Over half of Americans with debt spend a quarter of their income paying it off. The solution being floated is a 0% APR credit card. Which is debt.
The strategy here is flawless. You're drowning so you grab a different pool noodle. Same pool. Same water level. But this noodle is a slightly different color so maybe everything works out.
These people are spending 25% of their income on debt payments and the advice is to get a new card with a temporary interest rate that will absolutely reset to 27% the second they miss a payment or forget to transfer the balance on day 364 of their 12-month promotional period. It's like treating a gambling addiction by switching casinos.
The credit card companies love this plan. They've engineered a system where the solution to being buried in high-interest debt is to sign up for different high-interest debt that just hasn't kicked in yet. It's a free trial for financial ruin. Like Netflix but for bankruptcy.
Nobody is asking why half of Americans are in this position. Nobody is suggesting they stop buying things they can't afford. The conversation starts and ends with which debt vehicle has the prettiest paint job.
The 0% APR card is not a solution. It's a delay. It's hitting snooze on an alarm that's connected to a bomb. Sure, you get nine more minutes of sleep, but the explosion is still coming and now you're even less prepared for it.
The person spending 25% of their income on debt payments doesn't need a balance transfer. They need an intervention. Or a calculator. Maybe both.
But sure, let's tell them to apply for another credit card. That'll fix it.
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