Friday, November 16, 2007

The Truth About Credit Card Debt

Myth: Aren't there positive uses of a credit card? Like rebates and airline miles?
Truth: Responsible use of a credit card does not exist. Credit card debt is a major problem in America.

There is NO positive side to credit card use. You will spend more if you use credit cards. Even by paying the bills on time, you are not beating the system! But most families don't pay on time. The average family today carries $8,000 in credit card debt according to the American Bankers' Association.

credit cards, credit card debtNow let's talk about the rebates. If you were using a credit card at 5%, you would have had to have spent $80,000 to get $4,000 rebates on new cars that lost $6,000 of value when you drove them off the lot. That is not a good deal!

Cash vs. Credit Cards
When you
pay cash, you can "feel" the money leaving you. This is not true with credit cards. Flipping a credit card up on a counter registers nothing emotionally. If you use credit cards instead of cash you will spend 12-18% more. This is money you could have saved.

If you "have to" use plastic, I suggest a debit card. I use them for travel and the occasional convenience of ordering something over the Internet or phone. Other than that, I use cash.

Personal finance is 80% behavior. You need to cut out habits that make you spend more. You do not build wealth with credit cards. Use common sense. When you play with a multi-billion dollar industry and you think you're going to win at their game, you are naive. You cannot beat the credit card companies.

Taken from

Thursday, November 08, 2007

A Remarkable Poem

We The People

We the people
Would rather point a finger
Than lend a helping hand.
We the people
Would rather push
Than hug someone.
We the people
Would rather fight
Than to forgive.
We the people
Would rather make money
Than to make great friends.
We the people
Would rather sleep in
Than attend a church.
We the people
Need to change.

2004 Mark Edward Leslie July 4, 2004