March 26, 2007
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Neither a Borrower, Nor a Lender Be
Credit cards have been in the news because Congress is addressing unfair practices of credit card companies. They are discussing the issue of how credit card companies are charging unfair interest rates, rasing interest rates and giving unfair fines.
There are those that are claiming that the problem is the consumer. The government is probably going to pass laws that put more responsibility on the lenders.
I have heard of movements that tell a person they should have no debt except maybe a house payment or a car payment. Some in those groups will also say you can have a school loan. But others will go so far as to say that you should not have a car loan or a house payment.
Is it realistic to live without borrowing any money?
Comments (135)
NOPE
Yes, just have generous relatives.
Well, would you look at that.
Why should living within one’s means seem to foreign? It’s perfectly possible. Get a job, and spend less than you make.
I think in this day and age, it’s a little unrealistic, but not totally out there. We’re currently working on being 100% debt free, and we’re almost there. Both cars paid off, most of the credit cards, and student loans. All that will be left is the house. We’ve made a pact to not go into any more debt. We won’t buy what we can’t pay cash for. It will be a little harder, and take saving, rather than paying interest. But it’s definitely doable.
It could work.
If you never want to own anything major like a new car or house….or take years to build it yourself.
I have a job and I am busting tail trying to make ends meet. I’m working over time and I still can’t afford to make a living.
Not if you intend to own a house. (unless you are especially wealthy)
I do think that many times people are not responsible with their credit cards. K and I only use them when we can pay off the charge within two months. If that is not possible, then we don’t make the purchase. That is just the way we are.
People need to learn to live within their means.
Yes, but it takes extreme discipline. Most people (me included) get into a lot of debt because we take the easy way.
I think they need to discuss debt in more detail at school. I didn’t know how it all worked and ended up with THREE maxed out cards. Now I’m 30, wiser, and almost out of credit card debt. I have many friends/coworkers who are facing the same situation.
I could live without borrowing money now….except for my mortgage. There’s no way I could have bought the house in full at signing.
I’m going to try! Its hard, and you don’t get what you want right when you want it, but it is possible.
Don’t eeeeevvvvveeeeeeeen get me started on credit card companies. I hate them all. They are the devil. I’m glad someone is finally going to do something about them. I recently closed an account that made it all the way up to a 30% APR and they refused under any circumstances to lower it.
BTW Bank of America has one of the worst customer service skilled workers out there. They’ll raise your interest to 30% in a blink of an eye. And good luck getting an American on the phone… just like Dell. Stupid outsourcing
sure
It’s not realistic at all if you want to own a home, drive a car, get an education and stay healthy. Uncomplicated surgery with a 24 hour stay in the hospital costs about as much as a car.
My parents are not rich and they have never borrowed any money. They have a credit card for emergencies but only buy cars and houses with cash. It is called saving money.
It is, but I don’t think it’s necessary if you’re responsible.
That depends… Are you smart with money or not?
It is realistic, you simply have to live within your means and do without the fabulous new car every year.
When I was in sixth grade, I was out with a friend and one of his neighbors came out of his house lecture us that the only things you should ever take out a loan on are school and your first house. Beyond that you should only buy what you have the cash for. He said that the only loans that he had ever taken out were to buy his first house and as a co-signor on a loan for his brother’s first house. His second, and at that time current, house was paid for with money earned from the sale of his first house. He also spoke of the evils of credit cards.
I use a credit card just so I do not have to carry cash with me then I pay it off in full at the end of every month. Therefore while I do incur debt, I never spend more than if I was just using cash.
The guy I was talking to was a policeman and his wife was a substitute teacher. They probably did not have much money.
No, not unless you come from a wealthy family… The key to staying out of debt is to use your credit cards wisely. Only use them for emergencies, or for small things (like groceries), that you know you can pay off every month. Don’t be stupid with them!
I wish it could be possible to not have to borrow money..
no. Banks and Credit card companies want us living in an interest prone plastic world…
I borrow money so I can buy drinks from the school vending machine… I don’t know if I could live without buying drinks from the school vending machine…
My parents say no, but they also tell me that there is having payments, and then there is unnecessary debt. And that if you want to establish credit, buy something big, pay it off, voila! Good credit.
