Powered by Jitbit .Net Forum free trial version. dismiss

HomeGeneral

Anything related to NetworthShare, finance, investing, etc.

Nearly 50% of Americans can't come up with $400 

findependent
Posts: 53

view findependent's Portfolio
5/27/2016
findependent
Posts: 53
Getagrip well put
Licid people are their worst enemy

Great posts!

Easy credit has destroyed so many families financial well being ... This experiment should be overs the net effect of this economic policy has been detrimental to the well being of society as a whole and has helped the predatory cc companies... Sad.
link
licid9
Posts: 45

view licid9's Portfolio
5/26/2016
licid9
Posts: 45
Getagrip -- I agree, there are many that make decisions that are so detrimental to their futures without even considering those future consequences. It can be sad to witness.

Once upon a time....I had a young team member who was excellent at her job, but didn't have money for childcare one week and skipped work for a few days. I ended up covering the cost for the remainder of the week so she could earn a paycheck. When she got her paycheck that Friday, she paid me back and then apparently went and bought a NICE TV for her husband's birthday....the next week she didn't have money for childcare AGAIN. ARGHHH! Like seriously, you couldn't look that far ahead and make that determination. She had potential to move through the company --- but poor planning and the perception that a TV was greater than Childcare cost her dearly.
link
getagrip
Posts: 29

view getagrip's Portfolio
5/24/2016
getagrip
Posts: 29
I have said for years that most people don't suddenly wake up and have massive debt. It slowly creeps in while life is happening and you aren't focusing on being debt free, especially when you are young. You splurge on the new computer figuring you'll pay it off over a couple of months, then the car needs a repair, then something else and that revolving credit amount keeps taking two steps forward one step back until after some years you're just used to having thousands in revolving debt when you open up the bill and are barely considering it as you plan for a new child or a new living arrangement. And the balance just seems to keep creeping up even as you can afford to keep all the payments juggled, because you are getting paid well. Then you lose a job, or get sick, and suddenly you find you've maxed your credit so you tap the 401K because you have no extra money. You get the job back and realize you have to sell your house, okay that won't happen right away, but meanwhile you're bleeding from dozens of credit accounts, cards, loans, etc. all taken out to get deals or keep you afloat until you got the next job and the next job isn't paying what the old job did, at least not yet, and you keep on sliding into debt. I think that's how it often works for many people.
I truly believe that the access to easy credit is what has profited a few and damned the many and makes the above possible. It's simply too easy to use that credit to allow the financial slide into debt even if you aren't forestalling disaster and just buying time. I also blame marketing, as they have gotten better and better at tweaking our desires and prodding our insecurities we feel the greater and greater need to purchase and own products that are often unnecessary just to appear "normal". But the real difference I see between the past and today is easy access to credit, people in my old neighborhood didn't even qualify for a credit card. No one was using credit to pump up their appearance because they didn't have any cards or real credit to use. It was really hard to get a loan, and getting one without collateral was that much tougher. So we were all in the same boat and had to live on cash and had to save for large purchases. Then by the time I went to college they were handing out credit card applications to anyone with a pulse and there were jokes played on the credit card companies where they approved cards for dogs and cats because they weren't even scrutinizing the applications. The companies didn't care, the flood of new credit and charges associated with that enriched them. I recall post college when I headed out of state for a job. New car loan? Sure, you can easily afford the payment. New living room furniture? Sure, we can put that on a payment plan you can easily afford. Home Mortgage? Not a problem with your income. etc. Not a single person asked, ever, if I were making tons of other payments. Worse, I thought they wouldn't give me a loan if I couldn't afford it, that it was in their interest to keep me from borrowing too much, I was naïve. I was getting approved for staggering amounts of debt and the miracle is I thought they were nuts most of the time and held back from diving in. That alone helped me turn things around later on since it helped keep the debt from becoming staggering. However I have multiple siblings, in-laws, and extended family and I can say with possibly two exceptions, none are really good with money. Most were single and not worried about a future, at least not until they started hitting their 40's and saw they had zero saved and were still looking at 25 years in mostly labor intensive jobs of various stability. From my experience most people, especially when young, tend to use their parents for their emergency fund. I saw family constantly reaching to parents, even the "good" kids who weren't leeches and did pay their parents back over time, if they had a $2000 bill, they went to the bank of ma and pop for the loan. It comes from spending all you make and not thinking of your financial future, or any real future.
So in many ways I empathize with the article. Poor choices made in the face of not factoring in the financial outcome over a long period of time kills most people ability to save. For example, why the need to "fund" the daughters wedding? If you don't have the money, you don't have it. They can get married on the cheap and live with it or pay for it themselves, I did. I've seen many in my extended family make those kinds of decisions because they didn't want to be embarrassed in front of family, neighbors, or society. It's okay to be broke, as long as no one really knows. I've had one relative tell me they switch out their car every three years because they get bored with it, but then admit they had to ask their parents for a loan because they couldn't afford their rent and can't "get out" of it until next year when they'll find something cheaper. But they knew ahead of time they were getting the new car before they put in for the new lease, didn't they run some simple numbers? No, and that's a big problem as well. People suppose they have enough, think they should be able to, forget about the costs for that, etc. and make tons of financial decisions without ever running actual numbers to see how it affects them. I have family that can't even tell me how much they actually get put into the bank monthly, though they can tell me their "salary", the don't even look at their pay stubs. It's crazy.
link
findependent
Posts: 53

view findependent's Portfolio
5/20/2016
findependent
Posts: 53
recent article in the atlantic...

http://www.theatlantic.com/magazine/archive/2016/05/my-secret-shame/476415/

Interested to hear thoughts on this.
link