CREDIT Question this question was asked by somebody here hwo deleted it but it will help most other

Tell me is this a good strategy or what? One my my friend%26#039;s dad, started building a good credit history since he was 18. He would always pay the bills on time and by the time he was 30, banks started to give him about 18 000 of credit limit in each card. Not only that but to his luck he kept the same job for 25 years. So banks were glad to give him high credit because they knew he was reliable. So what he did was pay the minimum payment every month (never missed one), and he rotates the debt between low interest rate credit cards lets say 4.9%. So he has $18 000 on one card, $9 000, $20 000 on another so on. To this day he has never gone bankrupt and keeps paying on time. So when he dies his kids have no liability, only thing thie bank will take thier house and car. Not only that but he also has a life insurance policy which would be granted to his wife if she%26#039;s still alive or thier kids.

CREDIT Question this question was asked by somebody here hwo deleted it but it will help most other ppl so hercar financing

no. not good at all.

ask urself this if he dies u said the only thing the banks will take is his house and car. why? cause he owes on them. don%26#039;t u think the kids would benefit he left an inheritance for them in the form of a house and even a car?

if he owes various amounts on various cards who%26#039;s gonna pay up when he dies? his estate will the banks will make sure. that%26#039;s why they retain those high paid corporate lawyers.

if he keeps flipping his balances between cards, he is just like a normal american - broke. and one or 2 emergencies away from a financial disaster. u don%26#039;t have to be one of us to see thro%26#039; that one right.

and by the way today there%26#039;s no more safe job any more 25years or not. except cutting hair. (they haven%26#039;t figured how to out source that one yet and not everybody will become the president either. in any case that is 8years tops.) so his system is not fail safe but is still subject to availability of income to support the minimum payments. if that source is gone...i bet he has a nightmare thinking of that one. and retirement will catch up. living on a 3rd income after retirement is no good if in the first u could not make it on the full income. that is why he has debt. he can%26#039;t pay it off.

back to leaving a legacy for his family. what is his networth after he deducts his debts from his assets? that one isn%26#039;t looking too good right? the man is broke. he does not appear to be among the 2% financially independent ppl that SSA.GOV says are able to support themselves after retirement. btw few of them have the ability to write a good $600 check - again ssa numbers not mine.

finally if he dies with all this balances in between his cards does he not intend to have them repaid to their rightful owners? that is morally wrong and i don%26#039;t think i would want such to be set as an example for me to follow. if u borrow u must pay back.

get the book Total money make over by dave ramsey it will teach u what u need to learn about money that alot of people don%26#039;t know about.