Blood Points
"Just be responsible."
"It's a tool."
"It helps you build credit."
"It's safer."
"Take advantage of the points."
Not a day goes by when I don't get an earful about the awesomeness and wonder of using credit cards. Based on the narrative, you'd think they are magical little miracles, changing lives for the better.
According to the most recent data released for the second quarter of 2024, 50% of credit card holders in the U.S. now carry a balance from month to month (i.e. they don't pay them off every month like everyone says they do). HALF of all U.S. citizens who use these wonderful little tools are now stuck with high-rate debt that's bearing down on them. So much for "just be responsible."
Moreover, the average American now carries an average credit card balance of approximately $8,000. With an average interest rate of 24.9%, it costs an average of $166/month just to pay the monthly interest (never mind paying off the growing balance).
Yet, we're just going to ignore these facts and instead brag about the awesome trip we just took on the back of the sweet credit card points we recently earned. It's ludicrous, and this insane narrative is sending millions of Americans down the financial toilet.
Just in the last week, I've sat with multiple couples who are emotionally and mentally broken by consumer debt. Their entire lives, they were told to build credit and collect the free points. Instead, they now sit with thousands of dollars of debt they have no idea how to pay off. They are scared, angry, and confused.
Seemingly, everyone in their lives advocated for them to introduce these little plastic cards into their finances. Their parents told them to do it. Their co-workers told them to do it. Their friends told them to do it. Social media "experts" told them to do it. Now, after a series of unexpected events (which can always be expected), they are left holding the bag. Meanwhile, the rest of society now has the privilege of pointing at them, saying, "You should have been more responsible."
Collectively, we are heading down a very dark financial road. You may not see it (yet), but it's happening as we speak. I hope you don't fall victim to it, but I guarantee someone you know will.
So what's the alternative? Opt out. Say no. Stay away. Turn your back on normal. We don't have to play our culture's games. Sarah and I haven't owned credit cards in nearly 15 years. We're good. Life is simple. Not easy, but simple. There is life on this side of credit cards and consumer debt. Don't play their games, and please, please, please don't advocate for your kids to play the games. You deserve better, and so do your kids.
You got this, guys!
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