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.
This is why there needs to be a credit/financial management curriculum taught in highschool. True enough, people are responsible for their own debts but if you weren't taught the importance of credit/debt, managing money, how will you know? Nobody taught me. I had to find out the hard way. I called myself doing the right thing by graduating college, getting a good paying job, etc. I apply for a loan to buy a condo at the time, and BAM, I can't get the loan because my mother opened up various credit accounts in my name while I was young. I eventually forgave her and 2 years ago she finally paid all of the debt and I ended up getting a house. But that was embarrasing as hell to go through. I know that the system may not seem fair, but unfortunately, its the one we have and we have to live with it. True, my mom incurred all of that debt but the bank saw it as MY debt and my debt only. They could care less about my sob story. I certainly wasn't about to send my mother to jail for fraud so, I had to suck it up and deal with it. I posted my story so hopefully a young person reading this will get a head-start and learn to start budgeting and stay on top of checking their credit report annually.
Never ever max your cards out no matter how many limit increases they give you. I had a charge card from Express and the limit was originally $350. That sucker shot up to $5000 even though I NEVER even used the card! I only got it just to get the 10% off that they offer you for opening it at the time, lol. So don't fall for those credit limit increase schemes. Learn all you can about interest rates and how they work. Try to consolidate your student loans as much as possible. Try to pay cash for as much as you can. Try to save as much as you can. Even if its just $10 per paycheck. Believe me, I know its hard but being held back because of credit is just devasatating. I'm not a financial expert but hopefully someone will get something out of my post.
And guys, lets try not to be so hard on the young people. Now for the folks who know better and are completely wreckless with their credit, then yes they deserve whatever they get. But for the young people who truly don't understand and never had anyone tell them, try to give them a break. I'm not saying its ok to throw money at them But give them time to learn and figure this whole credit thing out.
parker goos post -i had a teacher who taught us a great deal about how loans and credit worked although it was not part of the normal curriculum
As for the person asking how her friend who makes 40k a year can have 25 k in debt- its simple
they are probably charging her 15-20% and she probably pays atleast the min on time every month
they know she works and makes her payments so shes a great customer
They dont want you to ever pay them back everyhting you owe- they prefer making 20% of what you owe every year.
But it comes down to a lack of responsibilty for the most part. I can see an 18 year old getitng his first credit cards maxing them out for a grand or 2 at a high rate and have some trouble paying them back but learning from it.But a lot of people never learn. the dont understand how much they waste in interest, buy things they dont need and cant afford and blame everyone else. Just b/c the cc company gives you a 10k limit doesnt mean you h ave to go out and spend 10k.
What do little green men come down and give you poor credit?
Have you heard of things like financial planning? Life happens and you plan for it. You should plan for things like losing your job by having emergency funds. Having a poor credit score is an indicator that you cannot manage your finances.
Its easier (and less worrisome) to just keep $1,000 or so in your checking account than trying to time your pay checks with your bills. What do you do when you change jobs? So, if you actually put some extra money into your checking account, setting up an automatic payment works great.
Yes of course I'll just ask those little green men who you mentioned earlier to put that money in my checking account. I would love to have lived some of the lives you all have where you're just able to save money without starving to death because obviously you all have been blessed beyond measure.
I just wonder why all those stupid people who live paycheck to paycheck haven't figured out that all they need to do is put a $1,000 in the bank? Since you have all the answers, maybe I should have hired you to be my financial advisor because basically what you're saying is that if I lose my job today on 01/31/08 - and let’s say I get paid every week so I'll get my last check on 02/08/08 - that I should be responsible enough to have money to cover me and my family. Let's see how much that would be.
Rent: $800 - course I guess I could move back home but then I'd have a skip on my credit.
Car Payment: $210 - course I guess I could give my car back but then I'd have a repossesion on my credit.
Car insurance: $90 - course I guess I could drive without insurance, but then my license would get suspended.
Lights: $110 - course I guess I could sit in the dark but they would probably report me to child services.
Water: $50 - ditto from above
Phone/Cable/Internet Combo: $150 - course guess I could do without but how would I job hunt without internet & how would they call me if I had no phone?
Gas for my car: $200 - course I guess I could catch the bus - might be a little harder to get to interviews but oh the money I'd save.
Daycare for 4 weeks: $600 - course I guess I could leave him alone by himself.
