Why do so many of the 'Personal Finance' threads...

[WellManicuredMan]

Originally Posted by debtfreesteve

... and by paying with cash each month, I have more money, way more than the rewards might offer (IMO), without the risk of something happening and not being able to pay off the card in full. Honestly, I shouldn't have provided that input, as you didn't ask for that opinion...

I think what you are trying to say is that you find that you spend less when you use cash instead of credit cards? I'm sure this is the case for many people with credit cards and I agree it would outweigh the rewards you get from credit cards. But I for one am not like this. I treat anything I buy with my cards like I am using cash for the purchase. I don't look at my available credit as cash that I have.

[debtdude]

Originally Posted by Sweepsplayer

According to Saving Advice's main page:
Welcome to Saving Advice, a personal finance website created specifically to help you save money. No matter what your current financial situation, there is plenty of information on this site to help you achieve your money goals.

I don't see any mention that you must be trying to get out of debt in order to participate in the forums -- just that you want to save money and achieve your own money goals.

I don't care what it says. Visitor's don't care. They found a forum that discusses debt and they want out.

[sweeps]

I think a certain amount of debate is a good thing. Many of these issues are not black and white... what works for one person may not work for another. I think as long as we give and take constructive criticism, we can all gain. I have to remind myself of that too.

There's also a question of priorities. If someone's blowing their budget on expensive car insurance or racking up huge debts or whatever, concentrating on how much they're earning in credit card rewards or whether they can gain an extra 0.5% on their savings account is misguided. For others, the time spent in researching things like credit card rewards, 0% credit card offers, and the highest-yielding savings accounts is worth it.

[jmjj215]

One thing we all should remember is that we're coming from different money backgrounds. Some of us are struggling, barely getting by, had parents who didn't teach us a lick about money, been bankrupt, are quite well off, have been harrassed by credit card collectors, have never spoken to a collector, just paid down 50k in credit card debt, never made 50k in a single year of our lives, are working on paying down the debt, float massive amounts of unsecured debt for the 'free money', invest in real estate using borrowed money, have never owned a home, lost a home to foreclosure, are looking to buy a home, etc.

All of these perspectives form different opinions - not right and wrong answers - just opinions.

So steve comes in and says for me paying cash works, and I come in and say for me cashback rewards matter. We're both maybe talking to the OP who asked about whether they should get a CC or not. It's up to the OP to take our input for what it's worth, weigh the perceived benefits/costs for their own situation, thank us for our infinite wisdom, and make a decision.

And we all go along merrily.

[wwjdmsl]

Yeah, jmj, ...you are right on....lots of different situations require some different perspectives on solutions and advice. Of course, at the core, there are those basic "smart", personal finance principles regarding debt elimination, saving, investing that all of us should focus on...healthy debate is good but unity on the core principles only strengthen our ability to help others in a less mature & stable phase of their personal finance journey. Good post !

[jmjj215]

Perhaps we should work on a sticky with fundamental, core, constitution-like principles - a framework - for "smart" personal finance principles. That would be an intersting project.

[shengmei]

I don't have a credit card. I never did and I never will. I would not trust myself with that kind of easy spending option.

A lot of people think I am crazy. Hey I am still debt free. I have lived in plenty of places where those debt collection companies haress me dozens of times a day because of the previous tenant, and I would never do that to the next tenant who lives in my apartment.

[markio26]

we are all in different situations.. i try to use the cc's as other ppl.s money to my advantage and it benefits my budget.. i only use the cards when i see a good play for my gain.

[debtfreeme]

i think the themes sinply reflect where people are on the road of their financial life. Some are learning the hard way about credit cards, some want to inporve their FICO scores, some want better educaiton concerning many things financial. My definition of personal finance incorporates all things financial, not just investing. So anything i can glean from someone else concerns my personal finance. I think that it just depends on what people have questions about what they want o learn about at a moment in time. i applaud those who ask questions and want to imporve their families financial picture.

[shengmei]

I believe people should post more, no matter what they believe. A forum with lots of active posters who post a lot is a good forum. Things are always more interesting when you get lots of opinions about everything.

I was in a cat forum once and I got banned for being the only conservative in a liberal forum. As soon as they banned me their traffic decreased by 50%, and they have not recovered since.

Controversy is always interesting. Civilized debate is actually profitable to forums. People like to visit forums where there are live conversations, even though they can get a little heated. As long as there are no personal attacks I would actually love it for people to disagree with me and show me wrong.

[Ima saver]

Well my mutual funds statements are much more important than the 1% i get back on the credit cards. Right now I have earned 12-35% on this past years mutual funds. Right now, we have about 14 mutual funds going for us.
But I have paid off all my credit cards and own my home free and clear, so I guess I am just looking for little ways to add to my savings and investments. I think this forum is about all topics when it comes to savings and investing!

