Randolph Freelander
Member
See, I was about to write an essay to say essentially the same thing. Well done, o efficient one.
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Are you in Debt ?!
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See, I was about to write an essay to say essentially the same thing. Well done, o efficient one.
DoktorEvil
Banned
terrisus
Member
So I can charge you for 8 hours for that post then? :þ
That's true.
Mechanized
Member
I do not think this is a personal problem, it's a problem with society. In school we are not taught anything about finance, saving for the future, investing our money, the consequences of loans/debt. Predatory lending is everywhere. If you were born into a poor family, hell, even middle class, chances are you'll probably be poor/making ends meet and make bad decisions to help yourself get by. Maybe at some point you'll be able to change but then the damage could already be done.
DUFFMCWALIN
Member
Just a small amount of student debt and very small amount of credit card debt that will be paid off in two or three months. I'm doing okay.
NinjaMouse
Member
Statements like "that's a personal problem" make the discussion hard to have. I think it's entirely intrinsic to the situation...hence the reason I bring it up, I mean, it IS called "personal finance" for a reason. Do what you want, though. If you can beat the system, have at it, and I wish you nothing but prosperity and success because of it. I spent years thinking I could and had to modify my behavior because of it, because we were drowning. Now, I'm actually seeing improvement in my net worth...it comes in small chunks, but it's improving.
terrisus
Member
Speak for yourself.
I had Economics classes in high school.
Either way, this is an extremely basic situation of cost/months.
witchedwiz
Member
mortgage on my second house, approx 125k left in 20 more years...
Not too "pressing" either...
Plus, if i end up moving away this year it might as well be that i buy my third..
If you have a SOLID income, nowdays a mortgage costs as much as a rent, and ultimately even if i leave the house i can get approx 2/3 of the mortgage cost off renting since my mothly rate is low..
I'm not one of those that "assume" that to be worthwhile, you must make something equal to the mortage monthly rate (god forbid.. i think that those are actually "ripping" off the renter, because if mortgage = rent, there's really no point in renting)...
Apart from that, nope..
I'm one that think that if you have something "less material" than an house, either you can afford it and pay it pronto, or you can't afford it and you should wait to get it.. Loan for cellphone, tv, etc? i mean, not really no
I can imagine people going into loan for education, but on that point i'm quite perplexed.. I mean, parents should be able to cover these expense..
It should work like this:
parents earn money&save some
son/daughter goes to univ
parents pay univ tuition (if no school grant for achievemnt is feasible) and no interest pile up..
FAST FORWARD: son/daughter gets older and becomes a parent
they earn and save up some, and by the time their son goes to the univ, they can pay the tuition and the cycle repeats..
Why going into debt? If you can't afford something, don't buy it.. We all want nice thing, it's perfectly human, but if you can't afford something, don't ruin yourself, save money and buy it later if you really want.. Seems unfair? Life is unfair, but going into debt because you want some superficial things seems REALLY stupid to me
Not too "pressing" either...
Plus, if i end up moving away this year it might as well be that i buy my third..
If you have a SOLID income, nowdays a mortgage costs as much as a rent, and ultimately even if i leave the house i can get approx 2/3 of the mortgage cost off renting since my mothly rate is low..
I'm not one of those that "assume" that to be worthwhile, you must make something equal to the mortage monthly rate (god forbid.. i think that those are actually "ripping" off the renter, because if mortgage = rent, there's really no point in renting)...
Apart from that, nope..
I'm one that think that if you have something "less material" than an house, either you can afford it and pay it pronto, or you can't afford it and you should wait to get it.. Loan for cellphone, tv, etc? i mean, not really no
I can imagine people going into loan for education, but on that point i'm quite perplexed.. I mean, parents should be able to cover these expense..
It should work like this:
parents earn money&save some
son/daughter goes to univ
parents pay univ tuition (if no school grant for achievemnt is feasible) and no interest pile up..
FAST FORWARD: son/daughter gets older and becomes a parent
they earn and save up some, and by the time their son goes to the univ, they can pay the tuition and the cycle repeats..
Why going into debt? If you can't afford something, don't buy it.. We all want nice thing, it's perfectly human, but if you can't afford something, don't ruin yourself, save money and buy it later if you really want.. Seems unfair? Life is unfair, but going into debt because you want some superficial things seems REALLY stupid to me
PlayALLtheGames
Banned
No, thankfully. Last debt I had was my car loan which I paid off in 2011.