So that's about $2,500 a month. So let’s say I was laid off for 2 months I would need close to $5,000 in the bank to cover my living expenses. And that's not including food, clothing, tithes, or odd little things like oil changes, field trips, $50 co-pays for unexpected Doctor visits, neighborhood kids throwing a ball through the window, etc... I wonder how many people - hold on let me break it down - working people - let me break it down further - working middle class people because I am far above the poverty line - who are living within their means without the aid of government assistance have $5,000 just sitting in their bank accounts.
So once again, I will ask that if you're going to make a suggestion it be one that might be helpful to someone.
And to make this clear, I'm not talking about myself because I am handling my finances just fine but there are tons of people out there who have been thrown for a loop because of a life circumstances and it's hard to recover. Do you think all homeless people are there because of addictions and laziness?
What about the housewives who lost their spouse? Insurance money & savings won't last long when you have two kids.
What about the teachers who take pay cuts to get kids supplies? In case you hadn't heard, teachers have a very high percentage of debt because cost-of-living isn't comparative to their wages.
But this post was not about how to better manage the money that some people don't have to start with - it was about the OP feeling that the ranges of credit levels being skewed.
So back to my original statement, the thing I don't like about credit ratings is that they are so unforgivable.
It sucks when you get laid off from your job. Then you lose your car. Then you lose your house. So then you work two and three **** ass jobs just to feed your family and when you've finally got enough money to try to start over....Oops! Sorry your credit score is toooooo low - can't live here. Oops! Sorry your credit score is toooo low - can't work here! Oops! Sorry your credit score is too low - can't get a car here! This is why so many poor people remain poor people. This is why so many homeless people remain homeless people. This is why people with low credit continue to have low credit because they have no way to improve it because no one wants to look past their credit history. And I don't believe history is always indicative of the future. If that was the case I would be in the field instead of in the office.
That's my opinion and you can quote, argue, debate, dictate, reiterate it as much as you want to cause last time I checked I was allowed to say what I thought without someone mocking me and trying to make me feel like an idiot for speaking my mind.
Last edited by nat_at772; 01-31-2008 at 04:25 PM..
This is why there needs to be a credit/financial management curriculum taught in highschool. True enough, people are responsible for their own debts but if you weren't taught the importance of credit/debt, managing money, how will you know? Nobody taught me. I had to find out the hard way. I called myself doing the right thing by graduating college, getting a good paying job, etc. I apply for a loan to buy a condo at the time, and BAM, I can't get the loan because my mother opened up various credit accounts in my name while I was young. I eventually forgave her and 2 years ago she finally paid all of the debt and I ended up getting a house. But that was embarrasing as hell to go through. I know that the system may not seem fair, but unfortunately, its the one we have and we have to live with it. True, my mom incurred all of that debt but the bank saw it as MY debt and my debt only. They could care less about my sob story. I certainly wasn't about to send my mother to jail for fraud so, I had to suck it up and deal with it. I posted my story so hopefully a young person reading this will get a head-start and learn to start budgeting and stay on top of checking their credit report annually.
Never ever max your cards out no matter how many limit increases they give you. I had a charge card from Express and the limit was originally $350. That sucker shot up to $5000 even though I NEVER even used the card! I only got it just to get the 10% off that they offer you for opening it at the time, lol. So don't fall for those credit limit increase schemes. Learn all you can about interest rates and how they work. Try to consolidate your student loans as much as possible. Try to pay cash for as much as you can. Try to save as much as you can. Even if its just $10 per paycheck. Believe me, I know its hard but being held back because of credit is just devasatating. I'm not a financial expert but hopefully someone will get something out of my post.
And guys, lets try not to be so hard on the young people. Now for the folks who know better and are completely wreckless with their credit, then yes they deserve whatever they get. But for the young people who truly don't understand and never had anyone tell them, try to give them a break. I'm not saying its ok to throw money at them But give them time to learn and figure this whole credit thing out.
Now this is a good, constructive, helpful post. I took a money management class in college as an elective but it was easily one of the most vital classes I took. Visa, Mastercard, AmEx were on campus every day giving out stuff to kids who applied for credit cards. I had one myself but when I realized it was getting away from me, I cut it up and paid it off....okay my mom cut it up and forced me to pay it off...but point is I soon realized that paying $25 a month on a $300 balance was not going to get me anywhere.
So once again, I will ask that if you're going to make a suggestion it be one that might be helpful to someone.
Sure, reduce your expenses and save 10% of what you make and invest it in some way.
