Posted on 05/21/2016 11:10:01 AM PDT by MarvinStinson
It does not make any sense to me as well.
I guess people do not read the fine print.
It allows people to maintain the illusion that they are “keeping up” while they continually kick the can further and further down the road. You’d be shocked at how many people just accept the crushing debt as part of life and assume they will never be able to retire; the intend to die with the debt...
Back in the day we would regard that as scamming the system. Debt was something to be paid off. It's a whole new world.
“Scamming the system” is no longer stigmatized; it is an ingrained part of the culture that replaced the WASP culture that built this country (and is key to dismantling that culture that had been unique around the globe).
Disability, welfare/food stamp, hate crime hoaxes - all part of the “new normal”.
I have no issue with people who default on mortgages and walk away from the homes (though I personally have never done so); the fact is that the home was collateral for the loan for a reason, and should satisfy the obligation (and if it doesn’t, the borrower is legally on the hook for the balance).
There was a house like that near where I live. There was a lot of interest in the house, but the bank couldn't just sell it when the owner defaulted. First, the lender had to get the person out (about a year). Then they had to finalize taking over the house. Then they had to bring in cleaning crews and repair crews. Good news....the house sold quickly after all that. But if you live near one of these disasters, it's a cancer on the neighborhood and on resale values.
Definitely; I meant the borrower leaves the property when defaulting (voluntarily turning it over to the lender without any schemes) so they can move on with their lives.
The scenario you describe would probably tempt locals to burn the place to the ground; a fresh start...
That’s why we use American Express and even though the Gold Card we have you have the option to pay in full or a minimum charge we always pay in full. Back in the day when I was in charge of the household finances, I would carry balances on our credit cards. When Hub retired, he took over and paid all of them off. Interest as high as 26% or higher would drive him nuts. We banked at Wells Fargo for years. Our investments were there and we weren’t charged a service charge. We moved our investments and they were going to charge us 30 bucks a month service charge.....I plead ignorance, asked them to forgive the 30 bucks, they said they would and I ran down to the bank as fast as I could and closed the account. With the high interest they were charging and using our money for their own purposes I said screw them and ended it!
This is why there hasn’t been more public reaction to Planned Parenthood baby butchering, gay marriage, and the trans-gender restroom policy. They’re too distracted and harried. People are so busy trying to stay above water financially, they have neither the spare time nor the energy to take action against them.
“while credit card balances may be at an all time high, that is not necessarily a bad thing. I purchase almost everything on a credit card and write one or two checks per month. I buy lots of stuff at one or two merchants and from on line vendors. it is easier to buy on the plastic than to fool with cash or manually write checks.”
I do the same thing - it’s easier and the 2-3% cashback I get is my best investment ;(
But by paying the credit cards off each month, the credit industry puts us in a different category than those that carry a balance. We also don’t get our credit dinged for it, but actually get a better rating for it.
No, it isn’t.
My wife and I put pretty much everything on our cards each month... gas, food, shopping, meals, medical, etc. It's easier these days than having cash.
We almost always have a balance, but none of it is debt... we pay it to zero every billing cycle. Each year or so we get a couple of free plane tickets out of the points.
There's no risk in using cards in this fashion.
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