But I also rent and the credit card I have is my corporate card. Since it's still tied to my credit I've been using it to build credit and it's nice knowing the bill is getting paid on time or close to it every month.
But I also rent and the credit card I have is my corporate card. Since it's still tied to my credit I've been using it to build credit and it's nice knowing the bill is getting paid on time or close to it every month.
terrisus
Member
So does giving personal advice on a general scale.
That's not "beating the system."
It's working within the system as it's intended.
I have a lot of student loans 
Currently I only pay about $250 a month on them, but that's because I'm still in school.
Also I have a small amount of credit card debt (had to buy a new wardrobe for my office job... then I guess some bleach happened to be left over in the washer in the shared laundry room and I had to buy even more shit), but that should be taken care of in a couple months.
Uh... yeah, I had Economics in High School as well, but they don't really make it relatable on a personal level. Sure, we learn about all the fun little things about the economy and inflation and all that, but students aren't really educated on how to manage their money on a more personal level. High schoolers and college students are rarely going to give a damn about stocks and investments, they can't afford it.
It'd just be nice if there was a personal finance class as well, to help students become more fiscally aware. Most people don't really like/understand Economics on a level to really apply it to one's personal life, after all.
Currently I only pay about $250 a month on them, but that's because I'm still in school.Also I have a small amount of credit card debt (had to buy a new wardrobe for my office job... then I guess some bleach happened to be left over in the washer in the shared laundry room and I had to buy even more shit), but that should be taken care of in a couple months.
Uh... yeah, I had Economics in High School as well, but they don't really make it relatable on a personal level. Sure, we learn about all the fun little things about the economy and inflation and all that, but students aren't really educated on how to manage their money on a more personal level. High schoolers and college students are rarely going to give a damn about stocks and investments, they can't afford it.
It'd just be nice if there was a personal finance class as well, to help students become more fiscally aware. Most people don't really like/understand Economics on a level to really apply it to one's personal life, after all.
LaserBuddha
Member
You're going to have more in your savings if you pay off the car and then start putting that car payment into your savings, yes? Accruing interest on your savings instead of paying interest on a car loan
EmptySpace
Banned
just paid off my 33k student loan last month, paid within 1.5 years.
now i will help with mortgage payments every month (half of it), but i still am on track of my target goal of 20k invested by the end of the year (10k already invested as of today), and would still have 7k extra for whichever expenses month-to-month that i may incur.
now i will help with mortgage payments every month (half of it), but i still am on track of my target goal of 20k invested by the end of the year (10k already invested as of today), and would still have 7k extra for whichever expenses month-to-month that i may incur.
This should be cathartic:
I owe ~22k on my car,
~6k on student loans and I have been paying for about 10 years(never finished college),
and around 8k on credit cards/loans.
So yeah, ~36,000 in debt at 36 years old. Awesome...
Forgot to add the "how I feel about it" part.
I've always had debt since I left High School. Worked part time through college, which wasn't enough to pay for rent and food so I went into debt. After my car crapped out, I went further into debt to buy a new car and chose poorly seeing as it was a Dodge Ram truck. I've lived with a car payment ever since. I make more than I spend but I've never been good at saving. I'm not happy with my savings but being able to pay my bills and still live somewhat comfortably provides a certain satisfaction.
I owe ~22k on my car,
~6k on student loans and I have been paying for about 10 years(never finished college),
and around 8k on credit cards/loans.
So yeah, ~36,000 in debt at 36 years old. Awesome...
Forgot to add the "how I feel about it" part.
I've always had debt since I left High School. Worked part time through college, which wasn't enough to pay for rent and food so I went into debt. After my car crapped out, I went further into debt to buy a new car and chose poorly seeing as it was a Dodge Ram truck. I've lived with a car payment ever since. I make more than I spend but I've never been good at saving. I'm not happy with my savings but being able to pay my bills and still live somewhat comfortably provides a certain satisfaction.
DoktorEvil
Banned
As did I, but it explains an overview of the current economic system, not how to min/max your personal finance goals.
terrisus
Member
I'm sorry to hear that was the case for you.
