[His Dudeness]

I joined Langley Federal Credit Union yesterday. I asked the woman to get me a debit card instead of an atm card. She said there would be a credit check to get a debit card. What the hell? I asked her what the CREDIT limit on a DEBIT card would be. She said the funds come from your checking account and there wasn't a credit limit. So I asked her why she was going to do a CREDIT check if I wasn't going to get a line of CREDIT...

Does this make sense to anyone?

I ended up passing the credit check to get a debit card, but that's not my point. If a debit card doesn't have a credit limit, why do a credit check???

And the bank I used to deal with, Wachovia, didn't do a credit check for the debit card... I can't figure it out.

[sugar_coated]

Fridays can be difficult or easy for many depending on the bank that you go to, but that is not an explanation that I am comfortable with.

[Mastrap]

Originally posted by His Dudeness:
So I asked her why she was going to do a CREDIT check if I wasn't going to get a line of CREDIT...

What did she say?

[ManOfSteal]

Originally posted by sugar_coated:
Fridays can be difficult or easy for many depending on the bank that you go to, but that is not an explanation that I am comfortable with.

[Psychonaut]

I think because if you have no money in your checking account, you can still "bounce checks" by charging purchases on your debit card.

[mitchell_pgh]

They do a credit check because you can do more with a check card then an ATM only card. You could rent a car and drive away with it.

[Mastrap]

Originally posted by mitchell_pgh:
They do a credit check because you can do more with a check card then an ATM only card. You could rent a car and drive away with it.

Are you sure? As far as I know (and things might very well be different in the US) you can't rent a car with a debit card for that very reason.

[mitchell_pgh]

Originally posted by Mastrap:
Are you sure? As far as I know (and things might very well be different in the US) you can't rent a car with a debit card for that very reason.

I'm rather sure you can... but not positive. How hard would it be to get a CC with a $200 limit?

[TETENAL]

Originally posted by mitchell_pgh:
They do a credit check because you can do more with a check card then an ATM only card. You could rent a car and drive away with it.

So? That would be the problem of the car rental company, not the bank.

[Zimphire]

Originally posted by sugar_coated:
verbal masturbation.

Fixed.

[His Dudeness]

Originally posted by Mastrap:
What did she say?

That's the bank's policy because it has the Visa logo on it... That doesn't make it a CREDIT card, was my reply. It's like hitting your head with a brick.

[Zimphire]

Originally posted by His Dudeness:
That's the bank's policy because it has the Visa logo on it... That doesn't make it a CREDIT card, was my reply. It's like hitting your head with a brick.

Try going to a different bank?

My bank gave me one with no questions asked.

[His Dudeness]

I got one anyway. I was putting up such an arguement that I don't think she did a credit check. She just gave me one. I was driving my wife nuts because she knows that I argue stuff like that all the time.

I was getting sick and tired of Wachovia's stupid fees. I had to ditch them.

[wdlove]

I have always been told that a Debit card isn't as safe as a credit card. There are protections against theft when a credit card is lost. A Debit card is direct access to your funds.

[TETENAL]

Originally posted by wdlove:
I have always been told that a Debit card isn't as safe as a credit card. There are protections against theft when a credit card is lost. A Debit card is direct access to your funds.

And is that true? I'm sure banks will tell you a lot to sell a credit card. They make money by giving credits after all.

[Mastrap]

A debit card is as safe as a credit card should you lose it. Where credit cards do offer better protection is when it comes to fraud.

[budster101]

Originally posted by Mastrap:
A debit card is as safe as a credit card should you lose it. Where credit cards do offer better protection is when it comes to fraud.

False.

When you lose a credit card, you have 30 days to file a claim and get your money back.

With a debit card tied to your checking account, you have 3 days. 3 DAYS, and then you are liable for the money. I do think you can claim up to 30 days, but you don't get but a fraction of your money back form the back with a debit card fraud issue.

I heard this while watching a professional on identity theft speak on television. He belongs to a non-profit group to help people, and if I think of the name I'll post it, because they help with identity theft victims, and those who wish to protect themselves.

-

If shopping online, use one particular card for that only, and the same goes for dinin out. This way , when you view your statements, anything out of the ordinary will jump out at you.

Check your Credit Report every 4 months, and stagger them according to each agency. One each month from each of the Credit Bureaus: (TransUnion, Experian, Expedian)

You get one free from each agency per year.

Free Credit Reports page

[Mastrap]

Originally posted by budster101:
False.

When you lose a credit card, you have 30 days to file a claim and get your money back.

