Are You Living Beyond Your Means ?

[BruceAZ]

I just talked to a car owner who is 4 months behind with his car payments

$430/month. i forgot to ask which car it was but at this price range ...i think it's some luxury car?

he can't pay the lump sun so they will repossess his car

 

[Chickerdoodle13]

Well, seeing as I'm a student living on loans, I guess just about everything I have is beyond my means

 

[BruceAZ]

it's like this for a lot of people..

 

[ejcrist]

Yeah, a lot of people are struggling. The economic statistics nowadays are manipulated to make the economy appear rosier than it really is. I have to laugh when they keep excluding people that have dropped out of the workforce. They may in fact have given up looking for a job at the moment but I think they should still be counted since they are by definition "unemployed". I can certainly understand excluding people over 65 that are retired, and people on full disability, but people that have been unemployed for a couple of months? It's a big assumption when you assume they've dropped out of the workforce. I always thought you should be conservative in estimates rather than the other way around. There's a lot of incentives for the fed to count this way though. It doesn't take a brain surgeon to see the economy is really not good.

I learned a long time ago not to carry any unsecure debt - learned the hard way. I never was late or missed any payments but cash flow was extremely tight for a long time. I vowed never to go through that again. I'm also a bit paranoid after seeing others lose pensions at Bethlehem Steel and other companies, even after they were promised them for years. I think that is so wrong. Same goes for the Social Security scam, raising the retirement age, etc. I'm not opposed to making necessary adjustments for people entering the workforce but not after they've already been working for a number of years and planning their future based on what was promised them. As a result I've been planning and saving for retirement since I was about 35. I probably should've started when I was 16 and got my first job but hindsight is 20-20.

 

[BruceAZ]

i know a lot of people avoid credit cards due to their high interest rates... but i'm use nothing but credit cards

credit cards are great to have! IF.. you pay in USE IT LIKE a DEBIT CARD! and pay in FULL each month so only charge what you can pay off in full


paying cash or debit out of that $100.. i'll get nothing

but with a credit card that has cash back.. depending on the transaction.. i can get around $2-$6 back from that $100 i spent

not to mention there's 0 liability and other benefits (price rewind, travel insurance, etc.. )

so for me there's nothing better than credit cards ..if you "use it wisely"

 

[ejcrist]

i know a lot of people avoid credit cards due to their high interest rates... but i'm use nothing but credit cards

credit cards are great to have! IF.. you pay in USE IT LIKE a DEBIT CARD! and pay in FULL each month so only charge what you can pay off in full


paying cash or debit out of that $100.. i'll get nothing

but with a credit card that has cash back.. depending on the transaction.. i can get around $2-$6 back from that $100 i spent

not to mention there's 0 liability and other benefits (price rewind, travel insurance, etc.. )

so for me there's nothing better than credit cards ..if you "use it wisely"

Yep, you're right about that. When I referred to unsecured debt I was talking about carrying a balance. I have a credit card that I use for gas purchases but I always pay it in full every month. Like you said, there's nothing at all wrong with using a credit card as long as you don't charge more than you can pay off in one cycle.

 

[BruceAZ]

Yep, you're right about that. When I referred to unsecured debt I was talking about carrying a balance. I have a credit card that I use for gas purchases but I always pay it in full every month. Like you said, there's nothing at all wrong with using a credit card as long as you don't charge more than you can pay off in one cycle.

i heard of secure credit cards

they are credit cards but pretty much like a debit

since you can only spend what you put in the account or something?

it's ideal for people with horrible credit score who is trying to rebuild their credits


the downside of credit cards is the %interests but if you have a cash back card with no annual fee and you are paying in full each month-- you are making money of your credit card companies instead of the other way around

when i started out out they only gave me $500-$1000 credit limit since i had no credit history.. but now.. i'm not sure if any dealer will agree to it.. but i can buy a card with any of my credit card

they gave me so much credits that i don't even use it

of course i'll keep my balance vs available credits within 10% ratio.. so having a high credit limit is not bad..

 

[Chickerdoodle13]

I use my credit card as a debit card and I get lots of Amazon points with it. I use it for all the things I have to pay for each month anyway, like food and gas. I've been able to build my credit store with little risk. I also like traveling with my card because I do think it is safer. I have my card through chase bank and the customer service has been good so far. I also like that I can buy things from Amazon guilt free with my points!