As mentioned in the other thread. How often do you think collectors are going into debt to buy Pokémon cards? Either singles or boxes etc.
I guess it depends on what you constitute as debt. I am sure that most North American collectors have bought Pokemon cards on a credit card at least once, as that is ingrained in our culture. But if you pay the credit card off before interest hits, you have no real debt or consequence.
I would be more curious about the percentage of collectors or sellers who buy something on credit and let the interest accrue. And what group is doing this while already drowning in four or five figures of bad debt (e.g., credit card debt, private loans, cash advances, tax debt, etc.).
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I didn’t realise it was a thing, until recently. I saw an Instagram post where a guy was buying thousands of dollars worth of Pokémon cards on credit and his partner was threatening divorce, or something like that. I must admit, when I’ve maxed out my budget and then spotted a good deal, credit has crossed my mind once or twice. Especially when auctions are about to end and a kind of FOMO kicks in. But I talk myself out of it each time, as I personally don’t like owing money.
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I think there are more than a few people out there with nothing going on for themselves who fixate on cards as their primary source of joy. This is without taking fomo or investing into account, which will obviously compound the abandon. I don’t see why these people would self-regulate beyond trying to keep a roof over their heads.
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I originally thought it wasn’t that common, but after digging deeper into some smaller content creators and online communities, I was surprised by the number of people leveraging debt. Fortunately (or unfortunately) for them it seems like everything continues to go up so this behavior continues.
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I imagine this kind of cultural difference could explain part of the variance we see between the NA & EU markets
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I’ve used both my credit cards and 0% loans I get from my bank to buy Pokemon and other things, but I’ve always had a plan or way to pay it back. With my loans I’d take out I’d buy some Pokemon, some stocks or other investments (while they were down), and put the other money towards other expenses I’ve had over time. But, I never purchased any of this stuff without some type of plan where I couldn’t pay it back at some point and properly avoid the interest or other fees.
Of course we’ll always hear people say to ‘stay out of debt’ which I think is a good recommendation for most people, but one also has to consider opportunity costs in the market. There is definitely ‘good’ and ‘bad’ debt. If I didn’t use my loans or CC’s to buy certain cards or other things over the years, I wouldn’t be as well off as I am now.
So the bottom line is, leverage and credit is very powerful, but it has to be deployed and used responsibily. Pokemon cards aren’t as liquid as other investments and so you have to always plan things out and not get too carried away.. that is when it can become a financial problem for you.
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I agree with that. I think if you have a 0% interest card that you can use and have a plan to pay back before interest accrues it’s great. But I wonder how many are past that to the point where they are just using cards to get cards even without a plan to pay back or in hopes of a flip to pay back
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Anecdotally, I’ve seen more buyers mention that they are at their credit card maximum than in prior years. But maybe that’s a sly lie to request a slightly lower price point.
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Although not a native European, I somehow think this culture of not relying too much on Credit Cards is really wonderful for my mental peace. I use credit card seldomly. I have it because it offers flexibility and now I see that I can use it on US based websites like Fanatics and even eBay. Knowing that I have credit card debt and to a point where the interest hits, just makes me shudder. I cannot imagine how folks can have multiple credit cards and max them out, for whatever reason. Also the fact that doing so (and paying in time) rewards your credit score in a positive way is also a but hard to imagine for me.
Cheers!
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Interesting, I only use credit cards. I cut my debit card in half almost 10 years ago and never looked back.
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I mean I think it is the culture and ecosystem. Just the reference of Netherlands, I have never needed to use credit card here unless it is for online shopping and that too because there are no other alternatives. The credit cards here do not have a reward system (atleast mine does not) so there is no incentive as well to keep using it. The credit score calculation is also done based on your loans and how you well you pay them on a timely manner (small loans, mortgage etc). So you ability to use your credit card to boost credit ratings also does not exist.
Cheers!
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This is an very interesting topic since I’m working in the financial sector
I’ve seen many studies where NA consumers are more open to using credit and using loans for consuming goods while EU consumers behave the opposite. Just wanted to know how far people are willing to go in debt to get a pokemon card
Here in korea its like half half for consuming….Alot of people nowdays are in using credit or loans to over consume(spend) on things like oversea holiday, luxury items etc. Same thing goes for spending money while in debt for hobbies which I found alot of people are actually using credit card revolving features or installments
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In general I’ve carried some level of credit card debt my whole life so using credit to sometimes purchase Pokémon has never been unusual for me. Sometimes I’ve kept the rates and balances of cards low, other times I’ve just transferred to 0% cards for 18 mths to slowly pay off. I fomo over select bottles of scotch that come up for auction or new releases more often than I fomo over Pokémon honestly, but same idea.
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I’m also in the camp of folk that fund larger purchases with cards that have appreciated over multiple years.
I still purchase with my general pool of funds, but I’m not going into debt.
With that said, I don’t know how young, newer collectors navigate the hobby without making steep concessions or going into debt.
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Oh nah, I don’t go into debt. I use credit cards to get massive rewards. I have an Amex Platinum for traveling, and other really nice credit cards where I can get anywhere from 2-5% cash back and up to 10x Points and a lot of free stuff with these cards.
I have never paid credit card interest before and prob never will… and at least in America as long as you’re financially responsible, credit cards are the way to go because there’s no liability and only rewards to benefit from.
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I want to be like you when I grow up. Seriously.
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I use my CC for everything for the extra protection when I make purchases/rewards but also have auto payments set to pay off the entire balance each month so I don’t accrue interest. I guess that’s not technically debt. Ive never gone into debt for Pokemon cards but In the past I have gone into debt for things that are just as/if not more frivolous. These days I tend to avoid it for everything if at all possible. Even if its zero percent interest I just like having a simple personal balance sheet.
To bring it backs to cards, one time I was making a very large purchase (for me) at a shop (about 5k). I asked the owner if he’d to take 3% off if I paid with cash. He said they don’t do cash discounts. When it came time to pay I pulled out my credit card and he said “I thought you were paying with cash?” Not if I don’t get anything out of it. That’s at least a months worth of toilet paper in rewards points. For some reason he got upset. Can’t have your cake and eat it too.
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I’ve used a card to make a purchase because I had 14 months zero interest. So in a way I basically payed as much or as little over those 14 months, I think that’s a good use of credit. Plus I got cash back for the purchase so I got money back
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