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Are we really addicted to credit? 7 Signs

Posted Jun 27 2008, 01:07 PM by Todd Harrison
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Are we really addicted to credit?  Let's take this simple quiz and find out.

1) Have we ever substituted one form of credit for another, thinking that one particular type of credit was the problem? You mean, like, buying corporate junk while avoiding mortgage-backed-securities?  Cause corporate junk is "ok."

2) Have we ever manipulated or lied to a lender to obtain credit? Hmm, like overstating our income on a loan application, or if loaning money, overlooking reasonable lending standards?

3) Have we ever used one form of credit to overcome the negative effects of another type of credit? Three words: Term Auction Facility.

4) Do we avoid people or places that do not approve of our use of credit? Are there such places?

5) Have we ever used credit without knowing what it was or what it would do to us? Haha, isn't that what credit default swaps are?  Haha. Hahaha. Uh. Ha. Ahem. Yes.

6) Do we put the purchase of loans ahead of our financial responsibilities? No, we need the loans to meet our financial responsibilities.

7) Does the thought of running out of credit terrify us? It terrifies the Federal Reserve.

Top Stocks blogging partner Todd Harrison is founder & CEO of Minyanville.com. This post was written by Minyanville Executive Editor Kevin Depew. Excerpted from Five Things You Need to Know. Click here for the other four things.

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Comments

 

HA HA, Tood, that was a hoot.  Really great.  We have to laugh, otherwise we might all jump off the bridge.

misskimmy (Posted 06.27.08 3:13 PM) Report Abuse

I weined myself from credit over a period of ten years.  I still have credit cards and do maintain a small balance however I save about 20% of gross income annually and do not use credit to buy depreciating assets such as automobiles whcih means I am not driving the lastest car, just a nice car and nobody would know I did not buy it new.  I'd rather negotiate with my cash for items like furniture and I'm guessing more and more vendors are going to be suseptible to such transactions just to have a sale.  It's a good feeling to know that if I get fired I can go on vacation not have to jump off a bridge.  The cash concept is one I don't believe most people can comprehend so personally I've discontinued trying to convert anyone to it!  They either have the desire and follow through or they have bull ***!

HB Lehighton, PA

H Boehringer (Posted 06.27.08 4:33 PM) Report Abuse

my wife and i quit using credit cards about a year ago.  we were tired of getting screwed by the credit card companies,   we only use cash and money orders now,  

akadave (Posted 06.28.08 9:55 AM) Report Abuse

We use credit cards almost all of the time, but always pay them off

completely, and never, never carry a balance. If we don't think we

can pay them off we wait to buy...

dale minard (Posted 06.29.08 1:50 PM) Report Abuse

Never, Never, Never finance anything that depriciates. That alone will save you tons of money every year.

The_Kopper (Posted 06.30.08 9:10 PM) Report Abuse

Credit cards are very useful things as long as you treat them like something you actually have to pay back and then pay them back in a timely fashion.  I always pay off anything purchased on credit cards within a month (or during times of financial stress, two months).  It's good to have the breathing space in emergencies and to have the purchase protection a credit card can provide over a debit card.

irishapple21 (Posted 07.01.08 9:00 AM) Report Abuse

No. I have never lied on a credit application.

I have one credit card and one gas card. They are paid off in full every month.

Wilson (Posted 07.01.08 12:08 PM) Report Abuse

We have not used credit or credit cards since August 1985.  We only pay cash or use our debit cards.  It is nice not to have to pay out the 20 something percent interest.  People can do it if they want to.  I pray that more will learn to live on what they make and not depend on credit, as it makes you someones slave.

Roy (Posted 07.02.08 1:09 AM) Report Abuse

I am a working student and the thought of not using credit cards terrifies me... I am fully aware of the dangers of credit cards, but we leard as we go. I am now more cautious when using them, but i still plan to have a few in my wallet.

wolfscoucil (Posted 07.02.08 2:10 AM) Report Abuse

Credit Cards, A slick way to be controlled by the Man!

Get out from under debt and take charge of your own destiny.

Ken McCorkle (Posted 07.02.08 10:09 PM) Report Abuse

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