With a debit card tied to your checking account, you have 3 days. [/URL]

Interesting. Not with my bank. Again, things are probably different in the US.

[RAILhead]

Originally posted by budster101:
False.

When you lose a credit card, you have 30 days to file a claim and get your money back.

With a debit card tied to your checking account, you have 3 days. 3 DAYS, and then you are liable for the money. I do think you can claim up to 30 days, but you don't get but a fraction of your money back form the back with a debit card fraud issue.

FALSE.

Check with your bank as it varies depending upon the TYPE of debit card. We use a Visa Checkcard with our bank, and it's treated EXACTLY like a "regular" credit card as far as protection, etc., goes. We have the full 30 days to report our lost cards. Further, you'd be an idiot NOT to report it within three days anyway, so even then, I wouldn't complain.

The best thing about check cards is that you can't spend more than you have without getting nailed to the wall. Credit equals debt and the VAST MAJORITY of people in the world spend more than they earn so they remain in debt. Debt equals not being able to save properly which means I'll be helping you out with my tax dollars because you can't manage your money.

Maury

[malvolio]

Originally posted by RAILhead:
Debt equals not being able to save properly which means I'll be helping you out with my tax dollars because you can't manage your money.

On behalf of my fellow debtors, I'd like to say thanks.
My bank card is one of those debit/credit ones. My bank "encourages" using it as a credit card by imposing debit card transaction fees plus a monthly fee if I don't use it for at least 4 credit purchases.

I mostly use the bank card to get cash from ATMs. My on-line purchases are charged to a separate credit card with a pretty low limit. And I check both accounts daily.

[Big Mac]

That card really sucks then. I would never go for a fee schedule like that. In general, I am completely uncomfortable with the thought of having a card tied directly to my bank account. You can get cleaned out with a debit card, and once that real money is gone it's very hard to recoup. I have never looked into the subject, but debit card fraud must be much more convenient than check fraud - no messy paper trail for the perp to deal with.

[RAILhead]

Originally posted by Big Mac:
That card really sucks then. I would never go for a fee schedule like that. In general, I am completely uncomfortable with the thought of having a card tied directly to my bank account. You can get cleaned out with a debit card, and once that real money is gone it's very hard to recoup. I have never looked into the subject, but debit card fraud must be much more convenient than check fraud - no messy paper trail for the perp to deal with.

Then I recommend you DO some research. Your worries are completely unfounded, as the debit/check card provides as much protection as a credit card.

Maury

[itai195]

Maybe some of you need new banks. I have a check card from BofA and I have SIXTY (60) days from the STATEMENT DATE (ie not just when I lose the card) to report theft or fraud. That's better than many credit cards I've seen out there. I checked these policies out before traveling last summer and was really impressed with the security of debit cards...

As far as the credit check goes -- it doesn't matter whether you're actually getting credit or not. You can potentially get a credit check for all sorts of things these days. You sometimes need a credit check when seeking employment, opening an IRA, renting an apartment, getting a cell phone, etc. It's often used just to verify identity and check how responsible you generally are with money. I don't like it either

[CharlesS]

Originally posted by sugar_coated:
Fridays can be difficult or easy for many depending on the bank that you go to, but that is not an explanation that I am comfortable with.

As!

The dandy, me the empty tin-can which is rare always the what kind of thing to which you talk the thing it understands. Does he happen this why? It opens with the realness which spreads out and it learns this the fact that in necessity.

[typoon]

Originally posted by His Dudeness:
I got one anyway. I was putting up such an arguement that I don't think she did a credit check. She just gave me one. I was driving my wife nuts because she knows that I argue stuff like that all the time.

I was getting sick and tired of Wachovia's stupid fees. I had to ditch them.

That's why I switched to a Local bank first then to Commerce Bank.

[ghporter]

Dude, Langley FCU should only worry about a credit check because it's a credit union, not a bank. Your "deposits" in a credit union equate to (and are often called) shares in the ownership of the credit union. The problem they face is that overdrafts can be difficult for them to recoup-especially organizations like Langley FCU (or for that matter Keesler FCU, Security Service FCU, the now defunct Bergstrom FCU-I've been a member of all of these) with a transient population.

Since you got your card, double check to find out what services, guarantees and protections come with it. My BANK check card is protected at the same level as any other Visa card because the bank issued it as a "Visa check card." Many credit unions' "check cards" are not backed by either Visa or MasterCard, so they are exposed. Obviously they like to protect themselves from that exposure.

