Ep 53. Credit: It's complicated 🐦

<p>If you are like me, then you were a little awkward in college. Here’s an example of an interaction I had on campus as I walked from my dorm to class. </p><p><strong>Pretty college co-ed</strong>: “Hey! Do you want a free t-shirt?”</p><p><strong>Me</strong>: Uh! (Awkwardly looks away. Runs in the opposite direction.)</p><p><strong>Don’t hurt me🤕</strong> </p><p>It’s complicated.</p><p>Let’s flash back a few months before this awkward interaction. </p><p>So many thoughts rushed through my head as I packed my bags. I wondered if my American professors would understand my Nigerian accent. I wondered if I would easily make friends, maybe meet a nice girl. But then my mother rocked me back to earth as she exclaimed “Please stay away from credit cards o!”. Apparently, someone’s son was drowning in credit card debt. I guess he thought the money was free. </p><p>In Nigeria, less than 3% of consumers have access to credit. It’s a stark contrast to the US, where 83% of adults have credit cards (<a target="_blank" href="https://www.federalreserve.gov/publications/2021-economic-well-being-of-us-households-in-2020-banking-and-credit.htm">Federal Reserve</a>). My mum’s friend’s son had recently relocated from Nigeria to the US for college. He was woefully unaware of how to manage credit. He would stop and chat with the pretty college co-eds waving free t-shirts in front of the gym. Eventually, he signed up for a couple of credit cards. Then it all went downhill. He didn’t stand a chance. </p><p>And so I stayed away from credit cards. </p><p>The case for credit 💳 </p><p>But my views have evolved. I no longer see credit as a tool for self-destruction. Rather, I see credit as a tool - it’s neither good nor bad - it’s just a tool. If used properly, credit could help people build wealth and live healthier and happier lives. But if used improperly, it could lead to financial ruin. Credit is a double-edged sword. </p><p>Living in Nigeria meant you paid cash for everything. The words “mortgage”, “car loan”, “student debt” and “c