on Wed Aug 01, 2012 10:24 am#14828
I'm not in any debt, I only have a check card, not a credit card. I use a check card or cash for purchases. Check card is a MasterCard, so you can hit credit and go through the signature based system instead of using a PIN. But student loans are looking very daunting I have 1 year before I head off to college. I have money saved and my generous parents are going to pay for a lot, but I am going to have to take some loans.
on Wed Aug 01, 2012 10:26 am#14829
70k left in student loans (@2% interest though), between the two of us
2k in credit card debt between the two of us
pay $350 a month for the student loans
$1700 + condo fees for the mortgage
probably going to pay off the card debt next week
on Wed Aug 01, 2012 10:29 am#14831
on Wed Aug 01, 2012 10:30 am#14832
- OtisSupreme Overlord
- Location : Texas
on Wed Aug 01, 2012 11:05 am#14850
Student loans were something like $42 000. I completely finished school in 2002, and the loans were settled a few years back.
I have a loan to my parents for my car (which, my Dad impulse bought when my old one was having problems....so, I was committed, regardless. But it's interest free). Wife's car is paid for.
Other than that, credit card usually ranges between $1000-5000 each month because we use it for everything, but it's paid off at the end of each month. I've never carried a balance from one month to the next in my entire life, which at my age, and in today's consumer climate, I'm pretty proud of.
We have a $305 000 mortgage, a $135 000 mortgage and we're about to take on another $300 000 mortgage. But we bring in a fair amount of rental income from the one property, and the newer one, we're hoping to have it lose a few hundred a month if we can swing it like that. Helps us at tax time if it isn't making money like the other one.
My wife has ~$30 000 in student loans, but we're putting down close to $1000 a month on them, and the interest rate is pretty good.
The thing with debt, for me, is I see a lot of people who have become accustomed to living with debt. They have a mountain of it, but it's "under control". They can make the minimum payments, pay down the principal a bit, but happily take on more debt so long as they are able to continue that cycle. Lenders are perfectly fine with that scenario as well because it's in thier best interest to have you balancing that debt load, while thay cash in on obscene interest rates.
The other thing with debt is that the longer you're in it, the more normal it feels....but if you can stay as debt free as possible when you're younger, it becomes more affordable to go into debt.
A few of my friends are caught in the credit card cycle, 18-22% interest. They don't own a home, and haven't been out of debt for any of their adult life. I have another group of friends who are responsible spenders/borrowers, and can get interest rates in the 2.5 - 3.5%. So, while the one group was 'livin large' with fancy rims, expensive clothes, blingy jewelery, big TV's, stereos, trips to Cancun, and nights of debauchery at the bars, some of us were thinking of a time when we wanted to make a big purchase, or make a significant investment.
So while they're now still paying for that set of 18's they had on thier VW golf back in 2001, others are able to do bigger and better things, and assume next to no debt for it.
Don't get caught up in the consumer culture, the more, more,more, now, now, now mentality. Lenders will give you money, but you'll be on the hook to repay it for decades.
on Wed Aug 01, 2012 11:13 am#14852
- Location : Left Coast
Yeah man. That was me back in my early 20s. Still crawling out of the hole I dug myself back then.
on Wed Aug 01, 2012 11:13 am#14853
I hear the Debit cards are what people use in Europe almost exclusively instead of Credit. Is that true?
on Wed Aug 01, 2012 11:15 am#14855
- Location : Scotland
It would be a nightmare to be in unimaginable debt. Seems more and more people must be in it nowadays with all these adverts on tv etc.
on Wed Aug 01, 2012 11:17 am#14858
oh, and dropping bombs on shit
they WANT us to be in debt, it's good business
on Wed Aug 01, 2012 11:19 am#14859
We have a single Mastercard that was 'sponsored' by a grocery store chain here. For every dollar we spend in their store, we get double points. Every dollar outside, we get regular points. Points can be used to buy things in their store, like groceries, clothing, housewares, etc.