[kcmac]

I would never have a debit card. I kinda like using "someone else's money" for 30 days. We always pay our bill at the end of the month so they don't make any money off of us.

[Athens]

Originally posted by mitchell_pgh:
They do a credit check because you can do more with a check card then an ATM only card. You could rent a car and drive away with it.

Let me get this straight there is a
ATM Only Card
Debit Card
Check Card
and Credit Card?

[Athens]

Originally posted by budster101:
False.

When you lose a credit card, you have 30 days to file a claim and get your money back.

With a debit card tied to your checking account, you have 3 days. 3 DAYS, and then you are liable for the money. I do think you can claim up to 30 days, but you don't get but a fraction of your money back form the back with a debit card fraud issue.

I heard this while watching a professional on identity theft speak on television. He belongs to a non-profit group to help people, and if I think of the name I'll post it, because they help with identity theft victims, and those who wish to protect themselves.

-

If shopping online, use one particular card for that only, and the same goes for dinin out. This way , when you view your statements, anything out of the ordinary will jump out at you.

Check your Credit Report every 4 months, and stagger them according to each agency. One each month from each of the Credit Bureaus: (TransUnion, Experian, Expedian)

You get one free from each agency per year.

Free Credit Reports page

A Debit card is a hell of a lot safer to lose then a credit card unless your stupid enough to have your PIN number with it so some one can use it.

[malvolio]

Originally posted by Athens:
A Debit card is a hell of a lot safer to lose then a credit card unless your stupid enough to have your PIN number with it so some one can use it.

My sister-in-law wrote her PIN on the back of her debit card!

[roberto blanco]

maybe a little bit off topic, but i have been trying to find a way to transfer money directly from my master/visa card to my checking account.

this might seem kind of weird from a us perspective, but just about NOBODY accepts credit cards here in germany (even when buying a new computer most will only accept checking cards).

cash advance fees are complete out of hand, but i haven't found any way to transfer money online (pay-pal also asses a fee for cc transactions)

does anybody here do this?

[RAILhead]

Originally posted by kcmac:
I would never have a debit card. I kinda like using "someone else's money" for 30 days. We always pay our bill at the end of the month so they don't make any money off of us.

No it's not -- unless your bank's thoroughly confused.

[Mastrap]

Originally posted by roberto blanco:
maybe a little bit off topic, but i have been trying to find a way to transfer money directly from my master/visa card to my checking account.

this might seem kind of weird from a us perspective, but just about NOBODY accepts credit cards here in germany

There is, as far as I know, no way to do this.
Germany sucks in the credit card department. Normally all my expenses go onto my company credit card. Except in Germany where credit cards appear to be unheard of.

[Secret__Police]

You can use your Debit card as a Credit card. The difference is any charges made with your debit card are paid instantly.
Try it at a Grocery store or 7-11, use it as a credit card. I use my debit as a credit card at 7-11 where they tack on a "Service fee" for using your debit card.
I bank at a Credit Union.
VISA Debit card.

[budster101]

Originally posted by Athens:
A Debit card is a hell of a lot safer to lose then a credit card unless your stupid enough to have your PIN number with it so some one can use it.

Debit Card NOT ATM.

I'm talking about a credit like card with a VISA or MASTERCARD LOGO where it can be used like a Credit Card, but draws from your bank account.

I write "DEMAND ID WHEN USED" on it, but have busted many merchants who do NOT ask for photo ID.... it's infuriating!

You don't need a pin for using it... only to go to an ATM with it.

Duh.

[Mastrap]

Originally posted by budster101:
!

You don't need a pin for using it... only to go to an ATM with it.

Huh? My debit card is also a VISA card. Of course you need a pin to use it at an ATM. I'm confused.

[Scotttheking]

Originally posted by RAILhead:
Credit equals debt

FALSE

[Athens]

Originally posted by budster101:
Debit Card NOT ATM.

I'm talking about a credit like card with a VISA or MASTERCARD LOGO where it can be used like a Credit Card, but draws from your bank account.

I write "DEMAND ID WHEN USED" on it, but have busted many merchants who do NOT ask for photo ID.... it's infuriating!

You don't need a pin for using it... only to go to an ATM with it.

Duh.

Ok a Canadian Debit card is alot safer then a US Debit card when lost. In order to use a Canadian Debit card in any shape form or fashion hehe you need to enter your pin except when using it to open a door that works with out a pin

If your debit card is also a credit card then the debit function as in taking money directly out of your account should be safe and all you have to worry about is the credit card charges which if you can prove isnt you shouldnt be a problem

[Scotttheking]

In my wallet I carry 1 credit card and 1 check card.
the credit card is where purchases get made, the check card is for debit if the CC is over limit, for places that don't accept a credit card, and as my ATM card. The check card is well protected. I also have my picture on the check card, and will on the credit card as soon as I can get to the bank to get it on.

