U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 06-22-2008, 12:56 PM
 
Location: Georgia, on the Florida line, right above Tallahassee
10,474 posts, read 14,168,385 times
Reputation: 6374

Advertisements

New crisis threatens healthy banks - Washington Post - MSNBC.com (broken link)

"We're doing everything we can to stay in the house," said Chavez, 21. "We've been going through tough times, so we're trying to do as much as we can, even if it is killing us."

Vanessa Chavez and her family took out a home-equity loan in 2003 to pay for some remodeling of their District home and for the medical bills for her pregnancy. Their monthly payments, once the new loan was added to their mortgage, jumped from about $2,000 to $3,700.

Chavez had hoped to help pay the bill by getting a high-paying job. But the economic downturn sabotaged her plan, and she finally took a job as an assistant manager at a Domino's Pizza. Late last year...

Is it just me, or am I the only person who wouldn't take on $1700 more debt on the idea of getting a higher paying job?

Is the crisis that people can't afford their bills? Or because people make crazy decisions based on being pure crazy?
Reply With Quote Quick reply to this message

 
Old 06-22-2008, 01:03 PM
 
9,638 posts, read 24,384,528 times
Reputation: 5304
Is it just me, or am I the only person who wouldn't take on $1700 more debt on the idea of getting a higher paying job?

Is the crisis that people can't afford their bills? Or because people make crazy decisions based on being pure crazy?


All of the above. And that's taking on an extra 1700 in debt every month!
Yes, people can't afford their bills, but lenders seemed to be tripping over themselves to loan money, seemingly all you needed was a pulse to get a loan.
So: yes, people don't really understand debt, they kind of see it as free money, but I just don't have a lot of sympathy for banks.
Reply With Quote Quick reply to this message
 
Old 06-22-2008, 01:12 PM
 
26,662 posts, read 40,645,423 times
Reputation: 14770
Quote:
Originally Posted by Ira500 View Post
Is it just me, or am I the only person who wouldn't take on $1700 more debt on the idea of getting a higher paying job?

Is the crisis that people can't afford their bills? Or because people make crazy decisions based on being pure crazy?


All of the above. And that's taking on an extra 1700 in debt every month!
Yes, people can't afford their bills, but lenders seemed to be tripping over themselves to loan money, seemingly all you needed was a pulse to get a loan.
So: yes, people don't really understand debt, they kind of see it as free money, but I just don't have a lot of sympathy for banks.
I have not much sympathy for both sides... Both wanted to cash in...and you don't have to take the money that is offered. Some people see the neighbor coming home with a more expensive car and think...Oh I need to get one too...next day bigger and more expensive car. I had a friend who is a realtor coming home with a mercedes which according to her needed the premium gas in a time when the market slowed down...her statement...I can't sell a house if I don't impress some one with my car...they won't buy it that I'm a good realtor...wow...I never looked at the car as proof how good the realtor is...but maybe that is just me....So a realtor in a ferrari is a better realtor than one in a prius? To me it is different...I would think that I have to pay for the ferrari so I rather pay for the prius...
Reply With Quote Quick reply to this message
 
Old 06-22-2008, 01:12 PM
 
Location: Sanford, FL
732 posts, read 3,882,515 times
Reputation: 403
I couldnt get a loan for $2500 and my credit is 730
Reply With Quote Quick reply to this message
 
Old 06-22-2008, 01:41 PM
 
Location: Georgia, on the Florida line, right above Tallahassee
10,474 posts, read 14,168,385 times
Reputation: 6374
Here's a story. Perhaps it is interesting. Perhaps not. But it is still a story.

I bought a new car for my wife in 2000. I researched the model and make and how much I was going to offer. I go get the car. I'm all checked out, look good on paper, tell the guy I want the car. He's all like "Why don't you take the car home tonight?" and I'm like "Why?" and he's like "You're fine on paper, take the car home tonight."

I took the car home that night. I didn't really see the point, but I figured...might as well, I suppose. I didn't really see the point in having it one day and then coming back the next day to finalize the purchase, though.

My brother is in sales. I mentioned this to him. He was all like "AHA!" and I'm like "AHA, what?" and he's like "It's the "new puppy" sale." and I'm all like "What is the "new puppy" sale?" and he's like "Well, that is when you get a new puppy and you come home and you have a new puppy and your wife/family/whoever is all over you and saying "OOH>>>NEW PUPPY! HOW CUTE!! WE LOVE THE NEW PUPPY!" and then the next day, if you decide you don't want the car, then everyone will wonder where the new puppy went and they are sad....and upset with you."

It's a freaking car. A mode of transportation. A thing to get her from point A to point B - comfortably and reliably.

So I asked him.... "Are people really like that? You're kidding!"

He said "You better believe it."
Reply With Quote Quick reply to this message
 
Old 06-22-2008, 05:19 PM
 
Location: America
6,987 posts, read 15,766,746 times
Reputation: 2073
Quote:
Originally Posted by Ira500 View Post
Is it just me, or am I the only person who wouldn't take on $1700 more debt on the idea of getting a higher paying job?

Is the crisis that people can't afford their bills? Or because people make crazy decisions based on being pure crazy?


All of the above. And that's taking on an extra 1700 in debt every month!
Yes, people can't afford their bills, but lenders seemed to be tripping over themselves to loan money, seemingly all you needed was a pulse to get a loan.
So: yes, people don't really understand debt, they kind of see it as free money, but I just don't have a lot of sympathy for banks.
ahhh the lost art of common sense. you are part of a dying breed sir.
Reply With Quote Quick reply to this message
 
Old 06-22-2008, 05:49 PM
 
947 posts, read 2,883,421 times
Reputation: 729
Yup, it's insane! So many people are over extended and people are buying furniture, TV's and thinking it's a great deal to pay for it a year later. NOT!! Then something comes up, medical emergency, layoff....They can't afford there bills.

They figure it's being offered so it's got to be legit and they don't bother to read what they're signing. Then they blame the bank. Jeez! It's the bank's fault, it's the borrowers fault. It drives me nuts personally.

I have family members that don't save. Live high on the hog so to speak, vacations, new cars, dinners out. We're conservative, save, plan make less money. I'm 36 and have never had a new car, hardly take vacations. Nutso in-law gets laid off and needs help paying bills. Told my husband hell no we're not giving them any $$. We don't make more, we just save more and they need to figure it out.
Reply With Quote Quick reply to this message
 
Old 06-22-2008, 07:30 PM
 
Location: Georgia, on the Florida line, right above Tallahassee
10,474 posts, read 14,168,385 times
Reputation: 6374
Sometimes, you have to fall...to learn how to stand.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6. The time now is 06:57 PM.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top