So imagine you have a couple of credit cards, one is at the max of say $4500. You tried going to the pawn shop to sell some of your stuff, but they said it was just c-ap and wouldn't buy, garage sale didn't even work (by the way most of your c-ap came from a box of junk you purchased from someone elses garage sale, shiny stuff on the top, sh!t on the bottom). You still need to make the minimum payment, so you just charge it to your second card, which you will eventually have to pay back. Would you run your household like this? Jump ship folks if you can, the good ship CVE is headed straight for an iceberg, its just a matter of time.
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Nothing more than legalized Ponzi scheme
Now imagine a more relevant scenario, you have short term credit card debt and you borrow money from friends and family and tell the you'll pay them back in a few years but will give them a competitive interest rate.
With WCS prices north of $30US Cenovus is doing just fine and paying down debt. At current production and prices the accrued debt from Q1/Q2 this year will be paid off by Q4.
- or maybe we merge our failing household with the next door neighbour named Mr & Mrs Sun-Cor and start a commune .. lower overhead with one Mortgage, but the house only has half the available rooms, so some of you will need to go.. sorry.
Good analogy. Now imagine you have some kids who really want to help mom and dad get out of Credit card debt and have super cool ideas, but there’s a big sibling or two in the family who are bullies and really insecure and keep telling your dad it’s a terrible idea. Dad doesn’t know any better so what do you do? Mom’s clueless too. I’m thinking you start squirreling away every little bit of cash you can and one day when you have the chance you get heck out of there.