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No one forces you to go out and rack up debt. Many people do it because it is so easy and spending money feels good but no one forces you to do it.
So while people are slaves to their debt it is from their own doing. No one held a gun to your head to buy that 35k car when a 17k one would of done just fine. No one forced you to go buy 5k at Rooms2Go and pay for it over 60 months plus the big screen tv and new iphones all with payment plans. No one forced you to buy a house or rape your equity, plenty of people do just fine renting for not that much more cost.
If you're a victim, it is due to your own actions.
No one forces you to go out and rack up debt. Many people do it because it is so easy and spending money feels good but no one forces you to do it.
So while people are slaves to their debt it is from their own doing. No one held a gun to your head to buy that 35k car when a 17k one would of done just fine. No one forced you to go buy 5k at Rooms2Go and pay for it over 60 months plus the big screen tv and new iphones all with payment plans. No one forced you to buy a house or rape your equity, plenty of people do just fine renting for not that much more cost.
If you're a victim, it is due to your own actions.
You are wrong. If our Fed wanted to protect Americans from DEBT then it would begin raising interest rates back in 2001 and keep raising them until now. We should have interest rates close to 20% now and not next to 0. Instead of allowing Americans to SAVE money relatively risk free and having higher interest rates the Fed lowered rates to 0 and seduced even more Americans into debt. Instead of taking mortgage for $180,000 buying an average house the Fed in order to save Wall Street Banks lowered rates to zero and now Americans need to pay $350,00 for average house, have to take double amount of debt than they would if rates were higher.
Don't you people get it that eveyrthing since 2001 has been a SCAM. Our economy is DEAD and we can't have another real economic growth unless we go thru HELL first, unless we destroy all this bad debt that our Fed has been protecting.
a bank pays 1% for money and loans it out at 4-5% . remember they don't buy a dollar , they rent a dollar so they make what a manufacturer might make in a mark up which is about 5x cost or 500% .
a credit card company or pay day loan company has to buy a dollar and then loan it out, . they need to make a whole lot more . so they will charge those with higher risk a lot more to make it up from that market segment
Last edited by mathjak107; 08-20-2017 at 03:06 AM..
I love how sub-prime credit people blame "the man" for their inability to manage their money.
I just pulled my credit reports. I have zero late payments. I have zero debt beyond credit card balances on cards that auto-pay in full monthly. How hard is it to spend less than you make and pay your bills on time?
the problem is generally events cause to much month at the end of the money as live below your means is a meaningless mantra . means can change on a dime from unexpected events .
divorce -illness-job loss are the big three changers of "MEANS " . where you live and how you live and all the expenses of that lifestyle can not be changed on a dime usually . so what very well was within your means may now have you with noooooo "MEANS "
but generally you are done in by these events because of a history of poor planning , bad choices and poor decisions prior , not spending ..
so the fact you lived below your means is not what saves you most of the time . it is when events suddenly change what your means is that gets you .
that is why i say it is not the total amount you spend that matters , it is the ratio of discretionary spending to non discretionary spending that is important .
you can very well be living below your means but if that budget is all needs and not wants too , there can be no where to cut from when your "MEANS " gets reduced
we can live here in queens nyc with a lot of discretionary spending or we could move to manhattan for the same budget . but a decision to move to manhattan would leave little discretionary spending . in the event we had to cut back because means fell it would be very difficult to cut things .
that could create an unpleasant situation where bills may not get paid .
but it would be that way because of a poor decision to live with such a high non discretionary budget , even though it was certainly within our means . so while i could blame the event that caused the reduction , the real reason was poor choices and bad decisions on my behalf leading up to that event ..
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Last edited by mathjak107; 08-20-2017 at 05:32 AM..
No one forces you to go out and rack up debt. Many people do it because it is so easy and spending money feels good but no one forces you to do it.
So while people are slaves to their debt it is from their own doing. No one held a gun to your head to buy that 35k car when a 17k one would of done just fine. No one forced you to go buy 5k at Rooms2Go and pay for it over 60 months plus the big screen tv and new iphones all with payment plans. No one forced you to buy a house or rape your equity, plenty of people do just fine renting for not that much more cost.
If you're a victim, it is due to your own actions.
Isn't that like saying Walmart doesn't force their workers to sign up for food stamps?
Sorry, you don't get to dictate how much risk someone is willing to take with their hard earned capital. If you don't want to pay high interest rates, protect your credit. Otherwise, your bad credit shows that you've most likely made poor choices in the past.
Not to mention that if someone actually signs the terms of an interest rate as high as you describe in the op, it just proves they haven't learned their lesson and still don't understand money. No one forces them to take extreamly high rate loans on rapidly depreciating assets.
Perhaps you don't understand how renting works. Landlords have more power than you apparently believe.
i know people who make good money at walmart . they have nice positions not greeters or stock clerks . if you choose to say in a low end slot somewhere that is your choice and doing .
I love how sub-prime credit people blame "the man" for their inability to manage their money.
I just pulled my credit reports. I have zero late payments. I have zero debt beyond credit card balances on cards that auto-pay in full monthly. How hard is it to spend less than you make and pay your bills on time?
How does one manage money they don't have? Like when illness, injury, or job loss abruptly takes your income to zero?
How hard is it for minimum wage workers to pay their bills on time? Fairly hard, if the minimum wage protesters are any indication. And it is probably no easier for a lot of elderly or disabled people.
11 million renters pay at least half their income for shelter. You think it's easy for them?
a bank pays 1% for money and loans it out at 4-5% . remember they don't buy a dollar , they rent a dollar so they make what a manufacturer might make in a mark up which is about 5x cost or 500% .
a credit card company or pay day loan company has to buy a dollar and then loan it out, . they need to make a whole lot more . so they will charge those with higher risk a lot more to make it up from that market segment
Payday lenders are too lazy to bother with actually sorting out risks over a gradient.
They don't care if a borrower's risk is 50% or 100% APR - all disks above 36% get tossed into their 400% APR pool. Lazy lazy lazy. Laziness shouldn't be rewarded. Worse, timely repayment makes no difference to payday lenders; borrowers who repay them timely continue to get 400% APR. Imagine if banks treated their customers like that.
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