This is far more basic than that.
King Cobra
Banned
Not sure where you went to school but in high school we had 2 economics class where they went over credit and debt and I know they even go over investing now. So its most definitely a personal problem and saying it's society's fault only enables a bad mentality to thrive.
Just_myles
Member
50K student debt. Not too bad I suppose. Quite common.
terrisus
Member
Lucky Forward
Member
None at all. I paid off my mortgage five years ago, and now I won't buy anything, including vehicles and home improvements, until I have the money saved for it.
Of course, it helped a lot that I went to school before the days of crushing student loan debt. My parents paid for my two years of community college and then a federal government co-op work/study program paid for the final two years of my bachelor's degree.
Of course, it helped a lot that I went to school before the days of crushing student loan debt. My parents paid for my two years of community college and then a federal government co-op work/study program paid for the final two years of my bachelor's degree.
DoktorEvil
Banned
It's not "far more basic". If people do not fully understand the rational actors of the current economic system, they set themselves up for failure down the road when they need to tap into it.
Even understanding what fiat currency is should be mandatory. It's not.
I took economics and accounting coursework in HS. Even doing that then, it's not so simple to just get. I know I am speaking to a math genius, but you should be surprised at the numerous people who cannot do mental math or know how to amortize a fixed loan amount or understand TVM or how debits and credits should apply to them balancing a personal checkbook.
I spent a few hours in another Credit Card thread explaining how they work. The lack of basic financial education in the US is baffling.
terrisus
Member
It's funny that I can actually get people to think that >.>
:þ
Seriously though, it's literally just a matter of:
Item costs (say) $10,000
You have $10,000 right now
They offer (say) 20 months no interest
Deposit $10,000 in bank instead of giving it all away
Get interest on the $10,000
Withdraw $500 every month and make payments on the amount.
???
Profit
Pimplitosaurio
Member
A mortage(like 15 years or less left, yay!), a car payment(we just bought it six months ago ) and two loans from my dad and my mother in law, but those are on hold right now.
I don't really like the stress of being in debt but the housing prices in here are climbing faster than we like. Also, our original plan was to buy less house(lot less, like half the price) and then wait like 7-9 years and buy a bigger house, but we found a bigger house we loved in a place we liked and we decided to skip the smaller house step, we plan to live here for like 20-30 years at least
) and two loans from my dad and my mother in law, but those are on hold right now.I don't really like the stress of being in debt but the housing prices in here are climbing faster than we like. Also, our original plan was to buy less house(lot less, like half the price) and then wait like 7-9 years and buy a bigger house, but we found a bigger house we loved in a place we liked and we decided to skip the smaller house step, we plan to live here for like 20-30 years at least
DoktorEvil
Banned
That's a rather simplistic way to look at it, but you overlooked the terms of the agreement your signing to get that No Interest benefit.
terrisus
Member
Well, it's a rather simplistic thing.
¯\_(ツ
_/¯Is there anything else that you're concerned about aside from:
1) Qualifying (I figured that was a given condition)
2) Making the minimum payments every month (which would generally be less than the $500 from my example anyway. You could just make minimum payments every month, and pay the remainder off at the end, and make an even bigger profit)
3) Paying the entire balance off within the stated period (which I did include)
DoktorEvil
Banned
Well, it's a rather simplistic thing.
¯\_(ツ
Is there anything else that you're concerned about aside from:
1) Qualifying (I figured that was a given condition)
2) Making the minimum payments every month (which would generally be less than the $500 from my example anyway. You could just make minimum payments every month, and pay the remainder off at the end, and make an even bigger profit)
3) Paying the entire balance off within the stated period (which I did include)
How do I qualify for No Interest financing? Why do I qualify for no Interest Financing?
What kind of risk factors am I taking? How can I reduce my risk factors? Can I get better financing at another shop? What is my income? What are my debts? How can I increase my income? How can I make sure X item keeps residual value? Can I depreciate X item and gain a tax benefit for it?
Y'know, questions that people should ask to clear up any FUD.
I have a mortgage, but it's not viewed as traditional debt. Otherwise, I'm not in debt at the moment. Although, I'll have $20k in child care expenses in the next twelve months and my wife really wants to buy a new mini van, which will be ~$30k. Ask me next year and I'll probably be in debt.
terrisus
Member
As I said, I was figuring the person had already qualified.
