If you want to know what’s wrong with people’s personal finances, just observe those who are willing to borrow money in order to borrow more money! One example is using a credit card you can’t pay off in full each month, for a downpayment on a car. Since the limit for credit card use for buying at the car dealership is usually $3,000, and given most downpayments on vehicles range from $0 to $3,000 to buy or lease, using the credit card is a tantalizing proposition.
Forget the fact that these car buyers don’t make 10X the value of the car in annual salary. They can’t even pay cash for the car or come up with even 10% of the value of the car as a downpayment! Look, I know more than anyone how alluring it is to buy a nice car. I used to be a car addict with 7 different cars in as many years. It’s just irresponsibile of consumers to use their credit card for a downpayment when they don’t have a healthy savings account balance to match the entire value of the car before purchase.