Absolutely! I’ve done it for the last 25 years. The only reason I broke down and got these two credit cards were because I had no credit history and I need to get my mouth done. Personally, I hate being in debt. And I hate this idea that your worth is measured in how much you owe.
almost impossible, but i think it can be done.
Yes it is, but delayed gratification is the ultimate American sin
Good idea? Yes. Possible? Not quite. Cars are being sold for more than the cost of my house. In order for one to have zero debt, we need to get rid of the rich-rich and lower prices of everything.
How can the middle class and lower class be expected to purchase in cash a million dollar house (or more expensive)? Impossible.
It has been done. But I don’t consider a house payment to be debt. If we rented we’d be paying anyway. Might as well be paying for your own house. Although, I do hope to put more and more money on the house to get out of paying so much interest. It’s the interest that kills. We end up paying so much money for nothing. :0(
Credit cards should be shunned like the plague. We finally got out of debt because of generous relatives.
Jackie
Definitely not. The biggest investment of our lives is buying a home. Like my econ prof said, “If I waited until I could afford to buy a home, the first thing to happen in that home would be my funeral.”
I do think that credit card companies targeting college students has got to stop. I’m one of the lucky ones, my credit debt only got up to about $2000 (we’re not talking student loans here). I know people that owe more than $10,000 and they are barely 21. It’s sad.
Well, if you’re a televangelist or big wig preacher who can talk everyone into buying everything for you, including a new 18 million dollar jet.
But for the real world, if you want a home, a car, you have to carry some debt.
I do think that a lot of people, and I’ve been guilty myself, let it get out of control. I think we have at least 2 generations of people who live to satisfy their every want and desire. They don’t think about the consequences to themselves or others.
I know that’s a sweeping generalization and not everyone’s like that but I’ve seen a lot of selfish, self-absorbed people around me, and most are under 40
But having said that, I also notice that there is an attitude among the “WW II” generation, too, that they own the world. Especially when they’re behind the wheel!
Dang, I’m really emoting these days!
not if you’re poor. But my husband and I are poor and SO FAR we haven’t taken out any loans. We have credit cards so that we can build credit, but we pay them off in full every month. We try to follow Crown Financial Ministries suggestions as much as we can, but eventually we will have to take out a loan on a house.
sure it is…unless you want to buy a house and/or go on to higher education. It is called living under your means. we live in such a consumer oriented society tho, it’s hard not to want.
I think it is impossible to be completely 100% debt free your whole life. The average middle class American cannot afford to pay $500-1000 a month in rent (depending on where you live) AND save up for a house. I think people could choose to be car and credit card debt free, but unfortunately people these days have a screwed up sense of what is a necessity and what is a luxury. No, you do not have to have a brand new car every time you pay one off. No, you do not have to have a big screen tv, surround sound, and a DVD collection to rival a video rental store. Too bad most of the younger generations including mine think they are entitled to it instead of realizing they have to work for it.
As a sidenote: Yes, they should crack down on credit card companies and they should also crack down on places like Best Way Rent to Own where people end up paying $5000 for a $800.00 refrigerator.
I’m trying to get to that point.
haha, i manage to, but then again, you don’t want to live like me.
I suppose it can be done, but with rising cost of necessities of life it would be difficult. We all have consumer responsibilities also which is asking ourself can we afford to borrow the money and pay it back within a relatively safe time frame…if not we should not get it. Why would we want to buy something on credit because if you don’t pay it off within the first billing period and make only monthly payments…by time you have fully paid off that purchase it cost more then the initial buy!!!
One poster noted how health care is also out of control and an unexpected visit to a hospital could cost a consumer greatly…with insurance but especially those without insurance. A good portion of the American popluation is uninsured.
Personally, I would not have been able to get a college education without a portion of it being applied to a student loan.
BOA should be the first to be penalized and heavily for their greedy consumer practices. Didn’t they brag about increased profits last quarter and the majority of that increase came at the expense of their over charges in interest, and “other” fees to card holders.
By the way, I got my credit card by looking at an article in Money Magazine years ago that rated credit card companies. I’ve kept the same card, and they even lowered my interest rate when I’d been with them for several years.
Do a little investigating on the internet to rate the different cards.
Personally, I’ve had problems with Discover and I’ve heard very bad things about Bank of America
It is very wise.
