Attitudes towards credit

[kvnchrist]

I know that the current economic crisis was caused by those in a higher pay grade than mine, but I've listened to more than a few that went through The Great Depression. I've heard that they grew up during that time had to make due with less. They too grew up saving much of what they earned, scrimping and saving instead of overusing and abusing the credit systems that were in place. I was wondering If you think the generation that is growing up today will equally frugal, or with the abundance of products out there, will they bury themselves up to their eyeballs in debt, as their parents did, before them?

[marharth]

I know that the current economic crisis was caused by those in a higher pay grade than mine, but I've listened to more than a few that went through The Great Depression. I've heard that they grew up during that time had to make due with less. They too grew up saving much of what they earned, scrimping and saving instead of overusing and abusing the credit systems that were in place. I was wondering If you think the generation that is growing up today will equally frugal, or with the abundance of products out there, will they bury themselves up to their eyeballs in debt, as their parents did, before them?

Credit is terrible to be simple.

 

What you said, it gets people in debt and is a cause for economic destruction.

[grannywils]

I know that the current economic crisis was caused by those in a higher pay grade than mine, but I've listened to more than a few that went through The Great Depression. I've heard that they grew up during that time had to make due with less. They too grew up saving much of what they earned, scrimping and saving instead of overusing and abusing the credit systems that were in place. I was wondering If you think the generation that is growing up today will equally frugal, or with the abundance of products out there, will they bury themselves up to their eyeballs in debt, as their parents did, before them?

 

 

 

 

I am guessing that it will be somewhat harder for this generation to make the hard choices that were made by those during the great depression.

[HeyYou]

Well, credit isn't quite so easy to get anymore..... before the crash, I could have picked up a 150K mortgage without trouble. Now, I can't even get a bank to even LOOK at me. To them, its all about the numbers. (credit score, and income compared to what you want to borrow). Doesn't seem to matter that by loaning me 50 grand on a house worth 75 grand, my "rent" would DROP by a couple hundred bucks, therefore, I would be MORE likely to be able to keep up the payment...... but, no. Logic doesn't enter anywhere into the picture.

[Flintlockecole]

As far as I'm concerned money is just a tool to put people in debt, credit is even worse.

[LadyMilla]

Loans, credit... I call them a tribute to the god of impatience. The interest you pay is money spent on buying time so that instead of saving up for a car for e.g. four years, you can go the dealer and buy it now. You bought a car and you bought four years.

[Sync182]

"In order to get a bank loan, you must first prove you don't need it." (humourous truism)

 

It's real simple - if you can't pay cash for it, don't get it.

 

Unfortunately, most don't get it.

[HeyYou]

"In order to get a bank loan, you must first prove you don't need it." (humourous truism)

 

It's real simple - if you can't pay cash for it, don't get it.

 

Unfortunately, most don't get it.

 

How many folks do you know that can afford to pay cash for a house? A car? Starting a business?? (If I had enough money to start a business without assistance from the bank, I would have enough money that I wouldn't NEED to start a business in the first place.)

[Aurielius]

"In order to get a bank loan, you must first prove you don't need it." (humourous truism)

It's real simple - if you can't pay cash for it, don't get it.

Unfortunately, most don't get it.

 

How many folks do you know that can afford to pay cash for a house? A car? Starting a business?? (If I had enough money to start a business without assistance from the bank, I would have enough money that I wouldn't NEED to start a business in the first place.)

OK, A house I grant you, but a car? Have paid for every car that I have bought since the early 80's at time of pick up. Not all businesses are stock orientated, so after incorporation costs it was not hard to pay for start up costs, the real trick is how long can you last until your receivables overtake your living and business expenses. But your final line, sure if you can't afford it don't buy it. Coming from and earlier period I was raised with the concept of zero debt as the optimum method, always pay the credit cards off completely every month and when we finally got rid of the bank as a partner in our house it was one of the more pleasant days that I can remember.

[HeyYou]

"In order to get a bank loan, you must first prove you don't need it." (humourous truism)

It's real simple - if you can't pay cash for it, don't get it.

Unfortunately, most don't get it.

 

How many folks do you know that can afford to pay cash for a house? A car? Starting a business?? (If I had enough money to start a business without assistance from the bank, I would have enough money that I wouldn't NEED to start a business in the first place.)

OK, A house I grant you, but a car? Have paid for every car that I have bought since the early 80's at time of pick up. Not all businesses are stock orientated, so after incorporation costs it was not hard to pay for start up costs, the real trick is how long can you last until your receivables overtake your living and business expenses. But your final line, sure if you can't afford it don't buy it. Coming from and earlier period I was raised with the concept of zero debt as the optimum method, always pay the credit cards off completely every month and when we finally got rid of the bank as a partner in our house it was one of the more pleasant days that I can remember.

 

You evidently have a higher income than I did..... I have only paid cash for ONE car that I have purchased. But, that one was only a buck..... (and I drove it for three years.... THAT was a deal....) I have NEVER bought a new car, nor do I have any real desire to...... in fact, I have very rarely owned a car that was built in the same decade that I bought it..... and if it was, it lasted for only a couple months..... (then the new decade came in......) If it weren't for my credit union, I would be on foot.....