Living Without Credit
Picture this: I’m 18, going to college, living 3,000 miles away from home. I stop in at a music store and fiddle around with one of the keyboards there. It’s nice. I strike up a conversation with one of the salespeople. He’s nice. He asks if I’d like to buy the keyboard I’m playing. I tell him I couldn’t possibly, since it’s a good $2000 out of my range. He introduces me to store credit. A couple hours later, I’m setting up this glorious keyboard in my dorm room.
When I went home for winter break, I took the keyboard with me. And almost got the whipping of my life when my dad found out what I’d done: over $100 a month for 24 months — and me a college student without a job. He made me put an ad in the paper, and I was lucky enough to sell the keyboard for about what I still owed on it.
You’d think I’d have learned my lesson then, but you’d be wrong. A few years later, I was planning a year abroad, just out of college. For emergency use, I got a secured credit card, one of those deals where you put $200 in an account and get a $300 credit limit.
That wasn’t a bad move, really — during my year in Europe, it gave me a great deal of security, and I had arranged with my mother to make the $10 minimum payments until I got back. And when I got back I paid it off.
Problem is, I didn’t cancel it once I’d paid it off, and pretty soon started getting more offers for “better” credit cards. $1000 limit. $2500 limit. Gold card. Platinum card. I was living in New York by then and traveling a lot and making pretty good money and before I knew it I had racked up $20,000 in credit card debt.
Then I got laid off. And suddenly the $500 a month I was paying in minimum payments wasn’t feasible. I fell behind. Then I fell really behind. Accounts were canceled, and charged off, and sent to collection agencies. It was a mess.
I’ve spent years dealing with that mess, and to be honest I’m still working on it. I don’t have an advice to offer on debt recovery — it’s a slow, painful, messy process, and frankly I’m not that good at it. One thing I have become good at since my credit score plummeted is living without credit.
It seems impossible, in this online era with cash becoming rarer and rarer, but it’s not impossible. In fact, there are a lot of good reasons to live without credit:
- It forces you to live within your means. When I had charge cards, I could always rationalize a big purchase. “$400? That’s only $12 a month!” Twelve dollars doesn’t seem like a lot of money, does it? Or else, I’d tell myself I’d pay it off next month — and next month, there was always some pressing cost that kept me from paying off my balance. Without credit, I simply can’t do that — there’s nothing to spend when my bank account balance reaches zero. There’s no way to push costs into the future — I can only spend what I have, when I have it.
- Things cost what they cost. That $400 purchase I just mentioned? Taking into account interest and annual fees, it could easily cost $1000, $2000, or even more, making only minimum monthly payments. These costs get buried in the sum total of charges — you pay off a little and charge a little more, pay off a little and charge a little more, and pretty soon you have no idea what you’re paying for or how much you’re paying for it. Without credit, I walk in to the store, pay $400 cash, and that’s it: $400, period. Or, more often, I don’t pay $400, because I can’t afford it.
- It forces you to discipline your spending. When you have $10,000 in available credit, it’s easy to get carried away. Living without credit means weighing every purchase, every expenditure, against your available cash. $400 seems like a lot more when it comes out of my monthly paycheck than when it comes out of a revolving line of credit with thousands of dollars to go before I max out. If there’s something I want, I have to work for it — either by finding a way to offset the expense or by saving up over time until I can afford it. Either way, impulse spending becomes impossible.
- You can’t default on cash. Cash doesn’t call you at work, send threatening letters, or track you down through your references. You pay and that’s it.
My biggest regret is that I didn’t realize all this at the time, and that I didn’t take steps to live without credit when it would have been a choice, rather than a forced exile. But I wouldn’t go back; if I somehow woke up with perfect credit tomorrow, I’d still keep to my credit-free lifestyle, for the reasons listed above.
There are some inconveniences, of course. If you want to buy a house someday, you’ll probably want to have some credit history, although records of on-time utility payments and rent payments are often adequate (though who knows what the mortgage lending field will look like by the time the current meltdown works itself out?) Likewise, buying a car can be tricky.
