A co-worker made that remark to me, and I was floored by the casual nature of it. He was describing his credit card and how he pays some fee and only pays 5% interest on the balances, and he seemed quite proud of this choice (he was then upset by another co-worker who pointed out he had a free card that he only paid 5% on, but that is for another story).
I commented about why the interest rate on a credit card was so important, since he surely paid off his balances, and yes he said he did that most of the time, but sometimes he would forget about it. I pushed forward and pointed out that if you only sometimes forget to pay your card off, you can get a forgiveness rebate for that time, but he was adamant that having a low-interest rate was a good thing for a credit card.
My comments made me sound like me saying that a 5% rate on a credit card is bad, and that wasn’t the point that I was trying to make, I think I am just a little too old school, because carrying a balance on your credit card just seems so foreign to me (although I did do that for about a year after I graduated from University (full disclosure, don’t want to portray myself as being lily white and without sin)). I can’t grasp carrying balances on credit cards, but I suppose this is just an accepted thing these days?
The other danger of course, which can be from credit cards, is then carrying large balances on your lines of credit, which now seem to be the next step down from Credit Card debt carriers. These folk have got lines of credit (secured or unsecured) where they hide their discretionary over-spending instead (again I think I am guilty as charged on that one).
Maybe what we need to do is just stop spending? Maybe I have it wrong here?