[Athens]

i generally leave my money in a checking account that isnt attached to my debit card and leave 100 in the account that is. When I need more I just logon to my web banking and transfer the funds from one account to another

[Scotttheking]

Originally posted by Athens:
i generally leave my money in a checking account that isnt attached to my debit card and leave 100 in the account that is. When I need more I just logon to my web banking and transfer the funds from one account to another

Aye. I rarely have more than $100 in my checking account unless it's needed because it's going out. It's also useful for preventing impulse shopping, not that I have a problem with that.

[RAILhead]

Originally posted by Scotttheking:
FALSE

Uhh, no, credit *does* equal debt. I'll give the 7th Grade lesson:

Credit = borrowing money.
Borrowing money = owing someone money.
Owing someone money = being in debt.

Period. For 1 day, 2 days, or 30 days. No ifs ands or buts. No argument. End of story.

Maury

[RAILhead]

Originally posted by Scotttheking:
Aye. I rarely have more than $100 in my checking account unless it's needed because it's going out. It's also useful for preventing impulse shopping, not that I have a problem with that.

You max out your credit cards (as per you earlier post) and you don't have "problems" with your shopping?

I'd hate to think I didn't have thousands socked away in various bank accounts in case something bad happened, like losing my job or my wife losing hers.

Maury

[Scotttheking]

Originally posted by RAILhead:
Uhh, no, credit *does* equal debt. I'll give the 7th Grade lesson:

I don't know where you live, but I consider that kindergarten level. Maybe all your rants about debt come from having a poor education system. But I'm sure you complain about your taxes and how you want them lowered, and screw the education system that those taxes fund.

Yes, you are right, it's very short term debt. I only think about debt as something I'm paying interest on.
Credit cards are useful for a few reasons. My number one reason is that I don't have to carry cash. If I want money in my checking account, it takes 2-3 days to transfer it there. I go food shopping when someone with a car goes food shopping. It'd be difficult to do if I had to plan ahead 3 days just to have the money to do it. It's easy to charge it to the card, because a week before the card is due, and auto transfer happens for the amount budgeted. If I spent too much (have to buy textbooks, for example), I have another account where I keep some slush money, and I transfer enough from there to cover.

As far as going over my credit limit, I hate to break it to you, but that's very easy to do when you have to do something like buy textbooks for 6 classes. Hint: My old credit card has a credit limit of $800. In about a week, everything will be switched over to the new credit card, which doesn't have such a low limit. I won't have that probably anymore with the new card, barring an emergency requiring a plane ticket or something like that.

So no, I have no problems with my shopping, thank you very much.

I'd hate to think I didn't have thousands socked away in various bank accounts in case something bad happened, like losing my job or my wife losing hers.

You are very luck that you have a job that can give you that luxury. Maybe you should get a job as a public high school teacher, teaching finance. Then you can educate children about how not to go into debt, and at the same time learn how hard it is to live on a low income.
As for me, I have enough "socked away" that about half of what I spend each month comes out of interest from that money. And I'm in college with no job. I manage to do ok. Even being in college with no job, my IRA is still funded, and when I made the decision to buy a new laptop in December, I had paid myself back the money I loaned myself, in full, by mid January.
Sorry to disappoint your hopes that I'm digging myself into a hole of debt from which I can never recover.

[RAILhead]

Originally posted by Scotttheking:
I don't know where you live, but I consider that kindergarten level. Maybe all your rants about debt come from having a poor education system. But I'm sure you complain about your taxes and how you want them lowered, and screw the education system that those taxes fund.

Heh, actually, I *do* think of my comment as kindergarten-level -- I was just being nice. And no, I hate to disappoint you, but I come from an excellent education system. Sorry. As for my taxes, of course I'd like them lowered -- as most people do. Screw the system? No, I don't feel that -- though i think it's crap that we graduate students all over the country when some of them can't even read. That's why it's up to me and my family to make sure our kids are in god schools -- and if we can't find a public that will do, we'll send them to private schools (and we do that with some of them).

But this thread's not about schools -- open a new one if you'd like to discuss that.

Yes, you are right, it's very short term debt. I only think about debt as something I'm paying interest on.

And that's an incorrect view, based on the definition alone.