But that’s about it. Between my debit card and my PayPal account, I have no problems ordering online — PayPal even offers virtual credit cards for online ordering. Likewise, you can almost always use a debit card to make travel reservations or for rentals (sometimes they charge a deposit to your account which is then charged back when you pay the final bill, so you need to be able to cover both the deposit and the payment).
It’s been six years since I made my last charge to a revolving account, and to this day I don’t miss it. I’ve found myself running short a couple of times, but to be honest, tightening my belt for a week or two doesn’t seem so bad next to the prospect of spending 20 years paying off the balance on a credit card. And while I’m still getting my house in order today, in ten years I’ll be in much better shape than I would be if I’d never screwed up and still held a pocket full of plastic.
WRITER'S BIOGRAPHY
Dustin Wax
Dustin M. Wax is the project manager at Stepcase Lifehack. He is also the creator of The Writer's Technology Companion, a site devoted to the tools of the writing trade. When he's not writing, he teaches anthropology and gender studies in Las Vegas, NV. He is the author of Don't Be Stupid: A Guide to Learning, Studying, and Succeeding at College.
Follow him on Twitter: @dwax.
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Comments
Jan says on November 16th, 2007 at 10:51 am
Good for you!!! I talk to people weekly who believe you cannot live without a credit card; who won’t admit that they spend more when they use a credit card.
In my area of the world the economy is awful. They are struggling to make the cc payments and falling behind on the mortgage.
Warren Buffet tells young people to stay away from credit cards. Dave Ramsey has a huge machine that tells people to live on less than they make, cut up the credit cards and stay out of debt.
I cut up my cards 3 years ago. I haven’t regretted even once.
Everett says on November 16th, 2007 at 11:53 am
This is one of the more inspiring articles I’ve seen recently, because it’s true-to-life, as opposed to just spouting theoretical practices. Hopefully there will be more folks who, like you said, make the voluntary choice to follow your involuntary lead.
rimez says on November 16th, 2007 at 11:56 am
I am 37 years old, an American, and have never had a credit card. Instead I have always used debit cards. I feel that if I cannot afford it with cash on hand then I do not need it (unless it’s medical of course).
I left the US for about 5 years to live in Europe. When I got back to the States I was having problems finding work. On more than one occasion I was told by recruiters that because I had no credit it did NOT look good to potential employers.
Eventually I did find a job. I needed a car. Since I only live off of the money I have the car I purchased was VERY modest. I soon noticed that people making far less than myself were driving cars that I couldn’t even afford with my very attractive salary.
At the root of it all, people really need to be more modest in their living. Instead of acting like children in a candy store start acting like adults and be fiscally responsible.
Credit only makes people more greedy and materialistic — two ‘qualities’ that I despise.
ep says on November 16th, 2007 at 12:03 pm
It’s a heartfelt story and I deeply feel with you. I’m from a country where store credit is advertised everywhere, and every 18-year-old with a little self-respect is equipped with a credit card. Despite of that I know very few who actually couldn’t handle it when I was that age.
What do you think can be the causes of this difference?
I have been thinking about this a couple of times without coming up with an answer. Danish and American 18-year-olds should be the same I suppose. Or are the 18-year-olds here more mature, more able to think the consequences through, not worrying about consumption…
brownie says on November 16th, 2007 at 12:22 pm
i love this! i’ve been living without credit for some time now, and when i try to explain it to people they never understand the benefit of ‘living within your means’. i really like how you’ve summed it up here.
i think the other benefit of living credit free is the fact that you’re thumbing your nose at the consumerist society we have developed into. for example, there’s a commercial on TV that shows a long line of people approaching a cashier and using their visa cards to pay and moving along in a rhythmic, regulated order… and then suddenly (GASP!!) someone pulls out cash, or a checkbook… and the delicate balance of the universe is thrown off track and this pariah is shunned away to make room for the steady procession of credit-zombies… who restore order and reason to the chaotic, unsure world of cash purchases. whew!!
by living credit free i’m making a philosophical statement with my spending power…which, sadly, is just about the only way to make a statement these days.