Think of why people get credit cards…
To buy things that they otherwise could not afford…
I agree with the idea that a car, a house, and an education are things that will benefit you in the long run; so being in debt for those things – is almost a must to make it in life. {although many make it without a car, and without a piece of land titled in their name}.
But, getting a credit card, so that you can purchase commodities (shampoo, bras, food, clothes….) i don’t think is a good idea. because if you have to buy it on credit, chances are you don’t NEED it.
I’ve lived on eggs and PB & J for months at the time, because I couldn’t afford anything else. A loaf of bread & a jar of peanut butter will go a few days, for just a few dollars. If people didn’t feel like they “Deserve” something more out of life… then we wouldn’t feel a need to eat fancy (expensive) food.
Why would you spend “money” (creating debt) on things that are not long-lasting… and months (or years) later you’re still paying on them, and paying interest. I don’t understand why people blame the credit card companies, just because they didn’t read the fine print before signing the application.
If you’re dumb enough to get a Victoria’s Secret card (just as an example) and rack up a thousand dollars of debt on bras & undies, then you should understand that the interest you’re paying, is a “user cost” for having the product NOW and making payment[s] LATER. That’s what the interest fees are for… because otherwise the company could have sold the same product for cash, and been earning the interest from the bank.
Credit cards are a huge responsibility, as are mortgages – car loans – and student loans. But again, your house, car, and education have long term equity when compared to things like clothes or other goods purchased with that Visa…
My vote is: if you can’t afford it don’t buy it.
I think it would be hard to avoid any debt, but I think it is possible to not have credit card/unsecured debt.
Its nice to say that oh don’t spend more then you earn and that’s true, it’ll make life so much easier but when you have a couple crap cars die on you and the only way to pay for it is to put it on a credit card, then you put it on a credit card because otherwise, how am I going to get to work?
Are these people the same people who get the tax breaks from Bush?
My husband and I are currently 100% debt free, and plan on never being in debt for anything again except for the purchse of a home. To the people who say that you can only be out of debt if you’re wealthy–that is 100% untrue. The key is telling yourself NO when you want to buy something. Don’t use your credit cards for emergencies–save up a little bit of money so when emergencies come, you are ready. About a year ago we had a total of 10,000 in debt, and now it is gone. Of course, we live in an ugly apartment and have furniture from Goodwill. We have to tell ourselves NO all the time. But think of all the nice furniture we’ll be able to buy in the coming years, since we will never ever EVER be wasting money on interest to credit card companies or on car loans!
I agree with not having debt other than a house or car payment. If everyone did that the credit crda companies would go belly up. I was taught at an early age “If you don’t have the money for it you don’t need it that badly it’s called saving.”
Borrow money? How absurd! Doesn’t everyone have half a million dollars lyin’ around to buy a house?
no, if you want to go to a good college, it will most likely cost a lot of money. A lot of people buy shit that they can’t afford and borrow to pay for it, that’s really dumb.
It’s also dumb to settle for something really shitty because you’re afraid of borrowing.
Im working on getting debt free by the time im 30…… ive ruined my credit with about $40,000 in debt……. and thats everything…. car, credit cards and student loans….
And PS you only need a credit card and a good credit score so you can buy things you can’t afford. If you can’t afford it, you shouldnt be buying it anyway. Save up $1000 for an emergency fund and trust me, you can make do with that. If your crap car breaks, you can normally fix it for 1000$. If not, you can buy a decent car to last you a few months for 1000$, while you save up for a better car. Trust me, guys, it is possible to do this on a small income.
I’m not sure. I wonder if some people could pull it off, but if I want to get the education I’m getting, I can’t.
I wish it could be true, but not with the college prices we pay today. I’m only twenty and I already have about 10,000 worth of death due to school loans. It’s crazy. My main goal this summer is to pay off my $500 credit card bill and then get rid of it. I am sticking to my debit card from now on.
http://www.daveramsey.com
YOU DO NOT NEED DEBT!!!
It would be nice to be able to pay cash for everything…but is that realistic? I don’t think that you should accrue debt for unnecessary things (for instance, trips to the mall, another new tv…). Otherwise, it’s alright, as long as you can make your payments.
