My Dumbest Investment
Credit Card Recklessness
My dumbest investment has been using debt to buy items I know will drop in value. I remember my father getting a second job in order to make a down payment, purchase a car, get ready for a vacation or get some gizmo he wanted to have. When I entered the purchasing world, I discovered almost endless credit. If I charged it, I could have it right now - what was my old man thinking? Too bad I didn't have the patience to set aside $200 a month for a year to buy that big-screen TV. A year after the desire hit, I could have gotten a better set at a lower cost than when the impulse hit me. I have made many dumb stock investments, but none compare to the mistakes I made with credit.
- Steve Pearson, Bradenton, Fla.
The Fool Responds: Many, many people have made and are making this mistake. Don't buy what you can't afford, and beware of credit card debt, which can trap you like quicksand. Fortunately, you can dig out from debt. Learn how at www.fool.com/ccc.
Do you have an embarrassing lesson learned the hard way? Boil it down to 100 words (or less) and send it to The Motley Fool c/o My Dumbest Investment. Got one that worked? Submit to My Smartest Investment. If we print yours, you'll win a Fool's cap!
