Announcement

Collapse
No announcement yet.

what debt?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • what debt?

    In reading and looking at various estimations and watching something play out in a friends life. I am seeing how many people simply have zero fear or dislike for debt.

    Example a friend whose home has literally been in foreclosure for 6 years. The lien holders are finally looking to sell so this person has lived there for 6 years rent/ mortgage free seriously paid nothing.
    i used to think if you fell behind you had to scramble to find someplace, but many of these call them squatting or whatever, it take years to be processed or sold, so no big deal perhaps you can pocket 6 years or more of no rent/mortgage.
    In a market where more people are starting to buy homes OR there are tons of people running around trying to buy my property for cash,Why are there so many sitting empty or with former people STILL there? This is not a one of a kind there are many in that area playing out the same way.

    Another item was covered in the Baltimore 15 minutes of crisis, was most of the boarded up or abandoned home were owned by the city.
    Why were they not sold? Holding out for a market rebound? Does not seem likely with boarded up and trashed. Seems like the city could use the money to clean up things.

    Finally i read that this last quarter more people quit paying their student loans i can only assume it is in case one of the people promising to wipe away debt will be elected.
    I do not think many of these plans will pass but somehow people seem to think their debt is solved. They might only come after a person if they have assets there was even a person suggesting not to marry put everything in SO name and never pay your student loans. i have seen alot of abuse in that whole system but no real consequences. a person i knew attended then quit and had loans she has zero plans on paying and she has not had even her tax refunds kept.
    Where is any effort to collect these balances? Is there any effort?

    i simply no longer feel there is any consequences of debt other then if you are watching your credit score.
    When I read about foreclosure or default on student loans i no longer think it is a sign of economy but rather another person finding out little or no fallout until many years down the road.
    People no longer care about down the road perhaps that is why so many no longer save or plan for retirement. it is like an attitude of i will deal with it later or if FINALLY someone starts to look to collect.

  • #2
    Originally posted by Smallsteps View Post
    People no longer care about down the road perhaps that is why so many no longer save or plan for retirement. it is like an attitude of i will deal with it later or if FINALLY someone starts to look to collect.
    Exactly this. People only look at the "now". They don't think about consequences. They don't think about their credit. They don't think about interest and fees and penalties. They don't even think about eviction. I don't understand it but that's how a lot of people function.
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

    Comment


    • #3
      And I believe that folks that are squatting in their homes or not paying back loans, will have to declare that (at least the mortgage) as income! No one thinks of these things and being in debt to the IRA is a lot worse than being in debt to a bank. Any loan that has been forgiven is between you and the loaner, but the taxing bodies want their piece of that action. I can't understand the logic, if there is any, in these peoples way of thinking. If we could no longer pay our mortgage, I would be looking for a cheap place to live and putting the house up for sale ASAP. I hate debt and work hard and am working hard still to get rid of it.

      We have a society that has grown up without the need to take responsibility for their actions. When a teen guy did our mowing and he mowed down a baby tree that was almost as tall as him, his dad came over to settle things and was pulling out his wallet, not telling the kid that he owed us for a new tree and would also need to plant it. Now, what lesson did the boy learn? Not his fault and dad will always cover for me? Or he could have learned to take responsibility for what he was doing when on a job whether mowing lawns or at a factory or in an office somewhere. I see MANY examples of this all the time. Selling online you would get an eyeful. Someone doesn't correct their old address on say Amazon and so their package is sent to the wrong place and either lost forever or if received by an honest homeowner returned to sender. The buyer thinks it was MY fault that it went to the wrong address and why should they have to pay again for shipping? Only once with these occurrences has the buyer said no problem and sent me the shipping amount right away. How is shipping to the wrong address that you haven't lived at for 3-5 years a sellers fault? But as ones that don't take responsibility anymore, they blame us. Like do I know them and where they live???
      Gailete
      http://www.MoonwishesSewingandCrafts.com

      Comment


      • #4
        Originally posted by disneysteve View Post

        Exactly this. People only look at the "now". They don't think about consequences. They don't think about their credit. They don't think about interest and fees and penalties. They don't even think about eviction. I don't understand it but that's how a lot of people function.
        i do not think their is any consequences..... you do not pay and just go on block the collection calls and i guess never try to buy something that would need a loan.
        Although even that is optional there are a few places around where i live that promise to find financing for a car REGARDLESS or past "mistakes". This is no longer mistakes it is planned and purposeful neglect to pay.
        Credit in my book was given out way too easily in the last decade or so and it has created a problem.
        I think even those who are struggling if they saw what i have would ask themselves why am i trying so hard?

