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I thought deflation already started... less spending, more job cuts, less spending, and more job cuts... did you really think there was a bottomless wallet in every household? How much debt do you think people "must have"??? I prefer if people had zero debts... yes deflationary... maybe not so bad.. we will see...
I think the current crisis has caused a lot of people to lose sight of the fact that moderate debt, especially when it's acquired to produce something or do something that creates positive returns, is a good thing.
I have student debt, and I do have a moderate amount of credit card debt. All of it together is less than what I bring home in one year, so it's very manageable. I think that I would be a lot more miserable today and far less productive if I had never acquired this debt.
I have student debt, and I do have a moderate amount of credit card debt. All of it together is less than what I bring home in one year, so it's very manageable. I think that I would be a lot more miserable today and far less productive if I had never acquired this debt.
Student loan debt is pretty bad, especially when you amortize it over some ridiculous number of years. Unless you're a business there really is no excuse for credit card debt. People going into college are so eager to go into debt nowadays. Why work when you can go into debt? Why be frugal when you can charge up your credit card? If you have to use student loans to go to school thats fine, but I haven't met a single person that didn't borrow more than they really needed (including myself). They borrowed according to what they felt they "needed".
Non-mortgage debt that is close to your yearly income isn't very manageable...
Non-mortgage debt that is close to your yearly income isn't very manageable...
My student debt is all government-backed and is locked in at an interest rate of 3.33%. Well over half of my credit card debt is on similar special interest rates for the next 3-4 years. If I can comfortably pay my bills and make more than the minimum payments on credit cards, then how is that not manageable?
Please correct me if I'm wrong, but by your logic, taking out loans for law school or business school - and now even medical school in a lot places - is always a bad idea.
I think the current crisis has caused a lot of people to lose sight of the fact that moderate debt, especially when it's acquired to produce something or do something that creates positive returns, is a good thing.
I have student debt, and I do have a moderate amount of credit card debt. All of it together is less than what I bring home in one year, so it's very manageable. I think that I would be a lot more miserable today and far less productive if I had never acquired this debt.
The trouble is when the average is like 5000 for every americcan in just credit card debit alone;that's not good. Of course the sellers and banks love to encourage debit. The less debit the better unless your collecting the interest.
My student debt is all government-backed and is locked in at an interest rate of 3.33%. Well over half of my credit card debt is on similar special interest rates for the next 3-4 years. If I can comfortably pay my bills and make more than the minimum payments on credit cards, then how is that not manageable?
Please correct me if I'm wrong, but by your logic, taking out loans for law school or business school - and now even medical school in a lot places - is always a bad idea.
The question is how long is it going to take to you pay back your student loans and CC debt?
The only debt to me that would be manageable would be a mortgage.
Well over half of my credit card debt is on similar special interest rates for the next 3-4 years.
You tell me which company offers "special interest rates" for 3-4 years. At most the promotional offers are for 15 months, but these promos are dying faster than the dinosaurs.
Paying more than the min on a credit card isn't exactly saying a lot. The min payment usually won't get you out of debt for around 15~20 years. Stretching say $100k worth of debt over 20 years so you can manage it doesn't mean its now affordable....
Quote:
Originally Posted by StoneOne
Please correct me if I'm wrong, but by your logic, taking out loans for law school or business school - and now even medical school in a lot places - is always a bad idea.
Going to law, medical etc school is no different than anything else. You shouldn't over burden yourself with debt just to go to school. Don't have money? Then don't go to an expensive law school unless you can get a scholarship.
people don't spend because they are saving, thus debt decreases. Maybe this crisis won't be so bad after all.
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