PSA: Credit Card Minimum Payments About to DOUBLE

[Budmantom]

Originally posted by: Ares2600

Originally posted by: Budmantom

Originally posted by: Ares2600
Wow.. some people need some perspective here. Especially with the economy the way it has been the past few years I'd imagine there'd be more understanding flying around. Sh!t happens, and not everyone is a moron that turns to credit to get them through. You people ride some high friggin horses.

You assume too much, the majority of people get into CC debt from poor spending habits.


Tom

Completely agreed, but the comments here are essentially saying that there's NO excuse and anyone, without exception, in a position where this news has an effect is a moron. I'm just trying to make the point that some people, otherwise responsible financially, have had to turn to credit cards in order to make ends meet. Not morons... not stupid.. just in a tight spot. People assume to have all the answers and know all the angles. I'd like to know how many of them have families to support on a single income in a bad economy, etc. ATOT tends to be fairly biased towards the comfortable single guy.

Agreed. My family comes before my credit and push comes to shove I'm racking up my CC's to live off of. With that said, people often think that they deserve the latest and greatest cars, computers etc and next thing you know you lost your job and you have nothing in savings and your holding out for a job that's not beneath you.

my $.02


Tom

 

[dxkj]

Originally posted by: SouthPaW1227

You are full of BS... you can make more money than they charge by turning it around and putting it in a CD or savings account


PLUS , you fvcktard, have you thought that if they are UP TO THEIR EARS in debt, they might have an IMPOSSIBLe time in getting approved for a low interest loan from a bank who looks at their CC balances and credit score as a liabilty

No, I'm not. It's called a "credit union" and you should find a way to become affiliated with one.

And if you've already ruined your credit, you're screwed anyway. There's no escaping it hardly once it starts, which is why I'm saying it's idiotic to even START charging so much that you're forced to pay minimums on 10% interest rates. You'll probably never recover if you live that lifestyle.

Im in a credit union... you cannot get unlimited funds at below 3%... if you could, I would take 10 million and turn around and put it in a 3.8% CD and be making 80k a year on the dumb bank/credit union

 

[Homerboy]

glad to see there are SOME sane people in ATOT with real-life experience.

 

[EatSpam]

Originally posted by: Budmantom

Originally posted by: Homerboy

Originally posted by: SouthPaW1227
Anyone who only pays the minimum (heck, anyone who doesn't pay it COMPLETELY off by the end of the grace period) on a credit card is any idiot anyway.

ok holier than though.
What if you CAN'T pay it off in full... there are reasons that some people carry a balance that are out of their control.

Because they can't control their spending??

Medical bills, maybe? Unemployment? Lots of factors that contribute to debt...

 

[SouthPaW1227]

The best laid plans...I hope you never get into a hole, but if it happens to you I hope you remember this thread.

Look, there's about a million things I want right now. A jetski in this nice summer heat, for one. But I'm smart enough to stay conversative and SAVE and not buy wrecklessly things I don't need. Case in point: I knew our enagegement was coming soon, so I saved until I could pay the ring and dinner and all other expenses off in full before pulling the trigger.

I know there's no way to avoid EVERY circumstance, but if you keep your credit great from the start, 3-4 months of unemployment can be hurdled by savings and low-interest loans based on your past great credit.

Also, I'm not rich by any view of the imagination. I make about the national average, and so do my folks. I've never had lots of money, but you can take what you've got and create wealth for the future. Thankfully, when I hit holes in life my family is more than greateful to cover me 'til I can recover.

 

[Ares2600]

Originally posted by: SouthPaW1227

Originally posted by: Homerboy

How are you this dumb? IF YOU CANNOT AFFORD A CHILD, USE PROTECTION.

Dipsh!t... did you even READ my posts? I got laid off 1 week AFTER my 2nd kid was born... thats 9 months AFTER she got pregnant. Before the layoff money was FINE... in fact we fully lived off the savings for a month or so.

