Enjoy life. Die in debt

[JEDI]

a friend of mine, who is single, has this philosophy: Enjoy life. Die in debt.
living life on low interest loans and credit cards.

bought a 25' boat to enjoy weekends in the summer.
also bought a camper that expands out to enjoy weekends in the winter.
and had to buy a Ford F350 Super truck to tow it. (mainly for the boat, over kill for the camper.)

he's living close to paycheck to paycheck.
he says if he gets in over his head, negotiate with credit card companies and pay a fraction of the amount owed.
get another credit card.

if he loses his job, which he's had for 15+ years, declare bankruptcy.
he understands he'll lose the boat/camper/super truck but should be able to keep his main car, a Honda civic.
get new credit cards afterwards.

I asked him about food/rent in case he loses his job.
he said unemployment insurance, food stamps/welfare and his city also provides short term housing assistance to help pay rent.
he also has grown children he can rely on.

and he has a pension, which He's already vested so he'll get it when he's age 62 even if he gets fired tomorrow.
he also says it's untouchable.
he thinks the credit card companies cant garnish pensions/social security.

he seems to have thought this through.
His philosophy doesn't sound that bad if you're single???

 

[AdamK47]

Seems like a plan that will only work once and for the short term. He won't be able to repeat it once his credit is in the dump.

 

[deadlyapp]

If you declare bankruptcy you'll need at least 5-10 years to rebuild your credit to the point you can get another CC or loan at any sort of reasonable rate, so that sounds like a bad plan.

TBH - I've lived much of my 20's like this, with a significant amount of accumulated rotating debt (~$10-15k) that I basically kept flat with my spending and paying it off. Would occasionally rotate it to fixed term loans or 0% balance transfers on other cards. My FICO is over 800 even with this, but recently decided to aggressively pay it off by selling a vehicle (~$15k) and then fully financing a new vehicle which gave me quick liquidity.

 

[Red Storm]

Why don't you give it a try and let us know how it goes in a couple years.

 

[repoman0]

Sounds like a bum, I can't imagine having kids and expecting to bum off of them if my debt fueled lifestyle caught up with me. What a failure.

Does debt get passed down to kids when you die? If so multiply the massive failure he already is by ten.

 

[JEDI]

Why don't you give it a try and let us know how it goes in a couple years.

I make ATOT $$$.
I cant spend it fast enough.

there's only so much hookers and blow you can do b4 you become unproductive and get fired.
I like making atot $$$ so I try not to get fired.

 

[JEDI]

Sounds like a bum, I can't imagine having kids and expecting to bum off of them if my debt fueled lifestyle caught up with me. What a failure.

Does debt get passed down to kids when you die? If so multiply the massive failure he already is by ten.

unemployment insurance last for 6months. welfare lasts for 5yrs (I think).
his kids are his safety net, in case all else fails.
he is a hard working guy, who also likes to play hard too.

no, debt does not get passed down to kids.
debt does get passed down to wife but since he's single, he gives a middle finger to the credit card companies when he dies.

 

[PricklyPete]

Yep...he’s a genius. That plan always ends well.

 

[s0me0nesmind1]

Some people hold themselves to higher standards... you know... independence...self reliance... not being an insignificant piece of shit leech on society....

But these poor folks need our help!

It's just like everyone else in my neighborhood... overall lower-middle class housing... living paycheck to paycheck to pay the minimum amounts on their mortgage.... Then you catch them with their garage open and it's literally just filled with shit like an episode of hoarders. America baby! Buy useless shit for no apparent reason, because why not? We need to upgrade from our 60" TV to a 65" because reasons.

 

[IronWing]

To implement this plan effectively, it's important to know when you are going to die.

 

[dasherHampton]

Amusingly enough I have an acquaintance who claims to be following a similar path. He is deeply in debt, using credit cards to pay his mortgage, and apparently has every intention of declaring bankruptcy eventually to erase the majority what he owes. I have no way of knowing whether he is actually doing this but I also have no reason to doubt what he says.

I've told him he is asking for a world of trouble but he seems sure he can convince a bankruptcy judge that his financial situation left him no choice and was therefore not committing fraud.

I don't understand what makes some people tick. Maybe he's just trying to mess with my head.

 

[GagHalfrunt]

I make ATOT $$$.
I cant spend it fast enough.

there's only so much hookers and blow you can do b4 you become unproductive and get fired.
I like making atot $$$ so I try not to get fired.

Well there's your problem. Making ATOT money is chump change, a real man would have that sort of income from his string of lemonade stands that he pays orphans 3 cents a day to run for him. You need to set your sights higher so that you have enough $$$ it won't matter if you get fired. Then you can really indulge in ATOT levels of hookers and blow.

 

[[DHT]Osiris]

Had friends of the family when I was younger that did similar shenanigans. Would buy flat screen TVs and stuff, new cars, etc all on credit, then just bankruptcy the whole lot away after enjoying it (in case they took it). Surprisingly, they'd get a crapload of credit cards after bankruptcy since the creditors figured, they couldn't file again for a while I guess. Didn't account for them just buying up stuff, then not paying them (they did this too). They'd sell off the debt to debt collectors who they just gave the runaround to. Quite the little defrauders, they were, but I guess it's on the banks for giving them credit.

