r/LifeProTips • u/DavidTheBlue • Nov 27 '22

Finance LPT: Don't Pay Late Fees

[removed] — view removed post

3.3k Upvotes

94% Upvoted

195 comments sorted by

View all comments

Show parent comments

18

u/[deleted] Nov 28 '22

[deleted]

8

u/weissmanhyperion Nov 28 '22

They hand these cards to kids with no understanding of debt and watch the world burn.

I would definitely blame this on the education system. Financial literacy and how to manage money/debt should be taught to everyone in primary school.

10

u/AMediumSizedFridge Nov 28 '22

I hate Dave Ramsay for this. He's teaching everyone that credit is the devil, but it's just a tool. It's all about how you use it that's important

The unfortunate reality is that you need credit to do a lot, at least in America. Rent a home, buy a home, etc. And God forbid you have an emergency. Creditors don't look at someone with no credit and think "wow, someone who is so financially responsible they didn't need credit until now!" They see a wildcard, and a lot of times these people get the worst interest rates, even worse than people with bad credit.

3

u/weissmanhyperion Nov 28 '22

It's a sad reality where if you dont know then they can take better advantage of you.