Oh oh, you can't do that? I bet I can find many families living off 250 less a month than you. How do they manage? In your case you could easily trim $150 or so off your bills, probably could get an extra $100 by getting a cheaper place.
Regardless the vast majority of people that pretend they cannot save money can, they just have to make sacrifices. You are simply not willing to make those sacrifices, which is your choice.
Quote:
I just wonder why all those stupid people who live paycheck to paycheck haven't figured out that all they need to do is put a $1,000 in the bank?
You say this in a sarcastic manner, but in reality its that simple. I don't know a single person that lives paycheck to paycheck that can't cut some fat from
their monthly costs.
Quote:
it was about the OP feeling that the ranges of credit levels being skewed.
Sure, so the OP doesn't have to use credit. Why complain? When someone tries to over charge me for something I don't buy it. Pretty simple. If you think the interest rates are too high, then don't use credit.
Quote:
...the thing I don't like about credit ratings is that they are so unforgivable.
I'm not sure what you mean by this, but your credit rating will go up pretty fast once you get your finances in shape.
The credit scoring system is a scam. It was originally developed by Fair Isiac to assist lenders in making decisions on extending credit. Today it is relied on 100% with no leeway meaning so many loan applications are approved or denied without a human ever looking at it. The stupid FICO computer makes almost all decisions.
Quite some time ago I seem to recall a president, so I must not be talking about bushy, that got a new law into affect where it would be illegal for a creditor to deny credit based on a medical debt. Now we all now that is blatantly ignored. I wish we could get some teeth into this little known law.
There are so many people with perfect credit except for a medical emergency they got into with no insurance and of course was unable to pay the $100,000 per day they spent in the hospital. So their credit is forever ruined by no fault of their own.
This stinks!
Excuse me. Right there in red is "their fault". It sure isn't anyone else's fault.
Excuse me. Right there in red is "their fault". It sure isn't anyone else's fault.
This comment was made about people not having insurance. Okay, I don't have insurance right now. Why? Because I make too much money for Medicaid and I haven't been on my job long enough to qualify for theirs. So I guess that's my fault right? And I'm lucky because when my 90 days is up then I can get insurance but there are other people on my job who don't qualify because they work less than 35 hours a week. Or they just don't have it because they can't afford to have that much $ taken off their checks. Maybe that's one of the sacrifices the other poster was talking about.
Quote:
Originally Posted by Humanoid
Sure, reduce your expenses and save 10% of what you make and invest it in some way. Oh oh, you can't do that? I bet I can find many families living off 250 less a month than you. How do they manage? In your case you could easily trim $150 or so off your bills, probably could get an extra $100 by getting a cheaper place.
Once again a stupid suggestion. Why is this stupid? Because A. I already signed a lease. B. I live in Orlando $800 is not expensive for a 2 bedroom in Orlando.
Quote:
Originally Posted by Humanoid
Regardless the vast majority of people that pretend they cannot save money can, they just have to make sacrifices. You are simply not willing to make those sacrifices, which is your choice.
This is a typical quote by a typical person who has never been through typical problems. I don't know what type of math you took in high school but obviously you're able to do magic with money. I know plenty of young, single mothers - making $10 an hour - who budget their checks down to the penny. There is no extra money. There is no money to save. How do i know this? Because I volunteer for a program that helps these girl open checking and savings accounts and establish and maintain credit. I see people everyday who work at 40 hours a week and when they get their paycheck it's gone before they cash it. These girls aren't out buying Gucci bags and Prada earrings, they're buying pampers.
Quote:
Originally Posted by Humanoid
You say this in a sarcastic manner, but in reality its that simple. I don't know a single person that lives paycheck to paycheck that can't cut some fat from
their monthly costs.
Like what? Like rent maybe? Sure lets all move into the less expensive housing. But we all know what type of areas usually have less expensive housing. Or maybe cut back on food - well generic stuff ain't that cheap anymore. I say this because you somehow missed my entire point. Life happens. You can plan for it, you can write it down, map it out, sing songs about it. Life happens. And not every one can just bounce back and get on track. It's not just young girls in that program. It's women who haven't been in the labor force in years, have no real education or work experience. Then they go through a divorce or they lose a spouse. So they have enough money to live on for a year. Then what?
Quote:
Originally Posted by Humanoid
I'm not sure what you mean by this, but your credit rating will go up pretty fast once you get your finances in shape.