 

[dave_the_nerd]

Had friends of the family when I was younger that did similar shenanigans. Would buy flat screen TVs and stuff, new cars, etc all on credit, then just bankruptcy the whole lot away after enjoying it (in case they took it). Surprisingly, they'd get a crapload of credit cards after bankruptcy since the creditors figured, they couldn't file again for a while I guess. Didn't account for them just buying up stuff, then not paying them (they did this too). They'd sell off the debt to debt collectors who they just gave the runaround to. Quite the little defrauders, they were, but I guess it's on the banks for giving them credit.

Not usually one to blame the victim, myself, but this.

 

[GagHalfrunt]

Not usually one to blame the victim, myself, but this.

Yeah, it's hard to see the banks as victims. It's a co-dependent relationship and whoever issues the cards are the enablers. They WANT people to live beyond their means and carry huge balances that they can never get out from under. A few people gaming the system is just the cost of doing business.

 

[Red Storm]

Amusingly enough I have an acquaintance who claims to be following a similar path. He is deeply in debt, using credit cards to pay his mortgage, and apparently has every intention of declaring bankruptcy eventually to erase the majority what he owes. I have no way of knowing whether he is actually doing this but I also have no reason to doubt what he says.

I've told him he is asking for a world of trouble but he seems sure he can convince a bankruptcy judge that his financial situation left him no choice and was therefore not committing fraud.

I don't understand what makes some people tick. Maybe he's just trying to mess with my head.

In his mind of course he has a way out of that mess, without that comforting thought he would go crazy realizing what kinda mess he is in.

 

[Thebobo]

a friend of mine, who is single, has this philosophy: Enjoy life. Die in debt.
living life on low interest loans and credit cards.

bought a 25' boat to enjoy weekends in the summer.
also bought a camper that expands out to enjoy weekends in the winter.
and had to buy a Ford F350 Super truck to tow it. (mainly for the boat, over kill for the camper.)

he's living close to paycheck to paycheck.
he says if he gets in over his head, negotiate with credit card companies and pay a fraction of the amount owed.
get another credit card.

if he loses his job, which he's had for 15+ years, declare bankruptcy.
he understands he'll lose the boat/camper/super truck but should be able to keep his main car, a Honda civic.
get new credit cards afterwards.

I asked him about food/rent in case he loses his job.
he said unemployment insurance, food stamps/welfare and his city also provides short term housing assistance to help pay rent.
he also has grown children he can rely on.

and he has a pension, which He's already vested so he'll get it when he's age 62 even if he gets fired tomorrow.
he also says it's untouchable.
he thinks the credit card companies cant garnish pensions/social security.

he seems to have thought this through.
His philosophy doesn't sound that bad if you're single???

I don't see how that would work once you start defaulting on loans it prevents you from getting more loans.

 

[s0me0nesmind1]

It's definitely not as easy as they are making you guys THINK it is. Everything involving things like Bankruptcy involves legal. When legal is involved, money is involved. Filing for bankruptcy isn't filling out a form and paying a measly fee.

Also requires lots of time, possible wage garnishment, court cases for the debt, etc.. That and if you have a mortgage, I don't know how the hell you maintain a home since they can obviously re'po the home.

 

[dave_the_nerd]

I don't see how that would work once you start defaulting on loans it prevents you from getting more loans.

That's true.

Honestly, the guy OP is describing doesn't sound like somebody with a really smart scam, it sounds like somebody who's trying to justify his crappy debt situation as "clever" and deep down knows he's fucked.

 

[Zeze]

This is obviously unsustainable.

You won't last past few years. I think I had 40K available credit across my CCs. 40K sounds a lot, but it's also nothing. This will last you what, barely a year before interest already starts to consume the remaining balance?

Then CCs are overdrafted and cancelled. Now what? Who's gonna issue CCs?

 

[soulcougher73]

If you declare bankruptcy you'll need at least 5-10 years to rebuild your credit to the point you can get another CC or loan at any sort of reasonable rate, so that sounds like a bad plan.

TBH - I've lived much of my 20's like this, with a significant amount of accumulated rotating debt (~$10-15k) that I basically kept flat with my spending and paying it off. Would occasionally rotate it to fixed term loans or 0% balance transfers on other cards. My FICO is over 800 even with this, but recently decided to aggressively pay it off by selling a vehicle (~$15k) and then fully financing a new vehicle which gave me quick liquidity.

Sadly that is not true. People think it is, but bankruptcy and foreclosures dont hit your credit nearly as hard as you think they would. Don't ask me how i know lol

I dont think the banks really care all that much. More then happy to put you into debt again with more CCs.

 

[Thebobo]

Sadly that is not true. People think it is, but bankruptcy and foreclosures dont hit your credit nearly as hard as you think they would. Don't ask me how i know lol

I dont think the banks really care all that much. More then happy to put you into debt again with more CCs.

Yea then you can get a credit card at 29% and $300 limit after a foreclosure.

 

[Ventanni]

You can live off credit like this. It's highly risky, as well as uncertain, but if your happiness is derived from buying stuff all the time, then I guess it works. Never met anyone who does this that isn't miserable though.

Or...

You can live debt free and put your extra cash into various money making mechanisms like 401k, Roth IRAs, Mutual Funds, stocks, bonds, etc. And eventually, those items will be making you so much cash that you can live like you're a king.

It's just so short-sited to live off credit cards when you can have so, so much more if you manage it correctly.

 

[Red Squirrel]

It would stress me out too much to live like that. I hate owing money, I like to fully own things. The only debt I feel is acceptable is mortgage, because no one has 200k just lying around, but if I did, I would have bought my house cash.

I can see how it would work, at least short term, but still not something I would want to do myself.

 

[JulesMaximus]

F350 Super Truck! I must get one of these!

Does it wear a cape?