David Reber says on November 16th, 2007 at 12:33 pm
Thanks for sharing this story.
Joey Francis says on November 16th, 2007 at 1:24 pm
This post is awesome! Thanks for the advice.
I am 20 years old and wanted to live without credit. But with a lack of help to pay for school I had to get a credit card to pay for my books. Now looking back I wish I hadn’t. The card started off with a small limit, but since I pay it in time, every time, they have upped it to an amount that is just a little scary.
lumpy says on November 16th, 2007 at 1:30 pm
Credit CAN be avoided in every aspect. for some reason americans have equated that they deserve more than they can afford which has people making $45,000 living in $180,000 homes driving $23,000 Hondas. At $43,000 you can afford a $75,000 home. and a $9,500.00 Chevy Aveo.
you cant afford that 58″ plasma TV on the wall and the $120.00 a month Cable TV subscription.
Yet Americans continue to live beyond their means and credit companies are sitting there like crack dealers waiting for you to take a hit from their crack pipe.
Anyone tells you that you need credit is a bold faced liar or someone simply without any education. Store credit cards are evil with most now topping out at almost 25% interest rates! You can get better rates from loan sharks!
good for anyone that can get away from the credit crack. Yes you CAN buy a house or car without credit, buy within your means.
Sometimes credit is a benefit. A home loan is one example. you can deduct all interest from taxes and many places your house payment is less than renting.
but that is the ONLY example where that works. Cars on credit is dumb. you are buying something that is losing value faster than you are paying for it.
if you MUST buy a car on credit then refuse any loan that is longer in terms than 36 months. If you cant afford the payments on the 36 month terms then you cant afford that car.
Joe says on November 16th, 2007 at 1:57 pm
There’s no problem with credit cards. There are two things you must know - pay off your monthly balance in full so there are no extra charges and interest fees, and the fact you’ll have to pay for your debt at some point. I am in my 20s and have a credit card, but pay it off in full every month. The result? The credit card causes me no problems whatsoever, and it is convenient.
Too many people think that credit means you don’t have to pay it back, or just pay the minimum. This is not living within your means; you are in debt to a company that will charge you more and more when you don’t pay up. Think about a $1,000 investment and how much it becomes in 20 years with a 15% ROR. Now think about the reverse where you owe $1,000 with a 15% ROR and you only make minimum payments - see where I’m going with this?
A charge on your debit card is difficult to resolve because the money is already gone, while on a credit card it simply requires talking to your company.
Credit cards are perfectly fine, people just need to get it through their heads that credit card != free money.
Dustin Wax says on November 16th, 2007 at 1:58 pm
Joey — yes, that’s what happened to me. Suddenly my $2000 limit was $4000, then $6500, then $8500! And you think, well, it’s good to have in case of emergency, and I won’t actually use it, and then something happens that you think is “close enough” to an emergency, and again, and again… Let me be clear, this is poor self-discipline; in theory, an incredibly together person could manage their credit well (although the other points still apply — stuff bought on credit costs more, period). If you’re using your card as nothing more than a way to consolidate all your expenses into one payment, and pay off at the end of the month, you’re not really using credit, and that’s probably not a problem. As long as there’s no chance at all that your situation might change…
Joey — good advice. I think most of us don’t know or understand how our expenses should relate to our income. For example, I’ve heard that 30% should go to housing, but if you live in a major metropolitan area, that’s almost impossible! The average household income of just over $40000 allows you to $1000 a month for rent of mortgage, and there’s few places where a family can be housed at that rate. In the end, you’re right: our expectations are all out of whack with what we can afford, and since the price of things follows what we *will* pay rather than what we *can afford* to pay, those expectations become self-fulfilling; if people will pay $1400 a month for a 3 bedroom house or apartment, that’s what it will cost! Never mind that to manage that you basically have to extend your income with credit.