Since, if they can't qualify the whole discussion is kind of moot.
If the person was prepared to fork over all the money already, they've either already considered this, or would be making a bad decision regardless. Again, that's independent of the financing.
SmackDaddy
Member
DoktorEvil
Banned
Terrisus, this is derailing. I don't want to get into semantics over a strawman financer.
I'll just say that I don't think people are as rational as they claim to be, especially when it comes to financing and debts.
I'll just say that I don't think people are as rational as they claim to be, especially when it comes to financing and debts.
A lot of places offer 4-5 year interest free financing on a car. I can't image not financing a car unless you're buying a jalopy or your credit is ruined. Or if you just have tens of thousands of dollars laying around you don't mind spending in one shot and will not have any need for in the near term in which case money probably isn't a problem for you.
Pilgrimzero
Member
Had about 5K in credit card debt before I got married. Now its about 10K.
PumpkinSpice
Banned
Depends what the interest rate is. My car loan was 1%. We could pay the rest of it off right now, or we could take the same amount and invest it; my RRSP was ~9% last year. I'd be losing money to pay it off since the interest rate is so low.
Or I could just hang onto my money in a shorter term investment and have it on hand for a down payment on a house. Or as emergency savings. It's usually good to have cash available when you need it.
Just_myles
Member
I mispoke, i owe 71k, I just called them. There was a 3rd loan I took out apparently.
weeeeeeeeeeeeeeee
weeeeeeeeeeeeeeee
Time to work work work work.
toadsworth
Banned
Just saw this article on reddit: http://www.allgov.com/news/where-is-the-money-going/47-of-americans-would-have-to-borrow-or-sell-something-to-cover-an-unexpected-expense-of-400-150502?news=856624
Apparently, 47% of Americans could not afford an unexpected expense of $400. Thats kind of crazy, I wonder how much this has to do with debt or simply not making enough money?
Apparently, 47% of Americans could not afford an unexpected expense of $400. Thats kind of crazy, I wonder how much this has to do with debt or simply not making enough money?
terrisus
Member
I wasn't trying to create a "strawman"
I was directly responding to this post:
And using that as a "reason" to suggest that people "should only buy something if they are paying for the full cost up-front"
electricshake
Member
I owe my parents £3 or 4k but they're cool with me taking my time with it. Love the bank of mum and dad. Own my flat outright (partly why I owe my parents money), paid off my student loans a few years ago and paid cash for my car.
Here's a good lecture from Elizabeth Warren on the current state of American spending: https://www.youtube.com/watch?v=8GHg3GAeQ1Y
It's not all behavior like something think it is.
YuriLowell
Member
Mortgage and car loan.
I have now learned that you should never take out a loan on a depreciating asset.
I have now learned that you should never take out a loan on a depreciating asset.
I have about 7k left to pay off from college. It gives me a fair bit of stress but I try not to worry about it since the average debt in Canada is 21k as of last year.
I never want to own a house. I don't like the idea of being rooted in one place plus have more debt than I could ever imagine. When I clear my debt I'll be happy.
I never want to own a house. I don't like the idea of being rooted in one place plus have more debt than I could ever imagine. When I clear my debt I'll be happy.
Metalingus5150
Member
I'm poor as fuck but I'm not in debt.
Ally of Justice
Member
I'm not in debt, but my money situation isn't comfortable either.
To be honest, I hate having debts, because of this, I don't have a lot of things I want, but I'm pretty comfortable knowing that my paycheck is completely mine and I don't have to pre-deduct anything when I get it.
To be honest, I hate having debts, because of this, I don't have a lot of things I want, but I'm pretty comfortable knowing that my paycheck is completely mine and I don't have to pre-deduct anything when I get it.
Marty Chinn
Member
Just a mortgage for me, but if I disclose that mortgage value, some of you guys would flip out.
So you don't understand how if you have a 0% interest over three years that you can't use that money to grow over that same period and come out ahead rather than spend all that money up front? How is that not a good decision to earn more money within the same time frame?
So you don't understand how if you have a 0% interest over three years that you can't use that money to grow over that same period and come out ahead rather than spend all that money up front? How is that not a good decision to earn more money within the same time frame?
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