Personal Debt in the USA is out of control

[Tribal Outkast]

What helped me get my bread right was:

Cooking at the crib
Not going out to bars or clubs
Not taking bytches out to eat
Stayed single for years and just had a roster that was down
Going to the gym as my hobby/outlet
Learning about investing, then investing
I didn't even take trips anywhere for 2-3 years too

All great stuff here. I’m cooking more at home too and it makes a huge difference.

My only thing is I’m taking a trip when it’s time man fukk that. People just be trying to trip shame folks because they be going to Mexico and Dubai and shyt. There’s plenty that you can do within a drive from the house. I’m in North Carolina and I don’t know too many people black or white who will go to the outer banks. It’s a 6 hour drive for me and that’s ok with me. The wife and I will be going next month for the third time in 5 years. We like going in the off season too because it’s so peaceful and it doesn’t cost as much. It’s definitely great to drop those jewels on how to save money though. Appreciate it

 

[newarkhiphop]

If you are in this thread right now and in debit and broke please buy this book

 

[winb83]

I believe in settling all your debts and handling your business matters. Dont sign up or apply for shyt you arent going to take responsibility for especially credit cards and loans. Its called being an adult. Something that i think way too many people especially gen y and younger folks have a problem with understanding for real.

The policy needs to be if it's not a home unless you have enough money in the bank to pay for it outright you shouldn't be buying it. I'll stretch that and say if you have enough in investments in a non-retirement account.

I couldn't make it through the full 8 minutes, but as soon as dude said "480 credit score"...

Honestly -- I don't want to hurt anyone's feelings if they have poor credit. Everyone makes mistakes and you can fix it over time. And the way things are in this country, for some people a car is necessary to work and survive. But someone like that needs to cop whatever hoopty they can find at a mechanics shop or bodyshop. Get like a $3,000 beater.

Going to a dealership is just

Bad credit is irrelevant. It's a lot of people out here driving around in cars they can't actually pay for using debt to get them. I listen to The Ramsey Show on YouTube and it's mofos driving around in $50K+ cars and they don't even have $1000 in the bank. It's a car so eventually it's going to break down and they can't get these shits fixed and are so broke it's questionable if they're putting in the required maintenance to keep the things going long term.

 

[Remote]

The policy needs to be if it's not a home unless you have enough money in the bank to pay for it outright you shouldn't be buying it. I'll stretch that and say if you have enough in investments in a non-retirement account.

Bad credit is irrelevant. It's a lot of people out here driving around in cars they can't actually pay for using debt to get them. I listen to The Ramsey Show on YouTube and it's mofos driving around in $50K+ cars and they don't even have $1000 in the bank. It's a car so eventually it's going to break down and they can't get these shits fixed and are so broke it's questionable if they're putting in the required maintenance to keep the things going long term.

I mean broadly speaking I think Dave Ramsey is terrible.
But on a broken clock scenario...he's got a point about a lot of people buying things they can't afford.

On the one hand, there is a component of people just want to have nice things. You want a nice car. Everyone does.
On the other hand, I think there's a part of it where....people might not be considering the total cost...or yearly cost. They think it's just -- what do I have to pay this month -- and cut their lives around it.

 

[winb83]

I mean broadly speaking I think Dave Ramsey is terrible.
But on a broken clock scenario...he's got a point about a lot of people buying things they can't afford.

On the one hand, there is a component of people just want to have nice things. You want a nice car. Everyone does.
On the other hand, I think there's a part of it where....people might not be considering the total cost...or yearly cost. They think it's just -- what do I have to pay this month -- and cut their lives around it.

Dave Ramsey is heaven sent for the financially ignorant. His advice isn't terrible per say but once you've gotten out of debt it's time to bush him and act intelligently.

Almost everyone wants nice things but you have to have money on hand to deal with car repairs and maintenance. If they're out here financing cars worth more than half their annual income that's unlikely. In a vacuum monthly payments are fine but cars deteriorate and cost more than that.

 

[feelosofer]

Most people aren't in THAT much debt but if over 2/3 of the debt are on credit cards that is really bad it would be cheaper in the long run to just declare bankruptcy and start over.

 

[Whips-n-Chains]

Car loans are the all time worst.

Cards are healthy to build your credit score. Make small purchases and pay them off every month and once a quarter, call the bank and ask them to raise your spending amount. This all boosts your credit score.

I meant to tell the brehs you can do this with an LLC/S Corp too.

Start an LLC, open a line of credit, it'll likely be a small amount you're approved for, then slowly keep increasing the limit by calling and telling them to increase the limit. They usually ask you questions like "how much is your business generating in revenue per month/year" but there's no documentation required.

in a few years you can have like $100k+ in business credit available to you.

Use the business credit (which if done properly is shielded from your personal credit, in case of any bankruptcy or issues), buy some vending machines, or equipment and put them to work.

 

[winb83]

Car loans are the all time worst.

Cards are healthy to build your credit score. Make small purchases and pay them off every month and once a quarter, call the bank and ask them to raise your spending amount. This all boosts your credit score.

Car loans are not the worst. Depends on what you finance, for how long, and your interest rate. A 5% loan even on a depreciating car is manageable. 15-25% is not.

My total finance charge over the life of the loan on my $26K car is $1090 or so if I take the loan the full 60 months.

That’s not worse than credit card debt.

 

[OperationNumbNutts]

American are breed to be in debt. Kids in college and military with no credit history or assets are able to apply for credit cards. Toss in the fact financial literacy is not taught and schools and parents who learned from the same system are not teaching their kids.

 

[Bboystyle]

You shouldn't do anything to your 401K but add money to it and let it compound. If you had 25 years until retirement (age 37) to let that $8500 compound and didn't add another cent to it while at an average market rate of 8% it would grow to almost $59K.

fukk my 67 year old future self

 

[winb83]

fukk my 67 year old future self

One day you may make it to 67 years old and that will be your current self.

 

[Bboystyle]

One day you may make it to 67 years old and that will be your current self.

Until then, fukk him

Btw, i can easily replinsh 8500 before then

 

[Based Lord Zedd]

The policy needs to be if it's not a home unless you have enough money in the bank to pay for it outright you shouldn't be buying it. I'll stretch that and say if you have enough in investments in a non-retirement account.

The policy?

Like a personal policy or something enforced?

This would not work for automobiles. What do you think the median bank balance is vs car prices. Most people can't afford a 1000 emergency.

Maybe the policy needs to be aimed at public transit and reducing car dependency.

 

[jay83]

Those points will tempt you to spend more as well. Ten years ago I racked up 5 grand in 6 months. It’s easy to swipe when it’s not immediately coming out your account.

 

[Whips-n-Chains]

American are breed to be in debt. Kids in college and military with no credit history or assets are able to apply for credit cards. Toss in the fact financial literacy is not taught and schools and parents who learned from the same system are not teaching their kids.

facts. It's debt slavery, the middle, working and lower class is meant to be stuck in debt slavery, working for corporations forever.

Wait like 30 more years til almost all housing is owned by private equity, and just like your insurance, your housing will be tied to a job. Wanna stay living in the crib, gotta stay working there, get fired and you got a month to gtfo. Wanna change jobs? just know you'll have to move too. I know MFers that stayed renting for years and years longer than they needed to, not b/c they couldn't afford to buy but b/c they were shook of change and moving.