When will people come to their senses financially?

[tvguy]

We are in the middle of what may be one of the worst recessions ever, yet some folks just can't seem to sort out what items they should be spending their limited money on, and what things they should pass on.
Maybe I've just watched too many of those financial shows on cable.

For example, my neighbor who lost his job 8 months ago, fortunately his wife has a good job (she makes more by herself than my wife and I do combined) , and they may lose their house because they can't make the payments. Yet he won't get rid of his boat, his 5th wheel travel trailer, the $50,000 diesel pickup to tow the trailer, his $35,000 off road Jeep because "he wants those things" and some bankruptcy attorney told them to hang onto all the debt they could because it will help them get more debt forgiven. I sincerely think if he sold his toys, they could pay all their necessary bills.
When will folks realize that an i-Phone with a data plan it not necessary if you can't pay your rent or mortgage.
When will folks realize you don't need a big screen TV, or a new car every 6 or 7 years.
And why do put so much blame on corporations for extending credit where they shouldn't have. Corporations don't make those decisions, PEOPLE who approve the loans do, and PEOPLE decide to accept them, even if they should clearly know they can't afford it. I watched an interview with a couple who got a $1700 a month mortgage, with $1600 a month in income, and didnt understand how they had ANY responsibility in the issue.
Off my soap box, thanks

 

[AlleyKat]

We are in the middle of what may be one of the worst recessions ever, yet some folks just can't seem to sort out what items they should be spending their limited money on, and what things they should pass on.
Maybe I've just watched too many of those financial shows on cable.

For example, my neighbor who lost his job 8 months ago, fortunately his wife has a good job (she makes more by herself than my wife and I do combined) , and they may lose their house because they can't make the payments. Yet he won't get rid of his boat, his 5th wheel travel trailer, the $50,000 diesel pickup to tow the trailer, his $35,000 off road Jeep because "he wants those things" and some bankruptcy attorney told them to hang onto all the debt they could because it will help them get more debt forgiven. I sincerely think if he sold his toys, they could pay all their necessary bills.
When will folks realize that an i-Phone with a data plan it not necessary if you can't pay your rent or mortgage.
When will folks realize you don't need a big screen TV, or a new car every 6 or 7 years.
And why do put so much blame on corporations for extending credit where they shouldn't have. Corporations don't make those decisions, PEOPLE who approve the loans do, and PEOPLE decide to accept them, even if they should clearly know they can't afford it. I watched an interview with a couple who got a $1700 a month mortgage, with $1600 a month in income, and didnt understand how they had ANY responsibility in the issue.
Off my soap box, thanks

 

[HannaBelle]

+1

 

[erincon23]

I realize you're talking about the financially irresponsible, and in that I agree with you... but then there's the rest of us. I drive a 5 yr old car, DH's is 10. We could easily afford our mortgage when we got it 11 years ago. The last vacation we took was to WDW in 3/09 (using miles for air tickets, and a timeshare we've had for years for our room), before that we drove to visit relatives, and before that the in-laws took us on a cruise (we paid for nothing). My DH has been out of work 4 years in the last 6, has taken anything he could find -- temp work, started his own business, and more. I've worked when I could (we have a child who has been on and off at home and needing care, but who should be going to school full time this year, so I'm anticipating getting a job where I can). We don't have a car for our DS18, but he will be going to college in the fall (savings and loans). No boat, no trailer, no DVC, no big screen TV. We shop at Target and Kohls and Wal-Mart. And we're in trouble, looking at whether we can somehow keep the house.

There was a lot of deception in the mortage business -- a lot of unscrupulous mortgage brokers deceived people who were unable, for one reason or another, to determine the true cost of their mortgages, but who were convinced by others that they could afford the payments. There are always going to be people who make a conscious decision to get in over their heads no matter what the consequences, but the country wouldn't be in such a bad position economically from that group only -- thousands and thousands of people were lied to, sold "interest only" mortgages with hidden principal balloon payments, or fell victim to other greedy and deceitful practices. Your neighbors need to wake up and figure out that they've made their own problems (and they'll probably wake up in a cardboard box on the street somewhere, if they wake up to this understanding at all), but the majority of people who are facing horrendous financial ruin didn't do it to themselves.

 

[punkin]

Oh, boy. One of the things I love best is counting other people's money and deciding why I could spend it better than they could.

 

[disfan07]

Exactly. We own 3 cars. Our newest is a used '08 Honda civic adn we only have that because my 2001 accord was totaled and I need a car.

In 2008 we bought a house that we could basically afford (I say basically because yes, we do still have a mortgage). we bought a $450,000 house with paying about $350,000 of it in cash so we only have a $100,000 moretgage and my dad makes $130,000/year.
We don't have a flat screen HDTV. We dont have iphones or $1300 mac computers. We dont go out to eat at expensive restaurants.