Like you say, a mortgage is good credit (except for the 3 million people facing foreclosure because of bad mortgages) and I don’t want to include that here. Mortgages build value, while credit card purchases don’t — almost always, the thing you bought loses almost all its value with use, while a house can gain value.
Jim says on November 16th, 2007 at 2:47 pm
Great ideas.
My wife and I just froze our credit cards so we cannot use them. We are using cash until we get them paid off.
I wrote about Freezing my cards in my blog, Getting Ahead In Life.
http://gettingaheadinlife.blog.....-hard.html
Jeremy says on November 16th, 2007 at 4:23 pm
I don’t understand this at all. I think the real problem here is the mindset that paying something off with minimum payments is okay.
If you use a credit card and pay it off in full monthly, there is absolutely no problem using it.
At some point in your life, you’re going to have to buy something that you can’t afford all at once, be it a home, a car, or an education. Upon doing that you’re going to have to understand what credit is and how to use it wisely.
Cutting up your credit cards will not help you avoid this.
John says on November 16th, 2007 at 4:37 pm
Credit cards are a useful tool. I carry one (and only one) and use it for the convenience of not needing to carry cash & the rewards.
Like many tools, used inappropriately, credit cards can be dangerous.
I’ve had a credit card for 20+ years (no, I’m not in my 20s…). Every time I read the statement and my “credit limit”, I have to laugh, and I think about what kind of car I could buy with that limit.
The credit limit & the minimum payment lines are TO BE IGNORED. If you have a credit card, pay it off in full every time.
Dustin Wax says on November 16th, 2007 at 4:47 pm
Jeremy and Joe say the same thing: charge and pay in full every month. As I said, that’s *not* credit — that’s just expense consolidation. There is no difference between doing that and using a debit card — in both cases, your current income has to cover your expenses.
Mortgages I’ve discussed. Student loans are about the worst evil that has ever been inflicted by the financial industry on our society — ask if schools would have tuition increases tens of times the rate of inflation if student loans didn’t exist! But at the moment, there’s little other opportunity for any but the very well-off to afford an education, so I can’t very well advise anyone to avoid them completely.
The main topic here is “revolving credit”, and you’re both right — incredible discipline can make credit cards harmless, as long as you never lose the ability to pay, miss a payment, or succumb to momentary temptations to overspend. Living without credit cards also requires discipline, but there’s no APR and no late fees.
jtimberman says on November 16th, 2007 at 5:17 pm
Dustin,
Congratulations on stopping your use of credit!
You don’t need a FICO credit score to get a house. You just need to find a mortgage company that will do a manual underwriter. If you have good payment history with your rent, a steady job/income and some other aspects that they look at, you can get good mortgage terms, sometimes better than people with “high” credit scores.
Remember to never take out more than a 15 year, FIXED rate loan where the mortgage payment is no more than 25% of your take home pay. This means you might need a big down payment. But if you’ve got some discipline, this is doable.
nolan says on November 16th, 2007 at 6:17 pm
Credit card monthly payments eat away at you until you are totally enslaved. Don’t do it! They tie up your spending power in that you are obligated to make all of these payments. They take choices out of your life. Same goes with car payments - who needs ‘em?
Best advice — start small, shop smart, move up gradually. Yes, you have to start small. Yes, your friends will make fun of you. But, you will succeed far better in the long run.
This is a radical paradigm shift for most people, but you CAN live without credit!
Josh Patrick says on November 16th, 2007 at 8:29 pm
Living without credit is possible, but why would you? It’s all about the perception of credit that gets the best of us… think about it: there’s no formal education about credit, credit scores, or how any of this works. The banks (incl. the Fed.) work to get you trapped (consider the re-fi boom, converting unsecured debt into secured debt and then bankruptcy reform…. hmmmm).
