6 ms·

It is a prevalent view among the lower socioeconomic classes.

• gpvos 3mo ago
  Among the middle and higher as well.
  • amelius 3mo ago
    The problem as I see it is that you pay your credit card bill only once a month which gives you no bearing on your effective balance. This is mostly a problem for lower and middle income people who live from paycheck to paycheck.
    • watwut 3mo ago
      Middle and higher income people dont need debt on monthly basis and see not having that debt as personal virtue. It just makes no sense to not pay things right away.
      • amelius 3mo ago
        Well in some cases paying with a credit card is the only option.
        • Hikikomori 3mo ago
          Haven't run into that in Europe.
          • l23k4 3mo ago
            Some Europeans refer to girocards as "debit cards" and everything else incorrectly as "credit cards"
            • Hikikomori 3mo ago
              Some Europeans meaning people in Germany? Most people have debit cards from our normal banks here, credit cards are generally associated with companies like Revolut or Klarna, as they push ads for getting credit cards.
              • l23k4 3mo ago
                > Some Europeans meaning people in Germany? I guess, I haven't really kept track, but I've observed this many times from different people. > credit cards are generally associated with companies like Revolut That's surprising. Revolut only offers credit cards in a couple of countries, and has only done so for a rather short period of time.
                • Hikikomori 3mo ago
                  Maybe it was remember I was thinking of, there's a few that push credit card with ads
        • kevin_thibedeau 3mo ago
          Notably, the IRS refused COVID relief applications using a debit card for identity. Stupid as fuck policy considering they're all connected to the main two credit processors.
      • ifwinterco 3mo ago
        I would argue the opposite, makes no sense to pay right away when you can pay with no interest 15 days later on average. In an inflationary fiat currency system it's always better to defer payment assuming you can manage your cashflow and you're living hand to mouth
        • watwut 3mo ago
          > makes no sense to pay right away when you can pay with no interest 15 days later on average. Why in a pray tell would you favor late payment? Why would I create myself a chore for an end of a month if I can just pop a card, pay and see the transaction in e-banking right away? If it is auto-charge by the end of month, why not charge it right away? You are gaining absolutely nothing. > In an inflationary fiat currency system it's always better to defer payment assuming you can manage your cashflow and you're living hand to mouth What are you talking about here. We are talking about people paying with euros.
          • l23k4 3mo ago
            > Why would I create myself a chore for an end of a month Do they not have direct debit where you live? >If it is auto-charge by the end of month, why not charge it right away? Because there's no way I'm going to keep anywhere close to that much money on my debit card? Because the credit card won't get randomly locked while I'm trying to pay a 40k euro hotel room bill in Asia? Or if it does, I can switch to another credit card or deal with reasonable customer service. If you're only making small payments, of course it doesn't matter. If you're regularly spending significant amounts of money, doing so with a debit card will be a huge pain in the ass and an unnecessary risk.
          • ifwinterco 3mo ago
            Say you spend €1000 per month. If you use a credit card, you can earn interest on that for an month and only need the money in your current account on the day you pay. So at 5% annual interest that’s about €4. So yes it’s not huge, but that’s every month for your whole life and it compounds over time. The benefit is small (it won’t make or break your finances) but real. That’s what I mean by “inflationary fiat currency” - you are paying in something that constantly loses value. Therefore rationally, it makes sense to pay as late as possible. In some sense everything is actually slightly cheaper if you buy it on a credit card and pay it off a month later
    • deleted 3mo ago
      [deleted]