The answer depends on if your name is Saddam Hussein, although proponents would say no proof was ever found! You hear so many stories of consumers up to their eyeballs in credit card debt, and I’m just wondering WHY? Credit card debt is the most expensive debt out there, second only to usurious rates of loan sharks.
Perhaps the reason why is because credit cards are ubiquitous. According to the US Census Bureau, there were 173 million credit cardholders in the US in 2006, using 1.5 billion credit cards? That’s right, the ratio is almost 10 credit cards to every one user, with transaction volumes of over $2 trillion a year! No wonder the US consumer gets in trouble, and why credit cards are such big business!
My view on credit cards is quite simple: Use credit cards only to your advantage, and never let them take advantage of you! Whenever you see your credit card misbehaving, you should think to yourself “Bad boy! Bad, BAD!” I think my wife tells me this sometimes, but I try and tune it out.
Joel is hosting a $500 American Express giveaway, and gosh darnit, I’m entering to give myself a chance to win. In “You’re Rejected! How I Use Rejection To Motivate Me Every Single Day,” we discuss how success is a numbers game. The more you put yourself out there, the higher the chance you have to succeed. Here’s my attempt to win and use the proceeds to buy toys and clothing for underprivileged children this winter in San Francisco. The program is called “Toys 4 Tots.”
TWO MISSILES IN MY WALLET
What is this blasphemy you say? One of our main tenets is to observe what people DO with their money, and not what they preach. The public clearly loves Bank of America and Wall Street again because how else would Bank of America be able to raise $19 billion from us, to pay us back?
I’m pleased to bring you a guest post by faithful reader and commenter, Larry Ludwig (bio below). He writes a thought provoking piece about challenging the norm of becoming debt free. You’ll be smarter after reading this, guaranteed! Enjoy, and as always, feel free to debate away! Rgds, Financial Samurai