On Sep 28, 5:40*pm, brooklyn1 > wrote:
> On Mon, 28 Sep 2009 19:08:02 -0500, Michel Boucher
>
>
>
> > wrote:
> >"Kswck" > wrote in
> :
>
> >> When I first heard about debit cards, I thought they were stupid. Why
> >> would anyone use one when you can get a 20 day grace period before
> >> paying with a credit card?
>
> >> Then I learned that a debit card is great for those who have credit
> >> card problems and want to limit spending to only that which they can
> >> afford at the time-and they don't figure, 'well I can always pay it
> >> later' only to find that they cannot.
>
> >I have two debit cards and two credit cards, and I use debit whenever I
> >can. *I also have two lines of credit, connected to both debit cards, which
> >I clear off every month, unless I'm carrying a large amount, like this
> >month's car repair which I put on a credit card and will transfer to my
> >line of credit. *It will take a while to pay off.
>
> >A debit card is cash. *And you rarely need to carry much cash with a debit
> >card.
>
> If only folks paid themselves first... they'd never need a "line of
> credit"... you say line of credit like you are some kind of wealthy
> banker... didn't anyone ever teach you that paying interest on mundane
> items like car repairs is plain stupid. *Paying interest is almost as
> stupid as paying rent for an abode, but not quite so low IQ as paying
> rent/leasing for transportation.

Lots of people don't have enough income to pay themselves first. What
is somebody to do when the paycheck doesn't cover everything? That's
how a lot of bad debt starts. There wasn't enough income to put money
into savings. And then an emergency comes along. My 22 year old nephew
was sure he would never get into debt when he got his first job at age
18. He actually saved up quite well, and had $3,000 in the bank before
he lost his job (he complained about health code violations). He spent
the money getting by before the next job, and started saving again. He
wanted to be a truck driver, so he found a truck driving school that
cost $3,500. They train you, hire you, then take a payment from each
paycheck. Even with that payment, he was making good money. But he was
involved in an accident after 5 months and let go. So, there he was
with over $2,000 in debt and no job. And then his car broke. So, he
used his line of credit to get the car fixed. Got another trucking
job, and paid his bills and started saving again. Got laid off about 5
months ago.

Unemployment is not enough to cover his rent and utilities ($1200 a
month), let alone his line of credit payment or his schooling payment.
And his car had another problem, which required an immediate repair to
keep the engine from coming loose.

So, his mistakes were a trucking accident, choosing to expensive an
apartment, and buying the wrong car. And then just bad luck at being
the newest driver when the trucking company cut back. So, now he's got
over $6,000 in debt. He has applied at a ton of jobs, but hasn't had
any luck yet. He has no way to pay himself now or pay anything off in
full. He's not goofing, just can't get a good paying job.