Are you in credit card debt?

[somethingshiny]

sorry for the threadjack...

Kenny~ What is your avatar? It looks like it could be a different angle and cool lighting for your octavia??

 

[Beacon]

Never ever. We use cc all the time so to get whatever promo (usually cash back) but all are paid to zero monthly.

I am quite surprised that so few replies have any debt. This is either a) PSers are very unusual or b) folks with debt with rather not post. It is interesting as the average US person does have revolving debt.

 

[kenny]

sorry for the threadjack...

Kenny~ What is your avatar? It looks like it could be a different angle and cool lighting for your octavia??

Link: https://www.pricescope.com/community/threads/new-avatar.146420/

 

[icekid]

No debt, no mortgage. We spend on rocks (OK, so that's technically for work) and travel. Everything is paid in full each month.

Sometimes I get requests to finance a stone for someone, and my usual response is "if you need to finance it, you shouldn't buy it." It's one thing to carry debt when an emergency strikes - like the furnace or the car dies - but quite another to go into debt for a luxury item.

Wow. I have to say that that "policy" of yours rubs me the wrong way. I'd rather finance the luxuries and have plenty of money for emergencies and life stuff than financing an emergency. I can live without luxuries, but medical care or something similar? I'll pay for it right away and forgo the luxuries.

Why not be able to pay cash for luxuries AND emergencies? We fund a sizable emergency fund before funding our luxury/fun/vacation accounts. No reason to finance either!

I don't have any problem with Lisa's policy!

And no we do not carry a cc balance, though we use them for everything and pay off monthly. However, I have some SERIOUS education debt (and a medical degree to show for it hehe) that we will be paying for a very, very long time!

 

[lilyfoot]

My husband and I are also in the "been there, done that" set, from before we were together, so we don't buy things on credit anymore (besides our cars). We do feel the need to keep up our credit reports/scores, because we will probably be looking to buy a house within the next 2 years.

 

[LaurenThePartier]

At times, I carry a revolving amount for work expenditures and travel and expenses. It's usually paid off every month, but there are times I let it slide. There have been times when my accounting dept. just missed my expenses and owed interest, as well. Oops!

That being said, I couldn't live without my large balances. I have often been responsible for securing locations for marketing events, etc. and even though that's not my role any longer, I thank my lucky stars I was able to build so many points/rewards by just doing my job. I think using CCs intelligently can be of huge benefit if you're not an addictive personality.

House is on plan to be paid off in 7 - 8 more years, and my husband just paid off his college loans. We only finance one car at a time, if at all, and we're REALLY close to having both paid for.

 

[packrat]

We have debt. And we still buy stuff. And we finance stuff. This area of the Midwest is paycheck to paycheck, no ifs ands or buts, unless you come from money or you are a Dr/lawyer/farmer (especially farmers) etc.

We have the house, which we refinanced last year to side and get new windows. Needed to be done-the wind actually *blew* into our house thru the windows and the studs etc showed on the outside of the house in the winter. I think $42,000 on the house.

One cc is interest free for 3 years if what we bought is paid off in that time. We have $600 and 1 year left on it. That's how we bought the big screen.

Our other cc has..$2300 I think. And yep we carry a balance and are stuck w/interest every month. It *used* to be paid off in full every month..and then the kids came and JD's hours were slashed to the point that we qualified for welfare and refused it, his truck broke down several times, things happened to the house and bad decisions he made 20 years ago reared up and had to be taken care of. We'd get $500 in savings, and $900 would happen to the truck. Things like that. I used to sit and just think "Seriously, is this a fricken JOKE? Are we on some secret tv show designed to kick average joe blow in the teeth every time he gets his head above water?"

We owe just under $3000 to the hospital for medical bills for 2 surgeries, xrays, ct, mri's etc. No interest on that.

Thankfully, I work for our Dr. and all 4 of us get free medical care in the office.

We owe about $6000 on JD's truck, and $3000 (tho, I want to say it's more like $1500 now I can't remember) on a personal loan we had to take out to shingle the house.

