Why is there thing such as credit?
Answer:
That is a very good question. I don't think credit needs to exist.
If you start working at age 16 and use all the money for your self and credit didn't exist you would have tons more money.
Everyone would have saved enough money while renting to buy free and clear a home by age 30.
I guess credit satifies and identifies with peoples need to have it now. If you can curb those urges you will be far better off then the rest of us.
so companies will know whether or not you are trustworthy in paying back money they loaned to you.
Credit is loaning out money with interest. It has been part of our civilization since before Jesus.
It's there because at some point some people decided they wanted to make money off of loaning it to those that need it.
It has to exist! It's a prerequisite for bankruptcy and homelessness and a fuel for welfare claims
Simple enough, lets say you want to buy a house.
Your 18 years old just got a job and have$100 in your wallet. By the time you save $150,000 do buy the house it will be $250,000 so if you want the house they offer credit. Problem is they started offering credit as a means to make money off the interest for eveything imaginable. And young people
were suckered into it.
So the posers in my so-called affluent neighborhood can keep up appearances. It's all a facade. Their cars are leased, they have two mortgages and they're in hock up to their necks from paying for all the fancy clothes, expensive restaurants and first-class vacations with their credit cards. It flabbergasts me! I've even noticed many of them paying for groceries with credit cards. You'd think they'd, at least, have enough common sense to know that you should only use them for durable goods! I took it one step further. I worked out a strict budget and stuck to it for five years and my mortgage is paid off and I have no credit card debt. Don't get me wrong, credit cards are great for emergencies. when your washing machine dies or you need last minute plane tickets because of a death in family, but to wreck your life trying to keep up with the Joneses is just insane!
because people want things NOW. much like children. they buy into advertising, and think they are higher class than they really are. (i.e. people with a 60K income driving $30k cars or living in $500K homes)
people don't save money anymore.
I can't wait till it all finally goes out of control for these idiots.. there should be some nice real estate prices in the next 10 years when all their interest only ARM's, leased cars, and credit cards catch up to them..
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