The closest thing I can think of would be in 2022. I was managing other investments (stocks) and also trying to buy Pokemon cards since the prices crashed & deflated a lot during this year at times. Anyway, I had a fairly large position on a margin account that put me in debt for a little while, and I still kept buying Pokemon cards.
The interesting thing though is in my country you can actually claim the interest paid on investments/margin accounts (under certain conditions) and so when it was all said and done I actually got a tax credit for carrying the debt for a little while.
So I wouldn’t recommend this to most people, but at the same time I also have a Plan B for managing debt at all times (i.e. I have access to 0% loans, savings, etc). It’s definitely better if possible to buy Pokemon cards without being in debt because they don’t always have the same level of liquidity or ease of selling as other things you buy in this world, so it does take some responsbility and so ideally you want to be in as good of a financial position in other areas of life as possible before buying certain cards.
I think people sometimes see debt as strictly a bad thing. If used responsibly, debt is a tool to leverage and grow at a significantly faster rate than possible without. It’s not for everyone, but many businesses (especially small-mid sized) rely on debt to finance operations and invest in the future.
I could have paid for it in full easily, but I chose to use debt anyway.
Many, many collectors do this. It’s why we see a correlation with price rises as rates come down and debt gets cheaper.
Eg. Radar hinted in a video ages ago he bought one of the snap promos via a credit card (I can’t confirm if this is the case, but wouldn’t surprise me).
Debt is fine if you’re smart about it.
Have I bought cards whilst having a good debt loan? Yes (my mortgage).
Have I bought cards whilst having bad debt (eg. credit card debt)? I have no bad debt.
Not sure why debt is considered bad in it’s entirety on efour.
Just don’t buy boxes on your credit card and rip packs lol.
There have been multiple conversations in the past few years where debt has been considered to be an overall negative thing in the hobby.
The poll seems to be focusing if the person is in debt prior to buying cards - which is different sort of to my initial response.
There are different kinds of debt, so a deeper study would be more interesting perhaps - but I doubt people would define what that is in their personal circumstances.
I completely disagree with the “credit cards are bad” philosophy. If you work the points system to your advantage you can get great benefits and actually make money from the cards. I have multiple American Express cards in particular and really work the system. You’re leaving lots money and benefits on the table if you pay for everything with cash or debit card.
100%! I try to put as much as I can on my credit card! I always pay it off every month. I know for some it’s tough but I’ve been doing it so long it’s habit. You end up with free money at the end of the year.
I would just like to for the record state I don’t think debt is always inherently negative nor something that, due to circumstances beyond control, can always be avoided. I also understand and practice cashflow and credit reward systems (with my personal caveat being only where I have the funds to pay off in full beforehand) and credit, especially 0%, as a very useful financial tool for many different reasons including an additional emergency fund.
But as with all things financial it requires care and attention. I know many people that fall for the “buy now, pay later” dream and those systems are often by their very nature predatory and capitalise on that slippery slope.
My reason for asking this question is because things online can often seem very one-dimensional, and that everyone is doing better than you! Especially because E4 is a place where collectors like myself and collectors of the highest ticket items are in such proximity. But there are many different factors at play.
What I love about E4 is that we can explore these nuanced topics with each other, with a Pikachu hat on.
Edit: thank god I didn’t use the word “whilst”
Edit edit: oh god it was me
People only share the top 1% of their lives online and it creates an inflated image of happiness and gives the impression they are doing better than you.
A friend of mine is a pretty well known UK celebrity who just flew to LA for a holiday, chilling with his A list buddies, presents an affluent lifestyle online…but he can’t afford the purchase tax on his new house.
Social media presents things that aren’t reality.
With cards, there are literally people who don’t own a home but have 6 figures in cardboard.
There are others who live with their parents with a similar amount.
Of course, people who own their home or have kids etc but who may have less in cardboard may feel they are doing “worse”.
I’ll try to define mine but YMMV as you mentioned.
I consider a debt to be good to carry only if I have enough assets to liquidate and pay back any time the loaner suddenly shows up and tell me “sorry pal, we need you to pay all of them back right now” (or within a reasonable but short time for me to liquidate and pay). So that would basically be either:
I am 99% sure the thing I bought to get me in debt will not devalue, and I can simply resell it if I’m really having trouble paying back. Houses to me fell into this category, and this is also the reason I wouldn’t apply for car loans.
I can actually buy the thing and pay in lump-sum, but for some reason I chose not to. I have never run into this case yet though.
Some people consider things like future investments where you eventually pay off early debts with future earnings, but for me able to pay off anytime is a safety net I would always want to secure, so the existance of that safety net defines kinds of debts for me.
As for collecting Pokémon cards, I basically assume no resell value on all my hobby-related purchases (because I have trouble letting go of what I collect and I have no intentions of changing that lol ), and I usually just straight up giving up on a card if I don’t plan on paying for it in lump-sum. Therefore, Pokémon cards are not something I would get in debt for.
@charizardespana Hit it on the head! I always recommend the book millionaire next door, its a holy read for finance. It broadens your understanding of wealth and success in life, where social media does the opposite. I think we forget social media is a bunch of people advertising themselves online. You wouldn’t compare your life to a youtube ad, social media should be treated the same. Just like the opinions and lifestyles of members in this thread, financial choices aren’t binary. I know people who manage debt very well, and some who can’t handle owning a credit card. There are many paths.
I also want to thank you for the recommendation! Finished reading The Millionaire Next Door a few months ago and it contained a lot of great life wisdom for accumulating wealth. One of the main take home messages was that individuals with high salaries and luxurious lifestyles aren’t always the most wealthy in society, due to frivolous spending habits. Whereas, it’s sometimes ordinary people who are strong wealth accumulators due to not spending beyond their means and making smart investments. These types of people also tend to pass on good spending and saving habits to their children, which is more important than ever in today’s society.
A lot of the wisdom in the book may come as common sense to many, but sadly common sense is not so common sense these days. Highly recommended!
Obviously there are nuances - my above celebrity friend example probably takes home about $400k a year. Get’s a paycheck, buys a new pool table.
His wife is looking for a job as they cant afford their lifestyle.
Yes, I’ve had the conversation with him and was encouraging him to put money aside as his income can be irregular (albeit high).
But he’s had zero financial education, and most people around him see him as a cash cow. It is a little sad to be honest.
I think in finance in general, taking the human-thought process / decision making out of things helps a lot.
I’m a pretty active investor, I enjoy looking at charts and finding opportunities (hint-hint, AI Medical Analysis tech!), but a lot of people are not - these are the ones who should simply set an automation of 10-15-20% of their income post-tax and enjoy the rest of their money.
In regards to debt, I see it as a tool - but I have had to learn the hard way in my early 20s!