Our biggest expense....medical bills....$20,000/year. It kills me to think that what my parents have paid in medical bills for me could have gone into retirement for them. And it kills me even more to know that they will have to work longer because of something we had no control over yet their are people who refuse to take respnsibility for going into debt and bankruptcy because of their own financial stupidity.

We've managed to stay out of debt even with those medical bills and it's because we know what matters. As long as we can pay our house, cars, food, clothes and medical bills we are all set. Everything else is extra.

 

[Robindianne]

Oh, boy. One of the things I love best is counting other people's money and deciding why I could spend it better than they could.

 

[RitaE]

In my experience people generally come to their senses once their credit lines are cut off and the bank accounts are empty. Well, at least my relatives.

But really, I couldn't even begin to tell you how much my neighbor's cars cost. I guess they don't like me enough to share those types of details.

 

[Luvchefmic]

We are in the middle of what may be one of the worst recessions ever, yet some folks just can't seem to sort out what items they should be spending their limited money on, and what things they should pass on.
Maybe I've just watched too many of those financial shows on cable.

For example, my neighbor who lost his job 8 months ago, fortunately his wife has a good job (she makes more by herself than my wife and I do combined) , and they may lose their house because they can't make the payments. Yet he won't get rid of his boat, his 5th wheel travel trailer, the $50,000 diesel pickup to tow the trailer, his $35,000 off road Jeep because "he wants those things" and some bankruptcy attorney told them to hang onto all the debt they could because it will help them get more debt forgiven. I sincerely think if he sold his toys, they could pay all their necessary bills.
When will folks realize that an i-Phone with a data plan it not necessary if you can't pay your rent or mortgage.
When will folks realize you don't need a big screen TV, or a new car every 6 or 7 years.
And why do put so much blame on corporations for extending credit where they shouldn't have. Corporations don't make those decisions, PEOPLE who approve the loans do, and PEOPLE decide to accept them, even if they should clearly know they can't afford it. I watched an interview with a couple who got a $1700 a month mortgage, with $1600 a month in income, and didnt understand how they had ANY responsibility in the issue.
Off my soap box, thanks

Your neighbors are idiots...plain & simple..here in my real world its one neighbor after another, us too, every day struggling to pay a water bill, begging not to have utilities shut off for another week...nope MOST people deal with what $ comes in and what $ have to go out

 

[eliza61]

Oh, boy. One of the things I love best is counting other people's money and deciding why I could spend it better than they could.

Don't even think about saying your taking a vacation and not debt free!!! People will not only tell you how irresponsible you are, they will then tell you, that you're the reason they have to support lazy bums like yourself.




Listen guys, for the last 30-40 years, the message in this country has been spend, spend, spend.
Credit was as easy to get as bottled water and people were routinely using their houses as piggy banks .

Now all of a sudden we act all morally superior? Gimme a break. Our economy is built on consumerism and we have learned that lesson well.

Bottom line is, as long as it's not illegal people are free to make whatever choices they wish to make as long as they can live with the consequences.

If folks want to use their money to buy big screen tvs and fancy vacations hey who am I to say differently?

Sure it's sad, I hate the irresponsible ones with kids but unless your neighbor going to move in with you why do you care?

 

[eliza61]

Truthfully I think we use these threads to pat ourselves on the back. All they do is turn into a lovefest where everyone states how the are praying at the alter of Dave Ramsey, living in little hovels, never buying any thing every they can't afford, never owning any luxury while the rest of the country is causing all the financial problems of the world.

 

[mhsjax]

I think that your last 2 posts are about the best thing that I have ever read here on the Dis.

 

[Pakey]

Considering there is no market for boats or 5th wheels right now, I'm not sure what I'd be expecting my neighbor to do other than hang onto it.

And I'm not going to say what kind of car I'm driving; I'm not wearing flame proof clothing.

 

[C.Ann]

I prefer to spend my time taking care of my own financial matters - rather than worrying and/or complaining about what others are doing with their money - especially people I don't know a whole heck of a lot about..

 

[Mono~rail]

We are in the middle of what may be one of the worst recessions ever, yet some folks just can't seem to sort out what items they should be spending their limited money on, and what things they should pass on.
Maybe I've just watched too many of those financial shows on cable.

