Wahhhhhh Wahhhhh Wahhhhhh

Posted by: Bryan

Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 09:08 AM

Yet another story about how someone who can't control their spending is blaming society for their inability "to get ahead."<br><br>Link<br><br>I'm supposed to feel sorry for somebody that borrowed a bunch of student loans, ran up a bunch of credit cards and has a car payment?<br><br>As the title of the thread says, wahhhhhh. <br><br>
Posted by: MattMac112

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 09:13 AM

Until I got beyond my addiction to plastic, got over my addiction to "stuffitis", I probably would be more sympathetic. <br><br>Want to see the real denial here?:<br><br>"It's not like I'm going out shopping and doing crazy things. I'm just trying to get by."<br><br><br><br>****************<br><br>
Posted by: Bryan

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 09:17 AM

Oh yeah..big-time. <br><br>The myth is that people feel like they NeeeeeeeD a new car, NeeeeeeD a credit card and NeeeeeeeD a student loan. <br><br>You can also see the entitlement mentality creeping in...."I'm doing everything right...I've got a good job...why can't I get ahead?"<br><br>Because you only make so much a month, and you haven't learned to budget it, that's why dumb@ss!<br><br>
Posted by: MattMac112

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 09:26 AM

Here's what NeeeeeeDS to happen:<br><br><blockquote>O'Connell owes $20,000 in student loans and about $6,000 on credit cards. She must pay $175 in student loans every month for 20 years. "I have 17 years left," she says. She and a friend split the $900 rent for an apartment 20 miles north of Boston. Add to that a $250 monthly car payment, $200 a month for car insurance, and the cost of food, gas, and cable TV.</blockquote><br><br>1). Sell the car<br><br>If she lives and works 20 miles north of Boston, take the train, the bus, whatever. But sell the car. That frees up $450 per month instantly, acording to her numbers.<br><br>2). Get rid of cable TV. That's anywhere from $40 - $100 more per month. <br><br>Now we're up to around $500 (or so) in cash.<br><br>3). Cancel any and every credit card she has. Cut up the plastic. Shred the cards. Melt them in a microwave. Whatever. Then send letters to each creditor explaining her repayment schedule.<br><br>Now, she should pay the minimums on all of her cards except the card with the least balance. On that card, she should attack it with the freed up $500 per month until it's paid OFF! After that, attack the next card with the lowest balance. Pay it off .. and on and on and on ..<br><br>From now on, everything is paid for with cash. Groceries? CASH! Buying a used car in the future? CASH! Gas money to those who she shares rides with? CASH! New clothes? CASH! <br><br>She should keep one debit card for when she needs to secure a hotel room or a rental car. Everything else is paid for in CASH!<br><br>****************<br><br>
Posted by: Bryan

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 09:31 AM

Absolutely. <br><br>And that $900 a month rent...20 minutes north of Boston. I am sure rents are high in that area, but something tells me they aren't exactly roughing it. I bet if she looked really hard, she could find an efficiency apartment on top of some rich old lady's garage for less. <br><br>Her problem, like a lot of people, is because she is unwilling to reduce expenses, she will never get ahead. The wealth-destroying car payments will continue the rest of her life, she'll always have a roommate and she'll never save anything. <br><br>Like you said, cut the lifestyle down to the necessities, budget every dollar before the month starts, and STOP BORROWING MORE MONEY!<br><br>Nobody ever borrowed their way out of debt, yet people keep thinking they can.
Posted by: MattMac112

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 09:42 AM

You can't dig your way out of a hole by digging out the bottom.<br><br>****************<br><br>
Posted by: Bryan

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 09:44 AM

One of the greatest things I ever did was shred my two credit cards. Now I pay for everything with CASH! And you know what...I am slowly getting out of debt. Surprise!<br><br>
Posted by: SgtBaxter

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 09:47 AM

<blockquote><font size=1>In reply to:</font><hr><p>Yet another story about how someone who can't control their spending is blaming society for their inability "to get ahead."<p><hr></blockquote><p>Well, I never had one single class in school that ever taught me anything about fiscal responsibility.<br><br>So, until we step up and fix the education system to educate our kids about imporant stuff like managing and making money, and get rid of stupid crap like our twisted view of how Columbus was this great guy, they have every right to blame society.<br><br>Kids also need to learn they don't need to go to the most expensive college. Colleges should be ashamed of themselves as well, if they weren't so damned expensive people wouldn't have to saddle themselves with debt their entire life to pay it off.<br><br>
Posted by: MattMac112

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 09:50 AM

Since I gave up using my credit cards in June, started paying with cash for everything and now construct a WEEKLY written budget, I've paid off $15,000 in credit card debt .. and it's only getting better! <br><br>****************<br><br>
Posted by: MattMac112

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 09:54 AM

It goes way beyond that Sarge. Our kids today have a "I want it when I want it, and I want it NOW" mentality. They want the bling, bling without having to earn it, save for it, say no to it. <br><br>And you're right about Colleges. It's insanity to borrow yourself into a dark hole just to get a degree. <br><br>****************<br><br>
Posted by: SgtBaxter

