My personal scores have increased by about 100 points in the last 6 months (I started getting worried about interest rates getting even worse and consolidated my credit cards under a personal loan with a definite payoff date).
At this point I really don’t care what my credit score is, but this feels like a bad time to have debt, and for once in my life I feel lucky that I’m able to be paying off debt faster than I can take on more - which really hasn’t been the case since I went to university in 2007 (and never finished for financial reasons).
An inflation event is a great time to have debt. The best time to have debt. The money is worth more when you get it, and the debt you owe shrinks in value.
I too went to university in 2007 and didn’t finish for financial reasons! I had a meager $1500 loan, I couldn’t afford to pay off. Ended up paying through the IRS taking my tax refunds about 5 years. Paid $7000 for a $1500 loan. Fun times.
My credit, is however, still in the shitter. I’ve never owned a credit card. I refuse it.
Getting your credit score up can have benefits. My credit was destroyed after my bank scammed me and I couldn’t pass the background check to rent an apartment. I literally had to bribe a landlord with an extra $1k deposit just to rent an apartment. That’s just one example but there’s many more. The world is increasingly stacked against those with bad credit, and in favor of those with good credit. It really is in your interest to game your score up with a low limit card.
There are a couple products out there that will simulate a credit card, but not actually extend credit that can put you in debt. Depending on how you feel about fintech “banks”, Simple has a product called “credit builder” that works quite well. It’s essentially a revolving secured CC, but to the user it acts like a reloadable debit card.
If you have a stable job, this is a great time to have debt. The dollar is decreasing in value, so as long as the amount you make keeps pace with that devaluing, the value you actually owe is decreasing.
My personal scores have increased by about 100 points in the last 6 months (I started getting worried about interest rates getting even worse and consolidated my credit cards under a personal loan with a definite payoff date).
At this point I really don’t care what my credit score is, but this feels like a bad time to have debt, and for once in my life I feel lucky that I’m able to be paying off debt faster than I can take on more - which really hasn’t been the case since I went to university in 2007 (and never finished for financial reasons).
An inflation event is a great time to have debt. The best time to have debt. The money is worth more when you get it, and the debt you owe shrinks in value.
It’s a great time to have debt. If you don’t end up imprisoned, killed, or a refugee, massive inflation will make repayment easy.
That only makes sense if wages rise to meet massive inflation.
So no, not a good time to have debt.
I too went to university in 2007 and didn’t finish for financial reasons! I had a meager $1500 loan, I couldn’t afford to pay off. Ended up paying through the IRS taking my tax refunds about 5 years. Paid $7000 for a $1500 loan. Fun times.
My credit, is however, still in the shitter. I’ve never owned a credit card. I refuse it.
Getting your credit score up can have benefits. My credit was destroyed after my bank scammed me and I couldn’t pass the background check to rent an apartment. I literally had to bribe a landlord with an extra $1k deposit just to rent an apartment. That’s just one example but there’s many more. The world is increasingly stacked against those with bad credit, and in favor of those with good credit. It really is in your interest to game your score up with a low limit card.
I for sure understand this.
There are a couple products out there that will simulate a credit card, but not actually extend credit that can put you in debt. Depending on how you feel about fintech “banks”, Simple has a product called “credit builder” that works quite well. It’s essentially a revolving secured CC, but to the user it acts like a reloadable debit card.
This is such good advice. I am stubborn about not playing the game with it though. Appreciate your thoughts here though.
If you have a stable job, this is a great time to have debt. The dollar is decreasing in value, so as long as the amount you make keeps pace with that devaluing, the value you actually owe is decreasing.
IF you have a wage that is adjusted/raised at least to inflation’s levels
You don’t want to be in debt when the merry go round stops