Fake Millionaires (Is that the right term for it?...) (Atlanta: foreclosure, rent)

[mg83]

Visas and one American Express. Visas up'd my limit to around ~30k. American Express limit is 7,700. I try not to keep much on them, but the AmEx has 0% interest until May 2008. Good deal.

[itabb]

If you want to get a good understanding of what is really going on, there's a couple of books I found helpful you can get at the library:
1. Strapped
2. The Two-Income Trap

Both reference each other too. They explain the real reasons why there's trouble in the mortgage market and the illusions of credit card debt in middle class America.

[CHELSEA37]

Every Time I Visit Atlanta I See People Dressing Like Fashion Models All The Time , People Can Look Nice But Please Set A Limit On What You Buy, I Love Going To Phipps Plaza And Lenox Mall Just To See The Latest Fashion Shows

[JoeP]

I was just wondering if you think this attitude would apply to me as well. Out of college, I got a job earning $41k and immediately bought a new Saab (at the time, around $29k). I had no housing payments and no debt. Do you think that was an unreasonable purchase?

If you paid cash, great.

If you got a loan to buy the car, then not so great.

If somebody buys an older, but reliable car that they can afford, then they will have money to save for a nicer car that they can pay in cash. Therefore they are not paying additional interest (or ANY interest) and they are not making payments.

It's a myth that you have to have a car payment.

Same with everything else. Everybody wants everything now, and they are going into debt which is bad in itself, but worse because they are paying so much more ultimately in interest. Imagine buying a house that was reasonable, and doing so with a 15 year mortgage. Sure it will cost you a few hundred more a month, but you will be done half the time - saving as much as $100,000 that you would have paid in interest and all that monthly money can go to savings and other nice things.

[ready2move]

Yep it's a instant gratification society. Between beepers, cell phones, IM's, crackberry's, Ipods, etc...nobody can wait for anything.

My 19 year old son is a perfect example. He was sent credit card apps right into his first week of college. They reel them in with a few months no interest then bam 19%. My son has always worked jobs that paid cash, so he had his own money. We told him going into college that we would supply his "needs" and he was responsible for his "wants" He got into a small amount of debt using one of the cards and he hated it. When I put into simple terms that the _____ (fill in the blank) he charged, now cost him x amount more if he did not pay it off the next month, it smacked him in the face. He realized that those minimum payments would never get him a head. We have always tried to teach him and explain how responsible credit works, but sometimes, you gotta learn those life lessons yourself. He has, however, never been late with a payment.

[forresthills]

hey par,
Im basing my opinion on my wifes mercedes. It was great for 90 days then it started basically falling apart. Not what i was expecting from a car that is promoted to be the best of the best. Google the net for problems,they are rampant. I should have looked before i leaped

Originally Posted by Parsec

Brand Quality Ratings | J.D. Power
Looks like Mercedes did pretty well on the reliability ratings though.

[ATLienGirl]

Originally Posted by mg83

Coming out of college with no debt or housing costs probably makes you one of the rarest breeds of young people in America. I'd love to buy a Saab. I think they're gorgeous and uniquely designed cars - and I'd get one for that reason... if I could afford it. I'm 23... make just around 42k... there's no way I could afford to do that at this point. I have student loans, want to pay of my credit card debt, etc.

To me, it's just that these young kids (around my age) I've met here in Atlanta feel ENTITLED to these costly material things. Like the girls feeling entitled to 300k weddings. Most of them do come from money, and just feel an 800k house is the next logical step in their young lives, regardless of their own income. Bottom line - most of the people in my age group I've met in Atlanta (especially the ones who grew up here, went to college, and came back) are spoiled, materialistic brats.

Hey now! I was born, raised here, went to college and came back here and I'm not a spoiled, materialistic brat! I do have some friends who are though . It's so funny because everything everyone is saying is true...people living beyond their means and thinking it's cool. Heck, I try to stretch my teacher check as far as it will go and I know with my credit score I can afford more, but, the thought of waiting for my next paycheck to turn my lights on baffles me.

[ATLienGirl]

Originally Posted by Mattie

To all the recent college grads here, did you get a credit card while you were in school? If not, how did you establish a credit rating? My son will graduate this year debt free, thanks to his parents, and my husband is encouraging him to apply for a credit card now. He's resisting, because he knows that he likes to shop, and prefers to not deal with the temptation. I think I'm on his side, but, should I be?

Unfortunately for me, I didn't have parents who paid for my college education and I had to borrow money from Uncle Sam, plus I got Hope. My mom had excellent credit and instilled those values in my siblings and I, especially me. Everything I've ever gotten, I had to work for it, my parents would not help me. They really did not have the resources for it. Now that I am familiar with what poverty is, when I think back, we were a family of five living on about $25,000 a year. But my siblings and I never knew it. I am thankful for it now, because I am on my third house, fourth car, credit score approaching 800 and I'm 28. Let him go ahead and get one, it seems in society you are nothing but a social security number and a credit score anyhow...let him start. Sooner or later, he's got to establish some kind of credit independence so let him start with a credit card...when he's ready.

[rcsteiner]

Originally Posted by jxu66

It is not Atlanta unique issue. I used to live in Dallas and it is same thing or worse over there (People I hang out with all have BMW or some expensive European cars and I only have a Honda).

Hey, I *love* my Honda. It's a 1994 Accord EX, it still gets almost 30MPG in town, and I wouldn't trade it for the world.

Okay, maybe I would (there's a lot of stuff in the world! ). But Hondas aren't something to be ashamed of like Toyotas or Saabs.

[rcsteiner]

Originally Posted by mg83

Capital One gives out the credit cards with like a $250 limit. They're great for emergencies. I started out at 18 with a Capital One with a 400$ limit. Now I'm 23... my credit score is 790, and I have open credit lines nearing $40k on a total of 3 cards, and that's all I have... and I'm very. very. careful.

It's very nice to have that kind of credit available. I was laid off a year after we purchased our first house, which was not really optimal timing , but the credit cards that I had basically saved our butts (they allowed us to use our cash emergency fund wisely and kept us from having to tap into things like IRAs, etc.).