Using credit cards can cause endless loop of debt. Read my experience with that and what I did to close it!
During my first employment in 2002 I got into building my daily driver into a project car.
The idea itself came really simply:
Kuuno (asking a co-worker):”Hey, how to make my car faster?”
Co-worker:”Easy, put a turbo on it”
Kuuno:”wow, cool. I’ll do it!”
and this lead me into endless hole that must be filled with money but it was not possible to actually fill it. I started off with salary around 400€
This allowed to:
pay for rent
buy dumplings and noodles
“invest” in one or two parts for the car each month
be out of money before the end of the month
The project build took a long time with this kind of cash flow and i knew i needed more money. What are “wise” options here?
make your own business
get a credit card (as there was some sort of history with the bank by now)
Banks almost forced some credit-card deals at that time and with my knowledge or lack of it it was fast and easy money(at first) so i got my first debt
Car build made few fast leaps ahead and my monthly expenses list looked like this:
pay for rent
buy dumplings and some noodles
pay for credit-card
be out of money
re-use what was paid for credit card
and this is what happens to many unfortunately. Never ending circle. I think i managed to get a credit-card + short term loan what together made a false feeling of having money
I tried getting out many times but after saving for few months i still ended up re-using all whats paid back on the card.