OT: Credit Card Abuse

RiverRat · Post by **RiverRat** » Fri Jan 07, 2005 12:59 pm

What do you guys think about this?

Yesterday was my daughter's 13th birthday. My mother-in-law, who lives considerably beyond her means, gets Katie a big floral bouquet for his birthday, which I think is a little odd anyway, but my big ger question is how the heck she can afford this ... it had to be $75-$100.

So I'm talking to my brother-in-law later and I mention it to him. He says that they are so far in debt that they intend to file for personal bankruptcy later in the year and mom's attitude is "heck, as long as I'm going to file for bankruptcy, I may as well max out all my cards and get as much stuff as I can 'cause once I file, I won't have to pay for any of it".

Isn't this the same thing as stealing? Whether it works out that way in a bankruptcy filing or not, seems to me if you charge something and have no intention of every paying for it knowing there's no chance of it ever being repossessed, that's the same thing as stealing. What do you guys think?

Granatofan · Post by **Granatofan** » Fri Jan 07, 2005 1:02 pm

I know someone (a long ago coworker) who did the same thing and I asked that same question. He said that the law doesn't view it as stealing so neither did he. That's how some poeple think.

Ted

Dave · Post by **Dave** » Fri Jan 07, 2005 1:06 pm

That's very weak, but I fear it is just an example of what's to come in the next year or so. I'm 3 years out of college and already know people I went to school with who have used cash-out refinances on their places to pay off debt a couple times. Ouch, can't do that again after you get to the rock-bottom levels that rates are at right now.

We use our credit cards to buy everything (rewards program, I'm a sucker), but you can bet your ass that we pay them off every month. Using that route though (we have for about 9 months), I can see how easy it is to go beyond our means though (especially this time of year, where we had to dig to pay off all Christmas expenses).

pk500 · Post by **pk500** » Fri Jan 07, 2005 1:55 pm

Bankruptcy has become the biggest crock-of-sh*t financial crutch in America today. It's so easy to declare bankruptcy that it's a joke, which feeds irresponsible, lazy people like your mother-in-law. Sorry, but there's no other explanation for her financial irresponsibility.

But it will come back to bite her in the ass eventually. My wife told me people were astounded when they came to her as a mortgage loan officer and were told they couldn't be helped because they declared bankruptcy recently. The free-ride credit buck stops somewhere.

Still, it's way too easy to declare bankruptcy in lazy America today. I'm proud and happy to say -- thanks to my wife -- the only debts we have are the mortgage for our house and our rental property. And we're on schedule to pay both of those off well ahead of time. Zero credit-card or car payment debt. We save to buy cars with cash instead of using payments and giving the bank thousands of dollars in interest that could stay in our account. Same principle with credit cards -- pay them off in full at the end of each month.

Does it require financial sacrifices? You bet. Impulse purchases are all but a thing of the past. But I'd rather skrimp today and save for our kids' future and our retirement rather than getting by check by check on Social Security as millions of retired Americans do today.

I want for nothing, anyways. Great family, a home, a properly running used car, hobbies, friends, annual vacation and a lot of good sh*t money can't buy.

Take care,
PK

fsquid · Post by **fsquid** » Fri Jan 07, 2005 1:58 pm

this year with the purchase of my first home, the wife and I got caught up in the fever of it all and ran up around a 4k debt on the old credit card. It felt so good to pay that all off with a little bit of my bonus last week. I almost wanted to take a picture of it!