Financial Challenges Support Group
This community is for people who are struggling to meet financial obligations of any kind. Financial challenges include everything from the day-to-day challenges of making ends meet to managing credit card debt to bankruptcy. Get support from others who are going through similar obstacles on the road back to financial stability.
On another thread I mentioned that some debts have no value. And after posting that, I realized there is some debt that has value.
Th easiest example would be a mo9rtgage. It is a debt that in the long run could help a person make money... it can be considered an investment.
Debts with no value to me is credit card debt. I use credit cards but I have not paid a penny in interest in over five years. Think about it. If you buy a TV, or a stereo, or something else with a credit card and don't pay it off in full, you have no value on the item.
An example is a computer. As soon as you walk out of the store, its value decreases. If you purchased it with a CC and carried the balance - then the computer has no value because the CC has stole it.
Why do you think some store offer "one year same as cash"? They know that the product has no sale value after that year.
I used a CC three times this week. I got my airplane ticket, I got a hotel room, and I rented a car. I couldn't do any of those without a CC but if I don't pay it in full when the bill comes then that trip to England will cost more and my purchase would have lost value.
In my opinion, the worst thing for a person in debt to have is a credit card, because it takes away the value of money...
Th easiest example would be a mo9rtgage. It is a debt that in the long run could help a person make money... it can be considered an investment.
Debts with no value to me is credit card debt. I use credit cards but I have not paid a penny in interest in over five years. Think about it. If you buy a TV, or a stereo, or something else with a credit card and don't pay it off in full, you have no value on the item.
An example is a computer. As soon as you walk out of the store, its value decreases. If you purchased it with a CC and carried the balance - then the computer has no value because the CC has stole it.
Why do you think some store offer "one year same as cash"? They know that the product has no sale value after that year.
I used a CC three times this week. I got my airplane ticket, I got a hotel room, and I rented a car. I couldn't do any of those without a CC but if I don't pay it in full when the bill comes then that trip to England will cost more and my purchase would have lost value.
In my opinion, the worst thing for a person in debt to have is a credit card, because it takes away the value of money...
I don't really have any debt with value that can think of. Wish I did or maybe I am overlooking one that i'm not aware of.
Thankfully, because my bank debit card is a Visa, it qualifies for a credit card in case I need to get a car rental or secure a motel room.etc.etc.etc.
You have it right though, if you use it a credit card, pay it off in full every month. If you don't you'll end up losing money very fast and find it very hard to ever pay it off...