Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

To: PUGACHEV

Is that because they have such high credit limits?


11 posted on 01/11/2024 11:19:56 AM PST by Ken H (Trump 2024)
[ Post Reply | Private Reply | To 10 | View Replies ]


To: Ken H

I can pay off one credit card with another and in the meantime fill out requests for more credit cards. It’s called a revolving credit strategy. Everybody gets paid but I have a bad feeling someday somebody’s going to take in the shorts.


13 posted on 01/11/2024 11:35:13 AM PST by BipolarBob (My investment choice for 2024 is pre-ban menthol cigarettes. )
[ Post Reply | Private Reply | To 11 | View Replies ]

To: Ken H
It could be.

Generally, a consumer's slide into insolvency occurs in several stages. First, the card holder reaches a point where they cannot pay their monthly expenses make the minimum payments on the credit cards from their wages. Next, they begin using their credit cards to purchase necessities, like food, clothing, medical care, and use their wages to make the minimum payments on their cards. Their debt increases as they are adding more debt to their cards and, eventually, they reach a point where their wages can no longer cover even the minimum payments. The solution is often then to get more credit cards and take cash advances to make the minimum payment of the older cards. Ironically, this is sometimes easy, since they are current on many accounts, they have better credit than ever. Finally, the whole debt pyramid collapses, either from the clerical burden of sending out so many payments or the psychological stress of owing such a staggering amount of consumer debt.

15 posted on 01/11/2024 11:43:51 AM PST by PUGACHEV
[ Post Reply | Private Reply | To 11 | View Replies ]

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson