Re:Why Don't People Manage Debt Better?
by Retric on Friday February 19, 2016 @03:17PM
(#11136303)
Negative interest rates are a non issue if you have any debt, just pay down your house etc faster.
The problem is errors are random so your 'solution' is to keep huge amounts of cash in your checking account to deal with random error.
But, if I max a CC I would still have the cash in my checking account to pay other bills. If I don't have a CC and my checking account is empty I am going to have issues paying rent etc.
PS: Think of a CC as a financial firewall. You still need the cash to pay your bills, but keeping a redundant CC with an unused 15k credit limit is cheap.
The problem is errors are random so your 'solution' is to keep huge amounts of cash in your checking account to deal with random error.
But, if I max a CC I would still have the cash in my checking account to pay other bills. If I don't have a CC and my checking account is empty I am going to have issues paying rent etc.
PS: Think of a CC as a financial firewall. You still need the cash to pay your bills, but keeping a redundant CC with an unused 15k credit limit is cheap.