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If you were in this situation and had a credit card with a $3000 limit what would you

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    #16
    I'm going to admit that I always saw credit cards as potentially being a life preserver that could save me (us) in an emergency. The younger I was, the less savings I had and therefore the more likely to turn to credit card. However, we never did have to use it that way. We always saved, and yes, took some pee-dunk little jobs at times. In theory, I have always given myself permission to use CC for emergency, but fortunately I was too much of a saver (coupled with no major emergencies) too have to act on that permission.

    When young, first starting out, it can be difficult to get enough saved up to cover big emergencies. Personally, we were willing to see some of life's difficulties as an adventurous challenge, rather than a dire emergency requiring money or credit immediately. For example, my husband was a motorcycle rider and his motorcycle was trashed (not by him). Money was tight, so he bought a bicycle and rode the 32 mile round trip for work everyday until money was saved for another motorcycle. In those days, if a stove had gone out and we could not repair it, we would have gotten an electric burner/hot pad until we could save for a new stove. Fridge broke? Go to used appliance store after saving a while and eating foods that do not require refrigeration.

    Even what you said about dating is a little different than how I thought of things when young. I'm married to a guy who was poor when we first started dating. What the heck-- I was poor, too. We did things like walk in the park, fly kites, visit free art museum, volunteer together, see a free film at a university. At first we actually only went on a date that cost anything about once or twice a month and we spent very little even then. I don't think either one of us would have wanted to be involved with someone who too easily spent money for fun when that money might be needed elsewhere, such as for debt.
    "There is some ontological doubt as to whether it may even be possible in principle to nail down these things in the universe we're given to study." --text msg from my kid

    "It is easier to build strong children than to repair broken men." --Frederick Douglass

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      #17
      Originally posted by saver17 View Post
      And,if there was no emergency fund then what?
      Then work. Sitting around not working for 3 months and living on credit just isn't the way I personally would have approached it.

      As I said the last time I was between jobs, I sold on ebay full time. I spent nearly every day going to thrift shops, auctions, yard sales, outlet stores, and more to buy things to resell. I listed 10 items a day for 10-day auctions so I kept 100 auctions running at all times. I spent my days shopping, listing, packing, and shipping items. Today, with Craigslist, it's even easier. I could probably have money flowing within hours.
      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


        #18
        Originally posted by disneysteve View Post
        Then work. Sitting around not working for 3 months and living on credit just isn't the way I personally would have approached it.

        As I said the last time I was between jobs, I sold on ebay full time. I spent nearly every day going to thrift shops, auctions, yard sales, outlet stores, and more to buy things to resell. I listed 10 items a day for 10-day auctions so I kept 100 auctions running at all times. I spent my days shopping, listing, packing, and shipping items. Today, with Craigslist, it's even easier. I could probably have money flowing within hours.


        No Steve

        I was going on interviews between October and December. I had about 5 interviews during that time period and was hired on 12/9. I had two interviews in October, and 3 in November. Was offered 2 jobs and chose the one that was closer to home.


        So I wasn't just laying around living off credit because I knew that I would not have any credit or money left to pay rent for January. So I had to find a job before Christmas and so glad I did.

        Comment


          #19
          saver17, I'm not quite sure what you were looking for when you started this thread. You did what you did and it's done. You've asked how we would handle a similar situation. I'm just saying that I wouldn't have handled it the same way. That's not meant as a criticism. It's just an honest answer to your question.

          Originally posted by saver17 View Post
          I was going on interviews between October and December... I had two interviews in October, and 3 in November.

          So I wasn't just laying around living off credit
          It's great that you found yourself a good new job. Congrats on that.

          But just look at what you said here. You went on 5 interviews in over two months. So on 5 out of 60+ days you were occupied. What about the other 55+ days? Certainly you spent some time updating your resume and actually doing the job search but there was still plenty of time when you could have been doing something to generate income if you wanted to.

          Maybe you still would have needed that credit card to some extent, maybe not. It's hard to say. I'm pretty confident that I could manage to earn $1,000/month if I had to. And I could do it without getting a formal job so my time would be flexible and still give me the freedom to search for the real job.

