Get out of debt brehs

[Scott Larock]

I've deferred for alot of years breh.

 

[Rawtid]

there is nothing wrong with living like that and you are correct that nobody is gonna turn down cash, but i disagree about not having a credit card, i think you are conflating debt with credit

having debt is bad, having credit is good, you should get the highest credit limits you can get without actually using the credit

Having credit is useless if you're not going to use it. The only way to get more credit is to borrow money and pay it back. If you're not interested in borrowing money you don't need to worry about credit and using cash is better.

 

[theworldismine13]

Having credit is useless if you're not going to use it. The only way to get more credit is to borrow money and pay it back. If you're not interested in borrowing money you don't need to worry about credit and using cash is better.

you are wrong, the best financial strategy is to get credit and not use it, having a good credit score and a high credit score and low debt is important when you do need it

im not sure what you mean by not using, just about any significant move in life either requires credit or its a situation where having good credit makes things incredibly smooth, from renting an apt, buying a house to opening up a business, mother fukers are even using it as an employment check (which i think is wrong but...), credit scores and credit checks are used on all sorts of places unless you are some kind of hermit who lives in the mountains

and like i said in another post, what a lot of people do is use a credit card (or amex) to pay for everything and then pay off the credit cards every month, that way you dont pay any interest, build up your credit and you get points (which add up to free airline tickets),and a few times a year you call up the the credit card company and ask for a credit limit increase

thats how people got 20-50000 dollar credit limits and when said person wants to buy a house or get a business loan, its easy as pie for them cuz credtors see you have a huge amount of credit that you dont use, there is very little risk in loaning money to somebody with $50000 in unused credit

we from the hood tend to think that cash is king, because that is the main currency where we grew up, cash is what helps you survive and our parents never really taught us about credit

but in mainstream (read upper middle class) america thats not true, in america credit is king, if you stay in the hood you can stay with cash, but you cant navigate and make moves in america without good credit

 

[Mr.Big Meat McGee]

$0 Debit here folks.

 

[theworldismine13]

This thread has some good info on the credit card game

Credit Card Rewards - Let make money
http://www.thecoli.com/threads/credit-card-rewards-let-make-money.175680/

 

[Rawtid]

you are wrong, the best financial strategy is to get credit and not use it, having a good credit score and a high credit score and low debt is important when you do need it

im not sure what you mean by not using, just about any significant move in life either requires credit or its a situation where having good credit makes things incredibly smooth, from renting an apt, buying a house to opening up a business, mother fukers are even using it as an employment check (which i think is wrong but...), credit scores and credit checks are used on all sorts of places unless you are some kind of hermit who lives in the mountains

and like i said in another post, what a lot of people do is use a credit card (or amex) to pay for everything and then pay off the credit cards every month, that way you dont pay any interest, build up your credit and you get points (which add up to free airline tickets),and a few times a year you call up the the credit card company and ask for a credit limit increase

thats how people got 20-50000 dollar credit limits and when said person wants to buy a house or get a business loan, its easy as pie for them cuz credtors see you have a huge amount of credit that you dont use, there is very little risk in loaning money to somebody with $50000 in unused credit

we from the hood tend to think that cash is king, because that is the main currency where we grew up, cash is what helps you survive and our parents never really taught us about credit

but in mainstream (read upper middle class) america thats not true, in america credit is king, if you stay in the hood you can stay with cash, but you cant navigate and make moves in america without good credit

I'm sorry but I don't agree with that. Anyone can invest their cash wisely and make it just fine. You don't HAVE to borrow money in order to make moves. I guess that also depends on what you define as "moves".

You don't need a loan to start a business
You don't need a mortgage in order to purchase a house
You don't need a car loan in order to buy a car
You don't need a student loan in order to attend college

Borrowing money for those things just allows you to get the money more quickly but the risk is way greater. I think the greatest benefit to us would be learning about investing early on vs "building credit". In the same amount of years people are borrowing and paying back money, they could be investing that same money in a mutual fund or even just a cd.

 

[Micky Mikey]

Can someone explain the difference between good and bad debt

 

[theworldismine13]

I'm sorry but I don't agree with that. Anyone can invest their cash wisely and make it just fine. You don't HAVE to borrow money in order to make moves. I guess that also depends on what you define as "moves".

You don't need a loan to start a business
You don't need a mortgage in order to purchase a house
You don't need a car loan in order to buy a car
You don't need a student loan in order to attend college

Borrowing money for those things just allows you to get the money more quickly but the risk is way greater. I think the greatest benefit to us would be learning about investing early on vs "building credit". In the same amount of years people are borrowing and paying back money, they could be investing that same money in a mutual fund or even just a cd.

yeah its a factual statement that you dont need a loan to to start a business, you dont need mortage to purchase a house, or a loan to get a car or student loan to go to college etc etc

that doesnt mean its a smart thing to do, and again, my point wasnt that people should do this or that, im not into micro managing people lives, if you can do those things without taking on debt i think thats excellent, my point is that credit allows you maximum flexibility and it allows you to do things at a much higher level

and you are right, its really about what is meant by making moves, and it also depends at what level you are operating at, there is difference between trying to get a mortage for a house and buying a building for example, there is a difference between setting up a mom and pop shop and opening multiple franchises etc etc

and of course somebody should take their money and invest, thats my whole point of saying that its important to get credit and not use it, your cash should go into investments, that way when you go into a bank to make major moves, you walk in with cash, top notch credit scores and a huge amount of unused credit

like i said us hood people we have been trained to think small and to think in terms of food, clothing and shelter and survival, when i say make moves im not referring to food, clothing, shelter and survivial, thats hood shyt and a hood mentality, something that we have to get out of, major moves means going beyond food, clothing and shelter and survival, now credit can help you with those basic things like food clothing and shelter but if you can do it without debt thats great, that's even better because it allows to get more unused credit

my advice is to set up me fellow people in a position where they can make major moves, 90 percent of the time "major moves" involves, debt, loans and credit, there isnt anyway around that, so we have to get ready for that, because in that next level of the economy, outside the hood, credit is king not cash

