26 replies to this topic

[Azat]

This may be more of the case in the US than in other countries as in US people are very credit hungry and are horrible at saving money

Few shocking facts
-BusinessWeek says that total household debt in the US was more than 130% of our disposable annual income last year. Now that is scary.

-The total consumer debt is at 2.1 trillion dollars. (You can visualize a trillion dollars as a stack of $100 bills placed one on top of the other, flat side on top of flat side, reaching 740 miles high.)

-The personal credit card debt carried by the average American is $9,215 and the total interest paid in 2003 was $53 billion.... an average of $1080 in interest per consumer. The average consumer caries 13 cards and 20% of cards are maxed out.

-There were 1.4 credit card holders declaring bankruptcy in 2002. Bankruptcies have exceeded 1 million per year every year for at least 7 years now.

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How many of us fall in at least one of these categories?

I have to say that I was always careful with the way I managed my credit in the old days when I did not earn much, but as my income had gone up so has my debt. without giving any numbers I can say that I have 3 credit cards and one gas card, I only use 1 of the cards, keep another 1 in my wallet just in case and 1 at home JUST in case. Obviously the other 2 cards are at 0 but one of my cards is out of whack. I own probably 2 months of my take home salary on it and each month I seem to pay 2000-2500 and cant get the stupid thing to go down. Other than that I have a huge mortgage but that is under control and not too much I can do. I do pay half my tax return as an extra payment each year to make the darn thing end faster and in 6 years I have cut an extra 6 years from the length.

How do you guys manager your credit cards? other dept in general?

Edited by Azat, 21 December 2004 - 06:30 PM.

[dianjan]

I am very careful with my credit, but it's a little bit different for me. I still live at home with parents, thus I do not have all of the expenses. I know my limit of how much I can spend a month, and I try to spend within that limit. I give my self a little cussion, so that if I need to spend more, I do not go in debt. I like using credit cards, because they are easier to use, and I don't like to carry cash. I always make sure to pay the full amount every month, and I think I only paid half once.

[DominO]

No problem for me, I don't have a credit card... the problem is in the hand of the one from whom I borrow it... because that person has always to run after me, so I pay him back.

[Sasun]

I don't like to owe money, but I use credit cards as much as possible to earn points. But I always pay my credit card bills in time (at least I try, as I have forgotten to pay a few times). One thing I don't like is I have about 10 credit cards but use only 1 or 2.
And I can't close the rest because I heard it is not good for credit history.

[ExtraHye]

I have about 10 credit cards And almost all of them are maxed out. And lets forget about all the late mayments.

[MosJan]

I have about 10 credit cards   And almost all of them are maxed out.   And lets forget about all the late mayments.

Extra jan late mayments are ok but if you have late Paymants - ohh gooood your in Deeeppppp S&8

[Nané]

Credit card companies prey on naive/optimistic college students. On your first day, as you walk to class, you are seduced with cheap gifts and entrapped in the world of "buy now, pay later." And the "later" seems much brighter with a 4 year degree under your belt. Such BS

[Siamanto]

I don't like to owe money, but I use credit cards as much as possible to earn points. But I always pay my credit card bills in time (at least I try, as I have forgotten to pay a few times). One thing I don't like is I have about 10 credit cards but use only 1 or 2.
And I can't close the rest because I heard it is not good for credit history.

Like you, I don't like to be or feel in debt!
I only use it to
- shop online
- pay my bills
- pay for big items

I usually pay in full! I'm not good at paying my bills on time, that is why I subscribe to automatic payment plans. Also, in order to avoid late payments of my credit card bills, I avoid credit cards that do not offer the option to automatically debit my bank account!
I have better things to do in life than balance my check books....something, I've NEVER done! I can't see myself counting and adding and...I just can't do it! Too painful! I'd rather put extra hours at work!

[Azat]

Aneta that is how I got my first card as well. and Yes credit card companies really make alot of money on the poor college students.

[Sasun]

I usually pay in full!

Oh, I pay in full too, and it time. I don't imagine myself buying stuff while my pockets are empty. I would never rely on credit cards.

Edited by Sasun, 21 December 2004 - 10:21 PM.

[Sasun]

Credit card companies prey on naive/optimistic college students.  On your first day, as you walk to class, you are seduced with cheap gifts and entrapped in the world of "buy now, pay later."  And the "later" seems much brighter with a 4 year degree under your belt.  Such BS 

The best thing to do is to pay all your bills on time and disappoint them.

[Nané]

The best thing to do is to pay all your bills on time and disappoint them.

But pulling their strings is much more fun

Edited by Sulamita, 21 December 2004 - 10:32 PM.

[Sasun]

But pulling their strings is much more fun 

Perhaps, but don't you think that type of fun is too costly?

[Nané]

Perhaps, but don't you think that type of fun is too costly?

Nothing is too costly when it comes to emotional satisfaction

[Sasun]

Nothing is too costly when it comes to emotional satisfaction 

Well, if that's the case, feel free to buy me expensive Christmas gifts on your credit cards and hit the cap

[Nané]

Well, if that's the case, feel free to buy me expensive Christmas gifts on your credit cards and hit the cap

See, X-mas shopping irritates me, which in effect causes emotional dis-satisfaction. Sorry kiddo, no can do

[Sasun]

See, X-mas shopping irritates me, which in effect causes emotional dis-satisfaction.  Sorry kiddo, no can do 

Well, don't give up yet on your emotional satisfaction. Think about it, there maybe workarounds. For example, you could lend me your credit cards and I would be happy to do all the shopping and return your credit cards to you. Deal?

[Nané]

Well, don't give up yet on your emotional satisfaction. Think about it, there maybe workarounds. For example, you could lend me your credit cards and I would be happy to do all the shopping and return your credit cards to you. Deal?

OK. That one works. But in the meanwhile, you have to shop for everyone on my list

[Sasun]

OK.  That one works.  But in the meanwhile, you have to shop for everyone on my list 

Ahh, thanks, I think I would rather use my own credit cards Seems like you have learned some stuff from credit card companies.

[Azat]

Sas, what happened to your candle bud?