        Comment


        • #5
          Originally posted by Smallsteps View Post

          i do not think their is any consequences..... you do not pay and just go on block the collection calls and i guess never try to buy something that would need a loan.
          Although even that is optional there are a few places around where i live that promise to find financing for a car REGARDLESS or past "mistakes".
          There are always consequences. Trashing your credit is the obvious one. Good luck getting a mortgage. You'll have trouble renting an apartment many places. Even many potential employers will run your credit. You mentioned the car loans. Sure, there are places that will work with folks with bad credit but I guarantee you won't be getting the 0-2% loans that I get. You'll be paying 10% or 15%. Life is just more expensive when you have bad credit.

          You're absolutely right that credit has been given out too easily and not just in the last decade. That was a part of the problem with the housing crash in 2008. You had people who had insane home loans that they couldn't possibly afford but the banks were giving out money to anyone with a pulse regardless of income or ability to support the payments. Even back in the 90s I remember issues with college students being given credit cards even though they had zero income and then racking up debt they had no possible way to repay unless their parents bailed them out.
          Steve

          * Despite the high cost of living, it remains very popular.
          * Why should I pay for my daughter's education when she already knows everything?
          * There are no shortcuts to anywhere worth going.

          Comment


          • #6
            Originally posted by disneysteve View Post
            Even back in the 90s I remember issues with college students being given credit cards even though they had zero income and then racking up debt they had no possible way to repay unless their parents bailed them out.
            I was in college in the late 90's, and this was common then. The credit card companies would set up booths in the student union and pass out free t-shirts to anyone who signed up for a card. We all signed up. None of us had jobs.
            Brian

            Comment


            • #7
              Originally posted by bjl584 View Post

              I was in college in the late 90's, and this was common then. The credit card companies would set up booths in the student union and pass out free t-shirts to anyone who signed up for a card. We all signed up. None of us had jobs.
              And that was a huge shift from the 80s when I went to college. Then we would all go to the credit card booths and sign up for every card we could to get the free gifts because we knew there was no chance we’d get approved. We had no income so we didn’t qualify. We got tons of free stuff but not a single one of us ever actually got a credit card.
              Steve

              * Despite the high cost of living, it remains very popular.
              * Why should I pay for my daughter's education when she already knows everything?
              * There are no shortcuts to anywhere worth going.

              Comment


              • #8
                Originally posted by disneysteve View Post

                And that was a huge shift from the 80s when I went to college. Then we would all go to the credit card booths and sign up for every card we could to get the free gifts because we knew there was no chance we’d get approved. We had no income so we didn’t qualify. We got tons of free stuff but not a single one of us ever actually got a credit card.
                That is just it, there seems to no longer be any level reach to qualify.
                i guess i would need to research how even with really high% rates it is a win for the credit issuers. i see so many simply NOT paying and NOT worried about it.

                Comment


                • #9
                  Originally posted by Smallsteps View Post
                  i guess i would need to research how even with really high% rates it is a win for the credit issuers. i see so many simply NOT paying and NOT worried about it.
                  I think your perspective may be skewed for some reason.

                  According to the NY Fed 1st quarter report, 5.04% of credit card debt is at least 90 days past due. That's up from 4.72% for the first quarter of 2018 but it still means that 95% of credit card users are current with their payments. If CC interest rates are 15-30%, the card issuers are still making a boatload of money, plus merchant fees, even if 5% of customers don't pay their bills.

                  I don't think the "not paying" group is anywhere near as large as you seem to be imagining.
                  Steve

                  * Despite the high cost of living, it remains very popular.
                  * Why should I pay for my daughter's education when she already knows everything?
                  * There are no shortcuts to anywhere worth going.

                  Comment


                  • #10
                    supposedly 55% have debt. 5% past due. 40% pays off credit card every month or dont use them. credit card companies are making a killing.

                    U.S. households added $26 billion in credit card debt, the biggest increase among debt categories tracked, in the last quarter of 2018. In fact, 55% of U.S. adults who have credit cards report also having debt, according to a new survey of approximately 2,200 U.S. adults that CNBC Make It performed in conjunction with Morning Consult.