[shengmei]

YAY for the home being free and clear. Congrats!!!

[sakigt]

Originally Posted by shengmei

I believe people should post more, no matter what they believe. A forum with lots of active posters who post a lot is a good forum. Things are always more interesting when you get lots of opinions about everything.

I was in a cat forum once and I got banned for being the only conservative in a liberal forum. As soon as they banned me their traffic decreased by 50%, and they have not recovered since.

Controversy is always interesting. Civilized debate is actually profitable to forums. People like to visit forums where there are live conversations, even though they can get a little heated. As long as there are no personal attacks I would actually love it for people to disagree with me and show me wrong.

Agreed. If everyone believed the same thing we would be pretty boring!

[shengmei]

It would be nice if all forums are like chat rooms with people constantly talking back and forth.

Now that would be really interesting.

Well, I am probably way more verbose than most people.

[abowers]

It doesn't matter to me what people post about. If it is not interesting/doesn't apply, I just don't look at it.

I'm interested in reading about portfolios, etc. but I'm not at that point in my life. I like being able to read about those type of things for when the time comes (after I'm done taking out loans for my master's degree, which will lead me to the job I want, and which will pay much better than my current job and allow me to actually save more money).

But for the time being, I am working on paying off credit card debt I racked up while an uninformed (and stupid) undergrad.

Any credit card questions I have started in this forum is because it seemed to fit better here than "investing & banking" or "general discussion."

Post lots about increasing net worth, portfolios, etc. though because I want to learn as much as I can! I just don't have much to contribute to that subject at this point.

[jmjj215]

Originally Posted by shengmei

I would actually love it for people to disagree with me and show me wrong.

No you wouldn't. You're way off base there. You're totally wrong

(I totally agree w/ your post!)

[cbmeeks]

Originally Posted by debtfreesteve

"revolve" around finding the best rates on credit cards, or concern the use and management of borrowed money.

Am I the only person on this board that sees a problem with this?

I guess I'm Crazy for thinking this, but I've realized over the past 3 years, that the object of personal finance, is to increase our net worth, and the less I paid the bank, either in lump sum monthly, or in payments, the wealthier we have become.

Just curious to see if anyone else here felt the same way, not trying to be argumentative, at all.

I just see issues, when an 18 year old is wanting better credit cards, and you have people asking why they don't get more credit card 'offers' in the mail, and thinking something is wrong with that. (btw, my goal is to have more mutual fund statements, than cc offers in my mailbox)

You're not alone. People around here LOVE their "rewards" CCs. That's a huge problem in this county. Credit. I'm not saying there is never a time for credit (home mortgage only) but CC's are a cancer on this country.

The US has a multi-trillion dollar deficit. Americans clearly can't control their money. Sure, a few people can but most can't.

There was one lady that said her husband runs a business and does $50,000 in materials each month and he gets $500 in cash-back. So, she is basically getting "free" $500/month with 0% interest because he pays it off in less than a month. That sounds scary to me. What if the customer goes under and can't pay for the $50,000 worth of material? How long does she think the CC company will loan them $50,000 and not charge any interest? Maybe her husband gets the cash up front but I doubt it. Most companies I've worked with only get a deposit. So, if the CC company started charging the typical 18% interest on $50k, well that's $9,000. Hope they are saving that $500 of "free" money. lol

My point? Too risky for me.

CC's simply aren't worth it.

cbmeeks

[sweeps]

cbmeeks, is it credit cards that is the real problem with America's spending habits, or do you think perhaps it goes deeper than that?

I would argue there are more fundamental problems at work here. Things like:
- The overwhelming desire to keep up with the Joneses
- An unhealthy obsession with material possessions rather than sentimental wealth
- The massive amount of marketing that Americans are exposed to, and the inability or unwillingness of Americans to ignore these messages
etc.

[debtfreesteve]

Great point sweeps, it does come down to personal responsibility. Kind of like blaming the cigarette companies when there is a big note on their products, you may die if you smoke these...

People can choose to use or not use the cc's, for their own 'good' or detriment.

[cbmeeks]

Originally Posted by Sweepsplayer

cbmeeks, is it credit cards that is the real problem with America's spending habits, or do you think perhaps it goes deeper than that?

I would argue there are more fundamental problems at work here. Things like:
- The overwhelming desire to keep up with the Joneses
- An unhealthy obsession with material possessions rather than sentimental wealth
- The massive amount of marketing that Americans are exposed to, and the inability or unwillingness of Americans to ignore these messages
etc.

No, I agree. However, it's like is cocain really the drug problem or is it peoples' ability to be addicted?

No cocain, no cocain problem.

Granted, cocain can mess you up more than bad credit but the idea is the same. :-)