NWFlyer 2 #26 April 5, 2011 Quote Act your wage. If you don't make enough $ to buy what you want, you have an income crisis. Only 300 in the hole now...do you think going further into the hole is better? Cash, cash, cash. But then again, having a paid off house, no debt, and investment properites...what the hell do I know about this. I don't disagree with any of this; but wouldn't one reason to use a credit card to support this scenario be to help build a credit history? But I'd still advise only buying what you can pay off with cash on hand."There is only one basic human right, the right to do as you damn well please. And with it comes the only basic human duty, the duty to take the consequences." -P.J. O'Rourke Quote Share this post Link to post Share on other sites
ryoder 1,384 #27 April 5, 2011 Quote I remember the neighbors thought we were dull when we paid off our house early. In 2001 my realtor thought I was crazy for not buying the most expensive house for which I could get a loan. Instead, I bought a house that required about half that loan amount. 4 years later I paid off the 20 year loan early."There are only three things of value: younger women, faster airplanes, and bigger crocodiles" - Arthur Jones. Quote Share this post Link to post Share on other sites
NWFlyer 2 #28 April 5, 2011 Quote Quote I remember the neighbors thought we were dull when we paid off our house early. In 2001 my realtor thought I was crazy for not buying the most expensive house for which I could get a loan. Instead, I bought a house that required about half that loan amount. 4 years later I paid off the 20 year loan early. My mortgage lender thought I was nuts when I re-financed in 2007 and didn't want to "cash out" by taking out a bigger mortgage because the house had increased in value by $100-150K. I didn't want to use my house as an ATM, and I had a feeling the crazy house of cards of ridiculously rising home values was going to eventually start crashing down. Turned out I was right."There is only one basic human right, the right to do as you damn well please. And with it comes the only basic human duty, the duty to take the consequences." -P.J. O'Rourke Quote Share this post Link to post Share on other sites
JohnMitchell 14 #29 April 5, 2011 Exactly. Buy the house you need, not what you can afford. It's a appliance to me, hopefully one that doesn't depreciate over time, but recently has. If you want to invest in real estate, that means rental property that makes you money, not a McMansion that sucks you dry. Quote Share this post Link to post Share on other sites
squirrel 0 #30 April 5, 2011 Quote Quote Act your wage. If you don't make enough $ to buy what you want, you have an income crisis. Only 300 in the hole now...do you think going further into the hole is better? Cash, cash, cash. But then again, having a paid off house, no debt, and investment properites...what the hell do I know about this. I don't disagree with any of this; but wouldn't one reason to use a credit card to support this scenario be to help build a credit history? But I'd still advise only buying what you can pay off with cash on hand. aaahhh, and the question comes..."but what about building my credit?" ok, look, you don't need a credit score to buy a house. "WHAT!" you say. you need to work with a lender that does "manuel underwriting" as opposed to "desk top lending" which basically means they actually work the loan, and not simply punch in a few numbers into a computer program. again, to Dave Ramsey's page, he is much better at explaining this. @ John, I 100% agree renting is fine to save money. the real advantage of home ownership is when you have it paid off. that is why we advise people to put at least 20% down, and go with a 15 year fixed. This is not always possible, but you can also do "equity enhancement" programs which basically makes an extra principle payment (small part of your actual monthly payment) every month, cutting years and tons of interest off the loan. ________________________________ Where is Darwin when you need him? Quote Share this post Link to post Share on other sites
squirrel 0 #31 April 5, 2011 Quote Quote I remember the neighbors thought we were dull when we paid off our house early. In 2001 my realtor thought I was crazy for not buying the most expensive house for which I could get a loan. Instead, I bought a house that required about half that loan amount. 4 years later I paid off the 20 year loan early. bravo!!!! its a shame you realtor did not give you better advice. but most realtors are nitwits. we are a Dave Ramsey ELP realtor...that means trying to keep the client from over buying, 20% down at least, 15 year fixed, and so on. ________________________________ Where is Darwin when you need him? Quote Share this post Link to post Share on other sites
