Comments on: Do You Realize That You Are In Debt? http://beingfrugal.net/2007/08/23/do-you-realize-that-you-are-in-debt/ Saving money and getting out of debt from a Christian SAHM perspective Fri, 19 Mar 2010 22:47:10 -0700 http://wordpress.org/?v=abc hourly 1 By: Philip Brewer http://beingfrugal.net/2007/08/23/do-you-realize-that-you-are-in-debt/comment-page-1/#comment-94 Philip Brewer Sat, 25 Aug 2007 21:35:34 +0000 http://beingfrugal.net/2007/08/23/do-you-realize-that-you-are-in-debt/#comment-94 I'm of two minds. On the one hand, I believe in paying back what I owe. But the way credit card companies (and other lenders) operate now makes it hard to be absolute about it. They can change the terms of the loan just by sending you a note in the mail--and those new terms are incredibly onerous. Any little glitch such as a missed payment--even a dispute with a credit card company about a bogus charge--can not only trigger a bunch of fees, but also a huge jump in the interest rates of all your other cards. All of a sudden your low fixed-rate card is now charging you 29%. I'm all in favor of paying what you owe. But I've heard too many stories like that to jump to the conclusion that what you're ethically obliged to pay back is necessarily the same as what the credit card company says you're obliged to pay back--even if they've got the law on their side. I’m of two minds.

On the one hand, I believe in paying back what I owe.

But the way credit card companies (and other lenders) operate now makes it hard to be absolute about it. They can change the terms of the loan just by sending you a note in the mail–and those new terms are incredibly onerous.

Any little glitch such as a missed payment–even a dispute with a credit card company about a bogus charge–can not only trigger a bunch of fees, but also a huge jump in the interest rates of all your other cards. All of a sudden your low fixed-rate card is now charging you 29%.

I’m all in favor of paying what you owe. But I’ve heard too many stories like that to jump to the conclusion that what you’re ethically obliged to pay back is necessarily the same as what the credit card company says you’re obliged to pay back–even if they’ve got the law on their side.

]]> By: glblguy http://beingfrugal.net/2007/08/23/do-you-realize-that-you-are-in-debt/comment-page-1/#comment-93 glblguy Thu, 23 Aug 2007 20:43:58 +0000 http://beingfrugal.net/2007/08/23/do-you-realize-that-you-are-in-debt/#comment-93 Really good write-up. Debt is really pretty personal. When you borrow money, you are borrowing someone else's money. People don't seem to think of it that way, but the reality is you are using someone else's money. Biblically and just plain ethically, we have to pay it back...Romans 13:8. I am constantly amazed at the number of people that file for bankruptcy just to avoid paying it back...to me that is the same as stealing. Really good write-up. Debt is really pretty personal. When you borrow money, you are borrowing someone else’s money. People don’t seem to think of it that way, but the reality is you are using someone else’s money.

Biblically and just plain ethically, we have to pay it back…Romans 13:8.

I am constantly amazed at the number of people that file for bankruptcy just to avoid paying it back…to me that is the same as stealing.

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