Debt Dumpers 2021

[RamblingMad]

Apple Card. Getting kids in debt before they can even get a job.

 

[barkley]

Apple Card. Getting kids in debt before they can even get a job.

nothing new with that-i remember tables and tables of credit card issuers on my college campus. all kinds of free swag just for signing up for a credit card. i knew freshman who had never worked a day in their lives who had a dozen or more cards they would have maxed out within months of receiving them.

 

[RamblingMad]

nothing new with that-i remember tables and tables of credit card issuers on my college campus. all kinds of free swag just for signing up for a credit card. i knew freshman who had never worked a day in their lives who had a dozen or more cards they would have maxed out within months of receiving them.

This card is for 13+.

 

[afan]

This card is for 13+.

It's a family card, the kod2 can't get it on their own. One would hope, as with any other card a parent adds their kid to as an AU to help build their credit, that if the kid is using it the parents have taught thr kid what is ok to use it for, who is responsible for the payments etc. I don't see an issue with this other than it's being advertised. They aren't the only bank that allows an AU at 13 either.

I would say the vast majority of people adding a kid as an AU on their own card are already smart with their money or helping their kids build credit wouldn't be on their mind or be useful because the persons credit would be bad.

 

[imbatman]

It's a family card, the kod2 can't get it on their own. One would hope, as with any other card a parent adds their kid to as an AU to help build their credit, that if the kid is using it the parents have taught thr kid what is ok to use it for, who is responsible for the payments etc. I don't see an issue with this other than it's being advertised. They aren't the only bank that allows an AU at 13 either.

I would say the vast majority of people adding a kid as an AU on their own card are already smart with their money or helping their kids build credit wouldn't be on their mind or be useful because the persons credit would be bad.

I added the kids as AU to start building credit. I did this after helping a friend try to start hers: she got her first job at 25 and first bank account. It was an eye opener to see the struggle to build credit so she could get an apartment. Secured credit card helped, but it was SLOW going. (yes, she led a sheltered life, but that is besides the point) It took several months of a secured card before she got a "regular" credit card.

After my kids were added as AU, I sat them down and let them know that I'd get to see every charge they'd make and they'd have to pay every penny in 2 days. It absolutely helped the oldest because she has credit and was approved for her first card. She's in college and knows this will allow her to qualify for an apartment/rental after graduation...because neither of us want her living with us until she's 26.

 

[Tygerlilly]

Even though my kids are still super young, I like the idea of them having their own cards at a younger age. We're pretty involved with sports and activities and if for some reason I'm not with them, I'm fine with them having their own card for food/merch/etc when they're with their group. Plus I feel it's more secure than me sending them with cash. Lose the cash and you're out the money. Lose the card and I can cancel it and replace.

But, they will know that there is a budget and what they are allowed to spend on their own vs what they need to call and ask me about. Something my parents never bothered to teach me.

 

[DLgal]

nothing new with that-i remember tables and tables of credit card issuers on my college campus. all kinds of free swag just for signing up for a credit card. i knew freshman who had never worked a day in their lives who had a dozen or more cards they would have maxed out within months of receiving them.

This was me. I had 2 credit cards my freshman year. But I also had a job to pay the bills. I never paid late or missed a payment. I got a third card my junior year. It helped me to have the credit when I went to lease a car at that point. I got a great zero down lease deal with a low payment. By the time I graduated college, I had a high credit score and THAT helped us get our first apartment with a lower security deposit requirement when we got married at 22. My husband didn't get his first card until he was out of college and had started working in the military. To this day, my score is higher than his, due to my lengthy, immaculate credit history. My husband is always like 10 points behind me. Poor guy.

Not every college student is financially irresponsible and graduates in debt. I certainly didn't, but it was nice to have those credit lines when it was time to furnish our first apartment.

 

[ruadisneyfan2]

Start an IRA (I am late to this retirement game). We have a long standing TSP for DH and I have a 401(k) but nothing else for retirement (I am 36, DH is 40) I still haven't changed this. I need to put our retirement on the front burner soon. Although I still haven't done this, I've started having the convo with my hubby about it. Do you just go to your bank to start this?

Personally, I like Vanguard. I've been investing with them for almost 30 years. They have a huge selection. I would look online at the various funds they offer but then call and explain your goals, risk tolerance/aversion and they will help you get it all set up. Don't procrastinate this. It's not as hard as you might think and it's not your actual contributions that will eventually allow you to retire, but it's compounding interest over a long period of time that grows your money. Like my mom used to say, "It never gets tired of working for you."