No, but I also think people take out way too much money on stuff they really don’t need. I don’t think it’s unreasonable to have student loans, and a loan on a house, but one of your first priorities should be to get that debt paid off as soon as possible. People just like to abuse credit too much.
I don’t know but, uhhh…. can I borrow $5… Just until next week. I swear.
My family has two summer homes and winter lodge in Canada. We issue loans.
It’s doable, but unnecessary.
If people would just be responsible, it wouldn’t be such a huge issue.
Credit card companies prey on the irresponsibility of others. That’s sleazy but legal. Whether you’re a victim or not is up to you.
Not unless you want to walk everywhere and live in a box on the street.
The trick is to see all borrowings as business projects, and calculate how much you will make or save in the long run. So borrowing to buy a home rather than saving for it for twenty years is a good idea, as you direct your income into reducing a debt that will vanish, rather than into paying endless rent that will rise till the day you die.
Car debt can be justified in the same way, but not as strongly, as can education.
But things that you merely want, but could do without? No way, unless you want to become a slave to the system.
But you have to be able to do the math, and few people can, and the agents of the three big villains – the banks, the insurance companies, the credit card companies – have no intention of teaching you.
Credit card companies are loan sharks. Stay away from them or they will own you.
I think a fixed rate loan such as a fixed rate mortgage payment and also car loan is okay. I mean how many people can put cash down for a new house or car?
We can go without carrying credit card debt (except for emergencies) but not without a mortgage. Plus…the mortgage interest is a great tax break (haha). You could go without vehicle payments if you buy a cheap car and put what would have been your payment in the saving each month until you have the money to buy a newer car. But, most Americans are so spoiled that they think everything is a must-have even if they have to charge thousands of dollars to have it.
Credit card companies are evil, evil, evil. I’ve seen first hand the rotten things that they do to people. And the worst part is, these companies have lobbied hard for it to be extremely difficult to live life without having credit or borrowing money.
Unless you are independently wealthy or extremely talented, just try going to college without borrowing money. Or purchasing a house without taking out a mortgage. Or taking a plane trip without having a credit card. Or starting up a business without taking out a bank loan. You’ve got to be pretty ingenious to live without borrowing money at some point in life.
All the same, I’m working pretty hard to pay down my debt (all of it student loans from grad school), which I did my best to keep down in the first place by attending state college and staying at home for grad school. The first thing that hampers many young people starting out in life is credit card or student loan debt.
I have a lot more to say about these credit card companies, but I have to get to work now. Rest assured it would be a hell of a long post.
Not if you intend to rent a car. You MUST have a credit card in order to rent a car. The rental company puts an authorization on your card, which is basically a temporary debt you owe… However, you can pay by another means when you return the car and the authorization disappears…
Technically though, we all have debt… There is not one person in America without debt that has been taken out on their behalf by their government… Right now, the per person debt is about $29,348…
It can be done… I personally have school loans only at the moment, but I’m sure that will change somewhat once I graduate and get a job. Once I can determine what I can really afford, I will more likely go after it. If I choose to take out a loan to get something, I want to know that I can make the payments each month without financial burden or worries. Everyone should consider that, at least.
Aother example this is from Proverbs if you read your Bible
“The borrower is SLAVE to the lender and the rich rule over the poor.”
Are they kidding? I’m in debt up to my ears… house payments, car payments, and two years ago we bought a company. So I certainly know what debt is… and in another year, I know it even more when my oldest goes off to college. We don’t pay enormous interest rates though. Hubby will move from one credit card to another for the best rate… some having zero interest on the first 6-months, including transfered debt. Be wise and smart about it and interest rates don’t have to kill you.
Not at all! When are you going to have $300,000 (or more) in cash lying around to buy a house, especially if you’re paying rent? Waiting on being able to afford school would mean you’d have to start working and saving, and it’s obvious that it’s hard to live anything but hand-to-mouth when you don’t have a college degree.
