CC Debt Question

[dullard]

Originally posted by: Zysoclaplem
I use my credit card for things I cannot afford with my pay. Maybe I am doing it all wrong.

Yes you are doing it 100% wrong. You should use a CC ONLY for things you CAN afford with your pay. For things you cannot afford (a) don't buy it, or (b) get a real loan.

Me: 28, average balance is around $1300/month. I have never paid a penny in CC fees or interest. Heck, I pay online so I haven't even used a stamp in years.

 

[Gunslinger08]

$2000 at 0% til August. $1200 til the end of the month on another card. Then I just have $16,000 in student loans and a $30,000 car to pay off.

 

[acemcmac]

Originally posted by: dullard

Originally posted by: Zysoclaplem
I use my credit card for things I cannot afford with my pay. Maybe I am doing it all wrong.

Yes you are doing it 100% wrong. You should use a CC ONLY for things you CAN afford with your pay. For things you cannot afford (a) don't buy it, or (b) get a real loan.

Me: 28, average balance is around $1300/month. I have never paid a penny in CC fees or interest. Heck, I pay online so I haven't even used a stamp in years.

yep- same here 100%

QFT BTW

 

[dullard]

Originally posted by: acemcmac
yep- same here 100%

QFT BTW

Its true for most Americans. 71% pay it off in full or leave less than $1000.

 

[BentValve]

Originally posted by: dullard

Originally posted by: acemcmac
yep- same here 100%

QFT BTW

Its true for most Americans. 71% pay it off in full or leave less than $1000.

Really? I thought america was in worse debt than that ...I am impressed.

 

[speg]

21, paid off in full evey month. how do you guys get 0%?

 

[Zysoclaplem]

Originally posted by: acemcmac

Originally posted by: dullard

Originally posted by: Zysoclaplem
I use my credit card for things I cannot afford with my pay. Maybe I am doing it all wrong.

Yes you are doing it 100% wrong. You should use a CC ONLY for things you CAN afford with your pay. For things you cannot afford (a) don't buy it, or (b) get a real loan.

Me: 28, average balance is around $1300/month. I have never paid a penny in CC fees or interest. Heck, I pay online so I haven't even used a stamp in years.

yep- same here 100%

QFT BTW

Well I cannot do that. I don't make enough money. If I were to pay of my credit cards with 100% of my monthly pay it would still take me two months to do it.
If I could pay them off so easily, I probably wouldn't need credit cards in the first place.

 

[PingSpike]

Originally posted by: Zysoclaplem
Damn you all make good money. I use my credit card for things I cannot afford with my pay. Maybe I am doing it all wrong.

I DO NOT make good money. If I cannot afford something, I do not buy it.

 

[SpunkyJones]

Its payed off monthly. 40.

 

[Aquila76]

Originally posted by: BentValve

Originally posted by: dullard

Originally posted by: acemcmac
yep- same here 100%

QFT BTW

Its true for most Americans. 71% pay it off in full or leave less than $1000.

Really? I thought america was in worse debt than that ...I am impressed.

According to several news reports I've seen lately, the newest generation of 20ish Americans has a good amount of debt, but usually Credit Cards aren't in that. It's mostly student/car loans and housing.

 

[Zysoclaplem]

Originally posted by: PingSpike

Originally posted by: Zysoclaplem
Damn you all make good money. I use my credit card for things I cannot afford with my pay. Maybe I am doing it all wrong.

I DO NOT make good money. If I cannot afford something, I do not buy it.

Then how do you have anything? How much do you make?

 

[BentValve]

Well I have about $7500 in CC debt out of about $16,000 available...rate is about 8%, I am not happy about it but things happen, I can dig myself out in a few years.

I wish it was a lower interest rate though.

 

[Aquila76]

Originally posted by: Zysoclaplem

Originally posted by: PingSpike

Originally posted by: Zysoclaplem
Damn you all make good money. I use my credit card for things I cannot afford with my pay. Maybe I am doing it all wrong.

I DO NOT make good money. If I cannot afford something, I do not buy it.

Then how do you have anything? How much do you make?

Instead of buying the uber-l33t goods, we buy within our means. A $10 shirt from Old Navy wears and keeps you warm just as well as a $50 one from the Gap.

 

[Zysoclaplem]

Originally posted by: Aquila76

Originally posted by: BentValve

Originally posted by: dullard

Originally posted by: acemcmac
yep- same here 100%

QFT BTW

Its true for most Americans. 71% pay it off in full or leave less than $1000.

Really? I thought america was in worse debt than that ...I am impressed.

According to several news reports I've seen lately, the newest generation of 20ish Americans has a good amount of debt, but usually Credit Cards aren't in that. It's mostly student/car loans and housing.

Everyone I know in their 20s has much much more debt than me. Unless they have parents float the bill for alot of their things. Which is usually the case. Most of my friends still have their parents pay insurance, and either live with their parents or their parents help them out while they are attending college.
Or they are married and have two incomes.

 

[dullard]

Originally posted by: BentValve
Really? I thought america was in worse debt than that ...I am impressed.

There is a dichotomy in America. The average is near $9000, yet most pay it off. That means those who do owe money, owe it big-time.

