Oprah show on Friday about getting out of debt.

[Lyn5]

Well, what is your point here? Personally, I don't spend nearly that much on hair....I could if I wanted to I suppose, but it's not my thing. My one sister spends about what you spend...about $250 for a professional cut and coloring every six weeks. It's a bit of a splurge, but one she can afford ....so it's not an issue for her (or you presumably). Nobody here is talking about not spending money. If you have it, by all means....spend it on whatever you wish. I think we're talking about living beyond ones means. And spending 30K on take-out and 7K on hair when your combined income is 102K....with a total of 170K (not including the mortgage)....is amazing.

Many people can watch and just enjoy the Oprah's "favorite things" show...but I think that sort of thing is so pervasive in our society. And I think it's dangerous. Look at the mess we're in right now in this country with respect to consumer debt. Like one of the experts said today...we live in a society where many want to live the good life, like say...celebrities live. They drive the best of cars, wear the best clothes, have the latest gadgets and vacation at 5 star resorts. And lots of people want that life....but they don't have the seven figure salaries to match.

I didn't see the show, but I have been reading the comments here and I about choked when I read this. That is totally crazy all this time, while I was reading, I thought that they were making much, much more than that. I can't comprehend how they can even qualify for so much debt? Did they say how many credit cards they have? aren't they maxed out? do they even have equity in their home? that is just crazy.

 

[DVC Sadie]

They never mentioned her income. She probably doesn't work. I recorded the show, so I'll have to watch it again.

She does work! Their combined income was 102,000.00 but they owed more than 170,000.00.

 

[Alicnwondrln]

i just read about these families on oprah.com and it is SAD SAD SAD SAD
i mean the amount of $$ these poeple are wasting. I wish i had known it was on i missed it

 

[kydisneyfans]

I'm not sure that I should blame myself for over 30K in unexpected medical bills over the past 14 years due to an incurable disease that is not my fault.
Yes-rising interest rates do affect me.
Yes-government inaction that lines oil companies pocketbooks while taking directly from mine is not my fault.
Yes-watching Oprah does make my wife want new gadgets which we cannot afford-but we use common sense.

On top of everything-we have paid 2/3 of the 10K in debt we incurred making a move to better ourselves, and we are proud of that.

The point is that everyone comes from different backgrounds and are in different financial situations-my idea of no debt is credit cards paid off-I've come to expect having a car payment and house payment for life-but that's not bad.

I read a survey today that Americans are in the best financial condition between the ages of 42 and 60--children are grown and moving out-career income is maxing out-savings have grown, etc. Part of the ongoing battles on these boards may be age related--we are 32 and do not come from wealthy backgrounds-it is hard to pay 100K in cash for our home when we only have made 300K combined income during our working lives. 15 years from now-we may be able to pay our mortgage off. I am willing to bet that many totally debt free people on this board are in that 42 to 60 age bracket.

 

[mytwotinks]

I have a feeling that it would probably be heartbreaking to know just how many of our friends and family are in this same spot. DH and I are always saying to each other "how can they afford to spend the $$ to do this or that." He pretty much knows how much all of his co-workers make because they all make the same amount. Some of them live in houses that we could never afford, on top of that drive cars that are outragously expensive, and dress like movie stars. I guess that the answer may be that they can't. The danger is in getting caught up thinking that "if they can I should be able to." It is a very easy trap to fall into. It is hard to tell yourself no when it feels as if everyone else is telling themselves yes.

 

[DVC Sadie]

Kydisneyfans, I am a disabled vet that retired at the age of 33. I am a women who was a single parent at that time but I did manage to save a lot because I realized that I would have to survive with little to no help from the government. I did have to work two jobs for 3 years to insure that we would be OK. No, its not easy but I am so glad I planned.

 

[mytwotinks]

I don't think they "out and out" blamed her. But there were several posts along the lines of "how dare she talk about debt when she promotes spending". It's like we had to follow her spending advice? We don't have to follow her debt advice either.

Why shouldn't she talk about both sides of the equation? It's a talk show after all.

I think that the point other's were making is this: Oprah talked today on the show about the problem of people wanting a lifestyle that they can't afford, and the prevelance in society of things being marketed to people and encouraging them to spend money they can't afford to spend. Oprah has lots of shows that are really just showing people all of the material things out there that they don't have.

Not trying to put words in anybody's mouth. Just what I am getting from it.

 

[Lizzydoll73]

Did anyone else notice all of President's Day sale commercials they ran during that show?

 

[disneysteve]

Part of the ongoing battles on these boards may be age related--
I am willing to bet that many totally debt free people on this board are in that 42 to 60 age bracket.

I think there is probably some truth to this, but it isn't the whole story.