NWFlyer 2 #32 April 5, 2011 Quote aaahhh, and the question comes..."but what about building my credit?" ok, look, you don't need a credit score to buy a house. "WHAT!" you say. you need to work with a lender that does "manuel underwriting" as opposed to "desk top lending" which basically means they actually work the loan, and not simply punch in a few numbers into a computer program. again, to Dave Ramsey's page, he is much better at explaining this. Didn't know that. I guess I'll look at the page (I've read a little of his stuff but not very much). I'm a fan of responsible use of credit cards to your advantage, but it requires discipline on the part of the user (which not everyone has, of course). I could go on a massive (and I mean massive) bender with the amount of credit that I have, but my monthly balance (that I pay off every month) is typically 2-3% of available credit. Just because someone gives me credit doesn't mean I have to use it (and I don't). It's like when I was buying my house. Just because they were willing to give me a mortgage that was 100K more than I was planning to spend didn't mean that it was a mortgage that I could comfortably take on. I set a budget and stuck with it when I bought, and I'm happy that I did (especially since I wound up selling in a down market - I was able to still make money on my sale because I bought smart)."There is only one basic human right, the right to do as you damn well please. And with it comes the only basic human duty, the duty to take the consequences." -P.J. O'Rourke Quote Share this post Link to post Share on other sites
squirrel 0 #33 April 5, 2011 Excellent! See how easy it was to actually be prepared for the "what if" scenario...as in selling in a down market. oh, and by the way. Dave's credit score is zero. And, if you don't have any payments, or mortgages, yours will eventually go to zero. A credit rating is simply a rating on how you pay back loans. ________________________________ Where is Darwin when you need him? Quote Share this post Link to post Share on other sites
squirrel 0 #34 April 5, 2011 Quote My mortgage lender thought I was nuts when I re-financed in 2007 and didn't want to "cash out" by taking out a bigger mortgage because the house had increased in value by $100-150K. I didn't want to use my house as an ATM, and I had a feeling the crazy house of cards of ridiculously rising home values was going to eventually start crashing down. Turned out I was right. yep, you were. and, little do people know, that if you refi and take the money out of the house and don't put all of it back into the house for equity improvements, in some states you can be sued by the bank for the amount not paid back, unless you have the language in a short sale that says "non recourse." i wonder when firms will pop up, and start going after the masses for the banks, once the masses have "financially" recovered and have something for the banks to go after. could happen. the laws are changing all the time ________________________________ Where is Darwin when you need him? Quote Share this post Link to post Share on other sites
david3 0 #35 April 5, 2011 Quote Cut up the card. And, listen to Dave Ramsey. You can get podcasts at daveramsey.com Can i use my credit card to buy those? Quote Share this post Link to post Share on other sites
PiLFy 0 #36 April 5, 2011 CC companies are evil entities. Make no mistake about that. They prey on young people like yourself. Many of those young people fall into the traps, & get bled for years. Never charge what you can't pay off @the end of the month. Quote Share this post Link to post Share on other sites
david3 0 #37 April 5, 2011 Quote Quote Quote I remember the neighbors thought we were dull when we paid off our house early. In 2001 my realtor thought I was crazy for not buying the most expensive house for which I could get a loan. Instead, I bought a house that required about half that loan amount. 4 years later I paid off the 20 year loan early. bravo!!!! its a shame you realtor did not give you better advice. but most realtors are nitwits. we are a Dave Ramsey ELP realtor...that means trying to keep the client from over buying, 20% down at least, 15 year fixed, and so on. The only thing that is saving me while I am underemployed is the fact that I purchased a house that was cheaper than I could afford, was way ahead on my payments when the shit hit the fan and I live in a duplex. My tenants rent covers my mortgage and a good chunk of the taxes and utilities. Quote Share this post Link to post Share on other sites