We've got debt and we'll deal with it. It's not as bad as some people's and worse than others. I don't know what the average couple's debt is.

 

[ksinger]

eh? i thought lisa was saying "dont finance luxuries. carry debt only if you really have to, ie if your savings doesnt cover it, and you REALLY have to go into debt"?

have i got that wrong??

i'd never finance a rock!!

That is exactly what I was saying. If someone takes a loan elsewhere to buy a rock, that's between them and their lender. I just would feel guilty holding that debt since I've seen too many people go sideways buying things they couldn't afford. Banks and CC companies are NOT your friend, and with interested rates at usurious levels it just makes sense to me to save first, buy later.

If I've offended people, I'm sorry.

You certainly didn't offend me. It's your sale to turn away, as you will. It just goes to show how far we've come from the days when more people on both sides of the desk tried to act in what they felt was an ethical way, even when it might not be in their short-term interest. People get offended at the honesty. Well, I NEVER! How DARE you tell me that you think what I'm doing isn't prudent! It's a pity there were virtually no lenders doing that in the run-up to the housing implosion, isn't it? Wonder how different things would be if lenders hadn't been willing to allow low-income people with no means, to take on trainloads of debt.

At the end of the day, debt is debt, be it from a luxury item (a choice) or an emergency (not a choice). Freely chosen debt from luxury purchase has the potential to be very bitter, when the genuine emergency comes along.

 

[MichelleCarmen]

Yeah, I owe $10.92 on my Nordstrom card. lol! I try to charge on it every month to keep it active.

 

[tyty333]

No debt...we use the CC for everything but pay it off every month. Its a nice feeling to be debt free.

 

[Harriet]

eh? i thought lisa was saying "dont finance luxuries. carry debt only if you really have to, ie if your savings doesnt cover it, and you REALLY have to go into debt"?

have i got that wrong??

i'd never finance a rock!!

That is exactly what I was saying. If someone takes a loan elsewhere to buy a rock, that's between them and their lender. I just would feel guilty holding that debt since I've seen too many people go sideways buying things they couldn't afford. Banks and CC companies are NOT your friend, and with interested rates at usurious levels it just makes sense to me to save first, buy later.

If I've offended people, I'm sorry.

You certainly didn't offend me. It's your sale to turn away, as you will. It just goes to show how far we've come from the days when more people on both sides of the desk tried to act in what they felt was an ethical way, even when it might not be in their short-term interest. People get offended at the honesty. Well, I NEVER! How DARE you tell me that you think what I'm doing isn't prudent! It's a pity there were virtually no lenders doing that in the run-up to the housing implosion, isn't it? Wonder how different things would be if lenders hadn't been willing to allow low-income people with no means, to take on trainloads of debt.

At the end of the day, debt is debt, be it from a luxury item (a choice) or an emergency (not a choice). Freely chosen debt from luxury purchase has the potential to be very bitter, when the genuine emergency comes along.

Well said, Ksinger.

Lisa, thanks for discouraging irresponsible spending.

 

[lelser]

One of the saddest things I've seen was at a car dealership. We were writing a check to pay for a simple sedan with few bell and whistles. The couple next to us was maybe mid-20s, very pregnant, and with the gleeful encouragement of the salesweasel adding everything they could to the LandYacht SUV.

The dealer made us wait a long time in the guise of getting the car ready, while they had different people try to sell us more stuff. We got to hear the sales guy tell the couple that their cards wouldn't support the downpayment on their lease, and did they have others? They didn't. Could a family member help out? They were on the phone calling for someone to loan them money on top of all that they were already borrowing. Hell, did they not expect a few more expenses when the baby arrived? We literally watched them run through half a dozen cards looking to make the down payment.

We kept sitting on our hands, and trying to avoid the urge to give them uninvited credit counseling.

There is no sale worth my harming someone intentionally. I can't control how people handle their money, but I won't encourage or actively support people going nuts with money they don't have.

 

[luckynumber]

sad story lisa

for me, the highest to lowest priorities will be:

basic necessities
mortgage
savings for emergencies
luxuries

no way would i ever go into debt for a sparkly!

