Quote:
Originally Posted by P1et
My points is that many people use credit for the wrong reason. I'd call it abusing your credit, really. See how many are in debt? How many of the things they put on their credit card were not necessary? How many of them buy luxury goods and are unable to pay for it in full at the end of the month?
So if you cannot afford it, then don't buy it.
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I really don't know the answer to your last two questions.
Would it make any difference if the things they bought were luxury goods or not if the borrower still couldn't pay the bill in accordance with the lender's terms to which the debtor agreed?
Red:
Well, really that's a charge card, not a credit card. I'm well aware that using a credit card and paying it off as though it were a charge card is the least costly way to use credit cards, but I don't think that not monthly paying off whatever the outstanding balance is an indicator of one's not being able to afford whatever one bought using the credit card. As long as a person pays their bills on time, they can afford whatever it is they purchased.
That buyers cannot afford to purchase the item(s) outright without using credit is a different matter. But then part of the whole point of credit is to provide a means for individuals, businesses and governments to have a more affordable (based on the borrower's self defined set of priorities and uses of their cash) way to obtain the goods and services they desire.
All the best.