“There’s this wild disconnect between what people are experiencing and what economists are experiencing,” says Nikki Cimino, a recruiter in Denver.

  • givesomefucks@lemmy.world
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    8 months ago

    Nikki Cimino, a 40-year-old recruiter living in Denver, said she finally saved up enough to buy a condo last year, but missed out on the ultra-low interest rates that had made homeownership more affordable in the early days of the pandemic. Her 5.25% interest rate pushed her monthly payments to $1,650. After a divorce in 2020, she’s shouldering $4,000 in credit card debt.

    It’s the credit card debt…

    Instead of paying that off since 2020, she saved a down payment and bought an expensive condo. She’s wasting a shit ton of money on interest because credit cards are all like 20-30%

    Credit cards are predatory, if you ever carry a balance to the next month, that needs to be your highest priority.

    Do a transfer to get 0% each year if you have to when recovering from emergencies. But paying credit interest for years is insane.

    • Null User Object@programming.dev
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      8 months ago

      Holy crap! She was “saving up” to buy a condo instead of using that money to pay off the credit cards? That’s absolutely insane. I really feel like society would benefit immensely if there were mandatory financial literacy courses every 4 years, or at least before any major purchases (house, car, etc).

      • givesomefucks@lemmy.world
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        8 months ago

        Or just common sense laws against predatory lending by capping interest rates.

        Most people don’t have a safety net and live paycheck to paycheck.

        A huge expense comes up, and rather than get a bank loan at even 8-10%, it goes on a credit card

        Companies have a tiny “minimum payment” because they don’t want you to pay it off. They want that balance to grow while people ignore it. They don’t want it back now, they want thousands more later.