As a Business Development Officer for “The Best Business Bank In The Business” I assist people finance needs and dreams. Let me say that I love my job and the business that I’m in. That being said I am not afraid to tell anyone that will listen that there is such a thing as “Bad Debt” and that if at all possible to avoid it like the plague.
“Bad Debt” is anything I would classify as borrowing money for stupid purchases. We’ve all heard of it or maybe even have taken part in it. Who knows why we do it, maybe we want to keep up with the Jones, make ourselves happy if but for a moment, or make a purchase that at the time seemed like a real need. All I know is that those purchases are typically made with a credit card. These credit cards are still relatively easy to get, easy to use, and re-use over and over again. The great thing about them is that the credit card company for the most part doesn’t care what you buy; they don’t judge you if you buy a latte, lunch, new shoes, tickets to a ball game, pay for a vacation, or buy things to make “priceless” memories. All they hope for is that you use their card to do it.
Whether you an individual or a business, credit cards are easy to access. But, I discovered a new tool that will hopefully assist you in giving some serious thought about your next credit card purchase. The tool is a website, http://www.therealdamage.com/. On this site you put in the dollar amount of the proposed purchase and it calculates the interest and principle that will need to be paid prior to you being debt free again. Are those designer jeans for $125 really worth $281.25? Try it for yourself, see if you wont agree with me that there is such a thing as “Bad Debt”.
If you ever want more of an eye opener just Google “credit card horror stories”.