Average Monthly Auto Loan Now $503 @ 68 months

[Truefan31]

i feel a large percentage of people with credit card debt put emergency expenses onto the card because they have no savings. if they didn't have the cash flow to pay the emergency expenses in the first place, they likely won't have the funds to make more than the minimum once they put it on the card.

credit card companies know this and keep upping the limit on people who make minimums on time and are close to their credit limit. life happens and they charge even more to the card.

That's part of the risk. It's basically my point. Something simple like paying bills and budgeting the money you actually have gets lost on a lot of people.

Again it's really simple but we get caught up in either keeping up with others or thinking we're smarter than these banks. Live on less than u earn, save money.

When u cash flow things you start really thinking about your purchases. You see money being given and you know you earned that money. It's honestly different than swiping a card. Look it up. Stats show people spend at least 15-20% on a cc vs using cash.

 

[Truefan31]

@Truefan31

Lets stop talking in terms of debt since you want to get your fake ass Suze Ormand Dave Ramsey judgement on and just talk about scenarios and positioning.....

Who is better off....

2 dudes have the same $15K car and the same accident.... car is totalled and worthless.... dude A paid cash for the car and didn't have collision insurance, only has $5K in the bank..... dude B financed the car and by law had it fully insured.... $15K in the bank, $10K on his car note, $15K check from the insurance company.... you gonna lie through your teeth and say dude A?

2 dudes are saving for retirement..... dude A has $20K in the bank earning 10% a year with a $10K 5 year car note at 2.5%.... dude B has $10K in the bank earning 10% a year. Who has more money at the end of 5 yrs? It's gonna be dude A.... even if dude B saved dude A's car note every month dude A still got a huge head start.

You talk about debt being risky, but then suggest people don't fully insure their cars and spend money they could have saved for an emergency fund on a cheap car Again what happens when Cash Man crashes his car, and doesn't have insurance to cover it or cash to fix/replace it? How is debt risky when my CC company splits the merchant fees they charge to vendors with me and sends me a monthly check at no cost?

Bro you are a pawn in this $$$$ shyt.... debt is a tool wealthy people use to their advantage. Why spend my money if I can spend somebody else's- especially if they're gonna PAY ME to do it? Why risk my cash when I can risk someone else's... I'm good for it and if I'm not credit is very easy to rebuild. You have no idea what you're talking about

I'm not judging. But having no debt is better than being in debt. You're actually arguing that owing someone else money is advantageous?

Your example is really bad. Why would u have a 15k car with only 5k in the bank? Never mind the rest of your scenario. Only 5k in the bank but u driving a 15k car?

You do understand that investments quotes on earnings are averages right? So u may get 10% one year, then 2% the next year etc. but your interest rate on that car note stays there don't it?

You're actually saying debt isn't risky now? That's troubling

 

[THOT CATALOG]

Like I said I just replaced my A/C and it cost me $12K. I could have financed it at 0%, and I had the cash to pay it out right, but I upped my CC balance and put it on my credit card instead and paid off the balance IMMEDIATELY. CC company cut me a check for $240 PLUS 2% of my other expenditures for the month at the end of the billing cycle. Again I obviously could have paid it cash, and I essentially did.... but I made an extra $240 "going into debt" for a couple of hours. There are ways to finesse the shyt but you have to have the cash and know what the fukk you're doing, which @Truefan31 doesn't.

if credit card companies paid out 2% cashback to everyone they would all go out of business in less than a year. they only make 2.95% on transactions anyways and 70% pay their balances in full every month.

you're trying to feel morally superior to @Truefan31 for using your credit card but it all comes down to having the money to pay the expenses in the first place. this isn't an investment. you're essentially just spending 2% less.

thinking you're cheating the system for getting 240 in cashback.

amex platinum has a 699 fee for the platinum and gives a 1% cashback in points. their customer service is A1 and you make it back through expenses PLUS get free access to the platinum lounges in airports. their actual "finessing" is the priority access to concert tickets that you can flip for 2x the price. you're hustling backwards.

