Why is living on credit shamed upon?

Question

i think its great to get what I need/what I really need when I need it even though i dont have the means. just make sure u actually paying it off.

Investigator · Accepted Answer

A huge part of the problem is that people tend to live above their means by spending more than they have in reserve. If you pay for something with credit, you're essentially deferring the payment on a promise that you will pay back the money. If you do not pay it back, you get to pay it back with interest and those rates tend to be high.

The other part of the equation is "consumer spending culture", because even though it is [current year], we're still trying to "keep up with the Kardashians/Joneses\[insert current embodiment of status, through conspicuous consumption, here]" and to do that, a lot of people feel the need to go into massive amounts of debt to "be with it". Doesn't help that "it" changes often, so the need to feel current or relevant is never satisfied.

Social media has further exacerbated this issue by orders of magnitude, and since more and more of our social strata are defined by increasingly unrealistic levels of expenditure, the "infinite perpetual upwards growth" that is the engine of the economy is starting to run into the insurmountable dual obstacles of "buyers with decreasing spending power" and "out-of-control inflation". Which is to say, you can't spend your way of debt, if debt caused the problem. We'll probably figure that out when it becomes impossible to avoid (and not before).

LiamSawyer · Accepted Answer

I use credit cards to pay for just about everything I buy, but I don't live on credit. I never pay any credit interest charges as I have the means to pay of my cards in full every month. In the meantime I get Cashback on one of my cards, which I've accumulated about a $1000.00 since I last redeemed my cashback and the other one of the two cards I use accumulates points on all purchases made anywhere which I can use at any of four different super store grocery outlets which I use to get about $1200.00 of free items every year. Are you aware that if you have too many credit cards lowers your credit rating. Also if you don't pay off your cards in full every month you're paying in the neighborhood of 28% interest per anum which is also a compounded interest charge.

TwinkleLily5 · Accepted Answer

Because some people who use credit cards are shoppaholics and can’t control their spending and rack up a debt that they probably can’t pay back 🤷‍♀️ Ig. This year I got a credit card and I have been using it responsibly and it really is a plus. Agreed as long as you are paying it off it’s good to have. It also helps boost my credit score.

pleasestopthis · Accepted Answer

Someone who lives on credit spends more than they earn... which means they live in debt. I think it's very unwise to live like that but they shouldn't be shamed regardless, we don't know their circumstances, maybe they can't wait until they save enough to buy

theothersider · Answer

in the end though you are often times paying far more in interest than you would if you bought your fancy new item flat out and usually maintaining a high credit utilization lowers the amount of credit you can access and increase the interest rates of credit lines you are given. I mean you do you but in the end most people who live on credit cards and loans get caught in debt traps.

ChrisMaster69 · Answer

It greatly depends how it’s done.

getting something of zero % at times is really obvious and can work for you.

However buy stuff that is not really a necessity such as the latest 65” Smart TV when your existing 48” tv is perfectly fine, getting latest and greatest mobile and not being able to buy kids a lunch when out in town.

As @SnakeBoop says, don’t live above your means.

it’s about budgeting and not living off credit but make it work for you.

bean2k21 · Answer

It's all how you use it -- you can get rich on credit
For example, if you had borrowed $50k to buy 5000 shares of Signet
when everyone else was over-reacting to Covid,, you would have felt dumb as hell
at the time, but after the covid scare
you would have $350k off of that $50k
Similarly, a lot of business use credit to obtain profit
It's called debt leveraging to invest in business operations

exitseven · Answer

It is not really shamed today. A lot of people are living on credit cards. I used to work in a store and a lot of times people's credit card would get declined and they would just whip out a different card that still had some credit left on it.
It is when you can no longer pay the minimum on the card is when it becomes a problem.

GlassTop · Answer

It’s irresponsible and bad habit forming behavior. Most countries don’t do credit like America does. Credit is used to build credit score, not to survive and spend money you don’t have. It would be better if credit was removed completely, and people lived just on money they actually earned.

EaterPeter · Answer

For that reason when you don't have means to pay. One is spending money they don't have and they're committing to pay much higher interest they can ever earn by 8nvest8ng same amount of money. It's not good it's same as pay day loan car title loan or most other loans with collateral like the house one live in with their loved ones.

