Within your financial means

2007-06-10 07:37:44

#1

RoosterCantrell: Goodbye :); +399|6926|Somewhere else

At work I am surrounded by people who Can barely afford the gas to get to work yet have a $100,000 home, a brand new SUV, a harley, The best damn TV package you can by, Cell phones for everyone in the family.

How is this afforded? Credit! I have noticed that people don't buy things with the money they make, they make the payments on the credit they used to buy things.

It doesn't seem good that alot people are crashing head first into debt for the rest of thier lives for this shit. And the question... Doesn't anyone live within thier financial means anymore?

What's wrong with a used car? Why can't you buy a $45,000 dollar house? Do you really need 300 Channels? Some people I know are miserable because they are so stressed out about thier financial situation, so upset that they need to smoke a $6 pack of cigarrettes every day and drink like a fish a few nights a week at the bar.

I'm 25 years old, I have a used car (paid $1200) that gets me where I need to go, used furniture, regular ass clothes,No cable TV at all, and my combined total Debt is $900 dollars at the moment. I just don't understand why people look at thier earnings and think "yeah, I can afford that PAYMENT" Rather than "I can (or cannot) afford that"

Yes, I know consumerism is what makes economies go, but every transaction made anymore is credit. Sometime, these I O Us are gonna fuck things up. Plus, with credit card companies and Banks finding new ways to fuck you with tricks to get the interest rates to go sky high, It just confuses me that so many people take that credit dildo up thier butts and not care?

I can say that being debt free is a hell of alot nicer than driving A small Tank around that depreciates in value faster than I can pay it off. I just don't get it.

2007-06-10 07:39:55

#2

Hurricane: Banned; +1,153|7076|Washington, DC

Only use a credit card if you're gonna afford it at the end of the month. Credit cards tend to have nice benefits that debit cards don't have; if you treat it like a debit card, I think you'd be golden.

2007-06-10 07:40:57

#3

CameronPoe: Member; +2,925|7001

I'm a huge advocate of remaining debt free myself. I was only briefly in debt once in my life in order to cover the cost of a J1 visa trip to the US. That was nearly 8 years ago. I think that there are a lot of naive people out there who will eventually get burned with their 'live now, pay later' attitude.

2007-06-10 07:44:23

#4

RoosterCantrell: Goodbye :); +399|6926|Somewhere else

Hurricane wrote:
Only use a credit card if you're gonna afford it at the end of the month. Credit cards tend to have nice benefits that debit cards don't have; if you treat it like a debit card, I think you'd be golden.

Yeah, thats a good idea. In fact, Ive heard of people maxing out credit cards through the offers they have, and taking that money and investing it somehwere safe and collecting the interest. When the credit card company offers "introductory" 0% rates, its free money.

However, My step brother got hosed when he did a balance transfer with a ton of credit cards to a new one at 0% and right away he got "bulk increased" to 18%. He called, and they said for no reason he got 18% it was just a bulk increase with a large group of the card holders. owned.

Credit cards can be nice if you play the game right. Usually that game is rigged though, and not in your favor.

CameronPoe wrote:
I'm a huge advocate of remaining debt free myself. I was only briefly in debt once in my life in order to cover the cost of a J1 visa trip to the US. That was nearly 8 years ago. I think that there are a lot of naive people out there who will eventually get burned with their 'live now, pay later' attitude.

Yep. I go into debt a few thousand time to time. If my cars takes the fatal plunge, for example. But some people just go apeshit with credit. And then they go bankrupt, which I know ALOT of people who have, it isn't good for the checks and balances of everything. Sooner or later, the creditors are gonna be killed by thier own design. Some nation wide banking chains are hurting becuase of the housing market and loans going unpaid.

Last edited by RoosterCantrell (2007-06-10 07:47:34)

2007-06-10 07:47:51

#5

Hurricane: Banned; +1,153|7076|Washington, DC

I don't know why anyone would want to be in debt, or rather accept being in debt. It raises so many problems... since once you miss a credit card payment you better cut way down on spending the next cycle or make a handsome sum of cash because the debt's just gonna grow.

As for cars, well, if you've got good business sense I don't see the problem in paying it off in installments (if you know you'll be able to afford each installment each month).

edit: Heh, yeah I always wondered what would happen if I was a very old man with no family whatsoever and got diagnosed with a terminal illness that would kill me in a month. I'd buy a ton of stuff, Ferraris houses etc, and then I wondered "What about once I die; the bank can't put the debt on anyone else, so do they just count their losses?".

