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AsInHowe posted:The problem with simply being debt-free and hoarding cash is that you're not building up credit if the problem has more than you can afford, and that your lifestyle is now completely controlled by your finances instead of your finances being a part of your life. I've had potential clients come in that are completely unprepared for certain things, because they are doing the Dave Ramsey stuff and haven't done things to build up credit. Your point is probably right in an American context, but man, whenever I read about this it strikes me as incredibly odd. This might just be a result of cultural priming and the American system might actually be superior in some way, but still. The idea of "building up credit" is completely foreign to my Euro neck of the woods. As someone with precarious and irregular income, my credit card limit is €100 and 10 years ago I might not even have gotten a credit card. If I go into debt and pay it off, nothing improves for me. But if I fail to pay up, I'll have to deal with lifelong (not sure about that) negative entries in a debtor archive, which might end up costing me loan, housing or even employment opportunities. So when I think of debt, I think "this can only make it worse for you", and someone like Ramsey immediately makes sense to me. And I suppose Americans could be excused for feeling that way if they were unfamiliar with the American system of "credit building".
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Jul 21, 2017 22:28
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| # ¿ May 22, 2024 17:58 |
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