Not sure debt free is a good thing !

Discussion in 'Bad Dog Cafe' started by 83siennateleguy, Aug 13, 2018.

  1. william tele

    william tele Doctor of Teleocity Ad Free Member

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    I don't know which surprises me more, that someone is shocked that they stopped using credit and their credit score dropped or that people don't get why someone 50 years old might need to finance something in the future...:rolleyes:
     
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  2. Average_Joe

    Average_Joe Tele-Holic

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    what if i am 85 and need a new car, seems like a good bet on my part :)
     
  3. Papa Joe

    Papa Joe Friend of Leo's

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    If I can't pay cash for it, I don't need it..I doubt that I even have a credit score..
     
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  4. dsutton24

    dsutton24 Doctor of Teleocity Ad Free Member

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    I've been debt free for years, the last auto loan was paid off in 2000. I recently bought a used pickup, and borrowed money for it. The finance guy at the dealership remarked on the high interest rate, and wanted to shop the loan, but I stuck with the pre-approved loan from the credit union. I ran the numbers, of course, and even with the high interest rate on the loan I'll have saved considerable money compared to years worth of interest and finance fees on credit cards and other lines of credit.

    All a good credit rating says is that you're good at either spending other people's money, or you enjoy paying a third party for the use of your own money. To each his own, of course, but it's just not something that rates highly for me.
     
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  5. rdwhitti

    rdwhitti Tele-Holic

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    I have good credit and credit cards that I use regularly but I never pay others, they always pay me through rewards, typically balance credits. If you are not doing this you are throwing money away that could easily be yours. I never buy things that I can’t pay cash for but using credit card instead keeps my credit score alive and pays me back. What’s wrong with that?
     
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  6. Nick Fanis

    Nick Fanis Poster Extraordinaire Ad Free Member

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    Debt is a very,VERY bad thing.
    Trust me,I am Greek and I know what I am talking about :(

    https://en.m.wikipedia.org/wiki/Greek_government-debt_crisis

    We don't have credit scores in Europe but I don't give a hoot about them anyway.

    I do use a credit card because cash payments are not allowed in Greece at the present ,people must use cc or dc for all their payments in order for the government to fight tax evasion or they get taxed an extra 30% at the end of the year, but I pay it off in full every month.
     
    Last edited: Aug 13, 2018
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  7. tlp123

    tlp123 Tele-Meister

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    When it can't be paid.....but of course you knew that
     
  8. Average_Joe

    Average_Joe Tele-Holic

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    * who created the first Drachma?
    ** if you borrowed the first Drachma how would you pay it back since there are no other Drachma in circulation?
     
  9. Nick Fanis

    Nick Fanis Poster Extraordinaire Ad Free Member

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    Nobody borrowed money during the drachma years, the lowest interest you could get was 30% per year.

    We used to have a median inflation of 25% and a yearly devaluation of 10% against the USD,from 1980 until 2002,when the EUR was adopted,we had a total currency devaluation of 2000%

    Greeks started borrowing money seriously only after the EUR introduction, personal credit was virtually unknown in Greece before 2000.

    People simply converted their savings to gold or USD immediately or,for the most part, bought real estate , that's why we have the largest own home ownership percentage in the EU ,around 85% of Greeks own their own home (that is why even with a GDP drop of 30% since 2010 and 30% unemployment you don't see homeless people in Greece)
     
    Last edited: Aug 13, 2018
  10. william tele

    william tele Doctor of Teleocity Ad Free Member

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    I have to disagree. We have the same credit card we got when we were married. We use it weekly. We don't pay a dime to anyone, they pay us. We pay the card off every month. We owe nothing. When it comes time to get a new car we will finance part of it because the interest on investments is making more than the interest we'll be charged on a loan. I can't imagine why this isn't standard procedure for anyone wanting the best of both worlds...no debt...but able to get rock bottom interest rates if the need arises.
     
  11. sonicsmitty

    sonicsmitty Tele-Holic

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    The idea is to save your own money so that when you need something you just use your own money to buy it instead of some crummy lender. I paid off my bills back in 1993. Best thing I ever did. No monkeys on my back.

    The day after Christmas some young lady failed to yield the right of way while pulling a U-turn in front of me. Thank God no one was injured, but my truck was totaled. I just took some money out of the bank and bought another and I am still debt free.
     
  12. william tele

    william tele Doctor of Teleocity Ad Free Member

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    I'm sorry...I don't quite get the question?
     
  13. sonicsmitty

    sonicsmitty Tele-Holic

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    You can use a debit card. I've done it many times.
     
  14. william tele

    william tele Doctor of Teleocity Ad Free Member

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    Why would you have to pay for a new truck if she was at fault?
     
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  15. Nick Fanis

    Nick Fanis Poster Extraordinaire Ad Free Member

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    Well I knew that.
    The problem is that the rest 9.999.999 Greeks didn't :lol:
     
  16. boredguy6060

    boredguy6060 Friend of Leo's

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    Well, I was going to do just that until I ran my credit report and found out I was a dead beat.
    So I turned myself down, at least until my credit score goes up.
     
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  17. Average_Joe

    Average_Joe Tele-Holic

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    I might die before the term of the loan, risk/reward, despite having 850 credit score.
     
  18. haggardfan1

    haggardfan1 Friend of Leo's

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    Perhaps the young lady was unburdened by the expense and trouble of even state-mandated liability insurance.

    Such was the case of the motorist who crashed into, and totaled, my girlfriend's parked and unoccupied car about eleven months ago. This individual chose also to drive without a state-issued license. She sustained no injuries that I know of--although her vehicle was totaled as well.

    Would you like to know who really suffered from that collision? Our family, and our insurance company. Thank god we pay extra to protect ourselves from irresponsible, careless, worthless idiots, who can pay nothing, roll their dice, and still face minimal consequences. :rolleyes:

    The individual at fault received two routine traffic citations. For those of you who will immediately cry "Sue her!" my answer is, for what? She didn't have anything to begin with.
     
    Last edited: Aug 13, 2018
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  19. sonicsmitty

    sonicsmitty Tele-Holic

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    A credit score is merely a slave-to-lender score that shows banks how easy it is for them to make money off you. If you have paid off all previous loans, or paid them off early, and don't use credit and have a decent bit in savings you will have low score, because even though you are low risk, they probably won't make much off you, especially if you pay off early. At least that's how I see it.
     
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  20. Whatizitman

    Whatizitman Friend of Leo's

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    How do you make a comparison with debt you say you didn’t incur?

    Paying off a credit card monthly means no interest and no finance charge. It also helps keep good credit scores, which in turn helps getting loans with low interest rates.
     
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