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Do you have Credit Card debt?

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L

luelling

Guest
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? :brow:
 
Toshi

Toshi

butthole powerwashing evangelist
Oct 23, 2001
39,758
8,758
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

SofaKingBanned

Monkey
Aug 31, 2006
347
0
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

Alpha Kenny Body

Monkey
Oct 8, 2005
668
0
Mexico
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.
 
Changleen

Changleen

Paranoid Member
Jan 9, 2004
14,735
2,716
Pōneke
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.
 
L

luelling

Guest
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

Qman

Monkey
Feb 7, 2005
633
0
luelling said:
A house can increase in value, a car only loses value, thats why I don't get people that buy new (unless your rich).
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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.
 
L

luelling

Guest
Qman said:
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.
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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

Kntr

Turbo Monkey
Jan 25, 2003
7,526
21
Montana
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

geargrrl

Turbo Monkey
May 2, 2002
2,379
1
pnw -dry side
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

Qman

Monkey
Feb 7, 2005
633
0
luelling said:
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.
Click to expand...

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

Austin Bike

Turbo Monkey
Jan 26, 2003
1,558
0
Duh, Austin
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

antimony

M.N.F. Beer Wench
Nov 21, 2005
1,019
2
North Carolina
I Are Baboon said:
Heh, just wait until you move into that house and have to furnish it. :clue:
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I bought all my new furniture for it last month, and it's already paid off, thank you very much. :D

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

manimal

Ociffer Tackleberry
Feb 27, 2002
7,213
22
Blindly running into cactus
geargrrl said:
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.
Click to expand...

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.
 
Toshi

Toshi

butthole powerwashing evangelist
Oct 23, 2001
39,758
8,758
yeah, congrats, manimal. what are these principles? more than just "save before spending, use a budget, eat out less often, pay off ccards?"
 
Qman

Qman

Monkey
Feb 7, 2005
633
0
antimony said:
I bought all my new furniture for it last month, and it's already paid off, thank you very much. :D

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!
Click to expand...
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?
 
Qman

Qman

Monkey
Feb 7, 2005
633
0
binary visions said:
Hey, she's buying me a house, I can't complain :p
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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

antimony

M.N.F. Beer Wench
Nov 21, 2005
1,019
2
North Carolina
Qman said:
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.
Click to expand...
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. :D
 
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