Credit is NOT a safety net. Credit is NOT a toy. Credit is a tool that can be used to leverage your position with lenders. The difference between a 580 and a 680 credit score for the average American (120K home, 20K auto, 2K in credit debt) means paying about $9000 more per year in interest and insurance payments alone. If you make $35,000 per year, with a 580 score, you’ll be paying more than 98% of your disposable income (after taxes) out to repay debts and insurance (compared to only 56% with a 680). You might cut some corners here and there, but still, there’s POWER in credit.
We’re all playing this game and we don’t know the rules… but if you know how to play your cards right you can do pretty well for yourself.
REMEMBER: IT’S A LEVERAGING TOOL!
Dobbs Fox says on November 17th, 2007 at 10:29 am
I second Josh Patrick’s comments. Credit is a great financial tool if used wisely. It’s not immoral to use a credit card, as long as you know your limits and can afford to pay back what you owe.
Veteran Military Wife at Life Lessons of a Military Wife says on November 17th, 2007 at 2:04 pm
Yes, credit card companies have done the research, and we do tend to buy more when we have credit vs. cash. Fast food restaurants did research and found that the drive thru customers with cash only were found to purchase less, because they did not have the money on them…yes, paying with cash “hurts” more than with credit. But I think we don’t see the forest for the trees…the problem is not credit cards but peoples’ inability or desire to be self-disciplined..nothing else!
Chanio says on November 18th, 2007 at 12:21 pm
Yeah, I also used to have troubles with credit cards. I had to change my habits radically.
Now that I think it over, the mere ethimollogy of the word: credit should give us a clue about the correct way of thinking…
Credit means that someone believes in you (although not when the debts come). And reciprocally, that you believe in the bank, company, country, etc.
So, when at war, we shouldn’t believe ’so much’ in economy, should we? That is a fact. If we read bad news we should restrain our use of credit cards. If we win the lottery, we can trust in our luck and spend a lot…
Michael says on November 19th, 2007 at 1:21 am
I’d like to hear a comment from someone who does have credit, and who doesn’t pay it off every month.
In order to achieve what I want to achieve, that is, a bachelor’s degree in psychology, I’ve had to take out student loans. There was simply NO WAY I could pay tuition (roughly $9,000USD per academic year) on my meager hourly wages, unless I waited another five or ten years to save up, by which time all of my community college credits would have expired.
Living debt-free is an awesome goal, but sometimes, it’s just not avoidable.
Charles Wilson says on November 19th, 2007 at 4:31 am
My rule is to have a couple of cards and a debit card. Keep the credit card out of the wallet and bring the debit card out.
This way the credit line is maintained while credit facilities and discount are still accessible.
Repeat for different banks. Debit card is the way to go.
Jan says on November 19th, 2007 at 9:09 am
Credit card companies are businesses set up to make money. They make money by charging the merchant and by charging the consumer. All of that merchant’s customers absorb the additional costs associated with the merchant fees, credit card disputes, and fraud that is left to the merchant. We ALL pay more for goods because of credit cards. The upcharge is minimal, but NONE of use would be so flippant about this fee if we called it a tax. None of us would be flippant about it if the merchant could charge those costs directly back to the customers that use credit. Ever ask yourself WHY they can’t?
Second, less than 20% of people pay off their cards every month. Ask around about credit cards and you will find that nearly everyone will claim that they pay them off every month.
Third, marketing research shows that you will spend 18% more with plastic than with cash. So even when you pay it off every month that plastic means that you have less in your pocket and more stuff than you can afford.
Fourth, cash has power. Try walking into a store to make a major purchase and negotiate with CASH in hand. Plastic just doesn’t work that way. There is something about cash that motivates people differently.
Fifth, this is a cowboy industry. Watch “The Secret History of the Credit Card” at pbs.org. Watch “Maxed Out.” These companies are not playing a game. The government is not on your side here. In what other situation would we consider signing a contract that is modifiable by the OTHER party merely by giving 15 days notice?
Who is educating our young people to understand credit? You can graduate from high school without understanding compound interest, loan amortizations, or even reconciling a check book. But it is highly likely that some credit company sponsored a financial education program that taught them WHY they need to have good credit.
