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Minimum Credit Card Payments Doubling


kapkomet

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QUOTE(NUKE_CLEVELAND @ Jul 21, 2005 -> 04:51 PM)
The middle class wouldn't be taking it anywhere if they lived within their means.  Nobody is putting a gun to these people's heads and forcing them to buy that 4 dollar latte every morning or that SUV that costs 70 bucks a week to fill up with gas or have that 992346312451235 inch flat panel TV on the wall.

 

:violin

I probably appreciate your service to our country as much as anyone here, but I suggest you check in with some of the non latte drinking, non SUV driving Americans just working their asses off and trying to get by. In the late 90's when things were humming along nicely I had a long discussion with a very successful business man. He did most of the talking, when someone knows more than me about a subject, I try to listen as much as possible. He told me that he didn't think the boom of the 90's had as much to do with emerging technology as it did with the loosening of credit. Since he was mostly in business to lend others money, I had to think long and hard about what he had to say. Credit used to be for emergencies, now to many Americans it is a necessity. 911 made the recession last about twice as long as it should have. Things are greatly improved now, but this will definitely not help. A gradual increase like the Fed does would have been much better, giving people a chance to adust. I'll stop now, because people will get bored, but before you get out the violins and crying towels I would suggest a little in depth research on Post WWII American Economic History.
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QUOTE(winodj @ Jul 21, 2005 -> 04:28 PM)
I drive a car that gets 35 miles to the gallon.

I have a second hand TV, a borrowed computer.

My one extravagance: I have my own apartment.

My only transportation is a bike and my feet. Neither is a fun way to get groceries or to get to school when it is raining.

 

My shoes were purchased with a gift card that I received by trading in points earned on my credit card.

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QUOTE(Yossarian @ Jul 21, 2005 -> 05:15 PM)
I probably appreciate your service to our country as much as anyone here, but I suggest you check in with some of the non latte drinking, non SUV driving Americans just working their asses off and trying to get by. In the late 90's when things were humming along nicely I had a long discussion with a very successful business man. He did most of the talking, when someone knows more than me about a subject, I try to listen as much as possible. He told me that he didn't think the boom of the 90's had as much to do with emerging technology as it did with the loosening of credit. Since he was mostly in business to lend others money, I had to think long and hard about what he had to say. Credit used to be for emergencies, now to many Americans it is a necessity. 911 made the recession last about twice as long as it should have. Things are greatly improved now, but this will definitely not help. A gradual increase like the Fed does would have been much better, giving people a chance to adust. I'll stop now, because people will get bored, but before you get out the violins and crying towels I would suggest a little in depth research on Post WWII American Economic History.

 

 

What you say may well be true but I hear and read far too many stories about families with household income north of 6 figures whining about making ends meet.

 

I had to go looking around for an example but last year I briefly had to leave a balance when I took my vacation. For the 2 grand I spent on my trip plus other expenses that month the minimum payment was 44 dollars and my card's interest rate is like 12% annually. If you can't find another 44 dollars in a month then you really need to look at where you're at and think about some lifestyle changes. That goes double if you're forced to spend thousands of dollars more than you're making every month.

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Nuke, you have a point about people living within their means. It's kind of like when pro athletes or Hollywood people go broke. If a pro athlete is living so extravagantly that he is living check to check and broke at the end of every month, then he is no better off than the average man. Sure he might have nicer s***, but he's stressing about money just like the next man.

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QUOTE(NUKE_CLEVELAND @ Jul 21, 2005 -> 06:46 PM)
What you say may well be true but I hear and read far too many stories about families with household income north of 6 figures whining about making ends meet. 

 

Does that include whining about the taxes they pay?

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QUOTE(Balta1701 @ Jul 21, 2005 -> 12:24 PM)
Personally I have a little bit more fun with them myself.

 

Thus far, I've paid mine off every month since I first got one (6-7 years ago)...and I'm on a good enough card now that I get cash back/points for purchases.  In other words, my credit card company has paid me roughly $300 in the last year just because I use the card instead of carrying cash.

Thats exactly how I do it. I take advantage of my cash back/points and just pay the bill off every month.

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Another reason is that there is very little education of what credit does to you.

 

I'll give you a personal example.

 

15 years ago, to get through a private college, I borrowed money. I didn't really know any better - I mean I knew I had to pay them back but when you're 18, you do what you do to get through school and you don't think about paying stuff back.

 

Then, I got out of college, had credit cards, and then couldn't get a job. Still being naive, I lived off of credit. Then, my ex-wife got in a major car accident. More credit - just to get by. Then, got a divorce. MORE credit.

 

10 years later, I now am paying off more student loans then I ever wanted to or realized I would be, and I STILL have balances on some of the cards from 10 years ago because they gave me so much damn credit to live off of. Those f***ers pray of off people like me. They make their money and then some.

 

I'm just now finally getting to the point where I'm catching up. But Yossarian I think it was hit it on the head. They are way too loose on credit, and before you know it, you're over your head and these people just don't give a flying f***, as long as they make their money.

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QUOTE(kapkomet @ Jul 21, 2005 -> 08:41 PM)
  But Yossarian I think it was hit it on the head.  They are way too loose on credit, and before you know it, you're over your head and these people just don't give a flying f***, as long as they make their money.

 

 

That's cause most kids dont pay attention in ECON 101 when they try to drill it into your head that credit is not free money. Then they get out into the world and spend spend spend with no end to it.

 

SIGH

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My situation is similar, Kap, in that it was school tuition that put my wife and I in the hole. We both had teaching or research assistantships throughout grad school, but those stipends were dirt and didn't come close to covering teh cost of living even very humbly in this area. So we racked up $40K in student loans by the time we each got our doctorates.

 

You can live well within or below your means for a long time after that and still have a really f***ing hard time digging out of that kind of hole. To make ends meet and to make the loan payments, you end up leaning on credit more than you would like.

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QUOTE(Heads22 @ Jul 21, 2005 -> 06:52 PM)
I got a credit card this summer (Cabela's VISA) and I know to only use in in emergencies. It'll probably be a positive that I'm a tightass when it comes to money...:)

Thats cause tipping cows is free :P

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QUOTE(FlaSoxxJim @ Jul 21, 2005 -> 10:15 PM)
Technically, yes you can.

 

Though the ladies call me Dr. Love...  :lol:

 

I believe your ellipses are out of order. This should read

 

 

 

Though the ladies call me Dr. Love :lol: ...

I assume they start laughing immediately after calling you Dr. Love

 

We kid, because we care™

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