Nazgol · Answer

I guess it doesn't look too good to borrow money, better to have enough in your debit so you don't have to rely on credit but that means u would have to get paid enough to be able to and save enough. It's not easy for some, that's how they develop financial difficulties.

Anonymous · Answer

all day! Wrong with it so long as you pay it of fully with each statement. To do otherwise is just poor money management. It's one thing to overextended yourself in an emergency. But to do it by choice is foolish. And that's how credit card companies enslave you.

FTnWo · Answer

I don't do credit because I don't like debt and I don't deal with banks because it's all a scam, I don't look for government hand outs either... I've worked for everything I have witch isn't much but I enjoy it.

weysally · Answer

I don't know, I know of a very educated guy, passes as long as your arm, he works id a car scrap yard and is happy, even though he is in a low paid job

jasco · Answer

credit cards are basically debt waiting to happen. If you don't pay it off as soon as your able to, you get interest. May not sound like 1 to 3% ( i think ) is a lot but after a few months it can become hell to pay

SlothySlob · Answer

I think that some find it stressful to have the "I need to pay off that credit" at the back of their minds.

RolandCuthbert · Answer

Because being poor is looked down upon. I don't make the rules. I am just play the game.

SnakeBoop · Answer

"even though i dont have the means" you shouldn't be living above what you can afford.

ragooo8 · Answer

Foolish but not shameful. In the end you never really own anything and you pay more than what it costs. Be very careful with buying on credit, you could cripple yourself with debt.

jahaims · Answer

Because you can live within your means and not pay interest. The credit system is set up by banks to keep people in debt and have continuous cash flow with penalties and interest.

KatherineJ · Answer

Don’t spend more than you can pay off when the bill comes. That’s how credit cards get you into trouble. Making the mini payment will only hurt your finances long term.

Justneedtokno · Answer

I think most Americans don’t know how to control it spontaneous spending. And you’re always constantly paying it to get out of debt or it’s your emergency fund without building your own emergency fund

Hanrej · Answer

The thing about living on Credit is that you don't actually really have anything. You're locking up you economy and can't be spontangeous or if you are you risk falling into dept AND lose whatever you bought on credit.

Alyssa_11 · Answer

Exactly. Credit cards are great tools if used properly. If someone shames you then they just don’t know how to manage their money properly.

Levin · Answer

Your debt slavery means someone else is living in a mansion and driving a ferrari on your poverty.

slatyb · Answer

It’s unsustainable and credit card interest rates are very high.

TallAnon · Answer

It means you spent too much and either aren't responsible with your money or don't have a good enough job to save up.

Not_Average · Answer

The bottom 50% have the most consumer debt. There’s reasons.

Anonymous · Answer

I think this is wrong. Such people do not know what poverty means. There is a saying: Debt is the whip of the valiant.

genericname85 · Answer

I don't know honestly. the bank spends money they don't have 9 times over.

noohair · Answer

That is how a house is purchased.  That is how capitalism works.  Borrow, risk capital and create wealth. Most folks are clueless.

cookiecrusher · Answer

Because you can't afford it. You are one paycheck/crisis away from homelessness.

OddBeMe · Answer

We all live on credit. Even the billionaires. But they get much better interest rates…as in none.

joeldalton · Answer

Because when you live on credit you are working for the bank, not yourself.

Anonymous · Answer

Because it's a poor way of doing things I do utilize credit to make me money and occasionally save me money but I wouldn't want to live on it

888theGreat · Answer

People don;t and end up homeless in box under the bridge

LegendaryIcon · Answer

because it's as if you can't pay your debts, like trump

Bklynbadboy12 · Answer

Cause if your living on credit it means you can't afford your lifestyle

Gwenhwyfar · Answer

It’s not bad if u pay it off. Rich people do it.

Jamie05rhs · Answer

ARE you actually paying it off?

driven159 · Answer

people have do what they have to do in life

msc545 · Answer

It indicates that you are living above your means.

TheMajesticKing777 · Answer

It is?

Why is living on credit shamed upon?

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Why is living on credit shamed upon?

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