- Personal Finance»
- Managing Credit Cards & Payment Options
Why do people invest when they have credit card debt?
Why invest when you have credit card debt?
Why are some people blinded by the habit of credit card debt? They buy things they can't afford and for some unknown reason they don't seem to be bothered by the fact that over time, they are going to be paying double or triple for everything they buy. On top of this they don't see the obvious logic that "paying off this HORRIBLE bad debt" of a credit card should be the first thing they pay off because when you consider the criminal interest rates these credit card companies charge you should realize that you will never be able to earn as high as a 30% return in the stock market, with the possible exception of the year 1999 when the dot com disaster was really taking off.
I have never understood how the Federal Government could allow credit card companies to charge individuals as much as 30% interest on a credit card. The Mafia probably charges around this amount to start but they are criminals. Lives have been ruined, people have killed themselves and many divorces have happened over money mismanagement starting with crushing credit card debt. I always pay off my credit cards 100% day 1 and I have never paid any interest or fines to any credit card company. On the very rare occasions where I have missed a payment by mistake, I get the credit card company to take off the penalty charges immediately on the threat of me immediately cancelling the card. All the times I have done this I have been successful on getting the late fee penalty removed. What gets me the most is that these companies tack on late penalties and other fines, when they are already ripping people off with obscene interest rate charges.
Maybe one day this abusive business will be regulated, but we are a long way from those days.