JohnnyMarko 1 #38 April 5, 2011 While my father and I are two totally different people, one piece of advice he gave me that I will live by forever is "Don't buy anything unless you have the cash for it"...I realize some situations don't call for that, but I strive to not put myself in those situations Quote Share this post Link to post Share on other sites
ManagingPrime 0 #39 April 5, 2011 For all my adult life I've been loading people up with debt and watch most people drown slowly in it...it's a shit job, but it pays well.Revolving debt will FUCK you. A good rule of thumb with cards (with the exception of emergencies) is to never charge more than you can pay off in full at the end of the month. Balancing between other cards, borrowing more than you can pay off at the end of the month, etc. etc. will end up costing you dearly over the long run. Understand the difference between wants and needs. Cards are a tool. They can be used to improve your credit score, like maxing the card out and then quickly paying back in full (shows that your "limit" does not exceed your "means") or carrying balances under 30% of the limit and making payments over several months (shows ability to make payments consistently and ability to use credit responsibly). Maxing out a card on things you "want" and then carrying the balance (zero interest or not) is retarded. Why do you think that zero interest for 12 months was offered? If you carry a balance that long you just put a big target on yourself and the lender is going to try to make you a...slave...for lack of a beter word. Exercise caution. Quote Share this post Link to post Share on other sites
wolfriverjoe 1,340 #40 April 5, 2011 RESIST THE TEMPTATION Don't rack up debt that you "Think" you will be able to pay. What would you rather do - Have a nice new Tonysuit and a bunch of tunnel time and then not be able to do anything because the interest is sucking you dry? Or wait a bit until you can actually afford the stuff and have the money that you would have paid in interest available to you? Unless you are absolutely sure that you can pay off the bills before the finance charges start, then don't. Have you done it before? Have you paid all your bills on time for any length of time? Also, read the fine print. Very often the "No interest for a year" deals have a nifty little clause where the finance charges accumulate but don't actually show up for that year. At a year and a day, you have a year's worth of interest suddenly added on to your bill. As a number of people have noted, being debt free is a very good feeling. I have both cars, motorcycle and house paid off. I use my credit card for almost everything (because it's convenient and gives me a summation of my spending each month) but I pay it off in full each month. If I can't pay for it, then I don't buy it until I can. Period."There are NO situations which do not call for a French Maid outfit." Lucky McSwervy "~ya don't GET old by being weak & stupid!" - Airtwardo Quote Share this post Link to post Share on other sites
squirrel 0 #41 April 5, 2011 QuoteQuote Cut up the card. And, listen to Dave Ramsey. You can get podcasts at daveramsey.com Can i use my credit card to buy those? NO. His company only takes debit cards, not credit. and I believe the podcasts are free. ________________________________ Where is Darwin when you need him? Quote Share this post Link to post Share on other sites
ntrprnr 0 #42 April 5, 2011 Trash it and get an AmEx green card. You have to pay it off at the end of the month. Check out http://www.bankrate.com/calculators/credit-cards/credit-card-payoff-calculator.aspx to see how much it'd cost you. Don't do it. Quote So I just got my shiny new credit card in the mail yesterday So tempted to put WAY too much on it. Have my eyes on a new suit, a big ol' block of jumps, and keep getting tempted towards some tunnel time. My conscience is battling itself on whether I should be fiscally responsible or just have say screw it b/c there's no interest for the first year Wondering if DZ.com is gonna joing the angel or the devil side of the argument.... _______________ "Why'd you track away at 7,000 feet?" "Even in freefall, I have commitment issues." Quote Share this post Link to post Share on other sites
squirrel 0 #43 April 5, 2011 Quote Quote Quote Quote I remember the neighbors thought we were dull when we paid off our house early. In 2001 my realtor thought I was crazy for not buying the most expensive house for which I could get a loan. Instead, I bought a house that required about half that loan amount. 4 years later I paid off the 20 year loan early. bravo!!!! its a shame you realtor did not give you better advice. but most realtors are nitwits. we are a Dave Ramsey ELP realtor...that means trying to keep the client from over buying, 20% down at least, 15 year fixed, and so on. The only thing that is saving me while I am underemployed is the fact that I purchased a house that was cheaper than I could afford, was way ahead on my payments when the shit hit the fan and I live in a duplex. My tenants rent covers my mortgage and a good chunk of the taxes and utilities. Yep. excellent. very good. I used to build, and we had a 12 month emergency fund...the only way we got through. ________________________________ Where is Darwin when you need him? Quote Share this post Link to post Share on other sites
