Dad's $10K "Passive Income" Dream on Etsy Has Made $0—And Destroyed His Family's Credit Score
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A college student watching their father spiral into debt-fueled delusions about crafting wealth has become a cautionary tale about the dangers of get-rich-quick schemes in oversaturated markets—and what happens when YouTube fantasies collide with credit card reality.
The story, shared on Reddit’s r/povertyfinance community, centers on a father who racked up thousands in credit card debt buying laser engravers, Cricut machines, and craft supplies after binging “shady YouTube videos” promising easy money on Etsy. The kicker? He hasn’t sold a single item or made a penny in profit, according to the post.
“He relies on watching these videos that claim people make thousands just on Etsy through ‘passive income,'” the original poster wrote. “He believes his business will make money overnight and pay off everything.”
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The Sunk Cost Spiral That’s Bankrupting Families
What makes this case particularly instructive isn’t just the father’s poor judgment—it’s how the psychology of sunk costs can transform a bad decision into a financial catastrophe.
The father purchased equipment including a laser engraving machine, multiple printers, and even a $300 machine he’s never used. He constantly orders supplies from Amazon and hits sales at Michael’s craft stores while paying for a monthly website that hosts zero products. When his wife questions these purchases, he becomes defensive, insisting everything is “necessary to start the business” and help him “do more.”
The real damage extends beyond the debt. The family’s primary business is failing, the mother faces potential layoff, and their credit score is “shot”—making it impossible for their college-age child to secure student loans without a cosigner, according to details shared in the r/povertyfinance thread.
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Why the Etsy Dream Is Dead for Most Sellers
Experienced crafters responding to the Reddit post painted a bleak picture of today’s handmade marketplace reality. The craft fair and Etsy markets are “completely flooded” with similar products, multiple commenters noted, making differentiation nearly impossible without exceptional artistry.
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