Remember that in the U.S., health insurance (a decent plan) could be upwards of $1,000 per month (and that’s post-tax dollars you are paying for it). That expense alone is enough to have many families (who are not the beneficiaries of company-sponsored health plans) generally on the edge of financial difficulty.

When that car breaks down, the bus is a great option if you are single in live in a metro area. But what happens when you have kids going to different schools, and you yourself have to get to work? Throwing that mechanic visit on the Visa (versus “tough shit” and riding the bus) is unavoidable.

Now, the excesses of buying pleasantries (nice dinners out, LCD tv’s, houses that are way more expensive than one’s salary can reasonably afford) – those are the types of credit-induced hallucinations where people seriously need to wake up.

I made the same mistakes you did with respect to getting credit cards in college and maxing them out. Expensive lesson. But was I naive enough to really think that was free money, or to then turn around and blame the credit card cos? Of course not. I looked at myself and my behavior and that was where all the blame belonged.

Of course I continue to have transgressions with credit, but never on the scale of my previous mistakes. I consider myself lucky to currently be in a position of zero cc debt (thank god, with what 2009 is looking to be economy-wise).

But I think there is a very high percentage of families out there that find themselves dipping into credit for stuff that you can’t really classify as frivolous spends. The tough shit, take the bus example doesn’t hold water for people who rely on their cars for commuting. Health insurance, emergency home repairs, parking tickets, legal problems – life has a way of hitting you with two or more unexpected things at once. And I think credit is a necessary cushion for people to lean on to get through tough times.

Isn’t it so freeing to be one of the few people who aren’t panicking about the recession?

Granted, my husband is in the Air Force, so we have more job security than most, but also the added worry that there’s a war going on…

But I’m with you – I’m working on my independence – work for myself, not for someone else.

Kudos mate. Kudos. Keep em coming. Even though it may not happen soon, only with people like you voicing the reality, can it happen any faster.

(by the way I still drive my mum’s old camry that we bought 15 years ago!!!!)

Cheers
Sri