Chuck wrote:

"Matt Whiting" wrote in message
...

Chuck wrote:


"Paul Tomblin" wrote in message
...


In a previous article, "Chuck" said:


"Paul Tomblin" wrote in message
...


Anybody who carries a balance on any credit card is an idiot or a

sucker.


Or isn't as wealthy or well off financially as you are...

Nobody is *forcing* you to buy what you can't currently afford, you

know.

Back before credit cards existed, people actually saved up money ahead

of

time for major purchases, instead of all this "buy now and pay later"
instant gratification stuff.




Ya know... I didn't say that paying the balance off was a bad thing. I

guess

what kinda ticked me off about your post was you said that people were
idiots or suckers for not paying the balance. I merely pointed out that

some

people can't do that.

If I get a new job and have to go to Sears and buy $2,000 worth of

tools, I

will not be able to pay the balance off in one month. But I gotta have

the

tools if I want the job.

That is exactly why any financial advisor worth their salt recommends
that you save an amount equal to 3 - 6 months of expenses as an
"emergency" cash fund. Yes, it takes time to do this and a lot of
self-control, which most Americans no longer have, but that eliminates
the need to ever use a credit card for a situation like this ... or a
transmission failure in your car ... or a leak in your roof, etc.

Rather than save, most people use credit as their emergency fund. And,
as Paul said, that is a sucker play.



And some people like me are financially strapped and do not have the money
to save after the bills are paid. In fact, I was putting $20 a paycheck into
the credit union at work trying to save a little bit and had to stop making
that deposit because I needed that $20 per pay period just to make bills. In
the last 3 years, our health insurance at work has gone up 135% and co-pays,
etc have risen also. I have 3 prescriptions, my wife has 5 and our son has
one. That's around $150 per month or a little more. Both vehicles are paid
off, so no car payments. We rent a house and it is actually about $100 below
the going rate for our area. Electric bills are out the roof. Do I need to
keep going? In otherwords, by me living paycheck to paycheck, and my yearly
raises at 3% if I am lucky that don't even cover cost of living, I am doing
everything that I can to stay afloat and will resort to whatever means I
have to to provide for my wife and son. I wish that you people that make
$100,000 a year, own airplanes, drive Lexus and Mercedes and live in half
million dollar houses could understand...

I truly feel sorry for people in your situation. However, it doesn't
change the mathematics. If you have no excess income to save, where do
you find the extra money to pay the interest on the credit card?

Matt