If I had a crystal ball that could forsee the future, as you seem to think I have, I would just grab the winning lottery numbers and all this would be over....

I know it's none of my business, but if you weren't in the position to be able to live comfortably off of savings until you could find another job, she shouldn't have gotten pregnant again. You've no excuse. Everybody can save money one way or another. I just see things from a financial viewpoint; don't buy things you can't afford (including a marriage and a kid) until you can afford them. They won't magically pay for themself somehow. And don't buy things on the assumption that you'll have the money next month.

I personally will not have a kid until there's a huge amount in savings, 'cause the future becomes highly unstable once that event occurs.

Your ignorance is just amazing. I don't disagree that people should have established plans for savings and prepare for tough times, but to completely disregard the possibility that, even in your perfect little financial world, otherwise responsible people can run into circumstances that defeat even their best efforts really speaks to your ridiculous desire to place yourself above others. Use some of that savings from your self-proclaimed cushy job to buy a clue.

 

[waggy]

Originally posted by: SouthPaW1227

Originally posted by: Homerboy

How are you this dumb? IF YOU CANNOT AFFORD A CHILD, USE PROTECTION.

Dipsh!t... did you even READ my posts? I got laid off 1 week AFTER my 2nd kid was born... thats 9 months AFTER she got pregnant. Before the layoff money was FINE... in fact we fully lived off the savings for a month or so.

If I had a crystal ball that could forsee the future, as you seem to think I have, I would just grab the winning lottery numbers and all this would be over....

I know it's none of my business, but if you weren't in the position to be able to live comfortably off of savings until you could find another job, she shouldn't have gotten pregnant again. You've no excuse. Everybody can save money one way or another. I just see things from a financial viewpoint; don't buy things you can't afford (including a marriage and a kid) until you can afford them. They won't magically pay for themself somehow. And don't buy things on the assumption that you'll have the money next month.

I personally will not have a kid until there's a huge amount in savings, 'cause the future becomes highly unstable once that event occurs.

wow. you might want to re-read again what he wrote. i know its hard to understand when your head is up your ass.

He had good money BEFORE she got pregnant. In fact he got laid off after his child WAS BORN (add that up. its nearly a year's time).

He had enough money to live off savings for a while.


How could he have known in 9+ months he was going to get laid off?


How much money do you think you need saved to have a child? how long will that last after you get laid off?

 

[HumblePie]

I got 1 card, my Amex Blue card. $3K left on it. Originally got it when I was 19, just joining the military, had no other source of credit and was pretty much broke. At the time I NEEDED a few things to live, like clothes and furniture. Sure the AF goes a long way with free food at the chow hall for instance, but I was an airman basic and making about $1000 a month for awhile. I never let it get out of control at all but I did get it up to $5K (max limit at one point) but there were needs. Then again, my APR is 7.9% and always has been on it for me since I haven't been late with the card payments.

I now make way more money and am paying off that debt, along with others, car payment, rent, and such. I've only used it once in 2 years and it was a BIG purchase but for a reason.

I HAD it down to $1K left on payment left. Was about to finish paying it off. At the time, I was out of the military, going to college, and scraping just enough of a living to get by. This was last year. And then, one of the fillings I had done in the military fell out. Turns out the dentist that did it screwed up MAJORLY and I had to have some oral surgery, and 3 crowns to fix it. Do you know how much that costs when you are in college and don't have dental benefits? Had to pull out the card again for a $3K purchase for my mouth. I had no other option unless I wanted to be in such pain I couldn't eat or drink.


Using plastic this way is not wrong at all. I STILL can't pay it all off in one go since I just got my good job (see $60K a year) with full benefits. Some things happen and take time to fix.

 

[SouthPaW1227]

Look, no one has perfect plans. My best suggestion is to save like hell at all times, for the bad times.

The absolute bottom line I'm sayins is this: If you don't have a fubared credit already, there's better options than credit cards.