I'm 41 and DW is 42. Our only debt is our mortgage and HEL. The total of those two loans is less than our annual income just to put things in perspective. But those have been our only loans for nearly 3 years now since I paid off my student loans (13 years early by the way), so since I was about 38. Our child at that point was 7, so certainly not "grown and moving out."

We have not had a car payment since 2002 and don't expect to ever have one again. Neither of us has ever had credit card debt - not now, not when we were first married and not when we were each single.

So certainly age and peak earning years make a difference, but it is possible to live within your means at any age.

 

[disneysteve]

Did anyone else notice all of President's Day sale commercials they ran during that show?

Yes, especially the no interest no payments for 2 years furniture store ads. I commented about them while we were watching.

 

[Lisa loves Pooh]

Yes, especially the no interest no payments for 2 years furniture store ads. I commented about them while we were watching.

We just finally got brand new sofas last year--interest free .

WE had been shopping for our entire marriage and just couldn't agree on furniture. We had hand me down sofas....finally we got our very own. Cannot wait until it is paid off. The sofa in question has moved on to bil's home as he just got married. I estimate that it is nearly 30 years old by now. We got new cushions for it (the others were nearly flattened). Heck--my water even broke on that couch. MEMORIES!

but I love my own sofas---so glad when hubby will pay them off.

But I am happy to report that even though we window shopped for years--we were able to resist temptation...but only b/c we couldn't agree on a couch.

 

[KerriMc]

Does anyone know if the debt load included their mortgage? For the first family, to have a 300,000 home and only owe 170,000 with the way they live seems low to me! With all of the frivolous spending, I would think that is what the 170,000 is from ... and then a mortgage too? Seeing as she neglects paying bills, spends oodles on her hair, and buys all food from restaurants, having five cars, etc ... I just don't see it only being 170,000 in debt.

Kerri

 

[EthansMom]

I have a feeling that it would probably be heartbreaking to know just how many of our friends and family are in this same spot. DH and I are always saying to each other "how can they afford to spend the $$ to do this or that." He pretty much knows how much all of his co-workers make because they all make the same amount. Some of them live in houses that we could never afford, on top of that drive cars that are outragously expensive, and dress like movie stars. I guess that the answer may be that they can't. The danger is in getting caught up thinking that "if they can I should be able to." It is a very easy trap to fall into. It is hard to tell yourself no when it feels as if everyone else is telling themselves yes.

ITA. There are many, many people I know who are one major injury/illness away from losing their house. On the outside, they have it all... the nice cars (leased), the nice house (mortgaged to the hilt), the big screen t.v. (credit card), the R.V. (loan), the boat (HELOC), the vacations (credit cards), etc.. They have no savings for emergencies, retirement, or college. Often, they don't have life insurance or disability insurance.

 

[DVC Sadie]

Does anyone know if the debt load included their mortgage? For the first family, to have a 300,000 home and only owe 170,000 with the way they live seems low to me! With all of the frivolous spending, I would think that is what the 170,000 is from ... and then a mortgage too? Seeing as she neglects paying bills, spends oodles on her hair, and buys all food from restaurants, having five cars, etc ... I just don't see it only being 170,000 in debt.

Kerri

The 170,000.00 did not include the HOUSE. The 170,000.00 debt was credit cards and other miscellanious debt.

 

[EthansMom]

Does anyone know if the debt load included their mortgage? For the first family, to have a 300,000 home and only owe 170,000 with the way they live seems low to me! With all of the frivolous spending, I would think that is what the 170,000 is from ... and then a mortgage too?

I assumed that the $170k debt doesn't include the mortgage. If it included the mortgage, it wouldn't be such a big deal. But if the mortgage is close to the $300k purchase price, these folks actually owe on the order of $470k, which is over 4 times their annual income!

 

[mytwotinks]

We live in a tiny little house so that we can afford things like Disney , so I am not really sure about this. Should you really be living in a house that is 3 times your anual income? This seems like a high house payment to me. At least one that doesn't leave much extra for fun stuff!

 

[disneysteve]

Should you really be living in a house that is 3 times your anual income?

I'm not sure what the conventional rule of thumb is. I'm sure someone will post that info.

Personally, when we bought our house, the purchase price was about 1.5 times our income at the time and we put down 20%, so the mortgage was about 1.2 times our income.

 

[Alicnwondrln]

What is HEL

 

[etwinchester]

What is HEL

Home Equity Line

 

[MyGoofy26]

I completely agree with you. I can't believe this woman owes $79,000 in student loans, and that was just the UNDERGRADUATE!!! Didn't even include Grad School!!!

Ouch. I'm sweating over my $35,000! And I have TWO undergad degrees. (well, in May I will, had to take another semester to finish up my 2nd)

I missed this today, I was at work. . it repeats at 1am so I'll have to try and remember to catch it.