Allie Johnson and the team at CreditCards.com wrote a timely piece on 6 expenses you should never put on your credit card. It’s a good article that received a lot of attention; some 650+ comments.
Allie was also kind enough to mention us and we wanted to respond in kind to elaborate further on a few key points. We like the premise of this story because it touches on how easy it is for people to get in over their head.
The two examples we provided for the article describe exactly those types of situations. These are the times when its too easy to say ‘yes’. Using credit for gambling and honeymoons were the stories we shared with Allie because we found our close friends falling into situations where the pressure of the situation made it especially challenging to say no to credit cards.
One of our early beta testers was traveling and on his honeymoon for example, when he received a call that he had gone over his credit limit. Unfortunately for him, he was only 1 week into his 2 week honeymoon. He didn’t have the cash on hand and instead negotiated with his creditor to extend his limit until he returned, at which point he promised to make a large payment to cover the additional credit they provided. The creditor agreed and he continued spending. When he returned home however, the situation was much worse than he thought and it took years longer than he expected to repay this extra debt and interest. In general, these stories aren’t really all that rare.