Last edited by Hurricane (2007-06-10 07:49:36)

2007-06-10 07:53:19

#6

usmarine: Banned; +2,785|7207

Not sure what cars you buy hurricane, but I sure as hell can't pay cash for them.

2007-06-10 07:56:53

#7

Retalliation[1337]: Robin Hood ---> "u got arrownd"; +51|6920|Belgium

At op : I know what you mean my parents did that and we had to move out of afrcia b/c of it ....
I just dont know why people need so much luxury ...
I am sure as heel only going to get the stuff i really want e.g: only internet (u can stream tv and movies here for free) and a used car til i get a good job that pays so i can afford it w/o credit.

2007-06-10 08:03:16

#8

Hurricane: Banned; +1,153|7076|Washington, DC

usmarine2005 wrote:
Not sure what cars you buy hurricane, but I sure as hell can't pay cash for them.

I got money in da bank

...

Sorry =/

Well I mean as opposed to saving up a bunch of cash for a mediocre used car, just use some business sense and don't fall for payment plans that screw you over.

Last edited by Hurricane (2007-06-10 08:03:27)

2007-06-10 08:03:58

#9

usmarine: Banned; +2,785|7207

Hurricane wrote:
usmarine2005 wrote:
Not sure what cars you buy hurricane, but I sure as hell can't pay cash for them.
I got money in da bank

...

Sorry =/

Well I mean as opposed to saving up a bunch of cash for a mediocre used car, just use some business sense and don't fall for payment plans that screw you over.

I just toss a nice down payment....that helps a ton.

Last edited by usmarine2005 (2007-06-10 08:05:57)

2007-06-10 08:07:47

#10

jsnipy: ...; +3,277|6968|...

I sympathize. I see people that I know make half of what I make driving vehicles well beyond thier means. It boggles my mind how they can affors the taxes, insurance, and fuel as well as the financing. I think financed cars are the biggest waste.

Some things you almost have to have some debt for i.e. house. At least when you spend more for a house, you can more than always get that money back when you sell.

I'm trying to get to the point when I have to frivolous debt and I save 1/2 my income for retirement.

2007-06-10 08:11:28

#11

RoosterCantrell: Goodbye :); +399|6926|Somewhere else

I have had debt in the past that was bad. Only around $6,000. But that was for a car, 3 credit cards. 4 seperate payments got old. Plus, the crap I bought wasn't all that great.

"The things you own, end up owning you."

2007-06-10 08:12:34

#12

usmarine: Banned; +2,785|7207

RoosterCantrell wrote:
"The things you own, end up owning you."

True. But never ever consider school loans as "debt."

2007-06-10 08:13:46

#13

Doctor Strangelove: Real Battlefield Veterinarian.; +1,758|6914

Credit companies are really capitalizing on people's stupidity. The idiot person thinks that their credit card is just "play-money" so they buy stuff they really can't afford and due to their lack of foresight it comes and bites them in the ass when they are in debt and cannot keep up with the interest. But there are also smart people who only use their credit card as a substitute for cash, people who have the money but do not want to bring a huge wad of money with them. The first gets the companies fist fulls of dollar and the second, they make very minimal profits from.

2007-06-10 08:15:19

#14

R0lyP0ly: Member; +161|7099|USA

ya know, a $100,000 dollar house isn't really all that luxurious. Especially in America.

2007-06-10 08:15:53

#15

jsnipy: ...; +3,277|6968|...

RoosterCantrell wrote:
"The things you own, end up owning you."

lol fight club

2007-06-10 08:16:16

#16

usmarine: Banned; +2,785|7207

R0lyP0ly wrote:
ya know, a $100,000 dollar house isn't really all that luxurious. Especially in America.

100K house is shit.

2007-06-10 08:17:47

#17

RoosterCantrell: Goodbye :); +399|6926|Somewhere else

doctastrangelove1964 wrote:
Credit companies are really capitalizing on people's stupidity. The idiot person thinks that their credit card is just "play-money" so they buy stuff they really can't afford and due to their lack of foresight it comes and bites them in the ass when they are in debt and cannot keep up with the interest. But there are also smart people who only use their credit card as a substitute for cash, people who have the money but do not want to bring a huge wad of money with them. The first gets the companies fist fulls of dollar and the second, they make very minimal profits from.

