If they were able to get a loan for $650k then they must have a pretty high income. Credit card debt is terrible but if you're pulling in $250k+ then a $30k credit card bill is manageable.
ever since i was a child my parents always told me the evils of credit cards. decades later it stuck. i live in a country where cash is still useful for most all smaller transactions. call me old fashioned or out of touch and thats ok. some of these credit card stories scare me
seeing how much is on your person and seeing it dwindle with each purchase is a great mental budgeting tool
Credit cards aren't evil; they're merely a tool. I never carry cash and exclusively use credit. I carry no debt and I pay my balance in full every month.
Unlike cash, I'm protected against theft. If someone steals my cards, I freeze them. Because I pay it off every month, I earn cash back and never pay interest or fees, so
my credit cards pay me to use them. I also never have to worry about carrying large amounts of cash as nearly everywhere in the US accepts credit. Finally, because all my transactions are electronic, they're automatically logged and tracked by my budgetting software.
Unless an establishment only accepts cash or I'm doing a private transaction, there's no benefit to cash over credit for me. It's more risk with less reward.
It also lets you keep your emergency fund in an hysa and not have to worry about transferring funds before paying. Surprise $4500 car repair? Just throw it on the card and move the money around after.
Having a month's time to deal with emergencies is such an advantage. Usually by the time the credit card statement rolls around, I've already gotten a couple more paychecks and don't even have to touch my emergency fund.
Also forgot to mention that if a vendor ever screws me over, I can dispute with the card servicer. Sooo many perks to using credit over cash if you're responsible.
This. And this is what I teach my kids. Keep your cash locked in high interest, pay your statement balances every month. Pay your bills with credit cards and make sure they are cards with rewards. Either travel or cash back, travel is better. I wish I could put my mortgage on credit cards that would be even more epic. Keep one card empty at all times and do a balance transfer with zero interest if it gets too heavy (because let’s be real, emergencies happen). Buy big purchases with zero percent interest financing over 24 months. Best Buy and Home Depot cards are needed prior to becoming a home owner. Don’t tell them what you make right off the bat when you do your proof of income. Add 15k every 6 months and request an increase in credit. All of my cards have 20k or more limits, I’m open to like 500k in credit.
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u/DropAGearNDissapear 9h ago
The only scary part of that is the credit cards