Families go deep into debt to stay in the middle class (party, paycheck)
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You go ahead think that through. I'll stand by that comment. If you're responsible, you make money on credit. If you don't understand that, you don't belong in a conversation about finances or credit. Stick to using jars and envelopes to manage your money.
Sorry, I missed that sharp turn you took. We were discussing the average consumer before, I didn’t realize that you now wanted to discuss only a certain subset of the group. If someone has the wealth or income to cover their credit card bills and wants to play the cash back game, more power to them. They don’t fall under the topic of this thread though. Taken in context, your statement makes more sense. Still not what would be considered responsible behavior for the average consumer, though.
Quote:
Originally Posted by TexasLawyer2000
Leveraging debt is responsible. Failing to pay it back is irresponsible. There's nothing wrong with debt in itself. One day you'll learn to be financially savvy and understand.
Leveraging the right debt is responsible. Leveraging credit card debt when you don’t have the means to pay for what you would otherwise not purchase is idiocy. Again, this topic is about people going into debt in order to purchase things they can’t afford. That isn’t leveraging debt, that’s using other people’s money to buy things they can’t afford and relying on wishful thinking.
Leveraging the right debt is responsible. Leveraging credit card debt when you don’t have the means to pay for what you would otherwise not purchase is idiocy.
Let's not forget the statement that you are questioning: "If you're responsible, you make money on credit.".
I don't see how you compare making money on credit to not having the means to pay for it. That, in itself, sounds like idiocy to me. You're the one who bolded the above statement and responded to it.
Leveraging debt is responsible. Failing to pay it back is irresponsible. There's nothing wrong with debt in itself. One day you'll learn to be financially savvy and understand.
But that is not what this thread is about. Did you read the article the OP posted ?
But that is not what this thread is about. Did you read the article the OP posted ?
Wow. Total reading comprehension fail. You need to actually read the thread as well and follow the conversation.
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Originally Posted by EddieB.Good
People who live on credit and pay their bill are not the issue. If you're responsible, you should be living on credit. It's free money for you.
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Originally Posted by JimRom
That is quite possibly the dumbest statement written about finances that I have ever seen in my life. Living on credit has nothing to do with being responsible. In fact, living on credit is the exact opposite of being responsible.
Quote:
Originally Posted by TexasLawyer2000
Leveraging debt is responsible. Failing to pay it back is irresponsible. There's nothing wrong with debt in itself. One day you'll learn to be financially savvy and understand.
JimRom is suggesting that leveraging credit and paying it back on time is irresponsible. Read the thread.
The American middle class is falling deeper into debt to maintain a middle-class lifestyle
Cars, college, houses and medical care have become steadily more costly, but incomes have been largely stagnant for two decades, despite a recent uptick. Filling the gap between earning and spending is an explosion of finance into nearly every corner of the consumer economy.
Consumer debt, not counting mortgages, has climbed to $4 trillion—higher than it has ever been even after adjusting for inflation.
Inability of too many people to pay debt causes recessions. That day of reckoning may just be around the corner. Trump's tariiffs could backfire, especially if the value of Chinese currency in relation to the dollar goes up, instead of down.
Inability of too many people to pay debt causes recessions. That day of reckoning may just be around the corner. Trump's tariiffs could backfire, especially if the value of Chinese currency in relation to the dollar goes up, instead of down.
Well the Fed just lowered rates..making borrowing that much more easy now.
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