EDIT: To the guy below me: insurance? It's a worthwhile investment.

 

[Jzero]

Originally posted by: SouthPaW1227
I know there's no way to avoid EVERY circumstance, but if you keep your credit great from the start, 3-4 months of unemployment can be hurdled by savings and low-interest loans based on your past great credit.

And if the length of unemployment stretches to 8 months? A year? The wife gets laid off, too? Hospitalization? Car accident? Lawsuit?

There's plenty of gotchas. It's not as easy as you would like to believe it is.

Thankfully, when I hit holes in life my family is more than greateful to cover me 'til I can recover.

That not everyone has such a luxury has already been covered in this thread.

 

[Budmantom]

Originally posted by: EatSpam

Originally posted by: Budmantom

Originally posted by: Homerboy

Originally posted by: SouthPaW1227
Anyone who only pays the minimum (heck, anyone who doesn't pay it COMPLETELY off by the end of the grace period) on a credit card is any idiot anyway.

ok holier than though.
What if you CAN'T pay it off in full... there are reasons that some people carry a balance that are out of their control.

Because they can't control their spending??

Medical bills, maybe? Unemployment? Lots of factors that contribute to debt...

Maybe.. new car, ps2, xbox

 

[mchammer187]

Originally posted by: dxkj

Originally posted by: SouthPaW1227

You are full of BS... you can make more money than they charge by turning it around and putting it in a CD or savings account


PLUS , you fvcktard, have you thought that if they are UP TO THEIR EARS in debt, they might have an IMPOSSIBLe time in getting approved for a low interest loan from a bank who looks at their CC balances and credit score as a liabilty

No, I'm not. It's called a "credit union" and you should find a way to become affiliated with one.

And if you've already ruined your credit, you're screwed anyway. There's no escaping it hardly once it starts, which is why I'm saying it's idiotic to even START charging so much that you're forced to pay minimums on 10% interest rates. You'll probably never recover if you live that lifestyle.

Im in a credit union... you cannot get unlimited funds at below 3%... if you could, I would take 10 million and turn around and put it in a 3.8% CD and be making 80k a year on the dumb bank/credit union

agreed i have an almost 800 credit score and there is no way i can get below 4% let alone below 3% on a large sum of money

sure you can do 0% for 1 year and then the interest gets you but there is no way in hell you can secure a 50K+ loan for lets say 3.5%, banks aren't that stupid

 

[Joemonkey]

I think its funny when people imagine you can "Save up" to have a kid

What is your baseline? are you taking into account any complications with mom and/or baby? emergency situations? hospital stays? laid off immediatly after the birth? how many years worth of diapers/formula/clothes/etc. are you saving up for?

If you "prepare for the worst" like people in this thread seem to think is oh so easy, you would need about $250,000 extra in the bank "just to be on the safe side"

having a kid is not all about money. my father is 75 and in failing health. if it means going into debt to have a child so he can see his only true biological grandchild before he dies, i'll take the debt.

 

[Hossenfeffer]

Maybe I'll start of and try to arrange a $10,000 loan with someone at 6 or 7%... any takers?

 

[waggy]

I used to think like southpaw. I mantain a zero balance on CC's (well my lowes is high. 0% interest for 6 months on new washer dryer woot!) and have a LOT in savings. I do not buy something unless i can pay off the CC at the end of the month. I do not buy new car's, I also do not buy new stuff just because its out unless i have budgeted for it. I was able to RETIRE at 28 years of age. so yes i do know about savings.

but then i had a friend deal with stuff people talk about in the thread wich opened my eyes to reality.

A friend of my wife to used to make 100k+ a year. He baught a nice little house (only 112k wich is cheap around here) only baught used cars etc. just a stingy guy all around.

Well about 3 years ago he got into a car wreck. He is now in a wheelchair. He was out of work for over a YEAR (think 18 months). he thought he had enough savings to last him about a year if he was laid off. Pitty he didnt plan on the thousands in medical cost. Its been 3 years since his accident. he works part time at a job (not even makeing half he was).

