# Some folks still do not get it



## Woody (Nov 11, 2008)

Overheard an interesting conversation at work today. No, not eavesdropping, they were standing next to my low wall cube talking.

Seems this person just got divorced. His wife got the house (in a fancy/expensive neighborhood) and he moved into a $1,700/month condo in that area. That alone startled me as being in my area of finance I know everyone’s salaries and he makes about what I do. The mortgage I can afford, and was happy with, is $308.89/month for a small doublewide on 1.5 acres of land, 35 minute commute. Anyway, he just got through furnishing his new place, furniture, front-load washer/dryer, big plasma TV and so forth. He ‘needed’ to get that apartment as it is close to his wife and children’s place. I do not know if she works but I would think she would have to to pay a mortgage in that particular golf neighborhood. So, how the heck can he afford all that? CREDIT CARDS!

What startled me? Their original mortgage was an interest only and came due BEFORE he got his apartment. The house is worth $200,000 less than when they first got it (therefore what they still owe). He is going to walk away but his wife really likes the place so wants to stay. I got a phone call and the last I heard was he is over $100,000 in debit on his credit cards.

Now, this man is in finance himself so should be at least a tad bit savvy about money and credit. What the heck do folks think? Maybe they don’t and that is the problem. I had sympathy for folks who got swindled into the interest only loans, blaming the banks for pushing these on people who did not know better. But here is a guy who knew better, or should have and took it anyway. THEN as his house is ready for foreclosure he gets an apartment he cannot afford and uses a credit card to furnish it.

I just wanted to share; I think there might be a few folks here who can relate. Not to the guy but to my being amazed at what supposedly intelligent people will and can do.


----------



## TheAnt (Jun 7, 2011)

Simplify! That is my new favorite word. In fact, "simplify" is the word of the day folks!

I didnt go beyond my means (actually went below it) when I bought my current house but now its probably worth 60k less than what I paid for it even after putting close to 20k into it (it was formerly a rental and in bad need of repairs) which means its worth about 55% of the value of the loan plus Im out my 20k of upgrades. 

Live on as little as you can and figure out how to live on less. Folks, the S already HTF! And theres more where that S came from!


----------



## weedygarden (Apr 27, 2011)

I wonder what percentage of our population thinks (or doesn't) like this? 

I think that people like me are deemed weird because I don't always have the latest and greatest (not) clothes, cars, etc. I would rather have some food storage than a flat screen. I shop in the alley, garage sales, thrift shops, craigslist, ebay. I cook from scratch as much as possible, grow as much as I can in my yard. I know the lack of well manicured grass is the topic for discussion amongst some. Some of the food growing in my yard does get picked by others. I have watched people pick green beans from my fence. Cantaloupe, tomatoes, peppers, cabbages and cucumbers go missing. 

I have an eclectic life and home. I bought a HUD home that needed lots of work and people are shocked when they find out how little I paid for it. Of course people told me they couldn't live in a house that needed that work or in that neighborhood. My home owners insurance guy was shocked several years ago to learn what the house was worth, and what I didn't owe on it. I have worked and worked on this house--tuck pointed the brick, painted and painted, dug out dozens of weed trees, rebuilt the fence, built a couple sheds from scratch, (not kits), remodeled the kitchen, mostly by myself, laid ceramic tile, by myself, scraped old plaster and prepared for drywall work, laid lots of brick pathways with salvaged brick, tilled lots of amendments into the clay soil. I prefer sweat equity to being upside down in a home that I could lose when the economy goes south. 

Yep, I know I am considered odd, but I would rather be weird than stupid.


----------



## JayJay (Nov 23, 2010)

Credit cards?? Yep---and I've been preaching to 3 here of 9 neighbors..one mowed my yard once, sends leftovers from her dinner for my dh(broken toes on one foot), and I expect her to be intelligent enough to understand---IT DOESN'T MATTER HOW WEALTHY YOU ARE AND HOW MUCH YOUR PENSION/RETIREMENTS ARE...when there is no food/shelves are bare, what then will you do??

I am the weird one and I know one laughs at me---sad, really sad.

I am so sick of the charade I engage in and since 3 ALREADY know about my stock, heck, I just want to put a sign on the lawn for the whole street...WTSHTF--DO NOT EVEN THINK ABOUT COMING TO THIS DOOR!!!!


----------



## JayJay (Nov 23, 2010)

Yes, Theant..and the California couple that laugh at me---spent 18,000 on seed and topsoil, 40,000 on a pool, (after the topsoil??duh) and turned the garage into a den and built another garage, and have about 350,000 in a neighborhood with 150,000/160,000 dollar houses.
How smart was that??

Their loss will be phenominal!!

And they can't get to the end of the month without being broke....but she has beautiful flowers!!! Eat them, lady, eat them!!! They know the SHTf..they can't be so stupid to not know california is fricking broke!!!!
She said her husband said I was stupid for storing water, etc...now, I need to say, and who's stupid??

I have hams I paid 1.50 for and coffee I paid 5.00 for ---now, what are you paying for tp and paper towels again??LOL..LOL


----------



## power (May 7, 2011)

Many people were raised up thinking that the more credit cards you had the better off you are. Many people are more worried about building up a good credit rating than having savings. Some people actually think financing something will save them money when paying their taxes.
It takes time and experience to change the way some people were raised.
Most won't believe you even when they loose everything they have.
Some people are more focused on impressing the neighbors than prepping.