That's part of the risk. It's basically my point. Something simple like paying bills and budgeting the money you actually have gets lost on a lot of people.

over half of americans don't have 1000 cash saved. if paying your bills on time in 2016 with automation is a problem, you're either an idiot or poor.
Most Americans have less than $1,000 in savings

 

[Truefan31]

if credit card companies paid out 2% cashback to everyone they would all go out of business in less than a year. they only make 2.95% on transactions anyways and 70% pay their balances in full every month.

you're trying to feel morally superior to @Truefan31 for using your credit card but it all comes down to having the money to pay the expenses in the first place. this isn't an investment. you're essentially just spending 2% less.

thinking you're cheating the system for getting 240 in cashback.

amex platinum has a 699 fee for the platinum and gives a 1% cashback in points. their customer service is A1 and you make it back through expenses PLUS get free access to the platinum lounges in airports. their actual "finessing" is the priority access to concert tickets that you can flip for 2x the price. you're hustling backwards.



over half of americans don't have 1000 cash saved. if paying your bills on time in 2016 with automation is a problem, you're either an idiot or poor.
Most Americans have less than $1,000 in savings

Yup. My point is why take risk when you don't have to? Paying bills should be a no brainer and people thinking they're smarter than the banks is why people are in too much debt. Budget your bills vs what u bring in. Pay it. It shouldn't be a long process. Save money. Emergency fund, experts say at least 3-6 months.

Real wealthy people are not using cc to pay utilities and taking out car loans at low interest rates thinking they're winning. Most worked for it so they value their dollars. They save, invest wisely in things like Roth IRA mutual funds with good track records, etc. they stay out of owing others money. And one thing is when they get to a point of wealth, they give to help others. Because they can. They control their money.

 

[Truefan31]

Like I said I just replaced my A/C and it cost me $12K. I could have financed it at 0%, and I had the cash to pay it out right, but I upped my CC balance and put it on my credit card instead and paid off the balance IMMEDIATELY. CC company cut me a check for $240 PLUS 2% of my other expenditures for the month at the end of the billing cycle. Again I obviously could have paid it cash, and I essentially did.... but I made an extra $240 "going into debt" for a couple of hours. There are ways to finesse the shyt but you have to have the cash and know what the fukk you're doing, which @Truefan31 doesn't.

If you wanna do that and rely on paying your cc balance in full every month so be it. Most aren't disciplined enough though. You just typed up a long explanation about getting 240 CB by taking a risk and going into debt. Here's my version:

I had to replace my Ac. It was 12k. The end.


You really think wealthy people and sensible financial planners are putting things like Ac units on a cc to get 2% CB? Smh

I guess I don't know anything though, even though any sensible financial planner would advise staying out of debt is best.

How am I a pawn if I don't owe anyone money? My money is mine.

 

[Bunchy Carter]

I pay 350 a month on my car, yeah my car deprecated but my car is worth more than what I own. Plus I bought my car 4,000 less than the msrp.

 

[intruder]

Would yall pay off your car if u have gap insurance?

What do you mean?

 

[havoc]

The average car notes are expensive because gap insurance and extended warranty are added into the monthly payments. Take away the gap insurance and the extended warranty the average car note would significantly be less than 500 dollar a month.

 

[TLR Is Mental Poison]

if credit card companies paid out 2% cashback to everyone they would all go out of business in less than a year. they only make 2.95% on transactions anyways and 70% pay their balances in full every month.

The 30% who don't more than make up for it.

you're trying to feel morally superior to @Truefan31 for using your credit card but it all comes down to having the money to pay the expenses in the first place. this isn't an investment. you're essentially just spending 2% less.


thinking you're cheating the system for getting 240 in cashback.

I didn't call it an investment or cheating the system. The shyt is free money. And anyone who pays cash for everything can do what I do.

amex platinum has a 699 fee for the platinum and gives a 1% cashback in points. their customer service is A1 and you make it back through expenses PLUS get free access to the platinum lounges in airports. their actual "finessing" is the priority access to concert tickets that you can flip for 2x the price. you're hustling backwards.



over half of americans don't have 1000 cash saved. if paying your bills on time in 2016 with automation is a problem, you're either an idiot or poor.
Most Americans have less than $1,000 in savings

My card has no annual fees dumbass. It's through the bank with my checking account. So like I said it is free money. I pay my balance off every month, but I get 2% back.

And if someone has less than $1000 in the bank, how does it make more sense for them to spend what little cash they have on a car, rather than take on DEBT so they can build a bigger significant emergency fund????

 

[Truefan31]

The 30% who don't more than make up for it.


I didn't call it an investment or cheating the system. The shyt is free money. And anyone who pays cash for everything can do what I do.



My card has no annual fees dumbass. It's through the bank with my checking account. So like I said it is free money. I pay my balance off every month, but I get 2% back.

