ThisIsWhyUBroke.com’s Hierarchy of Most Stupid Credit Decisions


Ok folks, today we’re going to revisit why aquiring debt and utilizing credit is such a stupid mistake. We’ll actually be focusing specifically on why specific individual credit products are worse than others. You may already know about our disdain for aquiring debt of any kind, yet I still think its fair to provide you with a real quick hierarchy of debt stupidity. So without further delay, our list of most popular stupid credit decisions from “most ridiculously STUPID” to “not AS bad but still STUPID” are as follows:
  • 1. Payday Loans/Cash Advances
  • 2. Credit Cards/Charge Cards
  • 3. Borrowing from or against your retirement account
  • 4. Personal Loans
  • 5. Auto Loans
  • 6. Home Equity Loans/Lines of Credit
  • 7. Mortgages of ANY kind
Then like waaaay down the line in something like the #48 position are “Student Loans“. But yes they are still on the list. Find out how many people are setting themselves up HERE:
Find out why you don’t need credit at all HERE.
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4 thoughts on “ThisIsWhyUBroke.com’s Hierarchy of Most Stupid Credit Decisions

  1. Tony

    There’s nothing wrong with using credit cards as long as you pay the full balance when it’s due. That’s actually one way to build a good credit score. A good rule of thumb is to live below your means, save every month, and don’t acquire any debt outside a mortgage payment

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    1. “There’s nothing wrong with using credit cards as long as you pay the full balance off everytime it’s due. That’s actually one way to build a good credit score.”

      Uh..yeah….did you think about that AT ALL before you posted it? Do me a favor and pop out a calculator so you can attempt to solve the following word problem on your own:

      If the reason why credit card companies stay in business in the first place is to earn the 100s of billions collectively they make on interest every year off the back of their cardholders, how many credit card companies would be in existance if 100 percent of cardholders adopted your ingenius plan to never pay interest on the balances they hold?

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    2. If you’re not still following me, allow me to help you out- the answer is ZERO. Thats the number of credit card companies that would be able to survive 90 days if noone sank themselves in high interest debt every month but instead paid their balances off every month. I mean as i’m writing this, I have to ask, are you just playing with my emotions or do you truly believe in what you just said?

      So since you are now aware that its MATHEMATICALLY IMPOSSIBLE for our country as a whole to even come close to what you are suggesting, by exact design of the credit card companies might I add, the reality is you’re saying something completely different now. What you are suggesting is that credit cards are an awesome idea for about 13 people tops who aren’t struggling enough to have to leave balances on their cards every month. The remaining portion of America will just have to be suckered into paying 30% in compounding interest every year for your right to play the 30 day debt game with your finances right?

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    3. So stop posting generic ideas you havn’t even thought about. This is not a game for us on this site. And oh, if you aren’t aware of how all of this affects black people:

      *About one in three African-Americans — 35 percent — reported having at least two credit cards. (Source: FINRA Investor Education Foundation, “Financial Capability in the United States,” December 2009)

      *26 percent of… See More Americans, or more than 58 million adults, admit to not paying all of their bills on time. Among African-Americans, this number is at 51 percent. (Source: National Foundation for Credit Counseling, 2009 Financial Literacy Survey, April 2009)

      *In 2004, of those with credit cards, 84 percent of African-American households carried credit card debt compared with 54 percent of white households. (Source: Demos.org, “Borrowing To Make Ends Meet,” November 2007)

      *Over 90 percent of African-American families earning between $10,000 and $24,999 had credit card debt. (Source: Demos.org study, November 2007)

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