Thread

I was curious myself, so here's what a robot told me: Imagine you have a piggy bank where you keep your allowance. Sometimes, you might want a toy that costs more than what you have saved. So, you ask your parents to lend you some money, promising to pay them back later. This is similar to how adults use credit cards—they buy things now and agree to pay for them later. Now, let's say many people start borrowing more and more money using their credit cards. This means they owe a lot and have to use a big part of their future allowances to pay back what they borrowed. When so much of their money goes to repaying debts, they have less to spend on other things they enjoy or need. For the whole country, this can be a problem. If lots of people are busy paying off debts, they might buy fewer goods and services. This reduced spending can slow down the economy, leading to fewer jobs and opportunities for everyone. So, while borrowing can help us get things we want sooner, too much borrowing can make it harder for everyone to enjoy a healthy and happy economy.

did you hear the little echo when you read it? I did

Etched in my mind.

29% these days.

Oh lord this doesn’t end well for most 🙉

What’s crazy though, credit cards will throw offers of 3-5% for 10-12mos and I often take them up on it if I can use the capital to earn. So I’ll have a $100k in credit card debt for half the year using their money to make money. Granted, this isn’t where most of these people are on the chart, but that is at least a slice of it if I’m in there.

Crazy. I assume only possible in the US? Or where are you getting credit cards for 100k with 3-5%?

US credit cards do it. It’s a temporary offer to get usage or trap you 🤷‍♂️. But I just deploy it from a positive net worth position so it’s easily paid in full at the end of the low percentage period. Each card may be 30-40k but they add up. Mind you, they all started at 2-3k but over the years they end up high limit with responsible usage and asking for a bump in limit every 6 months without letting them do a new credit pull. Always keep your credit frozen.

Very interesting. We don’t have that kind of set up or options in Germany.

We get a lot of cards offering 0% on balance transfers for 12-18 months here in the UK. The scam part is the transfer fee. Most people paying off the minimum payment spend the 12 months just paying off the transfer fee. I have £5,000 in CC debt, and its time to transfer again. I pay 2x the minimum payment plus the transfer fee divided by the time period of the offer. The last time i did this i was paying £125 a month. Gets the capital paid off quick which lowers the transfer fee so when i do this agin that fee will be lower. So more of the £125 goes to the capital. You got to play the gane to your advantage 😂

tuesday, steve lee + craig raw

Great excerpt. The Big Print is bridging the knowledge gap in a subtly profound way

Hahaha