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Old 05-09-2022, 09:19 AM
 
408 posts, read 292,828 times
Reputation: 306

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I mean to keep checking accounts from overdrafting

This is a very very scary precedent and what happens is families especially with small children will say :

We can’t cut out childcare, we aren’t going to ruin our family Memorial Day outing , we aren’t going to cut out child’s soccer practice it’s not the child’s fault …. We MUST make a birthday party for our 5yo or he will be the only one in his class without one how will he feel? Grocery Food was higher and it caught us off guard


But if we pay the utility bill that leaves us $50 left in checking till next pay day and we can’t ….

Solution : Master card credit line $3000 ok charge the $150 electric it’s only $25 a month min payment


Next month goes by ….. another similar situation

Now what happens for anyone who does this is for a certain length of time it’s an attitude of “whatever its a little monthly fee, we’ll get by”
Then beyond a certain threshold at a very very very very rapid rate….. this becomes apparent NOT only is this NOT free money that has to be paid all back 100%…. And you’ll see this

Credit Statement Balance: $3,704.06…. “Ok ok ok it’s ….
New Pending charges …
Full outstanding credit: $5,379.58…. Min payment: 176.28

Pediatric physican bill from July 2001: $854.37
Children’s Hospital bill : $9,854.71Insurer paid: $8,100
Your Amount due : $1,754.71

Your student loan payment
2021 monthly payment: $374.58/month
New payment at renewal: $532.48

Your Amazon rewards card amount due $2,254.76

Notice: School is out in one Month…. Childcare options for summer are filled up fast …. One spot available required payment : $1,864.37

Then while stressing your kid on their last week of school you’ll find the car you have been driving for years fully owned in your name …. has a breakdown you call emergency road service you go to repair shop …. We are unfortunately understaffed you’re looking at at least 48 hours …. 48 hours later …. There’s some complications to your transmission we can fix it for you you’re looking at roughly $4,000-$4,500 parts labor and it’ll be ready tomorrow afternoon ….

But if you Were struggling to balance budget without going over in the first place, let alone need to stretch a few hundred onto a card……. NOW the ONLY way out is to cut back to a point where you have to manage with what would have given you a surplus of savings …. Just to balance …

If you deem that no longer possible, you excuse additional borrowing to cope with the existing debt cost … which add to this…. Rate hikes …. And you’re going to see some defaults, some will never be able to pay it all back or only by undergoing major life disruptions

Add to this even higher much higher inflation and no ability to save on top higher interest rates , on top desperate personal loans and eventually denied credit applications

Last edited by Freesponge; 05-09-2022 at 09:34 AM..
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Old 05-09-2022, 09:27 AM
 
700 posts, read 450,558 times
Reputation: 2487
Is this you or "you?"

Hypothetical or real?

Helpful answers depend on that.
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Old 05-09-2022, 09:34 AM
 
408 posts, read 292,828 times
Reputation: 306
Embarrassingly this is close to my situation
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Old 05-09-2022, 09:58 AM
 
Location: 5,400 feet
4,897 posts, read 4,846,270 times
Reputation: 8029
It sounds like you may need to look at ways to generate more income.
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Old 05-09-2022, 10:25 AM
 
Location: TX
2,032 posts, read 3,543,368 times
Reputation: 2200
You can't spend more than you make. Increasing credit card debt just gets you further into debt with unnecessary expense (interest). Always pay the credit cards in full each month. If you can't, find ways to cut expenses. Or increase your income. It's a simple concept, but the implementation can be difficult.
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Old 05-09-2022, 10:27 AM
 
22,039 posts, read 9,618,529 times
Reputation: 19539
Quote:
Originally Posted by jiminnm View Post
It sounds like you may need to look at ways to generate more income.
And live within your means. Four simples words could help a lot. I can't afford it. Practice.

That said, I completely sympathize with people who are experiencing inflated prices for things like gas and groceries. Tell your kid you can't afford a birthday party.
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Old 05-09-2022, 11:38 AM
 
24,790 posts, read 11,160,244 times
Reputation: 47335
OP has numerous posts about his financial situation and then one in Psych.

He is borrowing from Peter to pay Paul and lament about it instead of doing something about it.

If I do not have money to pay for groceries my 5 year old will not go to soccer class, have a birthday party at some facility and the family vacation will happen in a public park. One parent works nights, one parent works days, one works weekends for a while.

Nothing will change though. It is have to have even though I know I cannot pay for it.
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Old 05-09-2022, 11:43 AM
 
9,922 posts, read 7,819,464 times
Reputation: 24809
Quote:
Originally Posted by Threestep2 View Post
OP has numerous posts about his financial situation and then one in Psych.

He is borrowing from Peter to pay Paul and lament about it instead of doing something about it.

If I do not have money to pay for groceries my 5 year old will not go to soccer class, have a birthday party at some facility and the family vacation will happen in a public park. One parent works nights, one parent works days, one works weekends for a while.

Nothing will change though. It is have to have even though I know I cannot pay for it.
Also a struggling business that can't cover the business bills and a new truck.

Close the business, get 2 jobs, sell the truck, no vacation this year.
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Old 05-09-2022, 11:59 AM
 
26,201 posts, read 21,693,145 times
Reputation: 22782
Realistically your threads/post outline someone who has relatively no control over your finances. You need to do a lot of work and a lot of it would require you to cut expenses, grow income(without expense growth) or both. Most aren’t willing to do this
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Old 05-09-2022, 11:59 AM
 
Location: on the wind
23,478 posts, read 19,172,285 times
Reputation: 75857
Quote:
Originally Posted by jiminnm View Post
It sounds like you may need to look at ways to generate more income.
Maybe the time spent dreaming up all the strange threads about life's troubles could be used more productively?
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