Yeah, I keep my credit cards for that "oh SHIT!" situation. Plus, if you pay off a credit card and close the account. It hurts your credit. ISn't that neat? Credit companies OWN that system hard.

usmarine2005 wrote:
RoosterCantrell wrote:
"The things you own, end up owning you."
True. But never ever consider school loans as "debt."

Definitely. Unless you went to school for Philosophy.

R0lyP0ly wrote:
ya know, a $100,000 dollar house isn't really all that luxurious. Especially in America.

True. in L.A. a small ass house is $500,000. I was kind of thinking locally, heh, around here a nice house is 70,000 dollars. In L.A. that same house would probably be $1.5 million. Give you an idea.

jsnipy wrote:
RoosterCantrell wrote:
"The things you own, end up owning you."
lol fight club

Good movie. Good quote.

Last edited by RoosterCantrell (2007-06-10 08:21:15)

2007-06-10 09:03:23

#18

Bubbalo: The Lizzard; +541|7007

To a degree I understand what you're saying, but having said that, there's nothing wrong with debt, so long as you've planned for it. A home loan, for example, is technically a debt, but few people could afford a home without one.

2007-06-10 09:09:01

#19

tiptopT: Member; +72|7028|Scotland's Capital

Ive got a bit of debt from uni (rent and running a car etc) but im happy with it as I didnt rely upon my parents to put their hand in their pockets to see me through. I have the rest of my life to pay that off which is a damn sight better than them struggling at any point in their later years. Debt will always be around, just wether or not people are smart enough to manage it correctly.

2007-06-10 09:25:17

#20

Scardaddy: Member; +37|6838|UK

Heard that man whats the point in credit so you can be broke later, sorry but I'd rather be rich later. Yeah it's a good idea to get a mortgage and such because you wouldn't wanna throw all your money into one basket when you could make more having it around and use able. But in the case of new cars and flash clothes you should not be buying new shit all the time cause your are not only contributing to that destructive counter culture but also are slowly killing your pocket. That's my two cents, if it's worth a dime let me know.

2007-06-10 09:36:43

#21

RoosterCantrell: Goodbye :); +399|6926|Somewhere else

Debt isn't so bad, what Bubbalo said, a home loan makes sense, its just the credit companies have made it soooo easy to go to far, and alot of people don't realize it or worry about it.

The Key being MODERATION, and so few understand that. I would LOVE to own a nice motorcycle, but it's not financially available. Oh, sure I could affords the payments, as long as I ride it not too much, never do ANYTHING else that requires money, and live off of Ramen noodles.

poor with fun trinkets<financially comfortable and flexible with fewer possesions

2007-06-10 15:53:25

#22

twiistaaa: Member; +87|7114|mexico

Hurricane wrote:
Only use a credit card if you're gonna afford it at the end of the month. Credit cards tend to have nice benefits that debit cards don't have; if you treat it like a debit card, I think you'd be golden.

what benefits? just get a debit card. no interest.

i have an actual passbook that you have to go and sign a form to get money out, which makes stupid impulsive spending out of your reach. and i only use my debit card account if im going away.

2007-06-10 15:54:44

#23

mtb0minime: minimember; +2,418|7100

I'd just like to mention that a $100,000 house is sad. You can't even buy a tiny apartment with that

2007-06-10 16:00:11

#24

twiistaaa: Member; +87|7114|mexico

mtb0minime wrote:
I'd just like to mention that a $100,000 house is sad. You can't even buy a tiny apartment with that

depends on the location. $100,000 in a big city is different to $100,000 on some farm in a rural town

2007-06-10 16:07:59

#25

Magpie: international welder....Douchebag Dude, <3 ur mom; +257|6972|Milkystania, yurop

If ya cant afford it dont buy it, its simple as that

BF2S Forums Within your financial means

Hurricane wrote:

CameronPoe wrote:

usmarine2005 wrote:

Hurricane wrote:

usmarine2005 wrote:

RoosterCantrell wrote:

RoosterCantrell wrote:

R0lyP0ly wrote:

doctastrangelove1964 wrote:

usmarine2005 wrote:

RoosterCantrell wrote:

R0lyP0ly wrote:

jsnipy wrote:

RoosterCantrell wrote:

Hurricane wrote:

mtb0minime wrote:

Board footer