 

[RamblingMad]

This was me. I had 2 credit cards my freshman year. But I also had a job to pay the bills. I never paid late or missed a payment. I got a third card my junior year. It helped me to have the credit when I went to lease a car at that point. I got a great zero down lease deal with a low payment. By the time I graduated college, I had a high credit score and THAT helped us get our first apartment with a lower security deposit requirement when we got married at 22. My husband didn't get his first card until he was out of college and had started working in the military. To this day, my score is higher than his, due to my lengthy, immaculate credit history. My husband is always like 10 points behind me. Poor guy.

Not every college student is financially irresponsible and graduates in debt. I certainly didn't, but it was nice to have those credit lines when it was time to furnish our first apartment.

I had a credit card when I went to university. I didn't have one when I went to high school. I'm all for building credit. I just think high school is way too young. I'd rather focus on teaching kids to invest and grow their money, rather than being tempted my debt. Growing up I knew kids that would pay to have their checks cashed as currency exchange places, rather than open checking accounts.

 

[RamblingMad]

Personally, I like Vanguard. I've been investing with them for almost 30 years. They have a huge selection. I would look online at the various funds they offer but then call and explain your goals, risk tolerance/aversion and they will help you get it all set up. Don't procrastinate this. It's not as hard as you might think and it's not your actual contributions that will eventually allow you to retire, but it's compounding interest over a long period of time that grows your money. Like my mom used to say, "It never gets tired of working for you."

I like Schwab for taxable and rollover.

Does the poster's job offer a plan? IRA limits are really low in comparison.

 

[DLgal]

I had a credit card when I went to university. I didn't have one when I went to high school. I'm all for building credit. I just think high school is way too young. I'd rather focus on teaching kids to invest and grow their money, rather than being tempted my debt. Growing up I knew kids that would pay to have their checks cashed as currency exchange places, rather than open checking accounts.

Well, you have to start sometime. Some kids are super mature about money very early on. My 17 year old hasn't spent a penny of his allowance or any birthday or Christmas gifts in years. Literally, he has over $3000 sitting in his savings account because he saves EVERYTHING. The last time he spent any money was to buy the components to build a computer at 14. He has been saving ever since that big cash outlay. Kids like him can manage a credit card, and I think it is great that there are some available to teens.

 

[afan]

I had a credit card when I went to university. I didn't have one when I went to high school. I'm all for building credit. I just think high school is way too young. I'd rather focus on teaching kids to invest and grow their money, rather than being tempted my debt. Growing up I knew kids that would pay to have their checks cashed as currency exchange places, rather than open checking accounts.

Just because you add a teen as an AU to help build their credit doesn't mean you have to actually give them the card either. Though it's a good way to teach them about money, how to spend etc. It's one of the most important things that often isn't taught, at least not on a grand scale of credit cards, budgeting household expenses etc.

But as with anything, if anyone decides to have their kid carry a credit card, whether they are an AU or it's the parents card, or a reloadable card, it comes with responsibility and the trust should be there, both in the kid and that you've taught them what to do and how to handle it.

Teaching to invest is great, but it's just a small portion of it. I learned that from a teacher in high school, and started a mutual fund. What I didn't learn, and I'd imagine some in the debt dumpers thread, didn't learn, was how to properly budget, use credit cards correctly etc. It was something learned later the hard way, so both can and should be taught.

 

[cvjw]

I had a credit card when I went to university. I didn't have one when I went to high school. I'm all for building credit. I just think high school is way too young. I'd rather focus on teaching kids to invest and grow their money, rather than being tempted my debt. Growing up I knew kids that would pay to have their checks cashed as currency exchange places, rather than open checking accounts.

We gave both our boys credit cards when they turned 16 and started driving. How else are they going to buy gas for their cars? They are now in their 20’s and have credit scores of over 800!

 

[barkley]

Not every college student is financially irresponsible and graduates in debt. I certainly didn't, but it was nice to have those credit lines when it was time to furnish our first apartment.

i'm talking more of the practices in the late 70's and 80's when i went to college. the credit card offer tables set up at the campuses i attended were for more of what i would call 'impulse' vs. practicality purchasing-pricey (for an average college student or even entry level worker) mall clothing stores, jewelry stores, stereo stores... all stuff that appealed to the college audience but even if they were working while attending school not terribly practical or affordable on the then $2.65 per hour minimum wage jobs most that worked while attending were earning.

