I recently asked a few of my personal finance bloggers to fill out a “Debt Profile” questionnaire. Below, I have organized the pf bloggers into groups, according to their responses to the “Debt Profile” questionnaire. (The questionaire consisted of VERY generalized questions about credit card use and borrowing habits. Each blogger included in the groups below is invited to write a post, clarifying their ideas about credit card use and borrowing money!) “Thanks!” to all of the pf bloggers who participated.
Group 1: The Rate-Conscience Borrowers
Personal Finance Bloggers who will borrow money to make major purchases, buy a home, purchase an automobile, or pay for college. Many in this group also use credit cards. They may or may not pay interest on their credit card purchases. Basically, they will borrow money if they can borrow it at a rate that is favorable.
Group 2: The Practical Borrowers
Personal Finance Bloggers who would borrow money to pay for a house our for college. Most use credit cards but pay off balances each month. (Some borrow money at zero percent using credit card balance transfers.) Many of these bloggers try to pay cash for other major purchases. These bloggers will use a credit card for day to day purchase, but they do not pay interest on their credit card purchases.
Group 3: The Housing Borrowers
Personal Finance Bloggers who would borrow money to purchase a home. A few of these bloggers might also borrow money to make another major purchase, but most would like to pay cash for all purchases. These bloggers may use a credit card, but they pay balances in full. Most use credit cards to earn cash back and bonuses.
Group 4: The Non-Borrowers
Personal Finance Bloggers who do not borrow money and do not use credit cards. These bloggers save money and pay cash for purchases. Many of these bloggers also hope to purchase (or perhaps have purchased) a home with cash. These bloggers may or may not have credit card accounts, but they do not use their credit cards.
I will have much more to say about these results at a later date. If you are a personal finance blogger and you would like to be added to a group, click the contact tab at the top of the page and mention “Debt Profile” in your message. If you are a pf blogger and you write a post about my findings, please let me know. Again, thanks to all who participated!