The 2004 numbers should be released early 2006, so I'm going off 2001 numbers. These are people, so a family of two credit card users could potentially double these numbers:
[*]4% owe more than $10,500.
[*]Of those who owe more than $10,000, 36% have household incomes less than $50,000/year. 13% have household incomes less than $30,000/year. These people are in dire trouble.

 

[oboeguy]

Originally posted by: her209
$0 in CC debt. :thumbsup:

FTW. Never carried any CC debt.

 

[dullard]

Originally posted by: Zysoclaplem
Then how do you have anything?

We have things by NOT paying hundreds or thousands of dollars per year to a CC company in interest/fees like you do.

 

[Zysoclaplem]

Originally posted by: Aquila76

Originally posted by: Zysoclaplem

Originally posted by: PingSpike

Originally posted by: Zysoclaplem
Damn you all make good money. I use my credit card for things I cannot afford with my pay. Maybe I am doing it all wrong.

I DO NOT make good money. If I cannot afford something, I do not buy it.

Then how do you have anything? How much do you make?

Instead of buying the uber-l33t goods, we buy within our means. A $10 shirt from Old Navy wears and keeps you warm just as well as a $50 one from the Gap.

Oh please. I dont put clothes on my credit card and the sale rack is the only thing I buy from. My credit card debt is from two vacations I took, this years christmas, and a laptop I needed/wanted for school.

 

[Zysoclaplem]

Originally posted by: dullard

Originally posted by: Zysoclaplem
Then how do you have anything?

We have things by NOT paying hundreds or thousands of dollars per year to a CC company in interest/fees like you do.

I didn't mean that in an ugly way. Are you married?

 

[BentValve]

Originally posted by: dullard

Originally posted by: BentValve
Really? I thought america was in worse debt than that ...I am impressed.

There is a dichotomy in America. The average is near $9000, yet most pay it off. That means those who do owe money, owe it big-time.

The 2004 numbers should be released early 2006, so I'm going off 2001 numbers. These are people, so a family of two could potentially double these numbers:
[*]4% owe more than $10,500.
[*]Of those who owe more than $10,000, 36% have household incomes less than $50,000/year. 13% have household incomes less than $30,000/year. These people are in dire trouble.

Now we are talking pure CC debt here right, I am sure if you included personal loans and vehicle loans those numbers would be much higher no?



If you add my vehicle loan into the mix I am in debt for about $20K ...but the vehicle
could be sold at any time and it could be reduced significantly.

 

[oddyager]

26 years old, $0 in CC debt. Fiscal responsibility FTW.

 

[dullard]

Originally posted by: Zysoclaplem
Oh please. I dont put clothes on my credit card and the sale rack is the only thing I buy from. My credit card debt is from two vacations I took, this years christmas, and a laptop I needed/wanted for school.

It doesn't matter if you think about it.

Suppose I have $1000 and buy $500 of clothes with cash and $1000 in a laptop. I owe $500 of CC debt. Now suppose I have $1000, buy $500 of clothes with a CC and a $1000 laptop with cash. I still owe $500 of CC debt.

You cannot split the spending like you did and somehow justify it. You still owe the same amount.

Edit: I was married (11 years with her, 6 married). Very happilly divorced last year.

 

[dullard]

Originally posted by: BentValve
Now we are talking pure CC debt here right, I am sure if you included personal loans and vehicle loans those numbers would be much higher no?

Correct. But a CC loan is typically 14% and on up. A typical car loan is what, 7%? Typical student loans are now 3%-5%. CC loans are the worst way to borrow money (especially for a laptop for school, when a student loan is so cheap).

There are exceptions (0% CC loans if you have great self-control), but you often pay in hidden ways (your credit score plummets and that means other bills are higher).

 

[Wapp]

Originally posted by: Aquila76

Originally posted by: Zysoclaplem

Originally posted by: PingSpike

Originally posted by: Zysoclaplem
Damn you all make good money. I use my credit card for things I cannot afford with my pay. Maybe I am doing it all wrong.

I DO NOT make good money. If I cannot afford something, I do not buy it.

Then how do you have anything? How much do you make?

Instead of buying the uber-l33t goods, we buy within our means. A $10 shirt from Old Navy wears and keeps you warm just as well as a $50 one from the Gap.

Damn rich people and their $10 shirts. Goodwill sells them to us poor folks for $2.

$0 CC debt, 23

 

[Zysoclaplem]

Originally posted by: dullard

Originally posted by: Zysoclaplem
Oh please. I dont put clothes on my credit card and the sale rack is the only thing I buy from. My credit card debt is from two vacations I took, this years christmas, and a laptop I needed/wanted for school.

It doesn't matter if you think about it.

Suppose I have $1000 and buy $500 of clothes with cash and $1000 in a laptop. I owe $500 of CC debt. Now suppose I have $1000, buy $500 of clothes with a CC and a $1000 laptop with cash. I still owe $500 of CC debt.

You cannot split the spending like you did and somehow justify it. You still owe the same amount.

Edit: I was married (11 years with her, 6 married). Very happilly divorced last year.

I think I am very responsible with my money. I always keep as much as possible in the bank because sometimes things happen where you need that money.
Being that I have around 20k of available credit, I think I am doing alright with $2700 debt. That is all I have. No vehicle payments, no house payments. Just $2700.
That isn't so bad overall I wouldn't think.