hokierower 0 #44 April 5, 2011 Depends on how many you have already... I'm 23, brand new out of college, and have a full time job making pretty damn good money for someone my age. I bought my first bike (Suzuki GS500) in july and paid it off in 6mo. I just sold that bike and bought a new one (Triumph Street Triple R) that I put 1/4 down on when I picked it up. I have student debts which I'm working off. But that's it. I drive a '01 Civic to work, have a pretty decent apartment, but no credit card debt to speak of. I have 1 credit card, and it's got a $500 limit (no credit history). It's enough to let me do things but not enough that I can't pay it off at the end of each month. I'd say cut that thing up right now. Debt these days is a bad thing, especially the way the job market is. Quote Share this post Link to post Share on other sites
flyangel2 2 #45 April 5, 2011 Quote I'd say cut that thing up right now. Debt these days is a bad thing, especially the way the job market is. Worth repeating. In this economy no one's job is safe.May your trails be crooked, winding, lonesome, dangerous, leading to the most amazing view. May your mountains rise into and above the clouds. - Edward Abbey Quote Share this post Link to post Share on other sites
skymama 35 #46 April 5, 2011 In the past 2 years, I've known so many people who thought they had job security and suddenly became unemployed and didn't get a new job for 6 months or more. Do you have enough money in your savings to hold you over for 6 months? If you don't, you should. Work on that, and then get your shiny new suit. She is Da Man, and you better not mess with Da Man, because she will lay some keepdown on you faster than, well, really fast. ~Billvon Quote Share this post Link to post Share on other sites
Squeak 17 #47 April 5, 2011 Quote I don't own a house, so no danger of losing one And I'm only about $300 in debt right now. So I figure I'm not exactly gonna lose everything. Probably not the smartest thing but the dreams of finally having a shiny new suit are too irresistible. I'll most likely be able to pay it off by the time I actually get it My question is Why are you $300 in debt, if that's such a paltry amount why have you not paid it off already. i would be very weary of your new CC, i can easily foresee a statement in the future like. "I don’t have much debt, only $1000 on my CC"You are not now, nor will you ever be, good enough to not die in this sport (Sparky) My Life ROCKS! How's yours doing? Quote Share this post Link to post Share on other sites
Rookie120 0 #48 April 5, 2011 I'm gonna give you the Dave Ramsey advice! CUT IT UP and THROW IT AWAY!If you find yourself in a fair fight, your tactics suck! Quote Share this post Link to post Share on other sites
NWFlyer 2 #49 April 5, 2011 Quote Why are you $300 in debt, if that's such a paltry amount why have you not paid it off already. i would be very weary of your new CC, i can easily foresee a statement in the future like. "I don’t have much debt, only $1000 on my CC" Exactly! If you're having trouble paying off $300, you've got no business adding on $300-$400 for a suit (Boom! your debt just doubled) ... and tunnel time (tripled) ... and a block of jumps (quadrupled!)."There is only one basic human right, the right to do as you damn well please. And with it comes the only basic human duty, the duty to take the consequences." -P.J. O'Rourke Quote Share this post Link to post Share on other sites
Bolas 5 #50 April 5, 2011 Quote Also, read the fine print. Very often the "No interest for a year" deals have a nifty little clause where the finance charges accumulate but don't actually show up for that year. At a year and a day, you have a year's worth of interest suddenly added on to your bill. That's what balance transfers are for after the introductory. Before all the new regs, they used to be free, now they charge 4-5% usually.. Sucks but still worth it if the new card will give you a 0% APR for more time. I also have long term savings I can tap into to pay it off if needed as well. Stupidity if left untreated is self-correcting If ya can't be good, look good, if that fails, make 'em laugh. Quote Share this post Link to post Share on other sites