For example, my neighbor who lost his job 8 months ago, fortunately his wife has a good job (she makes more by herself than my wife and I do combined) , and they may lose their house because they can't make the payments. Yet he won't get rid of his boat, his 5th wheel travel trailer, the $50,000 diesel pickup to tow the trailer, his $35,000 off road Jeep because "he wants those things" and some bankruptcy attorney told them to hang onto all the debt they could because it will help them get more debt forgiven. I sincerely think if he sold his toys, they could pay all their necessary bills. When will folks realize that an i-Phone with a data plan it not necessary if you can't pay your rent or mortgage.
When will folks realize you don't need a big screen TV, or a new car every 6 or 7 years.
And why do put so much blame on corporations for extending credit where they shouldn't have. Corporations don't make those decisions, PEOPLE who approve the loans do, and PEOPLE decide to accept them, even if they should clearly know they can't afford it. I watched an interview with a couple who got a $1700 a month mortgage, with $1600 a month in income, and didnt understand how they had ANY responsibility in the issue.
Off my soap box, thanks

How can he sell them? Who wants to buy things like that right now? I'm sure they bought that stuff before he lost his job.

 

[Luvchefmic]

Truthfully I think we use these threads to pat ourselves on the back. All they do is turn into a lovefest where everyone states how the are praying at the alter of Dave Ramsey, living in little hovels, never buying any thing every they can't afford, never owning any luxury while the rest of the country is causing all the financial problems of the world.

Usually the motivation of the OP of any of these kind of threads I'm guessing

"Gee look how smart I am and how stupid they are"

There but for the grace of God, and really NO ONE knows what really goes on behind anothers front door

 

[mhsjax]

Truthfully I think we use these threads to pat ourselves on the back. All they do is turn into a lovefest where everyone states how the are praying at the alter of Dave Ramsey, living in little hovels, never buying any thing every they can't afford, never owning any luxury while the rest of the country is causing all the financial problems of the world.

And it is so sad. I know too many people that worked hard all of their life, never purchased anything new, never purchased a home because they were afraid to "go in debt" and never did anything for fun. And then they died. wow what a life.

What you said in your first post is true, people were encouraged to buy, and we did. Then the bottom fell out. I know people now that are losing their jobs and no amount of being frugal could help them out at this point. You can only save so much and you can only sell so much when the economy is in the toilet.

Also I have heard, and I am certainly not a professional. But they keep saying that we need to buy to stimulate the economy. YOu can't when for losing these days.

 

[Tiger926]

Don't even think about saying your taking a vacation and not debt free!!! People will not only tell you how irresponsible you are, they will then tell you, that you're the reason they have to support lazy bums like yourself.




Listen guys, for the last 30-40 years, the message in this country has been spend, spend, spend.
Credit was as easy to get as bottled water and people were routinely using their houses as piggy banks .

Now all of a sudden we act all morally superior? Gimme a break. Our economy is built on consumerism and we have learned that lesson well.

Bottom line is, as long as it's not illegal people are free to make whatever choices they wish to make as long as they can live with the consequences.

If folks want to use their money to buy big screen tvs and fancy vacations hey who am I to say differently?

Sure it's sad, I hate the irresponsible ones with kids but unless your neighbor going to move in with you why do you care?

Truthfully I think we use these threads to pat ourselves on the back. All they do is turn into a lovefest where everyone states how the are praying at the alter of Dave Ramsey, living in little hovels, never buying any thing every they can't afford, never owning any luxury while the rest of the country is causing all the financial problems of the world.

Tiger

 

[Hootiss]

You only live once...




punkin i think i have a secret crush

 

[FireDancer]

There was a lot of deception in the mortage business -- a lot of unscrupulous mortgage brokers deceived people who were unable, for one reason or another, to determine the true cost of their mortgages, but who were convinced by others that they could afford the payments. There are always going to be people who make a conscious decision to get in over their heads no matter what the consequences, but the country wouldn't be in such a bad position economically from that group only -- thousands and thousands of people were lied to, sold "interest only" mortgages with hidden principal balloon payments, or fell victim to other greedy and deceitful practices. Your neighbors need to wake up and figure out that they've made their own problems (and they'll probably wake up in a cardboard box on the street somewhere, if they wake up to this understanding at all), but the majority of people who are facing horrendous financial ruin didn't do it to themselves.

And this is why I actually read my mortgage and before shopping for a home figured out what I could afford. If someone is unable to do this for themselves hire someone. A little money up front to avoid financial ruin later seems to make sense. A salesman, whether they are selling you a car or a house, can lie to you but the contract doesn't. People can't take advantage of you if you don't let them.

I was pre-approved for a mortgage that would have bankrupt me in a year had I taken the max they offered but just like I can turn down heroine or child porn I turned down that mortgage. Why is it people forget they can say no to banks and credit card companies?

There is a big difference between an unexpected set back (illness, loss of job) and poor planning or money management (a 1:1 revolving debt to income ratio or maxing out a credit card for an unnecessary purchase). I'm not under the delusion that everyone that is in financial trouble is there because of poor planning or bad decisions, but many are.

Also, listening to spend spend spend from people with vested interest in your spending makes no sense at all. The crack dealer isn't going to tell you to stay off of drugs, is he? When the economy is going good at least some of the income should be put aside for when the economy goes south. This is a perfect example of an ounce of prevention being better than a pound of cure.