I already told you my finances are fine. I live well within my means. And if you would stop chopping up my damn posts then you would have got the full meaning but let me break it down for you - If it 2005 I lose my job and am unemployed for 3 or 4 months - those payments that I miss, those accounts that go to collections, those cards that get charged off will be there for 7 years. And every time someone runs my credit they will see those entries. Yes, credit may rise but not as fast as it drops. My mother recently switched insurance and her rates were high based on her credit and the only delinquent things that were ever on my mother's credit were hospital bills 4 years ago - I would consider that unforgiving.
Quote:
Originally Posted by Humanoid
Sure, so the OP doesn't have to use credit. Why complain? When someone tries to over charge me for something I don't buy it. Pretty simple. If you think the interest rates are too high, then don't use credit.
I didn't think the post was about a complaint and if he was complaining so what. How bout this: if you don't agree with what someone is saying - don't respond. Pretty simple. I'll prove it because after this post, I'm not coming back on this thread.
You know, this forum used to be where you could find good conversation and even a nice debate every once in awhile but I don't understand how so many people can make comments like yours about probably 35% of the American Population.
Yes, there are people who mishandle their finances but I think the majority of people with debt or low credit scores since that is what this thread is supposed to be about are just average people trying to make ends meet. Maybe they have overextended themselves, maybe at one point in time they had more money then they do now, maybe they got drunk and spent all their money in Vegas.
Doesn't really matter anymore. The only thing I said and have continued to say is that if you're going to suggest something, why would you suggest something that is helpful to no one. I guess I'll never discover the answer cause this conversation has reached it's expiration point of things that interest me.
This is why there needs to be a credit/financial management curriculum taught in highschool. True enough, people are responsible for their own debts but if you weren't taught the importance of credit/debt, managing money, how will you know? Nobody taught me. I had to find out the hard way. I called myself doing the right thing by graduating college, getting a good paying job, etc. I apply for a loan to buy a condo at the time, and BAM, I can't get the loan because my mother opened up various credit accounts in my name while I was young. I eventually forgave her and 2 years ago she finally paid all of the debt and I ended up getting a house. But that was embarrasing as hell to go through. I know that the system may not seem fair, but unfortunately, its the one we have and we have to live with it. True, my mom incurred all of that debt but the bank saw it as MY debt and my debt only. They could care less about my sob story. I certainly wasn't about to send my mother to jail for fraud so, I had to suck it up and deal with it. I posted my story so hopefully a young person reading this will get a head-start and learn to start budgeting and stay on top of checking their credit report annually..
Nobody taught me anything about money management when I was a kid. I wish they had. I would have gotten an earlier start saving.
When my son was 12 I opened up a stock account and taught him about the stock market. I would let him pick stocks and then we would research them and decide whether or not to buy them. When he was in HS I got him a credit card with a $500 limit and told him that he can only charge as much as he can afford to pay each month. He never paid a dime of interest on his card. He even opened a Roth IRA when he got an after-school job at 16. He was one of the most financially responsible kids I have ever seen. But that is because I harped on it from the time he was a little kid. I think it is a parent's responsibility to do this, but some parents aren't financially responsible themselves, so what can they teach their kids?
I wish they would teach kids about this in HS, because too many kids have a sense of entitlement and feel like they can go out and buy what ever they want and then they act surprised when they have enormous credit card debt and they have trashed their credit. You know... it's that pesky old "actions have consequences" thing.
Heres my story: I don't keep balances but I use credit cards several times a month. My score was great to begin with but I had been monitoring it for a few months because I was getting myself ready to purchase a home. One month, I get an email update on my credit score. I went up a whopping32 points in one month (from the last time I checked my report). It didnt make sense because, depending on the circumstance a persons score goes up in small increments (right?) usually not in huge leaps.
Turns out that the only difference was that I had several OLD inquiries that expired (they hit the 2 year mark) and fell off my credit report. That alone is what accounted for the increase in my score. Now is that really an accurate way to assess someones credit worthiness?? How odd. I think people can get 'lost' in the calculations and how certain aspects are measured with others...I don't know, its just strange.
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.
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.
But give them time to learn and figure this whole credit thing out.
Since you have all the answers, maybe I should have hired you to be my financial advisor because basically what you're saying is that if I lose my job today on 01/31/08 - and let’s say I get paid every week so I'll get my last check on 02/08/08 - that I should be responsible enough to have money to cover me and my family. Let's see how much that would be.
Great Posts Are Appreciated!
