Separate names with a comma.
Discussion in 'Bad Dog Cafe' started by 83siennateleguy, Aug 13, 2018.
not so much in Canada
NOT being 'debt-free' means you're paying 10-15% MORE for everything you buy...or stated obversely: being 'debt-free' saves you 10-15% on everything you pay for.
Because I have to go to work and insurance companies are notorious for responding slowly when they have to pay. It took about a month or so, but they paid up, but I had to work meanwhile.
Make you a deal, take over my debt and we will both be happy !
Everybody's situation is different in life. There are times when things happen that may not directly affect you or your household but I'm not going to let my brother or sister or son , daughter or even best friend who life deals a bad hand to , Go without. If I can help someone in their time of need I'm doing it. Bad things happen to good people and just because someone has a bad credit score don't make them a bad person.
I gave my credit card I had years ago to my girlfriend at that time to go out of town for a funeral. Times like that you can't say no , but I just never thought (and didn't understand ) how all that credit score thing worked.
There's always something that will come up in life and the average paycheck to paycheck family if it wasn't for credit wouldn't know what to do.
I guess we'll always need it , just don't take my route when trying to be debt free.
Thanks to the guys who responded with some good advice. Where were you 2 years ago ? Lol.
Have a great day!
Wow...my insurance would have me rental in about two hours.
Two questions for the OP.
Why be debt free?
Why do you care what the credit rating agencies think about you?
Debt free might equate to lower risk, but only as part of a larger strategy. It also might equate to suboptimal allocation of resources.
Credit scoring is not about you, it's about managing risk for the lenders. They fear uncertainty more than failure. A long, steady history of mediocrity is much more appealing to them than .... no recorded history at all.
You might care about your score because it's how you will be judged when you apply for a large loan in the near future. Otherwise, what? To brag at cocktail parties? It's meaningless pfaff.
This may have been referenced already but here is some great advice
There's nothing wrong with this for those folks who are responsible and disciplined enough to handle it. For some (like me) it might be too much temptation. Heck, if I had a credit card I just wonder how many more years I'd have to work to pay off all those guitars and amps and pedals and directional cables...
One more since it is applicable
ok, take a deep dive into the pool.
there is no money, there never was any money.
it's only an accounting record that exists in a mans head, abacus/papyrus or now computer ledger.
I use cards for travel, points, and extended warranties. In many ways, using cards are cheaper than using cash. I have a high-fee card which I use for travel, it covers my travel insurance, allows us to check 3 bags each (no more overweight bag fees), gets me car and hotel upgrades, etc. It more than pays for itself.
The funny thing about credit is that revolving accounts (credit cards) have a much bigger influence on your credit score than a mortgage or car loan which has always been paid on time. A single credit card, with a $1000 limit and low balance will do more for your credit than a million dollar mortgage and $100,000 car loan in good standing.
Dang, I guess gotta scratch that off my travel list. Do they accept cash if they have a vacancy? Better yet, if I travel to visit our northern neighbor perhaps I might get some northern hospitality- like maybe your credit card number? Or maybe I could just stay at your place. You don't have a spare car I can borrow, do you?
Well, the Bad Dog is in its usual from today!
Look fellas, I'm not going to debate my personal financial strategy with a bunch of strangers, nor would I expect that my opinion would matter in anyone else's world. It's just my opinion. I would like to highlight the last line of my post, though:
its only the bank card /visa thats the issue if you had a visa no problem
Wow, I forget what a contentious topic finance can be...
I'll just go ahead and assume this is true: "you can build a good credit score without going into debt or using credit cards." Even still, the easiest way for many people to improve their credit rating over time is to occasionally use a credit card and pay it off in full on time. It's good to know that for people who are opposed to credit cards there is an alternative though.
If a friend asked to borrow my tele, but they've never borrowed anything from me before, I'm going to be reluctant to let them borrow it. Even if they've bought and paid for their own guitars in the past.
Actually that's a bad example - I wouldn't loan out my tele. The strat, maybe.
I'm debt free now but here's some things to consider.
Moosie kind of touched on this with his comment about "suboptimal allocation of resources". Sometimes it's better to take on a little debt if you have better uses for your current supply of capital.
In business, using debt is called leverage. You borrow money to expand your business and your margins more than cover the interest, in a nutshell. (One of my "jobs" over the years was helping small businesses grow and scale. Owners are faced with two alternatives to finance growth - either they borrow or they bring in investors. Many don't want to lose total control by bringing in investors. Back in the day when banks actually made loans, borrowing made sense for many business owners).
When I was younger I sometimes made business decisions with my own money. If I could invest in something that would return more than my credit card cost, I'd live off the card for a month or two. Normally my alternative use for my cash was buying stock. Some of those stock purchases 20-30 years ago have returned me WAY more than the interest cost back then.
And since I somehow managed to get through without ever having a "real job", I don't have any pensions or much SS to speak of. Those early investments helped me to build assets that support me in retirement.
I wouldn't recommend this for everyone, though. I had the education and risk tolerance to go that route. Some days I wake up and think it's a miracle that I'm in this place I find myself now.
I hate to admit it but I was too much of a cheapskate to add the rental coverage.
I had a buddy who worked for Honda right out of high school. He lived with his parents, was making really good money and this was back when the credit card companies would send you a card.
Every single one he got, he activated and threw into a drawer.
When he went to buy a house, he couldn't get a loan. He asked the banker why not, and the guy said he was carrying to many open cards. Even though he didn't have a balance on any of them, he had the debt potential of more than he could afford.
The banker told him to cancel most of those cards, then wait a while to reapply for the loan.
He did, and waited a billing cycle. Reapplied, and got the loan.
He was shopping for a new car (new to him, buying used) when a lady was trading in the Chrysler Sebring her husband had just bought her. Less than 6 months old, she decided she had to have the convertible.
The salesman said she'd take a bath on the trade in, and she said she didn't care- it was his money.
He sold her a convertible Chrysler Sebring off the showroom floor (usually fully loaded models there).
My buddy saw it go down and asked how much for the trade in. The salesman said they needed to prep it first, wash and detail it, etc. My friend said "I don't need all that. I can vacuum and wash it myself. How much right now, without you guys doing anything to it."
Salesman came up with a price (probably a thousand more than the trade value had been), and my friend said he'd buy it. Salesman said Let's talk financing...
My buddy said he was going to pay cash. Pulled out a credit card, and charged it. He called his bank and got a loan for the amount of the car, paid off the card, and that was that.
Said the look he got from the sales guy when he charged $16,000 on a credit card was worth it.
I understand the vitriol on a certain level. But as the owner of apartment buildings and commercial/industrial buildings, credit-worthiness is an effective predictor of a host of undesirable attributes and behaviors...(Edit: In renters)
This month marks 25 years since I bought my first building...flipped my first townhouse in 1993 and bought a 3 unit building. I have had the good fortune to be able to be a caring, understanding landlord to both families and business owners who've had rough times. The rough times for me came when I was too lenient with things like credit checks.
The few stories I can share would change your perspective.