position where this is a lot easier for me than a lot of people.

quote:

Originally posted by Capitalizt I seriously hope you don't have stocks or any other asset while carrying a balance on credit cards. If so, ask yourself.."If I were completely debt-free, would I borrow money at 20% to buy stocks?" Cuz that's essentially what you are doing.

Bullocks. I pay myself first before I ever pay those scum bag credit card companies. And yes, I own stock!

quote:

Originally posted by Krypton Bullocks. I pay myself first before I ever pay those scum bag credit card companies. And yes, I own stock!

You aren't paying yourself krypt. You are borrowing money on credit cards to buy that stock. What is your interest rate on the debt? You'll need to earn that much (+ taxes) on your investment just to break even. Not a good deal considering paying down high interest debt gives you a large RISK FREE return.

Last edited by Capitalizt on May-21-2009 at 03:33

quote:

Originally posted by Capitalizt You aren't paying yourself krypt. You are borrowing money on credit cards to buy that stock. What is your interest rate on the debt? You'll need to earn that much (+ taxes) on your investment just to break even. Not a good deal considering paying down high interest debt gives you a large RISK FREE return.

My assets and liabilities are two completely different things. I don't link them together as you do. The debt will eventually be paid off when I start my career.

quote:

Originally posted by Krypton My assets and liabilities are two completely different things. I don't link them together as you do. The debt will eventually be paid off when I start my career.

Put on your logic cap krypt. I know you like stocks but it makes no sense to take on risk when you can get a 20%+ guaranteed return. Assets and liabilities go together man. Think of it in investment terms. We are talking about your personal balance sheet..your book value. Would you invest in a bank stock that borrows money at 25% and loans it out at 10%? Your book value is constantly shrinking unless your gains (minus taxes) exceed the interest rate on your debt.

And of course you need to factor in your time spent researching all these stocks..and the extra time (and $$) wasted on filing complicated tax forms which is another invisible cost. Focus on school, work, and paying down debt. Once you're debt free, then you can start risking money in the market..but it's unwise to finance your investments on a high interest rate.

Last edited by Capitalizt on May-21-2009 at 03:55

quote:

Originally posted by Capitalizt Put on your logic cap krypt. I know you like stocks but it makes no sense to take on risk when you can get a 20%+ guaranteed return. Assets and liabilities go together man. Think of it in investment terms. We are talking about your personal balance sheet..your book value. Would you invest in a bank stock that borrows money at 25% and loans it out at 10%? Your book value is constantly shrinking unless your gains (minus taxes) exceed the interest rate on your debt. And of course you need to factor in your time spent researching all these stocks..and the extra time (and $$) wasted on filing complicated tax forms which is another invisible cost. Focus on school, work, and paying down debt. Once you're debt free, then you can start risking money in the market..but it's unwise to finance your investments on a high interest rate.

I'm not financing my investments...

I am being subsidized at the moment, so I can carry on this debt load. I am still in school. I'm not paying anything off until I start my career.

BUY A SUPER SWEET COMPUTER

AND

a RAP 4 paintball gun ($1000+)

quote:

Originally posted by Joss Weatherby I avoid credit at all costs... I have no credit file. I plan on purchasing everything with cash.

This is Fail. Credit is everything...well used to be

you will help the economy by spending your money.

you have the "hello kitty" card don't you.

fox news said hello kitty was the modern day joe camel because kids see it on a credit card and want to use the credit card.