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 09:55 AM

<blockquote><font size=1>In reply to:</font><hr><p>I've paid off $15,000 in credit card deb<p><hr></blockquote><p><br>Good lord, I used to feel bad because I once had a staggering $5K in credit card debt. Now I don't feel so bad. :)<br><br>Still, what's the average? Something like $70K per married couple in credit card debt??<br><br>
Posted by: Bryan

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 09:56 AM

Well, we should teach financial management in school. <br><br>That said, people have a tremendous spending problem. People can go to state schools and commmunity colleges and pay cash for it by working their way through it. It happens every day. <br><br>But some kids want to have off-campus housing, they want to drive a car, they don't want to work and they don't want to eat cafeteria food, so they borrow all of this money in college, without really thinking about how they're going to pay it off. <br><br>What irritates me about these sob stories is that there is never any responsibility leveled toward the person who did the spending. They're just presented as a victim of their own actions.<br><br>To which I say: hogwash!<br><br>
Posted by: SgtBaxter

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 09:56 AM

<blockquote><font size=1>In reply to:</font><hr><p>Our kids today have a "I want it when I want it, and I want it NOW" mentality.<p><hr></blockquote><p><br>Yes, I know and I'm constantly getting pissed off at my family for buying my daughter crap. <br><br>I think this christmas I'm going to take half the stuff they give her, and toss it right into a trash bag in front of them so they get the idea.<br><br>
Posted by: Bryan

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 09:58 AM

<blockquote><font size=1>In reply to:</font><hr><p>I think this christmas I'm going to take half the stuff they give her, and toss it right into a trash bag in front of them so they get the idea.<p><hr></blockquote><p>That's hysterical! I think they would get the message, though. <br><br>
Posted by: MattMac112

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 09:59 AM

Something like that. It's horrendously high. Plus, for me, being addicted to $10,000 Apple computers didn't help <br><br>****************<br><br>
Posted by: MattMac112

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 10:01 AM

<blockquote><font size=1>In reply to:</font><hr><p>I think this christmas I'm going to take half the stuff they give her, and toss it right into a trash bag in front of them so they get the idea.<p><hr></blockquote><p>Sounds good to me!<br><br>****************<br><br>
Posted by: Bryan

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 10:01 AM

At one time, I had 13 credit cards. I am down to two. And you're right, being addicted to the Lexus Computer Company didn't help matters <br><br>
Posted by: Bryan

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 10:03 AM

And this Christmas, I am only giving gifts to my immediate family. I have some footage I shot on a family vacation a few years ago that I am making into a DVD, and I am going to shop for my nephews and niece at the dollar store. I bet I don't spend $50 on Christmas. <br><br>
Posted by: Pete

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 10:11 AM

We have about $5k in debt between an Amex Blue, a Home Depot and an Eddie Bauer c.c.- all running tabs, though, so I don't see us ever really filling in the 'hole' all that much.<br><br>Our main c.c. is a regular Amex card, which always helps to have to pay off every month. <br><br>[color:red]C'mon...you know me.</font color=red>
Posted by: SgtBaxter

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 10:12 AM

<blockquote><font size=1>In reply to:</font><hr><p>What irritates me about these sob stories is that there is never any responsibility leveled toward the person who did the spending.<p><hr></blockquote><p>Yes, there certainly should be responsibility for one's actions, but I can't fully blame these folks if they weren't ever taught any other way. Parents like to spoil their kids, which only leads to this kind of behavior, they should share in the blame.<br><br>It's also a very different time. I live in a house, with two new cars (well, 2002 models), nice TV(s), this that, you name it. The only debt I have is a minor bit on credit cards, mortgage, and the two cars, which will be paid off in two years, or earlier if I feel like it. When my parents were my age, they were still living in a cheap apartment, had barely any furniture, and struggled to put food on the table. I make more money per year now than my dad made when he retired, and he had a pretty good job. <br><br>Still, I think it's harder to make it today then it was back then. My parents house cost them $8000, I think their payment was $80 a month. It's a lot easier to make a $80 payment every month making $5 an hour like my dad did, then a $2000 monthly payment on the $15.50 average salary of today. Factor in utilities, etc... you have to have two wage earners to support the family.<br><br>
Posted by: Pete

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 10:15 AM

Yeah, two new cars here as well (one 2003 & one 2004- one because a lease was up and the other because it would have cost more to fix the old one than just to buy a new model), so I can't wait to get a gander at my savings in about 4 or 5 years from now...<br><br><br><br>[color:red]C'mon...you know me.</font color=red>
Posted by: hayesk

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 11:37 AM

If I may change your plan slightly. The crybaby dumb@ss should do this:<br><br>-Find the credit card with the lowest interest rate.<br>-Transfer all of her other balances to that card.<br>-Cut up all other cards.<br>-Get rid of the car, the cable, eat cheaper food, and use that extra money to pay off the low interest credit card. <br>- once paid off, cut that one up too<br>- once student loans are paid off, then plan for car, credit card, house, etc.<br><br><br>
Posted by: MattMac112