          You did what you felt you needed to do at the time. Now that you have a job again, hopefully you are working to build up an emergency fund so that if you find yourself in a similar situation again, you won't have to turn to debt to get by. You should be putting money in savings from every single paycheck, even now while you still have the credit card debt, even if that means it takes a little longer to pay off the debt. Savings needs to come first before everything else.
          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


            #20
            Originally posted by disneysteve View Post
            saver17, I'm not quite sure what you were looking for when you started this thread. You did what you did and it's done. You've asked how we would handle a similar situation. I'm just saying that I wouldn't have handled it the same way. That's not meant as a criticism. It's just an honest answer to your question.



            It's great that you found yourself a good new job. Congrats on that.

            But just look at what you said here. You went on 5 interviews in over two months. So on 5 out of 60+ days you were occupied. What about the other 55+ days? Certainly you spent some time updating your resume and actually doing the job search but there was still plenty of time when you could have been doing something to generate income if you wanted to.

            Maybe you still would have needed that credit card to some extent, maybe not. It's hard to say. I'm pretty confident that I could manage to earn $1,000/month if I had to. And I could do it without getting a formal job so my time would be flexible and still give me the freedom to search for the real job.

            You did what you felt you needed to do at the time. Now that you have a job again, hopefully you are working to build up an emergency fund so that if you find yourself in a similar situation again, you won't have to turn to debt to get by. You should be putting money in savings from every single paycheck, even now while you still have the credit card debt, even if that means it takes a little longer to pay off the debt. Savings needs to come first before everything else.

            Well I don't plan on getting fired ever again so I think I will be fine. Lol. I usually save money out of the first check of the month because the last check of the month is for rent and food. So I save a huge check out of the non rent check.

            Comment


              #21
              Originally posted by saver17 View Post
              Well I don't plan on getting fired ever again so I think I will be fine. Lol. I usually save money out of the first check of the month because the last check of the month is for rent and food. So I save a huge check out of the non rent check.
              Nobody plans on getting fired.

              In my case, I actually quit my job for a variety of reasons. I didn't have another job lined up so it was a bit of a leap to go from a 6-figure income to nothing. I had a decent idea that the situation was leading to that so we did our best to stockpile cash for the few months leading up to that but it was still a big deal.

              It's great that you are saving on a consistent basis.

              If you are willing and interested, posting more details about your situation and budget could be very helpful. Lots of folks here are great at helping point out places where you could do things differently to reduce spending, boost savings, and speed up debt repayment.
              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


                #22
                Ok, you charged $ 1,600. for 2016 Nov & Dec rent, you now owe? What interest rate? Thus far, how much has been added in interest? Don't wait for 'due' dates, reduce the principal whenever sums are available to keep interest from accruing. Would i be practical to find a room mate to share costs of rent and utilities? Would it be feasible to find accommodation where you are the roomie to share costs, accoutrements and maintenance/cleaning? Ideally closer to work and less stress.

                Comment


                  #23
                  Originally posted by snafu View Post
                  Ok, you charged $ 1,600. for 2016 Nov & Dec rent, you now owe? What interest rate? Thus far, how much has been added in interest? Don't wait for 'due' dates, reduce the principal whenever sums are available to keep interest from accruing. Would i be practical to find a room mate to share costs of rent and utilities? Would it be feasible to find accommodation where you are the roomie to share costs, accoutrements and maintenance/cleaning? Ideally closer to work and less stress.
                  Don't need a roommate, I'm scheduled to be out of debt no later than 7/1/17. I also created a food budget that has been working well. I go to the market once a week

                  Comment


                    #24
                    Why did you ask our opinion and then argue with us?

                    Comment


                      #25
                      Originally posted by corn18 View Post
                      Why did you ask our opinion and then argue with us?
                      Now, now, Tom. Seems to me that someone else started out that way here.
                      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


                        #26
                        Originally posted by corn18 View Post
                        Why did you ask our opinion and then argue with us?
                        It wasn't a argument it was a discussion about debt.

                        Comment


                          #27
                          Originally posted by saver17 View Post
                          Everyone is not able to have an emergency funds account. Of course it would be nice to have but sometimes life gets in the way.
                          An emergency fund is a savings account. No offense, but I find it humorous the name you chose was saver17 but argued not everybody can have an emergency fund, and it seems you didn't have anything saved. I hope the name implies you intend to save up and not have to repeat this in the future.

