this post was submitted on 22 Jan 2024
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[–] ConstipatedWatson 31 points 11 months ago (3 children)

That's something I could never understand: how do people sign up for as many as 10 credit cards and then buy stuff with money that isn't really there, then dealing with debt collectors?

It doesn't make sense to me, but I've met people who are OK with living like that

[–] [email protected] 19 points 11 months ago* (last edited 11 months ago) (1 children)

Because - and I feel like I need a shower after writing this - there's a really, really profitable middle ground there of people who have indeed taken out those ten credit cards, horsed them to near their limit, but have enough income per month to cover key bills and the minimum payments per month on all of those credit cards... but with not enough income to make a dent in the actual balance to break out of the trap of being lumbered with debt.

Rich enough to be able to hold off the debt collectors every month, but poor enough to have little or nothing else left over every month.

[–] ConstipatedWatson 2 points 11 months ago

You're right. I do understand why people end up choosing to do that, but it feels like there's been a "training" to spend a lot to show your status or simply "because you deserve it" and instead (just like mentioned in an answer above), school or family has not taught any financial sense and people jump on purchasing without a real clue (even though they think they do)

[–] [email protected] 7 points 11 months ago (1 children)

I don't understand it either. Unfortunately, I know quite a lot of people in my personal life that are terrible with money like that. A lot of people grew up in families with terrible financial sense and then they bring that with them into adulthood. Some people eventually figure it out but by that time they're pretty late on getting their retirement planning going.

[–] ConstipatedWatson 2 points 11 months ago

That's true and it's heartbreaking: when they realize they've screwed up their finances and that they should have had better sense, they're far too gone. Families or school don't teach this hard enough, if the phenomenon is so widespread.

[–] [email protected] 4 points 11 months ago

I’ve used Klarna to pay for doctors appointments because we live in a hellscape.