CNN Money had an interesting article about 5 families who live only on a cash budget. They don’t use CC, but use a debit card for some. I found it interesting and very cool to see the reasons why people switched to cash. How it helped them get out of debt and manage their budgets. That every person on there had quite a bit of debt.
So where is the problem? I thought four out of the five families did it for the right reasons. But then there was one person who made me raise an eyebrow. Which one? John Wilder. He stopped paying on his CC 3 years ago and switched to cash because he was tired of dealing with credit cards and being their “Slave”. I would say this sounds like Dave Ramsey preachings. Problem?
Well the guy STOPPED paying on his credit cards. He didn’t pay off his $12k of CC debt and then go cash only. Nope, he ran up the credit card to the limit and then walked away. He was like an underwater homeowner buying everything great beforehand and then strategically walking away.
I guess what bothers me is that he’s proud that he still owes the money and doesn’t care. That his credit score is in the toilet, but in 4 more years the credit card company will write off the debt and he’ll walk away scott free “beating” them at their own game. This inflated self-importance pisses me off.
This is why I don’t believe debt is due to credit cards. HELL NO. It’s obviously because of jerks like John Wilder who believe they are entitled to EVERYTHING and ANYTHING they want. That the laws of paying back what you charge doesn’t apply to them. That because he felt the CC companies were being unfair he walked away and ignored them.
How can you justify that debt is created by CC? It appears that being on a cash only budget doesn’t mean you are better than someone who uses CC. It still comes down to an individual’s morals and values.
8 responses so far ↓
1 JoeP // Dec 15, 2009 at 12:45 pm
Most people cave into impulse purchases, and the credit card enables this behavior. It is much harder to put that impulse on hold while you go to the ATM to get the cash. Actually budgeting takes discipline, and manufacturers and advertisers know that most people just don’t do it.
There will always be irresponsible people who are foolish and immoral. Some have credit cards and others do not.
2 Lynn // Dec 15, 2009 at 1:42 pm
Personally, I think this John guy is an idiot. He gave up CC’s because their late fees were so high? How about taking some personal responsibility and pay on time? The whole little segment on him is ridiculous – he does seem proud of the fact that he hasn’t paid them back. I really wish CC companies had the ability to take back stuff that was charged on the card. Ridiculous.
3 Meg // Dec 15, 2009 at 4:08 pm
Some people just can’t admit that they were dumbasses and take responsibility for their action. It’s always someone else’s fault. Well, you know what, that doesn’t make them look smarter or stronger, it makes them look dumber and weaker. Sure, I was a dumbass about money once, but I have the power and know-how to turn my life around the right way.
4 LAL // Dec 16, 2009 at 10:55 am
JoeP, maybe that’s what it is. Foolish I guess isn’t linked to cash or credit.
Lynn, I wish they could just garnish a judgment against him since he appears to have money but is choosing not to pay.
Meg, the guy John like’s beating the CC and never paying them back. It’s “winning”.
5 Forest // Dec 17, 2009 at 11:35 pm
I lent money to some close people about 5 years ago by using loans and credit cards… basically they never paid me back and the debt spiralled…. I know I could walk away but this is morally wrong, even if I do despise the CC companies… I still owe them cash.
So I am taking steps to legally resolve the debt (and pay it all back) before switching to a cash and debt only system.
I am looking forward to being free of the CC’s.
6 LAL // Dec 18, 2009 at 10:07 am
Forest, good luck on getting debt free.
7 thinkingaboutit // Dec 18, 2009 at 10:18 pm
That Wilder guy is a marriage and relationships “coach”, which might be what one calls oneself if they do that work without any professional credentials? I can’t imagine taking any kind of advice from someone who show so little self discipline or honesty. What the heck?
8 LAL // Jan 1, 2010 at 12:35 pm
Thinkingaboutit, I gotta agree. Why would you ever listen to someone who preaches do as I say and not as I do? Kinda like dave ramsey who declared bankruptcy.
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