 

[miraclesrule]

The only thing I owe money on is my house...and a Visa that I use for the sole purpose of getting the highest credit rating. It's stupid really....the credit game.

When I went to buy my house, the lender was stunned that I had no credit. It was a huge problematic disadvantage. HUH??? Because I pay cash and borrow against my own money and pay interest to myself for large items, that is problematic???

The hoops we had to go through to "create" a credit report was astounding. (40 years old and no credit rating is apparently very rare). Yet I was able to buy my house and I still abhor debt. Hell, I think I hate being a "homemoaner" and in some ways, regret feeling the need to buy a house. Although I am certain that over time I will be grateful to have purchased when I did and own it outright for my daughter to sell when I am gone.

But the drama and stress associated with the game of credit is so mindboggling and destructive, it scares me. If you don't have the money, you shouldn't buy it. Except for the home and maybe.....maybe..and that is even a stretch for me...a car, then you shouldn't buy it.

I would rather pay cash for a piece of crap older car. Who cares? As long as it gets you from point A to point B. I am so worried about the "keeping up with the Kasdashians" mentality. I'm going to end my rant here....because I could go on and on and on and on....

 

[Indylady]

No debt, yet.

I might have a different answer once I've started graduate school. I do have savings, but my saving don't really stand a chance to a year's worth of tuition/and living expenses if I can't find a funded program or a scholarship. This summer, I'm making scholarship/fellowship hunting a full-time job in addition to my current full time job. Very frightening.

 

[JSM]

Miraclesrule-

I agree with your statements, I'm just using this quote as an example.

I would rather pay cash for a piece of crap older car. Who cares? As long as it gets you from point A to point B. I am so worried about the "keeping up with the Kasdashians" mentality. I'm going to end my rant here....because I could go on and on and on and on....

I sometimes think much of pricescope (not all!) lives in a bubble; after all, the majority of folks here like luxury goods and have the means to afford them. But I think it's rather ignorant talk about people who get themselves into debt by buying these items and forget about those who carry debt to live. Of course, you should absolutely have thousands in the bank for emergencies - but many people don't have that.

I mentioned earlier that we have CC debt - and it's definitely NOT of the keeping up with the Jones's mentality. We work hard and try to live below our means (older cars, one bedroom apartment, eat at home, do not go on trips, etc), but it seems once we have a little bit of money saved it has somewhere to go. DH needs an MRI (not fully covered by insurance), the car needs tires, the dental bill comes in... then all of a sudden we are wondering where the money is going to come from. It drains our savings then we start over again.

I have little sympathy for those who bought luxury vehicles and McMansions without the bank accounts to back them. But I DO feel for those who have debt because it's a part of life. My parents have debt, their parents had debt, and I have debt. They never bought me a car or a college education because they couldn't afford it. And I wonder if DH and I will be able to break the debt cycle, or if our (possibly future) kids will have to struggle like we all have.

 

[TravelingGal]

No cc debt, not since I was 23/24. Learned that lesson early, thank goodness.

And I'm with you Lisa and say KUDOS. If one is financing luxury purchase because they need to keep whatever cash they have on hand for emergencies, that's not fiscally responsible in my book.

I see it from time to time on PS...kind of boggles my mind actually. People buy stones after complaining about finances. To each her own, and I guess one has to derive pleasure from life somehow, but if one is consistently buying luxury items on credit and doesn't have the cash onhand to back it up, I believe that the bottom line is that isn't very smart. Period.

 

[somethingshiny]

tgal~ Your avatar looks so sad...


I hate when people say they HAVE to have cc debt. (not PSers, just regular people) I've said before I've got to be one of the lowest income people on PS and we manage--definitely with a tight budget, but we do it anyway. I wish people would realize what the NEED, WANT, and DREAM about are 3 separate things. I know it sucks to have to live without your heart's desires, but foreclosure isn't a great consolation either.

 

[TravelingGal]

tgal~ Your avatar looks so sad...

I know. I was thinking of changing it. And the word I would have used is "lame"

 

[somethingshiny]

tgal~ He looks like he's knocking on a door that will never open, that's why I say "sad." Of course "lame" also works! I don't know if PSers will let you change. How would we identify you???

