Buying a Home on A Credit Card?
The U.S. housing market has been in serious trouble for quite some time. To be exact, the housing market has faced serious decreases in sales for over a year. Similarly, the credit card industry is facing extinction.
U.S. homeowners simply can’t afford the homes in which they live. How did this happen?
Before you buy a home, you have to submit paper after paper. You have to show pay stubs, your tax returns, etc. How were people able to get into homes that they couldn’t afford?
It’s simple…mortgage companies, banks and other lenders became too greedy and selfish. They didn’t care about the financial well-being of their customers. Instead, these companies changed or altered their policies and procedures in order to “qualify” people for homes that were way out of their league.
Credit card companies pursued similar practices. Credit card companies gave people limits that were too high and signed people up for too many credit cards. What was the result? People started getting too far into debt.
Now, consumers who used their credit wisely and who know how to handle their finances responsibly can’t even qualify for low credit limits. Mortgage lenders have quickly changed their policies. Credit card companies have done the same.
So, how are consumers able to buy homes now with credit cards? Consumers who couldn’t qualify for homes through a traditional mortgage are now looking to put their home debt on credit cards.
Could you imagine putting that much debt on your credit card with only one transaction? Not to mention the fact that credit card interest is upwards of five times higher than traditional mortgage rates.
No wonder our economy is seriously distressed. No wonder our people can’t pay their bills. Although the economy is unraveling before our eyes, shady business practices are still being used. What will it take to turn the tide?
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