The Recession

Avatar for rollmops2009
iVillage Member
Registered: 02-24-2009
The Recession
96
Tue, 02-23-2010 - 10:03am
Has the recession caused you to change your lifestyle, including the decision to SAH or WOH?

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“Wise men speak because they have something to say; Fools because they have to say something.”

Plato

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iVillage Member
Registered: 08-22-2009
Fri, 03-12-2010 - 6:36pm

It is only a problem is someone carries a balance.

For those that do not pay interest, the interest rate does not matter.

iVillage Member
Registered: 01-15-2006
Fri, 03-12-2010 - 6:41pm
right, the link is all wrong then...statistics are, too.

 

iVillage Member
Registered: 05-10-2009
Fri, 03-12-2010 - 6:43pm
TBH, I didn't even look at the interest rate on the card when I applied for it. I still don't know what it is.
iVillage Member
Registered: 05-10-2009
Fri, 03-12-2010 - 6:44pm
No, the link isn't wrong in total, but the "catch" discusses and the statistics you see don't apply to EVERY card holder.
iVillage Member
Registered: 01-15-2006
Fri, 03-12-2010 - 6:45pm
?? huh ?? of course there's a difference between carrying a balance and not carrying a balance.

 

iVillage Member
Registered: 01-08-2009
Fri, 03-12-2010 - 6:46pm

No, the link is not wrong. Your interpretation of what the link says is wrong. It says that the cost of the card OFTEN can be higher to the user because of higher fees and interest. That may be the case, if you have to pay fees and interest. If you pay off the card every month, you do not have any fees or interest, so it doesn't matter what the fees and interest would be if you didn't.

Sort of like going to a nice restaurant where the food is cheaper than usual because they are known for their nice (overpriced) wine. If you just go for the food and don't drink the wine, it's a good deal. But if you pay for the overpriced wine, all of a sudden the cheaper food isn't such a good deal. The credit card is the food and the wine is the fees and interest.

iVillage Member
Registered: 01-08-2009
Fri, 03-12-2010 - 6:47pm

You are right, no one should carry consumer debt if they have any choice whatsoever. It is stupid.

But it is not stupid to use a credit card in a way that pays you back every month for using it.

iVillage Member
Registered: 01-15-2006
Fri, 03-12-2010 - 6:55pm
you lost me at stupid.

 

iVillage Member
Registered: 01-08-2009
Fri, 03-12-2010 - 6:56pm
You don't think it's stupid to carry consumer debt for no reason?
iVillage Member
Registered: 08-22-2009
Fri, 03-12-2010 - 7:05pm

I never said that there was no difference between carry a balance or not carrying a balance. I said it was only a problem for those that do carry balances.

Credit card user A:

Charges every thing on their credit card. When the bill arrive they pay it off.

Credit Card user B:

Uses a credit card few time a month. When the bill arrives they pay it off.

Credit card user C:

Uses a credit card a few time a year. When the bill arrives they pay it off.

Guess what these three people have in common, none pay any interest for using their credit card.

It does not matter what the interest rate or minimum payment is on a card if the balance is paid off every month. Doesn't matter if that balance is less that $100 or a few thousand dollars.




Edited 3/12/2010 7:08 pm ET by emptynester2009

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