Forget living on credit - credit cards are a bigger scam than the average ICO

in finance •  7 years ago  (edited)

Credit cards are a bigger scam than the average ICO

A lot of people seem worried that the millennial generation will not be able to live off credit like previous generations. While I'm not about to give any financial advice I'm going to express my opinion on credit.

Credit cards are debt cards

Credit is a scam to trick people into going into debt. Once you receive credit then you spend money you don't have to help banks put you in debt to them to pay them back with money you might never receive. It's essentially you betting that you'll have the job security to pay them back and in the current market it makes little sense in my opinion to have a credit card or use credit at all. If one cannot buy the property with cash or without a loan then it's likely a debt trap, scam, etc.

  • There are many legitimate scams and legitimate traps. Credit cards in my opinion are as much of a scam as ICOs.
  • It's about acquiring assets not credit (or debt).
  • It's about minimizing liabilities while maximizing assets.
  • The less you owe to banks and financial institutions the better off your financial health is.

Thoughts?

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You know what sickens me most about banks and credit card companies? The fact that they are using other people's money to get everyone into debt.

Do you see how much of a scam this is?

The bank is loaning out other people's money, charges heinous annual interest, and then the bank provides almost nothing in return to the depositors. And add insult to injury, the bank levies outages fees on the depositors.

Down with banksterism!

@techwizardry well said, well said

I use a credit card that gives me enough points to fly anywhere in the world once per year. I pay off my balance every month so I never pay interest. In this case, I think they are useful.


If money is the root of all evil
A credit card is an all-access pass to hell

Indeed. I've never paid a cent of interest, and have leveraged points from all my various cards to gain a few hundred dollars in rewards this year. If you are dilligent and don't abuse them, you can make it work for you.

Admittedly, I am also giving them access to my purchase history, but hey.

The "Love" of money is the root of all evil ... so it is said.

I have never heard/read it that way ... But Google shows that you are correct. I've learned something new today. :-) Timothy 6:10

As a warning, some companies are beginning to charge by the day, instead of the month.

Do you have any examples?

Credit cards are evil - I haven’t had one for about 10 years now. In general I would say all debt is evil but it sure would be hard to save up enough to buy a house with cash...

Houses are way over priced because people aren't buying them with "real money". Imagine if people could get loans to buy cryptocurrency? Imagine the prices and size of the bubble.

I agree - plus the fact that the mortgage industry is underwritten by the government. It’s the same thing with healthcare and higher ed - any time the government guarantees the loan prices will inflate.

If you've ever wanted to know what it's like to sell your soul and never get it back, just open up a credit card.

@dana-edwards I agree that Credit is a Trap in many ways and I do have credit and I use it to acquire assets, but I do so in a very cautious way and pay back the debt ASAP.

One interesting use of credit cards which you may find funny is when Ethereum was first launching it's ICO I remember hearing rumors about some of the founders maxing out their credit cards. Would it be shocking if some of them did that to buy mining rigs or to buy into the ICO itself? If they used credit to get assets like Ethers then who could blame them looking back?

Most people use credit to buy junk they don't need, or to buy a house, or to buy a car, none of these are assets and most don't appreciate in value. Houses get taxed, cost money to maintain, along with cars.

Just beware of credit cards, use debit cards instead of. In Czech Republic credit cards are often used by scam lending companies. Don't use them!

right said.....its become a big issue now days

hahahaha
I totally agree with your statement. credit card in my opinion is colonial era modern

Upvoted and also resteemed :)

Hola no solo salud financiera, salud mental y tranquilidad, el tener una deuda genera un estrés enorme.

Agreed. That's why credit card companies make the monthly minimum payment so low. They want to hook you into a life of debt and keep you there. If you just paid the minimum amount, you would never pay off the card, and that's precisely what they want. It creates a constant income stream for those companies. And when you add up all of your interest payments, you realize that you paid far more for things in the long run.

There are few things in life you should go into debt for: house and car. Basically, you're investing in something that will give you more value (a house that appreciates in value, or a car that allows you to travel to work to make money).

Instead, use a credit card that give rewards points or cash back. Just use it for things you must buy and which fall in your monthly budget: groceries, utility bills, gasoline for the car. At the end of the month, pay the balance in full so you don't have to pay interest.

Debit cards should be avoided, because they don't carry the same protections against identity theft that credit cards do. The last thing you want is for some criminal to clean out your bank accounts.

  ·  7 years ago (edited)

The only advantage of credit card is you can cancel transaction in case of steal that's all

I need help bro.help me please

I had a credit card once many years ago and spent so much time just paying off the interest. So I vowed to never again have one. Although credit cards can be a bad thing and the banks just want you to be in debt, people have to take responsibility for their own actions. People choose to get a card and use it, nobody is forcing them. I don't have one anymore and nobody is making me get one.