And if someone has less than $1000 in the bank, how does it make more sense for them to spend what little cash they have on a car, rather than take on DEBT so they can build a bigger significant emergency fund????

I don't think you understand. Why are you buying a car if you only got 1000 in the bank to begin with? Having an emergency fund and having debt is counterproductive to each other. How about having an emergency fund, no debt, then saving up to buy and own your car? Buying a car should have no impact whatsoever on your planned emergency fund. You should already have your emergency fund in place, off to the side, before you save to buy a car.

You wanna call me fake suze orman or dave ramsey, cool. I'm not the biggest fan of orman, and dave's a lil too evangelical sometimes, but their basic principles mirror fundamental success in building real wealth while staying risk-averse. Avoid debt, live on less than you make, save for a rainy time, invest smart into yourself, you control your money, and not have lenders control it. If you want to be wealthy, do what most wealthy people do. Things like having car loans, student loans, too-high mortgages, that's how middle-class stay middle class.

You think Warren Buffett uses credit cards for 2% cash back and takes out car loans with low interest rates? He's top 5 richest in the world, yet he lives by old, time tested principles. Because they work.

 

[GetInTheTruck]

My side shorty got slammed I legitimately feel bad for her. Between monthly lease payment and insurance she's paying over 800 bucks month for 4 years on a 2015 Chrysler 200c. She's only 23, you live and you learn but damn....I told her it's too bad she met me like a month after she copped it, I would have definitely stopped her from making that mistake.

 

[Truefan31]

My side shorty got slammed I legitimately feel bad for her. Between monthly lease payment and insurance she's paying over 800 bucks month for 4 years on a 2015 Chrysler 200c. She's only 23, you live and you learn but damn....I told her it's too bad she met me like a month after she copped it, I would have definitely stopped her from making that mistake.

tell her to sell it get a cheap car and save money.

 

[tater]

Wow...I would never buy brand new. I paid off my used car in 3 years. I would pay 475 and the note was around 300 I think. I would also double up when tax season came around. If I had extra I'd just pay it off. I hate being in debt. I paid 17k, and put down 4k for my Honda Accord.

Not having a car note

 

[GetInTheTruck]

tell her to sell it get a cheap car and save money.

It's a lease. I told her just leave that shyt in the street with the engine running and hope someone steals it.

 

[TLR Is Mental Poison]

If you wanna do that and rely on paying your cc balance in full every month so be it. Most aren't disciplined enough though. You just typed up a long explanation about getting 240 CB by taking a risk and going into debt. Here's my version:

I had to replace my Ac. It was 12k. The end.


You really think wealthy people and sensible financial planners are putting things like Ac units on a cc to get 2% CB? Smh

I guess I don't know anything though, even though any sensible financial planner would advise staying out of debt is best.

How am I a pawn if I don't owe anyone money? My money is mine.

Using cash has risk associated with it too. And yes, wealthy people use debt to their advantage all the time, and all the financial advisors I've talked to and read recommend using debt the way I do

Borrow Smart: How to Use Debt Wisely

7 Things Everyone Should Know About Credit Card Rewards

Hank Lobel, a CFP® at LearnVest Planning Services, says Schroeder is a shining example of how to smartly use a rewards card. “If you have good credit—and a proven track record of being responsible with credit cards—you’d be crazy not to take free money,” he says.

And like dude's like said most Americans have less than $1000 in the bank. If someone is just starting out, has a couple hundred dollars in the bank..... what is so bad about them taking temporary debt to buy a car until they can save up their emergency fund? Buying a $500 car is a bigger risk than having a car note- MOST people are able to pay their car notes; if they couldn't there wouldn't be a whole business around it. If you have more money and good credit it still makes sense:

Buying a Car: Should You Pay With Cash if You Can? - Autotrader

For example, say you want to buy a $25,000 car and you can afford to purchase it with cash. If you want to spend your cash, that's great: It means you won't have a payment or another care about the car's financing. But let's say you shop around for a good interest rate and end up with 1 percent financing for 3 years after a $5,000 down payment.

In that case, you'll keep your leftover $20,000, and while you have a car payment, the total interest comes to just $300. The question you must ask yourself is whether it's worth $300 to have that $20,000 in your bank account rather than tied up in your car. Most people would rather have the money in the bank or invested, where it's likely that they'll quickly earn back the entirety of the loan's $300 cost.

Some people even use debt to invest

Risk is fine if you understand it.... you do not understand the risk associated with debt OR cash.