broke people afford everything

[Pansori]

Originally Posted by Frugal

To Hector: I know. Student loans (at least ones from the gov't) never discharge in bankruptcy. Meaning, they never go away. Ever. I don't think they even go away if someone dies. Pretty tight restrictions on them.

Student loans, private student loans, alimony, child support, all things you can't discharge in BK.

[jerrycates]

Maybe these people have a spending strategy that makes them.. or ables them to get things they want and still save?

[tripods68]

strategically defaulting maybe???? uhmm..

[steveaz67]

It is amazing the offers for credit you get once you declare bankruptcy.

[dagaul101]

Well considering the Iphone maybe in the region of hundreds of Dollars and may have been bought before the foreclosure began, it is entirely possible

[Snodog]

You could go out and buy an Iphone or you could do what this guy did. I'm ALL IN - PM physical as of Last Week - Comments?

[couchrobt]

I still do not really get it how some people (even friends) survive the same lifestyle and yet they are broke. Maybe they filed for bankruptcy?

[disneysteve]

Originally Posted by couchrobt

I still do not really get it how some people (even friends) survive the same lifestyle and yet they are broke. Maybe they filed for bankruptcy?

Have you ever watched "Till Debt Do Us Part" or "The Bank of Mom and Dad" or similar shows? A financial advisor will go in and analyze the people's finances and often find that they are spending hundreds or thousands of dollars per month more than they earn. Last week, one couple was spending $5,600 more than they thought each month. Obviously, the are racking up loads of credit in the process.

I think a big part of the problem is the system of only needing to pay 2% of the balance each month on your credit card. Obviously, that earns a ton of money in interest for the CC company but it lures people into spending way more than they can possibly afford. They should be forced to raise that minimum significantly, like maybe 25%. Make it an actual short-term loan, not one that could drag on for 20 years.

[Hector]

Originally Posted by disneysteve

Have you ever watched "Till Debt Do Us Part" or "The Bank of Mom and Dad" or similar shows? A financial advisor will go in and analyze the people's finances and often find that they are spending hundreds or thousands of dollars per month more than they earn. Last week, one couple was spending $5,600 more than they thought each month. Obviously, the are racking up loads of credit in the process.

I think a big part of the problem is the system of only needing to pay 2% of the balance each month on your credit card. Obviously, that earns a ton of money in interest for the CC company but it lures people into spending way more than they can possibly afford. They should be forced to raise that minimum significantly, like maybe 25%. Make it an actual short-term loan, not one that could drag on for 20 years.

If they make it 25%, how are they gonna make money? I dount that it is going to happen at least for now. World has changed so much in little time. There was time when one has to save before buying anything. Now you just buy stuff and worry about paying later. I think its sad that we want to have everything RIGHT NOW and are spending our whole life in just managing debt.

[disneysteve]

Originally Posted by Hector

If they make it 25%, how are they gonna make money? I dount that it is going to happen

Oh, I agree. I don't think it will happen either. I was just saying it should happen. If they upped the minimum payment, even to 10%, it would solve a lot of problems.