He has high CC debt, a FEW personal loans and a 2nd mortgage on his house. All his savings he had are gone.

Now is this guy irresponsible? what else could he have done?

Yes he got short term disablity payemnts (not enough to covor cost), yes he had insurance but he still had to pay a lot out of pocket.

Sometimes bad things happen to good people. Not everyone in debt is reckless or irresponsible. but many are.

 

[HumblePie]

Originally posted by: mchammer187

Originally posted by: dxkj

Originally posted by: SouthPaW1227

You are full of BS... you can make more money than they charge by turning it around and putting it in a CD or savings account


PLUS , you fvcktard, have you thought that if they are UP TO THEIR EARS in debt, they might have an IMPOSSIBLe time in getting approved for a low interest loan from a bank who looks at their CC balances and credit score as a liabilty

No, I'm not. It's called a "credit union" and you should find a way to become affiliated with one.

And if you've already ruined your credit, you're screwed anyway. There's no escaping it hardly once it starts, which is why I'm saying it's idiotic to even START charging so much that you're forced to pay minimums on 10% interest rates. You'll probably never recover if you live that lifestyle.

Im in a credit union... you cannot get unlimited funds at below 3%... if you could, I would take 10 million and turn around and put it in a 3.8% CD and be making 80k a year on the dumb bank/credit union

agreed i have an almost 800 credit score and there is no way i can get below 4% let alone below 3% on a large sum of money

sure you can do 0% for 1 year and then the interest gets you but there is no way in hell you can secure a 50K+ loan for lets say 3.5%, banks aren't that stupid

My credit union offers a VEHICLE loan with 3.5% APR if paid of in 66 months or less. No maximum on the amount loan except what your credit score and past history with the union dictate.

Only problem, is it's for vehicles. My $22K car loan I just got was at 3.5% APR. Not to shabby I thought.

 

[Homerboy]

Let me also add to the fire that my daughter, since she was born has had 4 surgeries and countless office visits.... I pay ~$350/month right now just in medical bills for her. I should have forseen that too!

 

[Jzero]

Originally posted by: HumblePie
My credit union offers a VEHICLE loan with 3.5% APR if paid of in 66 months or less. No maximum on the amount loan except what your credit score and past history with the union dictate.

Only problem, is it's for vehicles. My $22K car loan I just got was at 3.5% APR. Not to shabby I thought.

Do you know why you can get relatively low interest rates on cars and homes? It's called COLLATERAL. The bank will offer you a lower rate because they have a way to get the money back if you default.

 

[vi edit]

Credit cards are APR. ANNUAL percentage rate. If I have a 12% APR, my actual monthly interest is 1%. If I have to carry a $1000 balance for a month and pay $10 on it, that's a cheap convenience and one I'm willing to live with.

(It's actually a bit higher because they do daily accruals, so it's probably more like $15, but anyway)

Making blanket statements calling people idiots for not paying off the full balance is a sign of arrogance...and ignorance.

I'd wager that the people that carry a balance over every now and then and flip the CC companies a few bucks have HIGHER credit scores than the people that pay off in full every month.

Obviously there is a significant number of people that keep way too high of a debt and have it hanging around their neck like a 2 ton noose. But the people that use the convenience of credit cards in a responsible manner and pay $10, $20, or $30 a year in interest charges aren't really hurting themselves and I wouldn't exactly call that acting irresponsible.

 

[mchammer187]

Originally posted by: HumblePie

Originally posted by: mchammer187

Originally posted by: dxkj

Originally posted by: SouthPaW1227

You are full of BS... you can make more money than they charge by turning it around and putting it in a CD or savings account


PLUS , you fvcktard, have you thought that if they are UP TO THEIR EARS in debt, they might have an IMPOSSIBLe time in getting approved for a low interest loan from a bank who looks at their CC balances and credit score as a liabilty

No, I'm not. It's called a "credit union" and you should find a way to become affiliated with one.