                    Comment


                    • #11
                      Originally posted by ~bs View Post
                      supposedly 55% have debt. 5% past due. 40% pays off credit card every month or dont use them. credit card companies are making a killing.
                      .
                      the key is the word Supposedly.
                      I am losing faith in the numbers given in almost any situation lately as the equations seem skewed in to projecting a picture. either that or i just happen to know only the 5% and the odds of that being the case are pretty astronomical.

                      Comment


                      • #12
                        Originally posted by Smallsteps View Post
                        either that or i just happen to know only the 5% and the odds of that being the case are pretty astronomical.
                        I can't say I've personally encountered anyone who has admitted to defaulting on their credit cards. Lots of people say they are carrying balances but all say they make monthly payments.
                        Steve

                        * Despite the high cost of living, it remains very popular.
                        * Why should I pay for my daughter's education when she already knows everything?
                        * There are no shortcuts to anywhere worth going.

                        Comment


                        • #13
                          Originally posted by Smallsteps View Post
                          the key is the word Supposedly.
                          I am losing faith in the numbers given in almost any situation lately as the equations seem skewed in to projecting a picture. either that or i just happen to know only the 5% and the odds of that being the case are pretty astronomical.
                          one of my former bosses used to manage the debt collection for one of the banks here. he said you'd be surprised at the sheer number of people carrying debt from all walks of life, no matter what the income level and how well off they seem to be.

                          part of my current job is overseeing and making decisions on the company 401k. you'd be surprised at how many people do 401k loans.

                          i've had quite a few acquaintances and friends mention their financial situation to me. not sure why, i dont ask people about it, and dont inquire further than the info they're volunteering. but yeah, people haven't learned lessons from 2008. i sincerely hope we do not see a recession anytime soon.

                          Comment


                          • #14
                            In Australia it is hard to get credit unless you have good savings and a job that pays over $40,000, thats for CCs, loans...anything....and if you didnt pay your morg here they would boot you out after a couple of months and you would still have to pay the loan...so much stricter here....which is good in some ways and hard in others as we budget well etc but paying rent and saving up to $30,000 for a home deposit is really hard ($20,000 of that is upfront fees) so not as much as an issue over here...but I don't trust the people who does credit scores over here..they essed up my hubbys and won't fix it.

                            Comment


                            • #15
                              Originally posted by ~bs View Post

                              one of my former bosses used to manage the debt collection for one of the banks here. he said you'd be surprised at the sheer number of people carrying debt from all walks of life, no matter what the income level and how well off they seem to be.

                              part of my current job is overseeing and making decisions on the company 401k. you'd be surprised at how many people do 401k loans.

                              i've had quite a few acquaintances and friends mention their financial situation to me. not sure why, i dont ask people about it, and dont inquire further than the info they're volunteering. but yeah, people haven't learned lessons from 2008. i sincerely hope we do not see a recession anytime soon.
                              I think in general people tend to share too much info and sometimes simply do not know what they shared.Most people simply do not listen.
                              If you do like i do it becomes a situation where i am just astonished by the insanity and bad judgement.

                              I had a co-worker tell me odd things that simply painted a picture of someone who will never have two cents to rub together and her parents sounded like same boat even though they had good jobs.
                              The 401K loan thing i too have seen.
                              I at first thought those 401K loans were suppose to be for emergencies but from what i have observed with co-workers that is not the case(at least at that company).

                              i am just amazed in seeing first hand situations that should never have happened but no one seems to be paying attention.
                              Creditors loaning on assets that are simply not worth it and so people shuffle the debt around with many creditors i guess thinking they are the only ones with liens on assets.

                              a home with 2 mortgages and a reverse mortgage.
                              loans made to elderly people with only SS as income and the payment was 98% of the ss check. This was only a few years ago not in the prior loan to everyone atmosphere.
                              houses in foreclosure for YEARS before anyone is trying to sell and collect or even evict the people in them.

                              CC are being played too i know a lady that made her "payments" by returning stuff to retailers. opening new card and paying old with new , claiming false charges to get them removed.etc.
                              CC are the least of the problem as they can and do get cancelled but I am seeing some creative ways to at least kick the debt can down the road.

                              Comment

                              Working...
                              X