After 12 years of reading about personal finance, it never ceases to amaze me all the things you can learn. I not only learn about money, but I also get a history lesson in the process.
Did you know that credit cards have only been in widespread use since the 1950’s?
Before 1950, credit was rare.
Most places did not offer much in the way of credit. They wanted cold, hard cash.
Stores may have provided familiar faces and those in the community with a store credit, but you better believe it was not a $25,000 limit!
I decided to have some fun last summer and see if I could get approved for $5,000 on some random credit card. Well, guess what? I got approved for over $20,000 in credit limits!
However, that pales in comparison to some offers that some people have claimed their pets have received in the mail. You read that right, pets!
I have read numerous books and articles where people have received credit card offers for their pets.
Come on, America!
If the pet’s owner cannot afford a $400 emergency, as the media claims, then how is an unemployed Yorkie going to payback over $50,000. And yes, that is a limit I read one couple stated their dog received. And that was only one offer. They also received others with one being $100,000!
However, there are some pets who earn their keep and make millions for their owners.
This post, for now, will focus on how Fido is able to write checks for his own bone and chew toys that his puppy paws can cash.
MILLIONAIRE PETS
If you read my post 4 Financial Futuristic Nuggets: The Economics of the Jetsons, I discussed Millionaire Pets in that article.
Let’s take this a step further shall we and discuss real life ones!
It was recently reported that celebrity designer to the stars Karl Lagerfeld has passed away last month. He leaves behind an estimated $100 million-dollar fortune. The media was speculating that his cat may inherit a chunk of that money. Holy cow! Or should I say, MEOW!!!
In addition, Real Estate heiress Leona Helmsley left her pet dog $12 Million in 2007. The will was contested and the pet received death threats, which caused money to be diverted for security! Unbelievable! Any who, the pet ended up receiving a mere $2 million after the case was settled. That sure buys a heck of a lot of Puppy Chow!
Can you believe that?! A pet that literally has their own access to a line of credit to pay bills including for their own security guards!
See my post on The Jetsons
CREDIT CARDS: EASY MONEY THE HARD WAY
Once credit cards started being more the norm, it exploded!
Once you turn 18, it used to be time to go down to the MVA and sign up to vote. Now, it’s when credit card offers come in the mail.
I remember when I got my very first credit card for $250! I even had a secure credit card for $500. That’s a far cry from the $20k, I was approved for last year.
After the 2008-2009 financial crisis, credit dried up faster than nail polish. They were slashing limits faster than prices at Wal-Mart! Then it slowly started creeping back up. As it stands, credit card debt is now higher than it was in 2009! It stands now at over $1 trillion! The current outstanding revolving debt in the U.S. is $1.05 trillion.
The average debt in America has increased 18.5 percent since 2013! In 2015, the average American was in $5,700 dollars of credit card debt. As of the end of 2017, it is up to $6,354.
The laissez faire capitalism in America allows you to actually have access to $100,000 of credit while only making less than half of that.
See my post How to get access to $250,000 in credit with $0 of your own money
Debt is crippling. It can have long lasting consequences if not handled quickly. You have to pay off debt ASAP.
A guideline I use is anything you have that is under 7%, you do not have to pay off right away if you have other higher interest debt to take care of. However, if that debt is higher than 7%, you need to attack that debt like your financial house is on fire. Your financial destiny is depending on you to get your financial house in order.
Once you have the debt paid off, then you can build your financial foundation on solid financial footing. All the money going to creditors will now stay in your bank account and can be invested.
That is how wealth is built.