Lastly, maybe we ought to take some advice from someone who has a reputation for good money management. Warren Buffett’s advice to young people is to STAY AWAY from credit cards.
Kevin says on November 19th, 2007 at 10:30 am
I think that one’s relationship to a credit card is greatly tied to one’s personal thinking. The way I see it, a credit card is a nice way to consolidate all my bills into one place and an easy way to pay for large purchases.
Yes, I can use a debit card, this is true, but it’s a lot easier to manage one’s checking account. Or rather, I try to access my bank accounts to pay bills or withdraw hard currency while the credit card is used for quick purchases or in the rare event, big purchases.
It has to do with mindset though. In my mind, I never think about my credit line as much as I think about what my current checking account status is, even when I’m purchasing with my credit card. Furthermore, I try to avoid buying things on impulse by always waiting a few days after I first want to buy something big to see if I still want it/ justify it.
Anyway, I like to think that whatever bonus points I accrue on my card is a sort of reward for being good with regards to my credit. Not to mention the benefits of having a good credit rating are nice.
But I guess when you get down to it, it’s all about knowing yourself and putting physical handicaps (such as not carrying a credit card with you) to prevent yourself from falling into bad habits.
Chris White says on November 19th, 2007 at 4:50 pm
Okay, so I’ve tried this a couple of times over the last couple of years and always given up before I get the habits down. Problem is I treat my debit card like I do credit and I often overdraft into my savings or credit account.
So what I’ve been doing the last couple of weeks is bringing my credit card with me once a week, getting gas and taking out enough cash to cover normal expenses. I could get cash even less often—and probably spend less—but getting gas at weird hours is almost impossible without a card.
The only other annoyance I’ve had is renting next-gen games from Blockbuster, I do this pretty rarely, but they won’t let you rent without using a credit card (no debit cards) so that gets in the way a little bit. DVDs from Redbox are a little better since you can use debit, but no luck without a card.
Adeem Zafar says on November 19th, 2007 at 10:57 pm
Good for you! I’ve realized the same thing! I’ve racked up over $25,000 in consumer debt and I’ve stopped using credit to purchase stuff. It’s not easy but I think (and you would be a living example) that it is possible. Kudos to you!
stay at home mom says on November 20th, 2007 at 3:53 pm
We have lived with credit, we have lived without it. We have had a mortgage, student loans, car payments, credit cards. I have seen every way they go, and what you can do with and without them.
Overall, take a lot of lessons learned…and there is no way I will ever have a piece of plastic ever again! Mortage: yes. But it needs to be only double your income, not triple like most creditors will allow. (What you make a year x 2 is the house you can afford.) Car payments only as an absolute last resort and get the cheapest car you can. Student loans, yes, unavoidable if you want an education. But check to see if you can get an education in your field through a 1 or 2 year program instead of jumping straight to a bachelors. My husband went through a 12 month diploma program and is working right along side those who did 4 years! We’re paying 1/4 of the loans they are and making the same money.
Free Fall Creative says on November 21st, 2007 at 5:01 am
great post. I had one credit card when I turned 18 and luckily it was only a 400 dollar card so when I ended up hitting my limit and not paying it off, it raised to 800 total in fees and the original 400. I still owe the money from it, but it taught me to use cash on everything. Plus, if I had a C.C. and it got stolen I run the risk of someone running up thousands under my name. If I only have 50.00 in cash in my pocket when my wallet’s stolen, then I only lose out on the 50.00
windfield says on November 24th, 2007 at 12:51 am
Hey, nice article! Hopefully, you’ll be debt free few years from now!
Sometimes its difficult not to have a credit card these days. I salute you! Keep it up!
Dave Child says on November 27th, 2007 at 3:24 am
I’ve not used credit for some time, but being able to pay for things online is a problem without Visa or Mastercard. However, I did manage to get myself a pre-pay mastercard, which solved that problem.