 

[theworldismine13]

Can someone explain the difference between good and bad debt

bad debt is debt that you are using to get basic things for your survival like food clothing and shelter, good debt is debt that will allow you to make more money in the future

for example, check out this story http://www.nytimes.com/2015/04/05/realestate/an-idea-hits-the-beach.html?_r=0 there is no way that Leonardo DiCaprio has enough cash to do something like this, and even if had, it would be stupid to use cash

so he has to hook up with a developer, the developer doesnt have the money either, they have experience and connections, what will happen is that him and the developer will go to a bank to get a loan, in other words they will have to go into debt to pull this off, this is an example of good debt

bringing it back to normal people, as long as you see a way that a debt will bring in more money in the future then its good debt

also just FYI, billionaires use credit also http://www.businessinsider.com/larry-ellison-has-a-10b-credit-line-2014-9

 

[winb83]

Can someone explain the difference between good and bad debt

Debt involves risk. Some risk are more worth taking than others. When people talk about good debt they're talking about debt they used to leverage income from. Say you borrow and buy a house and you rent the house out and the renter pays you enough to pay the mortgage with some left over. You have what they call "good debt" because your debt makes you money. There's another side to that. The person that takes on that mortgage and can't make enough to generate income.

Debt is something that should mostly be avoided if possible because over time the risk could get the best of you.

 

[newarkhiphop]

Paid off close to half of my student loan since I made this thread with a bunch of fukery in between

 

[Cynic]

Debt involves risk. Some risk are more worth taking than others. When people talk about good debt they're talking about debt they used to leverage income from. Say you borrow and buy a house and you rent the house out and the renter pays you enough to pay the mortgage with some left over. You have what they call "good debt" because your debt makes you money. There's another side to that. The person that takes on that mortgage and can't make enough to generate income.

Debt is something that should mostly be avoided if possible because over time the risk could get the best of you.

That's bad debt... say renter trashes the place and you have to fix the property with no income coming in
and still make the payment during vacancy periods...... is is still good debt ?

Good debt is the one that saves you money in taxes...
7 figure earner "borrowing" majority of his earnings ... to get taxed as little as possible
High risk if the money stops but at least ya tax bill is dramatically reduced

Good debt is also when you use debt to create loans and collect the spread...
Think hard money people in real estate
or merchant cash advance business
bridge financing in business deals

 

[winb83]

Paid off close to half of my student loan since I made this thread with a bunch of fukery in between

My parents put me through college so I'm good there. Not like I did much with my degree anyway though. I'm one of those people that got a regular job and worked my way up through the job to a slightly above average income and I don't wanna climb back down the ladder to climb up another one from the bottom.

The experience trap got me on my degree. That and the fact that I sucked at science stuff like physics and didn't like the higher math classes so I went applied science instead.

When I came out of college I had a decent amount of credit card debt though. Probably about $8000. I paid it down some and got a consolidation loan at my credit union about 3 years ago which I just paid off last month.

I usually keep about $1000 in debt on 3 cards. I charge stuff every month and pay the balance due to keep from paying interest but I still keep a balance from month to month since I'm only paying what posted to my last bill. At times it creeps up to $2000 in total balance but I keep it below that.
My credit score has topped out at about 825. No matter what I do I can't get it to go higher than that. Probably because I don't have a mortgage or auto loan an any installment loan. It's usually about 815.

 

[winb83]

That's bad debt... say renter trashes the place and you have to fix the property with no income coming in
and still make the payment during vacancy periods...... is is still good debt ?

Good debt is the one that saves you money in taxes...
7 figure earner "borrowing" majority of his earnings ... to get taxed as little as possible
High risk if the money stops but at least ya tax bill is dramatically reduced

Good debt is also when you use debt to create loans and collect the spread...
Think hard money people in real estate
or merchant cash advance business
bridge financing in business deals

Debt involves risk like I said. If your debt generates income for you it's considered good debt. The risk is that if the renters trash the place you could lose money but you won't really find much debt without risk.

 

[newarkhiphop]

My parents put me through college so I'm good there. Not like I did much with my degree anyway though. I'm one of those people that got a regular job and worked my way up through the job to a slightly above average income and I don't wanna climb back down the ladder to climb up another one from the bottom.

The experience trap got me on my degree. That and the fact that I sucked at science stuff like physics and didn't like the higher math classes so I went applied science instead.

When I came out of college I had a decent amount of credit card debt though. Probably about $8000. I paid it down some and got a consolidation loan at my credit union about 3 years ago which I just paid off last month.

I usually keep about $1000 in debt on 3 cards. I charge stuff every month and pay the balance due to keep from paying interest but I still keep a balance from month to month since I'm only paying what posted to my last bill. At times it creeps up to $2000 in total balance but I keep it below that.
My credit score has topped out at about 825. No matter what I do I can't get it to go higher than that. Probably because I don't have a mortgage or auto loan an any installment loan. It's usually about 815.

Well 850 is a 'perfect' score, am at a 767, never owned a cc in my life. Don't believe in them