TxLady2
Well-Known Member
- Joined
- Aug 27, 2008
- Messages
- 8,099
- Reaction score
- 1,632
Ok, I can speak to this. Once a debt snowball starts rolling, it can become insurmountable very very quicly. If this family refinanced the house or took a second mortgage or had an interest rate reset to a much higher rate, and then missed one of two credit card payments and then had those rates reset to 24% etc etc, then it is very very easy for debt to snowball out of control, fuled almost entirely by interest rates. I've known a ton of people who played this game and lost, some who even took high-interest loans from one area to pay for something in another area, etc etc. I just had a close friend who makes a good living lose at this risky game. He lost his house and had to declare bankruptcy.
Ok, I stand corrected.
We don't use credit cards, but I know many people do and eventually end up owing lots of money that they can't handle. Still, the people I know who have done this, have things to show for it, like the things I mentioned above.