Being in debt just isn’t a reality for most of us, but we mostly have a choice on what to be in debt over (ie big screen TV vs. an education).
not really, but then again, I don’t do it
It is possible to live without credit card debt, but not without a mortgage or student loans.
as a bill collector, i say it is possible, though not probable. i think people take too many things for granted as “necessities” such as cable tv. a new outfit every month, or week. food(referring to eating out all the time, not just eating nurishment). a fancy car. big screen TVs, the list goes on. personally i lay a lot at the consumers feet. people seem to think they are entitled to free money. well, guess whos paying for the lost revenue of all the deadbeats out there. those of us who actually pay our bills. everyone has an excuse as to why they cant pay(even the people who have to have their parents killed in a fiery plane wreck one month then a horrible house fire the next). but some people work through the “excuses” to pay there debts while others hide behind them. ive litterally had a woman who couldnt <gasp> give up cable tv for ONE month, have her 16 year old son get a job and contribute to the familly or even have her ex husband, the father of her children, actually support them financially. people are rediculous in their reasoning behind such things. we need to bring back debtors prisons.
Sure – not easy but possible.
I think it is realistic to get a car without a loan–that just takes some planning. Also, I have a few friends who have worked really hard and will graduate from college with no (or almost no) debt. But getting a house without a loan just isn’t reasonable–there is no realistic way to save up 200-300+ thousand dollars and buy your house (if you did, you wouldn’t have it for a long time).
I would say that debt is ok for school and housing, also, if you can make a rather large downpayment then I wouldn’t be too uncomfortable with a car loan either.
It’s a goal to aspire to. If you can buy a car outright, it really makes a big difference. It seems impossible for most people to buy a house without a mortgage though. But credit cards… it’s so important to not accumulate debt on those things.
BTW most people don’t know this, but if you have a decent credit standing, or just if you spend a decent amount with a credit card, it’s so easy to call them up and demand things like having a fee taken off, or reducing your interest rate, etc. It only takes you calling them. They make so much money off you, and want to keep you happy… and using their cards. Threaten to stop using their credit card and they’ll do what you want.
btw when I said the necessities of life I meant a roof over your head, groceries, water, utilities, gas…–not cable, internet, satellite television…those are not necessities. I went two years without cable television because I could not afford it and nearly six years without a computer for the same reason. My computer paid cash for…did not finance it and only got what I needed.
If it got to the point I could not keep these ammenties in my budget they are gone.
It’s possible, I know many people who do, but it’s not the smartest stance to take for most people if you want to get the most out of life.
Bill Gates has found a way to do it.
it is possible… if you have a lot of money
ryc: I’m a doctor…of the soul, Dan!
MAKE IT FUNKY
Wait, wrong soul.
Yes. You simply have to learn what is essential, and what is not.
I don’t think the home mortgage can count in this equation, at least not in America — its so much cheaper to buy a house, take out a mortgage, and then be able to write the interest off on your taxes. Why rent? The other things Dan mentions are simply wise financial planning.
A house payment and one car payment at a time are realistic. That is what we do. I try to avoid credit card debt, but it’s tough I know.
HA.
if it were, i’d have done it.
Yes, if properly planned out. However, it is more realistic to assume that large loans, like house or car payments (and most likely school), will have to be considered.
I do not know if it is for everyone,but we do.
I stay away from borrowing money because that way I know I can keep above it all. Obviously we would/will take out a loan when buying a house, but I am pretty much against car loans, etc. We don’t have a credit card either. We live within our means, even if that does mean not having the things that a lot of other people view as being essentials.
How come everyone is talking about $200-300K to buy a house?? You need to move to a new city if that’s the best price you can get on a home. We have looked at very nice newer 2-3 bedrooms below 100K, and if you are willing to move into an older home you can even get 4-5 bedrooms for less than 100K, with a nice yard in a decent area.
Yeah, how do you think they did it before banks existed? They paid cash for everything. Instead of leaving the estate behind to account for all the debts incurred, they would leave the estate behind to the heir, and the heir to his heir. Let me ask all of you who can’t be a student without a student loan or who can’t drive a car without a car payment… How do banks make money? I’ll tell you how: they lend you money at 6% or 10% or 20% interest while you earn 0.22%APY on your savings account. THAT’s how you make money! Now if you didn’t have a car payment or a student loan payment then how much could you be putting away for your retirement? Most people would rather spend more money each month on something that’s going DOWN in value [car] than in something that’s going UP in value [the stock market has averaged 12% since it began and 100% of the 10-year mutual funds have MADE MONEY] It’s not really that hard to figure out that when you’re not borrowing money you’re not losing money.
haha my wife just said what I was going to say next!
about $200-300K houses. I’m doing an appraisal on a house right now that sold for $59,900. It’s a 1300 Sqft 2 bed 1 bath bungalow with a full unfinished basement. Pretty good condition too considering the age. People without hope make me sad
yes. The debts I have: One car loan, student loans, and some CC debt that was mostly for frivolous things like vacations when we couldn’t afford them. If I’d had some measure of self control I’d only have loans for sensible things.
