credit card myths

I think it is absolutely preposterous to believe that the solution for this ailing economy is to begin using our credit cards again. Somnehow we have been sold a bill of goods that the way our fathers lived (pay as you go) keep this country from growing and we have accumulatyed so many things now because we purchase on credit.

I believe we have less because we purchase on credit. Someone else has more but not us. Really.

For example, let's say I make have a take home paycheck of $400.00 per week. I just purchased a new home and now I have to cut the grass everyweek. It's hard with a push lawn mower so I want to buy a riding mower but the one I want cost $1,200.00. I can either save for it or buy it now on credit. The hardware store has a deal on it. Get their crdit card and save $10.00 and buy the mower for just $48.00 a month. (You figure it out-if I make just the minimum payment at 16% interest, just how much is that mower going to cost me when I get it paid for?)

I also want a china cabinet yo display my beautiful dishes. I find a great bargin for only $1389.00 so I put it on my Visa (13.9% interest) and only have to pay %59.00 per month. I also charge the labor to install a water pond in my back yard since i don't feel like digging the big hole. The $800.00 bill goes on my Discovery card.

I could have waited a year or so and saved up the money and paid cash. The drawbacks to that is the price may have increased, I might have missed a once-in-a-lifetime sale, and I have lose the interest I would have made if that money had remained in the bank.

What if instead I took out a whole life insurance policy with the idea that I wanted a huge reserve to to borrow money from not not for the death benefits. I would draw interest on the face value of the policy even if I borrowed the cash value so I would not lose the interest, I would have a savings plan that would allow me to take advantage of those once-in-a lifetime deals, I can buy it now and I would also know the income accumulating in my policy was tax free income.

Wow. I can have it now, not accumulate debt, and still make interest on my investments.

Go ahead, Get yourself another card. I like my way better.