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 12:09 PM

Here's the thing: paying off credit cards is like losing weight. You need to have small victories or the momentum will quickly be lost. That's why I advocate paying off the cards with the smallest balances first. That way you can see prgress right away, which fuels the desire to keep going. <br><br>In other words, suppose this is her situation:<br><br>- Clothing credit card, balance $700, APR 19%<br>- Electronics card (Best Buy) $1200, APR 19%<br>- Furniture card, balance $2700, APR 22%<br>- VISA card, balance $7,000, APR 13%<br><br>In no way would I attack that VISA card first. I would pay off the lowest balance cards first, regardless of the interest rate. That way, she can have wins (paying OFF a card) which helps build momentum and a feeling of success and accomplishment. <br><br>****************<br><br>
Posted by: AdamB

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 12:14 PM

Did someone say something about running up the credit cards?<br><br>"Visa reported Saturday that credit and debit card usage soared 15.5 percent on Black Friday over the same day last year, amounting to $4.1 billion in spending." <br><br>Ok, ok...... it's not too bad after all. Only $2.1 billion is actually credit usage . Of course, that's just one card company. Scary.<br><br><br>
Posted by: SgtBaxter

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 01:31 PM

Putting the balance on the cards with the lowest rate is a good move however, but only if she'd take the money she was paying those other cards and puts it towards paying off that one remaining card. It will still take a long time to pay it off, but you're losing less money in interest along the way. She should also call these companies and negoitiate for better rates, a lot of time they'll offer it if you just ask and let them know your plans.<br><br>The trouble a lot of people find themselves in, is they make a move like that, then spend the money they free up and get themselves in deeper.<br><br>
Posted by: MattMac112

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/29/04 01:58 PM

<blockquote><font size=1>In reply to:</font><hr><p>Putting the balance on the cards with the lowest rate is a good move however, but only if she'd take the money she was paying those other cards and puts it towards paying off that one remaining card<p><hr></blockquote><p>Sure. That's providing that she can:<br><br>a). Open a line of credit large enough to handle the other card debt.<br>b). Get an APR that's low enough to make it work.<br><br><blockquote><font size=1>In reply to:</font><hr><p>The trouble a lot of people find themselves in, is they make a move like that, then spend the money they free up and get themselves in deeper.<p><hr></blockquote><p>Yep. I agree.<br><br>****************<br><br>
Posted by: Bryan

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/30/04 03:59 AM

I used to be firmly in the pro-credit card camp. After all:<br><br>1.) All the free stuff! Points, bonuses, miles...why not?<br><br>2.) The ability to dispute charges through chargeback rights<br><br>3.) You NeeeeeD a credit card to rent cars and stay at hotels<br><br>What I quickly realized, however, was:<br><br>1.) I get points I can redeem for travel or merchandise through my bank's debit Visa, and my PayPal debit Mastercard gives me 1.5% cash back on every purchase. <br><br>2.) I only shop at reputable merchants with an established track record, so I'll never have anything to dispute<br><br>3.) I have rented cars and stayed at hotels with my debit card just fine!<br><br>A debit card will do everything a credit card will except go into debt!<br><br>
Posted by: Llewelyn

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/30/04 09:25 AM

The difference is, any unauthorised charge to a credit card, results in the provider being out of pocket while the issue is resolved. Unauthorised charges to a debit card results in you being in possible dire straights until the bank credits your account - this can be stressful.<br><br><br>I also noted nobody commented on the companies themselves:<br>"Been turned down for a loan. Don't let others keep you from what is rightfully yours. Contact our loan advisors".....Yup folks you have a right, nah, an obligation to have an huge level of consumer debt!! :)<br><br>
Posted by: SgtBaxter

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/30/04 09:30 AM

<blockquote><font size=1>In reply to:</font><hr><p>Unauthorised charges to a debit card results in you being in possible dire straights until the bank credits your account - this can be stressful.<p><hr></blockquote><p><br>Depends on your bank, my debit card has a line of credit attached to it, so if I'd overdraft it, it draws on that line of credit. To which I can call the bank, tell them of the fraudulent activity and have my money redeposited.<br><br>
Posted by: Llewelyn

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/30/04 09:36 AM

Me too.....but not everyone is this financially astute.<br><br>
Posted by: Bryan

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/30/04 09:38 AM

You actually make a valid point, which is why I don't carry my debit card around with me, I only get it out when I am going to use it. <br><br>
Posted by: Anonymous

Re: Wahhhhhh Wahhhhh Wahhhhhh - 11/30/04 07:52 PM

I put something every once in a while on one of my credit cards just so that the limits (2 c.cards) get bumped up each year. part of your credit score is determined by % of available credit you have compared to your debt. Since I only have about 3K in debt (car loan), but continuously "paid on time" credit card statements, the ever increasing credit limits push my credit score pretty good (not 800 yet, but over 790 on 2 of the 3 credit rating systems.. I'm young though, so I'm sure I'll be ok).<br><br>I like having the high score so that when I want other loans, such as for my next car, it will be cheaper than it would be otherwise. But yeah, stuff I buy is a book from amazon here or there, or occasionally something at the grocery store. I probably don't put more than $500 on each card per year, and pay them off electronically as soon as I get the bill.<br><br>