We got a $500 BBQ this summer on our points. We still have $700 as a balance. Use a credit card like a debit card. Make purchases with cc, but pay it off each month....collect points. They offer points because most people will be giving so much back to them in interest, but if you never use the interest, you're just profiting.
on Wed Aug 01, 2012 11:21 am#14860
He finished with $42 000 in debt. He still has $30 000 in loans. But, he has a pimped computer every year, a gym membership to a nice gym, a big screen TV, a trip to Ibiza, Vegas, nice clothes, etc. He'll pay that principal balance 10x over by the time it's done.
on Wed Aug 01, 2012 11:22 am#14861
I'm not paying too much more principle per month on my student loan, because I'm only paying 2% (and the regular payments are good for my credit history)
there's a point where certain debt is okay (student loans, etc), and putting aside everything could do more harm than good....man could get hit by a truck tomorrow, and if he never did anything, his life would be pretty sad. No one says "I'm glad I paid off that loan" on their deathbed
Last edited by Chisa on Wed Aug 01, 2012 11:24 am; edited 1 time in total
on Wed Aug 01, 2012 11:23 am#14862
Discover card is probably gonna be my first, and maybe only, CC. Cash back is what I care about. Point are dumb and I won't board an airplane, so miles are worthless to me.
on Wed Aug 01, 2012 12:19 pm#14868
- Location : City of Dreams, England
I owe £120k on a mortgage, have a little over £1k left on my car loan, and probably £2k on credit cards.
Only used the credit cards recently, as just brought a house and things kept on cropping up. New boiler etc. Aiming to have it paid off by November
Got into a mess in my younger days. Who thought it was a good idea to let you turn 18, and give you a credit card and access to alcohol?! Ended up living as a hermit for 6months to pay it off. Vowed never to get into that mess again
on Wed Aug 01, 2012 1:09 pm#14870
That musta been confusing when you all had your own currencies, can't buy a keyboard from across borders. And it looks like you may get your own currencies again
on Wed Aug 01, 2012 1:55 pm#14878
- Location : City of Dreams, England
The Euro was introduced in 1995, so dont quite remember lol. Although i've worked with people from Czechoslovakia in the past, and they have a different keyboard completed. They have some weird letters!
on Wed Aug 01, 2012 2:24 pm#14880
If I was in my buddy's financial state, and I were to die tomorrow, my wife would bear the burden of that debt. If we were to both pass at the same time, the debt would be passed to our parents.
At some point, someone has to pay.
Besides, the best things in life really aren't things, and, eventually, doors start to close when you have a history of debt.
kazamer13 is a really nice dude, from a personality standpoint. But he has no money. None. He spends every last dime on himself. At 35, women see him with no house, a beat up vehicle, no investments, and they go to a cheap theater for a date....and the funds are exhausted....most women, at 35, aren't going to sign up for that.
Same with the best friend I mentioned earlier. No homo, but he's a good looking guy, in wicked shape. Debt to the eyeballs, rents a small ass apartment, roached out vehicle....it's a door closer at this point in our lives.
Not to mention the optics from a bank's perspective. K13 will never own a house because they will see that for the last decade, he's been trying to pay off the same $1000 credit card balance....then they made it $2000, then $3000, then $4000. It has never been zeroed in it's lifetime.
When K13 only owed $3000, I did a payment schedule for him. If he kept only putting in his minimum payments (which is what he was doing), and stopped using the card completely, it would have taken him over 300 months to pay it off completely. And, at a total cost of $6300 in interest alone.
$3000 in goods provide great short term enjoyment. But the way most people manage that debt, they end up giving away over 2x that amount. Essentially, if the item was on sale, it actually cost over double.
I think if more people knew that this is an actual reality for a lot of people (I can count 3 off the top of my head who do it), and that some people are as invested in thier credit card as others are in thier houses, they'd think twice about going down that road.
I mean, $3000 balance, with no additional purchases.....takes longer to pay off than most mortgages. That's a sad, sad reality.
on Wed Aug 01, 2012 2:54 pm#14887
on Wed Aug 01, 2012 6:49 pm#14891
- Location : New York
Anyways, that's all paid off now and I have a credit card. I've had it for 2 months now and I'm paying it off in full every month. I'm just curious to know though.. does it actually matter when you pay it off or no? I can't see it mattering because they see I had a balance of $370.54 and it was paid off.. even if it was paid off in the beginning of the month.
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