                          Originally posted by saver17 View Post
                          If you get two crappy jobs then you are stuck in them and then you don't know when you will get that real job again. Isn't it better to find a full time job and then you only have to clean up $3000 in debt?

                          Or have $0 debt and working two crap jobs leading to depression?
                          You think $3000 in debt and no job makes for a happy life?

                          That credit card had a limit. If you still didn't have a job after it was used up, what would you have done?

                          The point people are making on here is that your situation was not sustainable and that there are simpler ways to try to avoid this in the future. Credit cards should not be an EF, because if you can't save cash how in the world will you pay the debt back? The question from here shouldn't be was this a good idea (to repeat again)? It is what do I do differently to avoid having to do this again? We encourage people to look at the big picture. if you want to be a slave to debt and payments your whole life, keep doing what you are doing and work for those payments. If you want to be financially independent one day, then make your money work for you. Save.
                          Everything happens for a reason. Sometimes that reason is you're stupid and make bad choices.

                          Comment


                            #28
                            Originally posted by GoodSteward View Post
                            An emergency fund is a savings account. No offense, but I find it humorous the name you chose was saver17 but argued not everybody can have an emergency fund, and it seems you didn't have anything saved. I hope the name implies you intend to save up and not have to repeat this in the future.



                            You think $3000 in debt and no job makes for a happy life?

                            That credit card had a limit. If you still didn't have a job after it was used up, what would you have done?

                            The point people are making on here is that your situation was not sustainable and that there are simpler ways to try to avoid this in the future. Credit cards should not be an EF, because if you can't save cash how in the world will you pay the debt back? The question from here shouldn't be was this a good idea (to repeat again)? It is what do I do differently to avoid having to do this again? We encourage people to look at the big picture. if you want to be a slave to debt and payments your whole life, keep doing what you are doing and work for those payments. If you want to be financially independent one day, then make your money work for you. Save.

                            Unfortunately if I had used it all up and still didn't find a job then I would have had to tell the landlord I don't have a way to pay the rent because I have no money and loss my job. Probably would have ended up being evicted and had to move back home which would have been depressing.

                            So what I learned is to always have money saved up for emergencies. But I don't have to worry about ever being in this situation again because I won't ever be fired again. When you are fired you don't get unemployment.

                            But I am working on a short term EF account and a long term EF account.

                            Comment


                              #29
                              Originally posted by saver17 View Post
                              Unfortunately if I had used it all up and still didn't find a job then I would have had to tell the landlord I don't have a way to pay the rent because I have no money and loss my job.
                              You are still missing the point several of us have made. You did have a way to pay the rent: WORK. You can't tell me that there is absolutely nothing that you could have done to earn money during that three-month period. There are lots of jobs that can be picked up on short notice - delivering papers or pizzas, mowing lawns, shoveling snow, walking dogs, etc. Or, as I said, selling stuff for profit. I could make a few hundred dollars a month just driving around town on trash day and picking up things people have thrown out that I can resell on Craigslist. My only expense would be gas and the sales would be nearly 100% profit. Maybe that wouldn't have been enough to pay your rent but it would have made your $3,000 last a lot longer.

                              I won't ever be fired again.
                              How exactly are you going to make that happen? What are you going to do when your boss comes to you and says, "Sorry, saver17, but business is down and I have to let you go."
                              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


                                #30
                                Originally posted by disneysteve View Post
                                You are still missing the point several of us have made. You did have a way to pay the rent: WORK. You can't tell me that there is absolutely nothing that you could have done to earn money during that three-month period. There are lots of jobs that can be picked up on short notice - delivering papers or pizzas, mowing lawns, shoveling snow, walking dogs, etc. Or, as I said, selling stuff for profit. I could make a few hundred dollars a month just driving around town on trash day and picking up things people have thrown out that I can resell on Craigslist. My only expense would be gas and the sales would be nearly 100% profit. Maybe that wouldn't have been enough to pay your rent but it would have made your $3,000 last a lot longer.


                                How exactly are you going to make that happen? What are you going to do when your boss comes to you and says, "Sorry, saver17, but business is down and I have to let you go."

                                I sold some stuff on ebay but like you said it wasn't enough for rent just bills. I don't work in a for profit type of business which is the wrong type of business to be in today. I'm in the early childhood development field which deals with state childcare eligibility

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