Think Credit Card debt is just for the Middle Class? Think again....

[brig2221]

I was on CNN a little bit ago, and came across a series of articles they posted on families that decided to get rid of their credit cards.

I was truly amazed at the amount of credit card debt this first family racked up in a short amount of time, especially given their combined salary. Truly amazing!

They cut out their credit cards - The Tollivers (1) - CNNMoney.com

I think these stories shed a lot of light on how much spending is out of control on this country right now.

[disneysteve]

They only make 150K, so they are still solidly middle class, but you are absolutely right that higher income doesn't make poor habits go away. It usually just makes bigger problems. Look at Ed McMahon who is facing foreclosure or Wesley Snipes who was convicted of tax evasion.

As we often say, most people don't have an income problem, they have a spending problem.

[glock35ipsc]

I read somewhere yesterday that Ed McMahon's wife has an AmEx card with a $750K balance!!

[tripods68]

While I somewhat agree with you DisneySteve, Wesley Snipes didn't have a spending problem, his reasons according what transpired after his trial, he followed bad advance from people that thought had his best interest. Therefore, he thought those were good legitimate reasons to not pay taxes. That is why he didn't get the maximum sentence. He simply got a slap in the hand and got like 3 years instead. First, I would say, friends like that you don't enemy. Second, how stupid can he really be? Seriously.

[disneysteve]

Agreed. Wesley Snipes wasn't a good example for the subject at hand. I was just making the point that having a lot of money doesn't insulate you from getting into financial trouble. If anything, it often increases the chances.

[aida2003]

I read somewhere yesterday that Ed McMahon's wife has an AmEx card with a $750K balance!!

Are you sure? I even didn't know banks would give such exorbitant credits on CC's.

[aida2003]

I was amazed about the guy in the #3 story who got a fridge costing $1k for $800. I didn't know that Best Buy would let do that. I guess the guy has good negotiating skills.