[luelling]

Alright....my girl and I have a bit of credit debt....aournd $3k but I'm paying it down by $1k per month (on top of what we spend). I guess I'm pretty anal about keeping it down and trying to stay out of debt. I get stressed and she points out that we owe on two cars (a sentra and ranger) plus we own a nice house. I guess she tries to make the point that debt is part of life, but I hate credit card debt becuase of the interest rates.

Am I just stressing for no reason? I've watched several friends sink themselves into debt and I just don't wan't that to happen. If something big happened (like a medical emergency....READ....racing downhill) we could lose our house becuase of lack of income and savings. Thoughts?

 

[Toshi]

credit card debt makes no financial sense. mortgages are a different matter. car payments are also money down the drain imo, unless the rate on them is less than what you make investing the equivalent amount of money (assuming you actually do this instead of just thinking about it).

<-- no cc debt. lots of student loans.

 

[SofaKingBanned]

And you don't increase the amount you owe on fixed loans. It's just way too easy for credit card debt to soar. Also, if you're late on house or car payment, your rate (typically) doesn't go up, but on a credit card, your rate (at the whim of the credit card company) can go over 20%!!

 

[Alpha Kenny Body]

i know what you mean. I hate that you can't make any plans for the future because everything you'll earn will be to pay a stupid debt. Somehow i spent 5k this summer!!! after 2 years in which the total amount spent on my AMEX was 2K. I guess another year without a decent truck.

 

[splat]

CC debt is a Dumb thing to Carry , the high interest rate are just Money thrown away. car loans are not much better but usually havea much lower interest rate. at leat with a Mortgage the interest is deductable.

Currently no CC debt here!

 

[Changleen]

CC debt sucks. I have been working the last few years to clear all mine and it is basically gone now. I feel far happier.

 

[luelling]

I try and keep the CC debt down. I listed the cars we owe money on because they aren't some huge expense....I didn't buy a Rover. I barely drive my ranger and the sentra gets really good miles per gallon. I do hate having debt on cars though.....A house can increase in value, a car only loses value, thats why I don't get people that buy new (unless your rich).

 

[Qman]

A house can increase in value, a car only loses value, thats why I don't get people that buy new (unless your rich).

Not entirely true. These days it isn't impossible to be upsidedown on a house if you don't do your homework and buy on emotion. Also, some cars do increase in value depending on the car and depending on how much you bought it for. We could have sold our Cooper S for more than we paid for it for the first 2.5 years of ownership and purchased it new.

 

[luelling]

Not entirely true. These days it isn't impossible to be upsidedown on a house if you don't do your homework and buy on emotion. Also, some cars do increase in value depending on the car and depending on how much you bought it for. We could have sold our Cooper S for more than we paid for it for the first 2.5 years of ownership and purchased it new.

That was a generalization which rings true. There are situations that contradict. I know the housing market is cooling right now and some people are loosing money.

 

[Kntr]

I have CC debt but the interest is 8.9% fixed, which is better than most loans. Some people have 20-25% CC rates. If you call your CC company they will lower the rates.... usually.

 

[geargrrl]

Nope. CC debt is expensive debt no matter how you slice it. If you must charge things for the convienience of putting it on a card, you should pay in full every month, and then have cash set aside for things that you'd otherwise charge ( like a new appliance when one blows up)
Get you gal to listen to Dave Ramsey, or Suze Orman, and of the finance gurus out there, that will confirm that CC debt is bad for your financial health.

 

[Qman]

That was a generalization which rings true. There are situations that contradict. I know the housing market is cooling right now and some people are loosing money.

People with credit card debt are 'loosing' money too.

 

[douglas]

me=nope.

cc dept is not good, but 3K is not so bad.....I know (and this was 10 years) ago a couple that had $90K on their cc's

 

[douglas]

That was a generalization which rings true. There are situations that contradict. I know the housing market is cooling right now and some people are loosing money.

compared to people paying rent?


answer=nope

 

[johnbryanpeters]

Credit card debt is like tossing money over a bridge.

 

[I Are Baboon]

We've got a little bit of debt because of some recent purchases, but nothing major.

 

[Austin Bike]

The stupid thing I have seen people do is put money into a 401K making 8-10%/year while they are holding big credit card debt at 18-20%/year.

The smartest thing anyone can do is clear out credit card debt first before investing a penny anywhere else. Even with the employer matching you will be losing money unless you clear up the CC debt first.

 

[antimony]

No credit card debt currently, never have, never will. What a waste.

 

[I Are Baboon]

No credit card debt currently, never have, never will. What a waste.

Heh, just wait until you move into that house and have to furnish it.

 

[Konabumm]

right now I'm $700 down - Should pay that off this month

 

[antimony]

Heh, just wait until you move into that house and have to furnish it.

I bought all my new furniture for it last month, and it's already paid off, thank you very much.

I may possibly be the most compulsive person with money on the planet. I have a color-coded spreadsheet with my finances for the next 6 months. Haha!

 

[manimal]

Get you gal to listen to Dave Ramsey, or Suze Orman, and of the finance gurus out there, that will confirm that CC debt is bad for your financial health.

i second that! we dropped 13K in financial debt in just under 18 months on my meager salary after applying his principals. we were out of debt but just bought a house....but at least a mortgage has it's benefits.
get rid of CC debt...or any feasible debt for that matter.

 

[geargrrl]

we dropped 13K in financial debt in just under 18 months on my meager salary after applying his principals

That is awesome!! Feels good, doesn't it? Congrats!

 

[Toshi]

yeah, congrats, manimal. what are these principles? more than just "save before spending, use a budget, eat out less often, pay off ccards?"

 

[jimmydean]

I have no cc's, but I have student loans and that sucks enough as it is.

 

[Qman]

I bought all my new furniture for it last month, and it's already paid off, thank you very much.

I may possibly be the most compulsive person with money on the planet. I have a color-coded spreadsheet with my finances for the next 6 months. Haha!

But do you have 6 months-1 year's salary saved up in liquid (cash) assets (not retirement accounts) and how does your spreadsheet do at predicting 'emergency' expenses?

 

[binary visions]

But do you have 6 months-1 year's salary saved up in liquid (cash) assets (not retirement accounts)

Yes, she does.

She is as financially compulsive as anyone you'll ever meet in your life.

 

[Qman]

Yes, she does.

She is as financially compulsive as anyone you'll ever meet in your life.

sounds exciting.

 

[binary visions]

sounds exciting.

Hey, she's buying me a house, I can't complain

 

[Qman]

Hey, she's buying me a house, I can't complain

Keep at it. I know a guy that's milked the same situation into his early 40's while managing to avoid marrying her. If you play your cards right, you'll be able to build wealth without some of the "normal" responsibilities involved.

 

[antimony]

Keep at it. I know a guy that's milked the same situation into his early 40's while managing to avoid marrying her. If you play your cards right, you'll be able to build wealth without some of the "normal" responsibilities involved.

Well, bv's got a shot. I don't care about the marriage thing, and will never do the kid thing. I plan on simply making/saving money and seeing the world (while providing him with the necessary gadgets, and a home). Haha.