Chuck wrote:

"Matt Whiting" wrote in message
...

Chuck wrote:


"Paul Tomblin" wrote in message
...


In a previous article, "RS" said:


If you have an AOPA/MBNA credit card then you should check the APR on

your


last statements. MBNA has been raising the APR on AOPA cardholders,

even

if


you pay on time.

Anybody who carries a balance on any credit card is an idiot or a

sucker.


snip

Or isn't as wealthy or well off financially as you are...

Just the opposite. Someone who is wealthy could afford to carry a
balance, it is folks who aren't who shouldn't be. I'm with Paul, I've
never paid a cent of interest on a credit card in nearly 20 years now.
People who carry credit card balances, for anything other than a real
emergency, are suckers as he said. And people who are smart, will save
up an emergency fund so that even emergencies don't require carrying a
credit card balance.




Maybe I am in the wrong newsgroup to be discussing this. I would imagine
that most people in this newsgroup make damn good money and can afford to
have a nice chunk of change in the bank.

Unfortunately, I am not in that situation.

Actually, it has little to do with how much you make, at least once
above a truly subsistence income level, which varies by locale. Someone
below this level, truly has no options, but running up credit cards
doesn't help. They need to seek help from a charitable agency, etc.
until they can restore sufficient income to live on.

The real issue in 95% of situations, is that spending is simply out of
line with income. I've taught financial management seminars in my
church and studied this topic for about 20 years. Admittedly, their are
people who simply don't have enough income to live on, but that is
really a fairly small percentage of the population. In almost all
cases, spending can be adjusted to live within one's means and even save
money, however small amount that may be at first. Living on credit
means you are paying money for interest that gives you no value in the
long run. Over the course of your lifetime, you are even poorer for it.
That is a simple fact.


Luckily, we don't use credit cards other than Sears, so we don't worry much
about interest on credit cards.

Smart move.


Matt