Reply #10: Banks and Greed

[DangerDave921]

You can't lay all the blame on the banks. Yes, their interest rates are crazy. But they don't force anyone to borrow money. I lay some blame on the people borrowing money like they never have to worry about it.

We have a credit-card world now where people don't seem to realize that when you borrow money, you have to pay it back with interest. And paying only the minimum each month means you'll be paying far more than the item actually cost. The credit-card has done more to hurt people financially than anything else I can think of because the purchase feels almost free when you buy it - just a quick blip on the computer and hey - you walk out with a new TV, or new clothes, or a new coffee maker. It doesn't seem real almost.

I was raised to never buy anything you couldn't afford. Credit cards were used rarely and only for convenience. So I carried that rule into my adult life, and am debt-free other than my home and car.