And if you've already ruined your credit, you're screwed anyway. There's no escaping it hardly once it starts, which is why I'm saying it's idiotic to even START charging so much that you're forced to pay minimums on 10% interest rates. You'll probably never recover if you live that lifestyle.

Im in a credit union... you cannot get unlimited funds at below 3%... if you could, I would take 10 million and turn around and put it in a 3.8% CD and be making 80k a year on the dumb bank/credit union

agreed i have an almost 800 credit score and there is no way i can get below 4% let alone below 3% on a large sum of money

sure you can do 0% for 1 year and then the interest gets you but there is no way in hell you can secure a 50K+ loan for lets say 3.5%, banks aren't that stupid

My credit union offers a VEHICLE loan with 3.5% APR if paid of in 66 months or less. No maximum on the amount loan except what your credit score and past history with the union dictate.

Only problem, is it's for vehicles. My $22K car loan I just got was at 3.5% APR. Not to shabby I thought.

that is a nice rate i just got 4.25% for 60 months myself

but when there is collateral like a house or a car you will get lower rates

try to find a bank that will let you borrow some rent money for a year and see what rate you get


home equity credit lines are not too bad either but you still have to own your own home

 

[Siva]

Originally posted by: Tiamat
don't buy what you can afford. Its very simple. No need for minimum payments.
:shrugs;

So what if you can't afford groceries one month because you got fired? I guess it really is simple, to avoid debt you simply starve.

 

[new2AMD]

Originally posted by: SouthPaW1227
Anyone who only pays the minimum (heck, anyone who doesn't pay it COMPLETELY off by the end of the grace period) on a credit card is any idiot anyway.

Idiot

 

[Budmantom]

Originally posted by: Siva

Originally posted by: Tiamat
don't buy what you can afford. Its very simple. No need for minimum payments.
:shrugs;

So what if you can't afford groceries one month because you got fired? I guess it really is simple, to avoid debt you simply starve.

You could have a savings account.


Tom

 

[Tiamat]

Originally posted by: Siva

Originally posted by: Tiamat
don't buy what you can afford. Its very simple. No need for minimum payments.
:shrugs;

So what if you can't afford groceries one month because you got fired? I guess it really is simple, to avoid debt you simply starve.

Thats why I have had a savings account that I haven't removed any money from for the past 12 years. (I understand that not everybody does this, but this is the way my parents raised me)

However, just so its known, my comment was more towards the overall view of credit cards. I had my "reply to message" window open for a while and by the time I actually posted, other more "tough situations" were posed. I was definately not commenting on situations like what Homerboy is going through. Situations like these make it impossible to not debt spend. Losing a job at the same time as getting a newborn is a catastrophy on finances and nobody can expect to recover from that for an extended period of time.

For the people living in a stable financial environment, debt spending isnt a great idea because if you lose your job while in debt and have other pressing financial needs, you are fvcked. This is what I was touching upon.

 

[Suspicious-Teach8788]

Originally posted by: lokiju

Originally posted by: Homerboy

Originally posted by: SouthPaW1227
Anyone who only pays the minimum (heck, anyone who doesn't pay it COMPLETELY off by the end of the grace period) on a credit card is any idiot anyway.

ok holier than though.
What if you CAN'T pay it off in full... there are reasons that some people carry a balance that are out of their control.

:thumbsup:

I was laid off and without a job for many months awhile ago and am still trying to pay off my balance.

IF you are carrying a balance, then you have to learn about DEBT management. If you didn't have a CC, you wuold be paying in cash, and obviously you can buy as much as you can afford. So maybe you obviously don't know how to MANAGE your money well that you OVERSPEND with a credit card.

If you can't afford it, then tell yourself don't swipe the damn card. This is why half of America is in debt. Stupid people....