It’s funny actually - a few of my friends mocked my choice of card but most of them are in debt on their cards while I’m debt-free and putting money into savings.
TH777 says on February 19th, 2008 at 12:55 pm
What is the purpose of paying with a Credit Card if your going to pay it off in full each month?
Why not just pay cash?
Better Yet, Why not just save up say 1000 and then put this money in a checking account and then use your debit card. Then, at the end of the month you replenish whatever you spend?
The ONLY REAL purpose of a credit card is to use it then make payments on something you cannot otherwise afford.
If you can afford to pay cash then WHY use a credit card?
Andrew says on April 8th, 2008 at 10:23 pm
Some people are like the author of this article. Others, like myself, are not. I have my credit card set to be payed in full on the 1st of every month. I use my credit card for everything. The reason being is that I get cash back. 1-3% on everything I purchase. It’s more profitable to buy things with a cash back credit card as long as you are disciplined enough with money to pay it off before interest starts to accrue. My credit cards company even gives a free $50 once you’ve amassed $200 in cash back, so in reality it’s even more than 1-3% cash back. The credit card I use is CHASE Freedom if anyone is wondering.
Jim Z. says on July 16th, 2008 at 7:09 am
Why play their game in the first place?
Hello:
I am 62 years old now and do not use or to my knowledge have so-called “credit”. Have not checked my ” credit score” or ever applied for a credit card. Have on need or interest. The banks where I have savings and checking accounts are always trying to give me charge cards. To hell with that crap! Credit offers are always destroyed and tossed into the trash. They’re always trying to get their fangs into the house equity through offers of low interest loans. Have three old clunker Mercedes Benz cars and a Toyota pick up truck now. Really don’t care about a round the world vacation junket either. Don’t need to be in debt for Fifty grand in mad squander money.
From an early age, I’ve not bought into the debt game or charge card buying scam.
All automobiles both used and new have been bought with cash. Purchased land using cash and built a home on that land years ago. Sold that one and rolled it over to purchase the next house using cash. Yeah, I know . . . there are tax advantages etc. I really don’t care to bother with all that extra detail to save a few bucks on taxes. Besides, the government is in debt while I am not.
People wonder (some seem angry and resentful at times) how I’ve always managed to have cash on hand to do pretty nuch as I please. It’s simple . . . . there is no debt. After taxes, my money belongs to me. Still don’t own a big flat screen TV because there hasn’t been the free money to buy one.
As of late, I’ve had a sort of demented enjoyment watching the financial bubble burst. Boiling it down, the “crisis” is simply one bunch of slimy banking pigs packaging and selling bundles of I.O.U. debt note to other hustlers in $2,000 suits. The music stopped and a bunch of these bloated Wall Street whores are left holding large sacks of worthless paper. Now, through the corrupt hack infested FANNY MAY and FREDDIE MAC these fat cats expect to have their exposed arses covered. Hope they all loose in a big way.
My advice . . . if at all possible . . avoid credit cards and do your best not to use credit. It’s tough to live in this society without the use of credit in this day an age. Even the Satellite TV toads demand all sorts of credit info including a Social Security number to get service. Screw them! I went out and bought the “DISH NOW” system with receiver and dish for under a hundred bucks. Installed that satellite dish myself. Buy a service card and/or pin number each month on a pay as you go basis. Very easy to do. No credit bureau hassle or sensitive personal information going out to some anonymous accented voice over the phone.
Summing it up . . Yes, you can live without okay without charge cards or credit. It’s not easy to do and if a person chooses the no credit route then be prepared for some punishment. It’s often assumed that if one has no credit or charge card then that individual is not able to secure credit or is a deadbeat. Suppose that by now, I’ve gotten used to being social outcast and enjoy being an iconoclast with cash in his pocket.
Twin XL says on May 10th, 2009 at 10:58 pm
Getting credit in college is too too easy! Beware and shame on those credit companies and the people who haven’t learned what credit/debt ratio means!