We gave both our boys credit cards when they turned 16 and started driving. How else are they going to buy gas for their cars? They are now in their 20’s and have credit scores of over 800!

back when i first started driving the only credit cards commonly used at gas stations was that station's issued card (arco, shell...). no such thing as debit cards for several years to come. the attendant came out to the car, pumped your gas and you paid in cash (more often than not among the younger drivers it's wasn't 'fill it up' but rather 'give me x number of dollars worth' .

credit scoring will always be a mystery to me. my oldest kid (20's) has never had a credit card, had to have us co-sign for the college apartment/utilities, and has only ever had installment payments for a short period of time on student loans ( a years worth before covid stopped them) yet she's got a score of 800.

 

[jen7233]

But my landlord is going to raise our rent by $400/month. BOO!!!!!

Rents are going up, I see a definite increase here (DC commuting area/NoVa/MD). We were in the market to find a new rental, so to us we noted a big increase. Our new rental is $700 more a month. I read an article about a house here that had 88 offers on it (to clarify, for purchase), and seems rather not worth it. That is not too shocking, we briefly played with the home buying route and open houses, just insane! Some had lines outside

 

[DLgal]

Rents are going up, I see a definite increase here (DC commuting area/NoVa/MD). We were in the market to find a new rental, so to us we noted a big increase. Our new rental is $700 more a month. I read an article about a house here that had 88 offers on it (to clarify, for purchase), and seems rather not worth it. That is not too shocking, we briefly played with the home buying route and open houses, just insane! Some had lines outside

Yeah, I'm not overpaying (even more than normal) for a house. I won't do it. I cannot imagine the stress of being underwater on a home and needing to sell it for unforeseen reasons. I told my husband that we are in no hurry to become homeowners and that is to our advantage right now. In a few years we will be well positioned to buy something IF the price is right and we don't have to compete with dozens of people on a home offer.

 

[jen7233]

Yeah, I'm not overpaying (even more than normal) for a house. I won't do it. I cannot imagine the stress of being underwater on a home and needing to sell it for unforeseen reasons. I told my husband that we are in no hurry to become homeowners and that is to our advantage right now. In a few years we will be well positioned to buy something IF the price is right and we don't have to compete with dozens of people on a home offer.

I think where I am it's not uncommon at all at the moment to offer over list price. I say that in researching our house hunting journey over the last year, both in looking for rentals and playing the home buying market a bit. We only had a few serious inquiries on houses we liked, but they already had offers on them. Comparing stats available afterward on the ones we liked, we saw some sold for 50k over list price, some a little less, and some more. I said I have too much cold feet and uncertainty to fully play the home buying market game here right now, I don't feel I'm mentally ready to go hot on making house offers and that pins and needles stuff, and so we rest for the moment!

 

[DLgal]

I think where I am it's not uncommon at all at the moment to offer over list price. I say that in researching our house hunting journey over the last year, both in looking for rentals and playing the home buying market a bit. We only had a few serious inquiries on houses we liked, but they already had offers on them. Comparing stats available afterward on the ones we liked, we saw some sold for 50k over list price, some a little less, and some more. I said I have too much cold feet and uncertainty to fully play the home buying market game here right now, I don't feel I'm mentally ready to go hot on making house offers and that pins and needles stuff, and so we rest for the moment!

Here, people buying with ALL CASH OFFERS well over asking are being beat out by even higher offers from well financed individuals. I have never heard of that, but a realtor friend told me it is happening. People are offering over asking on rentals, paying a year's worth of rent upfront, etc. It is NOT a good time to move right now so we took the landlord's offer and didn't think twice about it. I had been worried she was going to tell us she was putting the house up for sale and we would be forced to move.

 

[ruadisneyfan2]

back when i first started driving the only credit cards commonly used at gas stations was that station's issued card (arco, shell...). no such thing as debit cards for several years to come. the attendant came out to the car, pumped your gas and you paid in cash (more often than not among the younger drivers it's wasn't 'fill it up' but rather 'give me x number of dollars worth'

This was us too.
Our boys paid cash for gas until they were old enough to get their own cc. I discouraged them from using debit cards at gas stations. I’m not a fan of letting businesses dip their hands into my checking account. Credit cards offer more protection.

 

[RamblingMad]

This was us too.
Our boys paid cash for gas until they were old enough to get their own cc. I discouraged them from using debit cards at gas stations. I’m not a fan of letting businesses dip their hands into my checking account. Credit cards offer more protection.

Same. I used cash for gas until I was old enough to get a credit card.

I too got my first credit card from those tables at university. And I graduated with some students that racked up more credit card debt than student loans.