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billege · 08-26-2004, 10:43 PM

The road to credit hell is paved by the phrase "I'll pay it off before there's any interest." Or, some close version of that.

The whole reason there are offers like that, is because 2% of the people that use them, pay them before the costs kick in. That means there is a 98% chance you will NOT be one of those people. You will pay interest, it will suck, and you'll be setting yourself up in the same "pay later" mentality that's got this whole country fux0red.

There are very few things you should buy with credit. I don't know anyone that can buy a car for cash. I'm sure they're out there, but I don't know any of them. At least a car loan is for an asset. Although it's an asset that loses value from the day you buy it, and about the worst kind of assest there is.

I sure as heck don't know anyone that can buy a house cash. Houses gain value, the best kind of asset.

Emergencies. This is tricky, because the right person can rationalize a new pair of shoes, DVD player, and home theater as emergency purchases.
Here's how I see them:
--If your *insert family member here* gets in a bad car crash and needs your help. Buying a plane ticket on a credit card is okay. Fuck the money, this is hurt family.
--If you are on a road trip, are 499 miles from home, and your engine dies, fixing it with a credit card is okay. Sucks big time, but what are you gonna do?

If you're really working hard to be finacially stable, you'll have savings for this. Many people CAN'T save enough money. Then again, many don't try. They just say they can't, and then don't. My wife and I save nearly 20% of our income. 10% to our 401k, and another 10% deposited into savings each month. We're not normal, statistically speaking. Is it easy? FUCKING HELL NO. The 401k, sure it's autodeducted and we never see it, really. The other chunk we have to make a decision every day not to blow money of stupid shit, and we have to take that money out of checking and move it to savings. Every time, that means XXX we can't spend. It takes disciplene. But, when something breaks, we don't have to panic. It also means we're living UNDER our means. Totally freakish concept, huh? There is a great bennie though: We keep up with our peer "Jonses" (hey, we've got egos too! suck!) pretty well. We might not have exactly the same new stuff, and we may have to wait 8 months to buy new bedroom furniture. BUT! !! I say BUT, our things are OURS, not loaned out bullshit. I waited to buy something, and I OWN it. "You'll pay off your couch next year? How nice." Smug? Fuck yeah! It took work, so hell yes I get to feeling smug sometimes. It's what I rely on when my buddy buys a new set of speakers that I can't.......yet.

--If you have 4 tires on your car that are shredded and have not enough tread to be legal, use a 90 day plan to get new ones. Granted, you should have seen this coming, and saved for it. But, maybe you couldn't have. If you've got the tread left to make it 3 months, I'd do it. If your tread is smooth and now it's a safety issue, shame on you for letting it go so far. But, maybe you had too.

My life lesson: If I don't have the cash, then I don't have the money to buy it, do I?

08-26-2004, 10:43 PM	#14 (permalink)
billege Watcher Location: Ohio	The road to credit hell is paved by the phrase "I'll pay it off before there's any interest." Or, some close version of that. The whole reason there are offers like that, is because 2% of the people that use them, pay them before the costs kick in. That means there is a 98% chance you will NOT be one of those people. You will pay interest, it will suck, and you'll be setting yourself up in the same "pay later" mentality that's got this whole country fux0red. There are very few things you should buy with credit. I don't know anyone that can buy a car for cash. I'm sure they're out there, but I don't know any of them. At least a car loan is for an asset. Although it's an asset that loses value from the day you buy it, and about the worst kind of assest there is. I sure as heck don't know anyone that can buy a house cash. Houses gain value, the best kind of asset. Emergencies. This is tricky, because the right person can rationalize a new pair of shoes, DVD player, and home theater as emergency purchases. Here's how I see them: --If your insert family member here gets in a bad car crash and needs your help. Buying a plane ticket on a credit card is okay. Fuck the money, this is hurt family. --If you are on a road trip, are 499 miles from home, and your engine dies, fixing it with a credit card is okay. Sucks big time, but what are you gonna do? If you're really working hard to be finacially stable, you'll have savings for this. Many people CAN'T save enough money. Then again, many don't try. They just say they can't, and then don't. My wife and I save nearly 20% of our income. 10% to our 401k, and another 10% deposited into savings each month. We're not normal, statistically speaking. Is it easy? FUCKING HELL NO. The 401k, sure it's autodeducted and we never see it, really. The other chunk we have to make a decision every day not to blow money of stupid shit, and we have to take that money out of checking and move it to savings. Every time, that means XXX we can't spend. It takes disciplene. But, when something breaks, we don't have to panic. It also means we're living UNDER our means. Totally freakish concept, huh? There is a great bennie though: We keep up with our peer "Jonses" (hey, we've got egos too! suck!) pretty well. We might not have exactly the same new stuff, and we may have to wait 8 months to buy new bedroom furniture. BUT! !! I say BUT, our things are OURS, not loaned out bullshit. I waited to buy something, and I OWN it. "You'll pay off your couch next year? How nice." Smug? Fuck yeah! It took work, so hell yes I get to feeling smug sometimes. It's what I rely on when my buddy buys a new set of speakers that I can't.......yet. --If you have 4 tires on your car that are shredded and have not enough tread to be legal, use a 90 day plan to get new ones. Granted, you should have seen this coming, and saved for it. But, maybe you couldn't have. If you've got the tread left to make it 3 months, I'd do it. If your tread is smooth and now it's a safety issue, shame on you for letting it go so far. But, maybe you had too. My life lesson: If I don't have the cash, then I don't have the money to buy it, do I? __________________ I can sum up the clash of religion in one sentence: "My Invisible Friend is better than your Invisible Friend." Last edited by billege; 08-26-2004 at 10:49 PM..