----------



## audioguru76 (Jun 10, 2011)

somewhat guilty of the utilizing credit cards too much, but now I'm in payoff mode. Get it all gone, and keep it that way. It does make it difficult to prep, but I'll get there. Where there's a will there's a way, right? I've got a house that, unfortunately, has lost value, but does offer enough space to store supplies in the basement. 

Now to enact the rest of my plan....../evil laughter


----------



## PamsPride (Dec 21, 2010)

There are people like that in my own family. DH's aunt is over 65. Collects a pension (from GM or Packard...I can't remember which), gets Social Security, and still HAS to work because she can not make ends meet! DH's mom is 63 and can not afford to collect SS and go to part time because she has to many bills. DH was raised with the attitude: if you want it get it then after a few years refinance the house and then start racking the credit cards up again!! 
Well, I put a stop to that!


----------



## Woody (Nov 11, 2008)

But a ‘good credit rating’ does stand for something in this world. Years ago when I bought my first place I did not have a credit rating. Worked, saved and paid cash or bartered for what I needed. As far as a vehicle, I started with a beater truck and slowly upgraded until I got to where I bought a new one with cash. Never had a credit card, only now have a debit card. When my credit statement is pulled I get a very low rating because there is nothing for them to match a credit score to. 6 years ago when I bought my current place the bank rated me poorly because the only thing on my credit report was an identity theft bad check. Now I have a running score of my mortgage and a car payment but that still will give me a low rating due to no credit cards. The more you borrow the better score you will get. Well, as long as you pay it back I guess too. It took me a long time before I was able to accept this and play their game.

As far as my home being an investment, I don’t look at it like that. I bought (actually rent from the bank and tax man) a place to LIVE in. If it is worth more when it is sold, great. If not then that’s alright too. I consider it a place I can store my junk and call home.


----------



## BadgeBunny (Nov 2, 2010)

Woody said:


> But a 'good credit rating' does stand for something in this world. Years ago when I bought my first place I did not have a credit rating. Worked, saved and paid cash or bartered for what I needed. As far as a vehicle, I started with a beater truck and slowly upgraded until I got to where I bought a new one with cash. Never had a credit card, only now have a debit card. When my credit statement is pulled I get a very low rating because there is nothing for them to match a credit score to. 6 years ago when I bought my current place the bank rated me poorly because the only thing on my credit report was an identity theft bad check. Now I have a running score of my mortgage and a car payment but that still will give me a low rating due to no credit cards. The more you borrow the better score you will get. Well, as long as you pay it back I guess too. It took me a long time before I was able to accept this and play their game.
> 
> As far as my home being an investment, I don't look at it like that. I bought (actually rent from the bank and tax man) a place to LIVE in. If it is worth more when it is sold, great. If not then that's alright too. I consider it a place I can store my junk and call home.


This.

Unless you have more money than me then you are gonna need credit to buy a house. I don't mind playing their little game ... I would never have been able to buy a house without credit.

BUT ...

Personal responsiblity is key. Don't buy more than you know you can truly afford just because the bank is willing to lend it to you. At the very least make your payments ... Ideally, pay it off early. Don't succumb to the "need" to keep up with the Joneses ...

In short ... be an adult ... it's really not that hard ... or that bad ...


----------



## stayingthegame (Mar 22, 2011)

DH and I have credit cards but they are paid off at the end of the month. we own all that we have, not the bank. now we are working on the end of the future to make sure we have a chance to write the next chapter of "after the end of the world". been storing the what we eat type stuff. but I always have been a make it from scratch person. (even made my wedding dress from the skin out:sssh need to start looking at grain mills and such mom in law thinks all you need is a week or so of food, keep your money and you can buy what you need then even if something bad happens, and SHE went thru Katrina!!!! some will never learn.:dunno:


----------



## Meerkat (May 31, 2011)

PamsPride said:


> There are people like that in my own family. DH's aunt is over 65. Collects a pension (from GM or Packard...I can't remember which), gets Social Security, and still HAS to work because she can not make ends meet! DH's mom is 63 and can not afford to collect SS and go to part time because she has to many bills. DH was raised with the attitude: if you want it get it then after a few years refinance the house and then start racking the credit cards up again!!
> Well, I put a stop to that!


 Good for you Pam.People act like theres no tomorrow.There may not be for them.


----------



## BillS (May 30, 2011)

I've financed some of my prepping with credit cards. I could take money out of gold and pay it off. But gold is up about 36% in the last 12 months and the interest rate on my credit card is 24%.


----------



## JayJay (Nov 23, 2010)

BillS said:


> I've financed some of my prepping with credit cards. I could take money out of gold and pay it off. But gold is up about 36% in the last 12 months and the interest rate on my credit card is 24%.


dh and I closed out two cc accounts last spring/summer...sort of not our choice:surrender:...glad we did; saved about 65 % payoff..we were destitute/hardship.

the interest was 8% and 9% even with overuse---my neighbor (house occupier down the street really) said she got paper shades(great for blocking sunshine and cheap)at Lowe's and used her 14% cc and didn't use her Lowe's card any more; it was....

SIT DOWN!!!

READY???

36%....I HAD TO SIT DOWN FOR 3 SECONDS.....36%?????


----------

