Is It Wise to Use Your Credit Card for Investing?

History Repeats Itself

You probably don't remember the Great Depression. You probably weren't even alive when it hit. You more likely than not, however, have heard of it. Why? Because it was a trying financial time in American history and many families were affected by it.

So what does today's market have to do with the Great Depression? Many of the families who ran into trouble during that era did so because they borrowed money to invest in a market that ultimately crashed.

Our current stock market is not stable, and it may fall even further. If you borrow against your credit card to invest in stock, and our country truly does face a depression, you're going to be one of the people who gets hit the hardest.

Invest Wisely

Caveat: This is not financial advice -- I am not a financial advisor. Good sense, though, says that if you do want to invest money, first save money for emergencies, then pay off any credit card debt and then save up money to invest with. Do it the good, old fashioned way -- the way our grandparents did.

Then decide on an investment approach that makes sense for you. Consider safe investments, and don't get hoodwinked into scams. If we do encounter a depression (and no one is saying that we will) then this will be one of the best ways to ride it out.

And take a cue from those who have been through financial crisis situations before. The older generation (the one that actually lived through the great depression) can help us prepare for the worst, in case the worst does happen. Chances are, they wouldn't ever advise you to borrow from a credit card to invest in today's stock market.