 

[bebe]

No debit here either. We pay everything off every month. House is our only debt and we are about to pay that off entirely.

I love listening to Dave Ramsey's radio show about reducing debt and living debt free. Wish more people could do what
he preaches !

 

[lulu]

No credit card debt. In fact no debt whatsoever. I'm very blessed to be able to say that.

 

[pennquaker09]

No credit card debt. We actually send in the check at the beginning of the month, because I usually know how much the statement is going to be. This month is going to be different because of our vacation. We visited my folks, which wasn't planned ahead of time. I try to only use the AMEX, but I think our MC has good benefits also.

We have a mortgage, but it's mainly because it looks good. Everything else is paid in cash. We could pay the mortgage off, but we just like to have one for the credit rating.

 

[ChloeTheGreat]

BF and I are in our early 20's and we do have some small credit card debt. Unfortunately, it's taken a bit longer to pay off than anticipated. Around the winter holidays in 2008, we splurged a bit on credit cards and planned to pay them off within 2 or 3 months. Well, in January 2009, BF unexpectedly lost his job (he was the breadwinner) and things were put on hold. Luckily, we haven't missed any payments, but we haven't made a big enough dent. We have a small credit card left to pay off and one with a larger limit. We have already paid off 2 other relatively small ones. I started with the smaller one and used Dave Ramsey's recommended snowball effect. (With a degree in finance, I don't believe every word he says, but some of his experience is helpful.) Hopefully we'll get a move on the payment plan soon though. BF just got a promotion and will be making a better salary than from the job he lost. I'm a recent college graduate keeping my fingers crossed for finding a REAL job soon. Then the bills will be gone in no time.

 

[Camille]

No CC debt. Only one CC for emergencies/points. As big savers, we often talk about Wants, that helps a lot with making the right choices. We are hoping to have our mortage payed off next year [knock on wood]

 

[Hera]

There must be people trying to keep up their PS street cred.

My husband and I do have a little cc debt. We don't have car payments and the other debt we carry is our mortgage. It is what it is, but we don't charge anything anymore now that I'm out of school. I'm paying the amount required to be paid off in 3 years and then after that, the only card will be the American Express card for some rewards.

 

[artdecogirl]

I do, we did not for a very long time and had nice savings but then DH was laid off for almost a year and that all went and we had a trip to Ireland that I charged and have not paid off, we also have student loans, he has been back at work now for 2 weeks and it is very hard to not go shopping! But I know we have to pay off the credit and get a cushion back, it is nice that all of his paycheck can go towards that since we have gotten used to living a more frugal lifetyle.

 

[Dancing Fire]

But the drama and stress associated with the game of credit is so mindboggling and destructive, it scares me. If you don't have the money, you shouldn't buy it. Except for the home and maybe.....maybe..and that is even a stretch for me...a car, then you shouldn't buy it.

especially not a home if one can't afford it look at what happen to the housing market in the last 5 yrs

 

[oobiecoo]

My parents taught me nothing about credit cards and finances so DH and I ended up with several thousand in cc debt by the time we got married. We've been married 2 years and have paid off ALL of our credit cards, set up a strict budget, and gotten our spending under control.

Now that the credit cards are behind us, we will start paying student loans in a few months. We owe so much that we could buy a house with the amount. DH is the only one working since it is important to us that I stay home with the baby if we can at all help it. I'd rather be dirt poor than leave my child at daycare and go to work (my personal preference... I know others feel diff) so its going to be rough paying those loans on DH's income until he moves up in his field in a year or two. We'll manage though

 

[Dancing Fire]

I do, we did not for a very long time and had nice savings but then DH was laid off for almost a year and that all went and we had a trip to Ireland that I charged and have not paid off, we also have student loans, he has been back at work now for 2 weeks and it is very hard to not go shopping! But I know we have to pay off the credit and get a cushion back, it is nice that all of his paycheck can go towards that since we have gotten used to living a more frugal lifetyle.

why take the trip if you guys have so much debt?