Yes, I know people who do that all the time…actually have done so for many years. – JN.14:27 Rom.5:8
For me, no, it is not realistic to live without borrowing any money. And for those who say “yes” and to “live within your means”, you can say that because you make the big bucks.
I am 30 years old.
I have NO DEBT.
I do not use credit to buy anything.
I do not have much.
I HAVE NO DEBT.
I don’t know, weigh the pros and cons.
of course, just win the lottery…
It’s not realistic to live without credit, but people don’t need nearly as much as they use. House and medical expenses obviously are going to require credit. However a car you can save up for, provided its not a brand new BMW, or you can make monthly payments on it. School generally requires students loans, but there are other opportunities to save money out there if you were to look hard enough. Including going to a cheaper community college for the first two years. You don’t need it for anything else. If you don’t have the money saved up for it, then don’t buy it, unless its something you absolutely need. That’s why I stopped using my credit card after 3 months. The debt wasn’t worth it. Debit all the way!
It is realistic. BUT you have to start very early in life being responsible for setting money aside for what you want down the road. I have someone in my group who has been responsible like that and they are much more content and seem to have what they want without all the debt involved. I wish someone had told me about “the plan” when I was younger. It would have saved a lot of grief.
I don’t plan on going in debt. My friend is getting married and they are not taking out a loan to build their house. You don’t have to go in debt.
Yes.
No, it’s not realistic. B-U-T too ofter people go into too much debt. We live in an “I want it now” society, so no one saves for anything any more. That’s where we get in trouble.
I have no debt, have not had any for years. Now when I buy a house I’ll have a home loan, but I really try to only spend what I have, that’s it.
I don’t think so. If you work hard, you can go without the credit card. Instead of taking out a loan to get that new car as your first ride, get a used, cheap one instead. Save money and you’ll be fine.
If you don’t have the cash, don’t get it.
Unless you have won the lottery, it is impossible to live without credit. The credit card companies probably have more pull in this country than the government itself.
Wow… I guess it could happen… but gah wouldn’t be miserable?
Possible,but tough. Weigh your options first. If you can afford to pay in credit cards, go ahead. I’d reccomend debit cards though.
If it comes to larger investments such as a house, a car etc. it is quite unrealistic to not borrow money. Be wise and make sure you can pay off the mortgage. For everything else, I think a good rule of thumb is to not spend money that’s not yours (and frankly, I cannot understand what’s so difficult about that!)
NO, not really… maybe if you have a job in highschool to buy a used car and either never got or college or get a gigantic scholarship that pays for most or all of it. School is so freaking expensive, like 10 -20,000 per year… thats 40-80,000 just for an undergraduate degree, not even including graduate or doctoral programs. The irony is that that college graduates make $100-200,000 more in thier lifetime, hwoever, the price of loans with interest comes close top the same. Not to mention that those not in highschool have 4 or 5 years of job experince by 22 while college people have a lot less, usually part-time.
I guess thats capitalism for ya. the only other way ive ever heard is that some churches dont have debt or insurance. If somone needs something they get money from this “well” created by the congregation/church, which all the member give too. SO, no insurance, no car loans, no debt.
Daniel (doubledb)
If you can go without it, sure. Most people aren’t financially stable enough to not have to take out a loan for the big purchases, such as cars and houses.
I have 3 credit cards but there is only a balance on one of them and that is less then $300, I had to buy textbooks from school. I also have a $1400 loan from a website called http://www.prosper.com I pay 13% interest on it and it is set up so that I pay it off in 25 months. Other then that I am debt free. I attend a small bible college online and I live at home with my parents. Living with little or no debt can be done, you just have to live a frugal lifestyle. I own a 20 inch tv, vcr, and a computer I use for school. nothing else.
