How deep in credit card debt are you?

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No Lifer
Sep 29, 2000
70,150
5
0
As a percentage of your yearly pre-tax income, out of all your credit cards combined how much do you owe?
 

MaxDSP

Lifer
May 15, 2001
10,056
0
71


<< I never carry a balance so 0%. >>





Same here. Credit is something I wouldn't mess with.
 

mdennison

Golden Member
Jun 6, 2001
1,710
0
0
I have one credit card at %9.9 with $2400 on it....not maxed out but needs to be paid off
 

N8Magic

Lifer
Dec 12, 2000
11,624
1
81
I owe approximately $7,500.00 on credit cards, and I am going to make $51,000.00 this year.

That would be 14.7%. This will be going down in a hurry when I get my transfer back to my place of residence in 2 months. Currently, it is costing me $750.00 a month just to go to work because of commuting expenses.
 

MrHappyMonkey

Diamond Member
Mar 15, 2001
3,091
0
0
0%. It is just stupid to let the charges from the credit card company pile up on you. Plus, it will screw your credit up.
 

Dark4ng3l

Diamond Member
Sep 17, 2000
5,061
1
0
I dont have a credit card... whats the point of spending money you dont have if you'll pay it back later with huge interest?? I say save your money and buy stuff when you can afford it.
 

MaxDSP

Lifer
May 15, 2001
10,056
0
71


<< I dont have a credit card... whats the point of spending money you dont have if you'll pay it back later with huge interest?? I say save your money and buy stuff when you can afford it. >>




not always safe to be carrying $500 cash around for that special video card :)

Thats why most people set aside cash they will use for purchase towards credit card statement.
 

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
I find it convenient to use a credit card and if you have the right one and do it properly you can benefit from points systems. Its also good as backup in case you need money fast and using one regularly (though paying it off every month) costs you nothing in interest but can contribute to your credit which can help when its time to buy a house or car.
 

Dark4ng3l

Diamond Member
Sep 17, 2000
5,061
1
0
like I said financing is evil, dont buy anything with any kind of financing, you are giving bastard idiots free money, just because they had money on the first place...
 

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
like I said financing is evil, dont buy anything with any kind of financing, you are giving bastard idiots free money, just because they had money on the first place...

I suppose you have yet to buy a house :)

I do agree that for the most part it is evil, but a house is one example of where it is not evil at all.
 

joohang

Lifer
Oct 22, 2000
12,340
1
0
About 10%-ish. I'm going to clear up everything and only use it to control my expense.

Sounds funny, but it works. The idea is to cancel any useless credit cards and keep one or two that gives me just enough limit for one-month-worth of living expenses. And only use the credit card for any expense such as groceries, bills, clothes, etc. And at the end of the grace period, pay everything in full. :)

I hope I can keep that up.
 

Static911

Diamond Member
Nov 24, 2000
4,338
1
0
I carry about less than 1-3% balance on each card...I have about 5 cards. However, last semester, mind you it is only about 4 months, I went crazy and spent nearly $10k. I was like danggggggggg. Now I am only about $1k in debt...I will be out in one month.

However, I heard you ARE suppose to have a tad bit of debt to improve credit? Someone please prove that statement wrong, PLEASE!

I must say, the CC companies are quite generous in giving a senior in college such a big amount for each card. IF I add up all my cards together, I must say I can maybe live one year comfortably and maybe get a new car without working.

However, I like applying for them, just to see how much I can get, and I use it once, pay the card off and just collect the card itself.

I mostly use the Yahoo card since I can accumulate points which I have no idea how I am suppose to use those points...ignorance on my part.

Static911
 

dman

Diamond Member
Nov 2, 1999
9,110
0
76
Zero Balance, credit card good, balance+interest = bad.

Financing is a fact of life for other things.




 

Static911

Diamond Member
Nov 24, 2000
4,338
1
0
I heard financing a car on Zero $ down is horrible.

About how much cash (in percentage) should a person put down on car?

I plan to fully purchase my car, however, I HEARD (emphasize word) that I should finance it for one year so I can build "credit." So I pay 80-90% of the car and then finance the rest of the 10%? Is that true?

Static911
 

Grminalac

Golden Member
Aug 25, 2000
1,149
1
0
7,200. But I did have one hell of a time in vegas and Punta Cana. Had to put one semester of college tuition on it as well :(
 

Static911

Diamond Member
Nov 24, 2000
4,338
1
0
Grminalac

7,200. But I did have one hell of a time in vegas and Punta Cana. Had to put one semester of college tuition on it as well


You WHAT?????????? Let me understand, you put a semester of college tuition on the blackjack/craps/roulette table?

One response to that is "you got balls." Another response is, "dang man!"

Static911
 

Squisher

Lifer
Aug 17, 2000
21,207
66
91
My wife and I have always carried pretty good sized balances even though I make pretty good money. Then she went to work a couple of years ago and has excelled in her career and because of this we are no longer in credit card debt(still have a mortgage and one car payment).
 

b0mbrman

Lifer
Jun 1, 2001
29,471
1
81
Same with me, I never carry a balance but I'm sure I use credit cards for at least 25% of my purchases
 

goog

Golden Member
Sep 8, 2000
1,076
0
0
Right now about 10%.
I've put college tuition and food on my cards before, not a big deal IF you know how to handle cash many people don't.
I juggle finances all the time and manage quite well.

 

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
static

For cars it really depends. Cars build good credit but since you have 5 cards I bet your credit is pretty good anyway :) As far as being somewhat in debt all I know is that at least in Canada when you get a credit report it shows your max on your CC and your current balance. If you're worried about your credit because you want to buy a car and they see you are $8k in debt on CCs the second you pay that off it should be reflected in your credit rating.

As far as financing cars often times a car's interest rate is lower than you could get investing the money. So, if you have $20k in the bank and want a car for $20k instead of buying it outright just finance it at a 6% rate, and invest the rest. Since you can safely get 10% generally with a good mutual fund in such a case its worth financing the car. The same goes for a mortgage and that is why even people who are both economically well off and financially intelligent don't always pay their mortgage off just because they can. Of course generally carrying a balance on your CC from month to month is silly because most of the time the CC interest rates are so high you're throwing money away. People who are $10k in debt with 20% credit card really should break out a calculator and realize they are throwing away $2k a year. Just throwing it down the toilet.