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CC debt is unsecured debt. Debt only matters if you need or care about your credit score.
Just to give an easy example.
I only have one credit card and it has a limit of 20k if I remember right. I pay it off in full every month. My credit score is around 800. I was thinking I could easily start collecting credit cards with let's say 10K average limits until I get around ten of them.
When I am ready to retire I could simply buy a car, boat, jet ski, big screen TV etc using my credit cards. Pay minimum payment for 6-12 months to make it look good and then just default. What are they going to do ruin my credit for 7 years I don't care I don't need it.
It works even better if you plan on retiring overseas.
ROFL..what a great "retirement plan"
Instead of "live the dream" you can "charge the dream"
I don't have much consumer debt ($12k on a 0% interest, no transfer fee card that I can easily pay off) but I do have decent size student loans, mortgage, and car debt. It doesn't bother me much at all, perhaps because I have a decent chunk of cash to hold myself over. I am in no rush to aggressively pay off my student loans or car note. Life trends toward the mean and unfortunately those who are the most responsible are least often rewarded in society. I want to enjoy my life, drive a nice car, live in a safe comfortable area, and will take on a bit of debt to do so.
I don't have much consumer debt ($12k on a 0% interest, no transfer fee card that I can easily pay off) but I do have decent size student loans, mortgage, and car debt. It doesn't bother me much at all, perhaps because I have a decent chunk of cash to hold myself over. I am in no rush to aggressively pay off my student loans or car note. Life trends toward the mean and unfortunately those who are the most responsible are least often rewarded in society. I want to enjoy my life, drive a nice car, live in a safe comfortable area, and will take on a bit of debt to do so.
I want to enjoy my life, too. Why don't people factor financial security into the "enjoying life" equation?
I enjoy the fact that if I lost my job tomorrow, I could live for years without needing to find another one. And no, I'm not eating rice and beans every night or driving a beater car.
I have roughly $1,500 in cc debt and sometimes I get stressed out about being able to pay it off without having to starve for 6 months lol. Yet there are people who have 5,000, 10,000 + in cc debt with numerous cards maxed out yet they don't seem to lose sleep over it. If they have a late payment they have a late payment, life just goes on fine and dandy for them.
How can certain people be so lax about ultra high credit card debt, when others get stressed out about making minimum payments each month and still having enough to pay other bills? I swear I get more worked up over a $500 cc bill than others who may have $5,000 + in cc bills.
It's called "people are different."
No use in overanalyzing it.
I want to enjoy my life, too. Why don't people factor financial security into the "enjoying life" equation?
I enjoy the fact that if I lost my job tomorrow, I could live for years without needing to find another one. And no, I'm not eating rice and beans every night or driving a beater car.
Because I find, most of the people who talk about "financial" freedom really don't enjoy life. They are so busy trying to plan for every scenario that could go wrong that enough is never enough.
It depends on what you have to do to get so called "financial freedom" yes I know folks who can also make that claim, they also never been on vacation , one friend actually wears a coat in the house so she doesn't have to use her heat.
Also depends on age. Being laid off at 55 with no kids, no mortgage maybe not a problem, 45 with kids different story
It depends on what you have to do to get so called "financial freedom" yes I know folks who can also make that claim, they also never been on vacation , one friend actually wears a coat in the house so she doesn't have to use her heat.
And because of that, you assume she "really doesn't enjoy life"?
I have roughly $1,500 in cc debt and sometimes I get stressed out about being able to pay it off without having to starve for 6 months lol. Yet there are people who have 5,000, 10,000 + in cc debt with numerous cards maxed out yet they don't seem to lose sleep over it. If they have a late payment they have a late payment, life just goes on fine and dandy for them.
How can certain people be so lax about ultra high credit card debt, when others get stressed out about making minimum payments each month and still having enough to pay other bills? I swear I get more worked up over a $500 cc bill than others who may have $5,000 + in cc bills.
$1,500 is nothing. I mean it. $10K is nothing.
I work with mortgage refis. Nothing surprises me anymore. I've seen people own their home free and clear and have $100k+ in credit card debt- which is totally baffling. Another thing that baffles me is when they have multiple store credit cards. You needed TWO Target cards? Really??
One of the worst I've ever seen was a person living in Chicago. She had store cards to Neiman Marcus, Tiffany, Nordstom, Saks, Bloomingdales's, etc... It was almost $300K in all. I don't remember specifics, but I know the condo was fairly inexpensive by Chicago standards- $400Kish. Or, rather, it was inexpensive for someone shopping at high-end stores. Obviously she was shopping well above her means. I felt so sad for her. I'd rather have the nicer house/condo than all the nice stuff that will be 'outdated' in a year!
**Just an FYI- I do not interact or meet any of the borrowers. I work for a title company. One part of my job is to make sure the lender is paying off all liens, judgments, taxes, etc... so we can issue title. So I have to go through the 'payoff' section of every order. I communicate with the lender when there is an issue. I probably speak to one borrower a year on average. They normally find my phone number on a random document, call me, and ask me questions that only their loan officer can answer. Anyway, I just wanted to add that.
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