Yes. You have to make sacrifices though (used car, communiy college and/or state school) at first and its likely you will never own a house. Can it be done; certainly. Would I do it; no. I borrowed money for my second car, college and my house.
anyone that thinks that is assinine
no. But the only things you should borrow for are probably a house and/or car.
If we couldn’t borrow money, many of us would probably be dead.
That’s what I do.
it sounds to me like people are blaming an entity for their uncontrollable spending habits.
“live within your means” is a phrase that causes these people tons of grief, because what we should really be doing is living below our means. once we’re able to do that, we can save up for things rather than getting in debt for them.
the only things i can legitimately see a reason for going into debt are medical reasons, buying a home, a car, or furthering one’s education.
and by car, i don’t mean a freaking benz. there’s nothing wrong with a used car.
i will never buy a car that will depreciate at least 10% in value the instant i drive it off the lot.
I don’t like how some people have mentioned “car” as an “investment”. Usually my investments go UP in value.
Don’t THINK so….
Not in the USA, mother of all capitalist countries! Come to think of it, we’re the only one capitalist country!?
It is possible… But you would have to be very patient, be okay living without, and save save SAVE!
yes. that’s my goal. it’s difficult but possible.
I’m living proof that you can do it. I am 21 years old and every single one of my peers is at least 5000 in debt due to their excess use in credit cards. I took the other road and decided plastic money was not for me.i currently have a great job and spend money as often as they do–but in cash and it is such an intoxicating feeling knowing that i won’t being owing anyone or any company that money.
Unfrotunately, no. At least, I don’t think so. I mean, unless you’re freakin’ wealthy – how else are you going to pay for an education? Or buy a home?
Those of us talking about $200,000 homes live in places like Dane County, WI where the average home price is $230,000. It is not realistic to pay cash for that kind of a purchase, and it is not realistic to expect everyone to move to places with lower costs of living.
In todays day in age? While it is possible to live without having loans I think you have to start with a loan to get there. Everything is built with the idea that you loan money. Build big houses, because you can get a big loan. They don’t hardly build affordable houses that you could afford without a loan. Unless you’ve been saving for a LONG time. I think it is possible to pay off all your loans, but I think in the very least you’d have to start with a house loan.
well, it will have to depend on your lifestyle really … but borrowing money is essential nowadays … specially if your not really earning a lot …
No way!
Definitely not for a house, especially with how high the price of how houses are in most areas. Like someone said, once you get that first house – more than likely, you can sell it for profit later to buy a bigger/nicer house. However, I think it is nearly impossible to go through life without buying a single thing on credit unless you are born into wealth. However, I think that everyone can learn to live without credit cards.
Not all of us are born trust fund babies so it’s understandable to have a car loan, mortgage, education loans or business loans. However, it’s also very important to not live beyond your means. Credit card debts are BAD.
not unless you somehow had a million bucks to your name at birth
Yes. I believe it is. My parents are completely well off – have a gorgeous house – no car payments, no credit card bills that carry over month to month, no house payments (they paid it off within 10 years of buying it), they are paying for my school, so that way I will not have any student loans, and bought my car, so that I way I wouldn’t have to have any debt to my own when I get into the world. My dad is a firefighter and my mother just went back to work (after 18 years) because she got bored, not because of a financial need.
All you have to do is save instead of spending your entire paycheck and live within your means. That’s what they’ve always taught me, and I plan on being able to live like they have.
Ashley
In today’s world it is totally unrealistic to not have a credit card, credit is our world today, without credit you have no credit history and you will never beable to have a house (middle class peeps i mean) unless you want to live in a shack. Every where they check our credit history. Some employers and different when you want to ask for a loan. Plus even if you have no debt, it doesn’t mean that you’ll have a prefect score, life just doesn’t work that way. Other things can affect your credit just as easily, suck as if you never return a book the library can report that to the drecit burues and that can screw with your credit history and score, Source: High school personal finance class
Not at all. I mean people should pay attention and resposibility should be put on the lender to not let people go so far into debt. People need to take responsibility and borrow a resonable amount of money knowing they have the means to pay it back. People need help with money sometimes (mdical, human carelessness,work issues etc) and need someone to help them.but to become so in debt is unessecary.
Of course – just not in California.. ; )