Consumer debt would have to be one of the big hurdles the Transition movement sees to becoming resilient in the face of peaking resources. Living entirely debt-free provides marvellous peace of mind.
Which is better – credit or store cards? We’d agree with the man who answered: more like worst and worster.
Interest rates on cards vary from 10% to 23%. www.betterbankingchoice.com.au/ditch-and-switch gives you a list of cards and interest rates available.
Other websites are www.canstar.com.au www.creditcard.com.au www.fido.gov.au
Some of the extreme risks for the slightly naive are obliterating your home equity on pokies cheap feeds good times and buying stuff you don’t need and didn’t know you wanted. In the hands of the weak-willed cards represent a death sentence. They are giant wealth suckers.
Reward programs are mostly worth a tiny tiny percentage of the value of what is spent. Spend $100 for $1 of points. A store card might give good discounts but will charge you an even more ridiculous interest rate.
If you don’t make your payments on time you can be slugged with all the interest. Some rates are incredably high. As a general rule store cards charge a higher rate of interest than credit cards.
There are annual fees interest free/no interest free days interest free balance transfers cash advances reward programs secondary cards transaction fees and charges…All confusing if you are trying to accurately calculate what it costs you to use.
Finally in retirement we don’t need debt for sure.