Anyone who carries a balance on a credit card is financially illiterate

[Anonymous]

I know that the thread headline may sound disrespectful, and I apologize for any offense, but I think a blunt, tough message on that one is appropriate. I have been browsing these forums and I have been stunned to see people talking like this as if it is anything other than truly dire circumstances. 

Running a balance on a credit card is digging yourself into a hole. The interest rates are ludicrous.

Anyone who has a balance on their credit card, regardless of how low, should be figuring out how to get rid of that balance this month -- ideally by paying it down, if not, by taking out a loan at a better rate, or remortgaging. Once paid off you should never, ever carry a balance again.

Do people just not know this?

I pay off my credit card balance in full every month. I use the cards because they are a convenient way to pay, and I like earning the rewards points and such, but I would do anything possible to avoid carrying a balance.

[Anonymous]

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@Anonymous wrote:

I know that the thread headline may sound disrespectful, and I apologize for any offense, but I think a blunt, tough message on that one is appropriate. I have been browsing these forums and I have been stunned to see people talking like this as if it is anything other than truly dire circumstances. 

Running a balance on a credit card is digging yourself into a hole. The interest rates are ludicrous.

Anyone who has a balance on their credit card, regardless of how low, should be figuring out how to get rid of that balance this month -- ideally by paying it down, if not, by taking out a loan at a better rate, or remortgaging. Once paid off you should never, ever carry a balance again.

Do people just not know this?

I pay off my credit card balance in full every month. I use the cards because they are a convenient way to pay, and I like earning the rewards points and such, but I would do anything possible to avoid carrying a balance.

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What about balance transfers?

[Anonymous]

Balance transfers are a desperate strategy to deal with a debt you should never have had in the first place. 

Credit card debt of any kind is bad debt. You didn't get a valuable asset in exchange (like a house or a car). You just over-spent and got debt. Now sometimes people get into really dire circumstances and do what they have to do just to survive -- but 99.9% of people carrying these balances are not in dire circumstances, they have just decided to live that way.

Anyone who tells these folks that what they are doing is anything short of reckless is doing them a disservice. 

[Anonymous]

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@Anonymous wrote:

Balance transfers are a desperate strategy to deal with a debt you should never have had in the first place. 

Credit card debt of any kind is bad debt. You didn't get a valuable asset in exchange (like a house or a car). You just over-spent and got debt. Now sometimes people get into really dire circumstnaces and do what they have to do just to survive -- but 99.9% of people carrying these balances are not in dire circumstnaces, they have just decided to live that way.

Anyone who tells these folks that what they are doing is anything short of reckless is doing them a disservice. 

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Honestly. 90% of what I have riding on a BT offer right now is from the emergency purchase of an HVAC unit for my rental.

Could I afford to pay it off tomorrow? You can bet dollars to donuts I could. But why waste a good 0% BT offer and deplete part of our cushion?

[core]

Anyone who tells these folks that what they are doing is anything short of reckless is doing them a disservice. 

Preach on, brother! 

Keep in mind many members wouldn't be here if they weren't in trouble at some point in the past, though.

[lhcole77]

Very broad, sweeping generalizations in this post, OP.

What precipitated you starting this thread?

[Anonymous]

Oooh...this one's gonna be good....

[Anonymous]

While your general message is correct, it's difficult to pigeon hole everyone into some category without considering that there might be unexpected reasons once in awhile for someone to have to carry a balance.  Emergencies do arise and while it's nice to think that everyone has a large enough egg nest to cover those emergencies, it doesn't always happen that way.

Also, joining a message board and have one of your first posts be to call other members 'illiterate' isn't going to make you any friends.

[Anonymous]

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@Anonymous wrote:

Emergencies do arise and while it's nice to think that everyone has a large enough egg nest to cover those emergencies, it doesn't always happen that way.

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Heck, most people that I know that aren't in the six figure household club, and even then, more than enough of them that are tend to use their CC's as an extension of their salary!

[Anonymous]

And I'll add that if you happen to have credit card that has 0%  APR, it can make sense financially to carry a balance so it's better not to generalize in such a broad manner.