Credit cards are useful for a few reasons. My number one reason is that I don't have to carry cash. If I want money in my checking account, it takes 2-3 days to transfer it there. I go food shopping when someone with a car goes food shopping. It'd be difficult to do if I had to plan ahead 3 days just to have the money to do it. It's easy to charge it to the card, because a week before the card is due, and auto transfer happens for the amount budgeted. If I spent too much (have to buy textbooks, for example), I have another account where I keep some slush money, and I transfer enough from there to cover.

That's what my check card is for. I buy everything except my morning kolache and glazed twist with it. Groceries, food, online purchases, car rentals, etc. If they take Visa, they take my check card -- and I have the EXACT same protection and it comes directly out of my checking account. You do waaaaaay too much work with all your transfers, but to each his own.

As far as going over my credit limit, I hate to break it to you, but that's very easy to do when you have to do something like buy textbooks for 6 classes. Hint: My old credit card has a credit limit of $800. In about a week, everything will be switched over to the new credit card, which doesn't have such a low limit. I won't have that probably anymore with the new card, barring an emergency requiring a plane ticket or something like that.

So no, I have no problems with my shopping, thank you very much.

This is where our lifestyles are different. I went to a private college on scholarships, but I had to buy books, pay rent, pay bills, pay for everything. I didn't get squat from my family. When I ran low on money, you know what I did? I delivered pizzas every weekend outside of the job I had during the week between classes. When that wasn't enough, you know what I did? I got a job at the local newspaper delivering the morning edition at 3:00am five days a week. And when that wasn't enough? I lived like a hermit on ramen noodles and hung out with all the other hermits.

I knew that the average "normal" family is around $12,000 in debt from credit cards alone. I also knew that the "normal" college graduate leaves school with around $8,000 in revolving credit card debt. I was brought-up to never borrow simply because if you don't have the money to pay for it, you ought not be buying it. Any way you slice, that still holds true. There is NOTHING in today's world that can't be bought with cash. Seven years ago, that included my books at college.

You are very luck that you have a job that can give you that luxury. Maybe you should get a job as a public high school teacher, teaching finance. Then you can educate children about how not to go into debt, and at the same time learn how hard it is to live on a low income.

Luck is not a factor. Application is. I educate people regarding staying out of debt every week already. In fact, one current "student" of our financial class makes about $23,000 at a grocery store -- and she's opening up ESA next month to begin saving for her daughter's college. By the time she's 18, she'll have around $80,000. For this family, that's a lot. This lady's also deep in debt because she bought more than she could afford, but even on her income, she's killing the debt and actually investing in her future.

As for me, I have enough "socked away" that about half of what I spend each month comes out of interest from that money. And I'm in college with no job. I manage to do ok. Even being in college with no job, my IRA is still funded, and when I made the decision to buy a new laptop in December, I had paid myself back the money I loaned myself, in full, by mid January.

Good for you -- though I hope you meant Roth IRA and not a standard IRA. And that's another lifestyle difference: "ok" is not good enough for me and mine. It's just a personal thing with me.

Sorry to disappoint your hopes that I'm digging myself into a hole of debt from which I can never recover.

Disappoint? Spare me. I don't know why people always get so pissy about this. Simply look at the facts and the statistics and you'll see that credit card debt is the #1 reason for bankruptcy now. Depending upon which set of data you look at, it's also the #1 or #2 reason for divorce in our country.

People that think they can overcome the odds usually get bit at some point down the road -- and i truly hope you don't. I've counseled scores of people with you same outlook (from what's been posted here) and things finally got bad enough they couldn't handle it.

Those of us that live debt free have this advantage: we don't have to worry about that bite because we've chosen to change our behavior and lifestyle. Again, to each his own. But while the typical American Family pays and average of $350 per month on car 1, and additional $180 on a second car, $165 in student loans, $850 on a house note, etc., mine will be using that money for giving, saving, investing, and having fun.

We obviously disagree on this, and that's fine. You take your financial advice from whomever you want -- and i'll take mine from the Fortune 400 list.

Maury

[ghporter]

Credit is the ability to borrow money, while debt is money owed. Available credit is the difference between the two. If you have a credit card with a $5000 credit limit, and have $1000 in debt on that card, then you still have $5000 credit-but only $4000 is available because of your debt.

In general, you have to borrow money to show that you are trustworthy enough to borrow money. Start small-I borrowed $500 I didn't need from a credit union and paid it off over six months just to get established. Once you're established, you shouldn't have problems getting more credit.

It's amazing how many offers for more credit you get once you have a LOT of credit extended to you. Right after we moved into our new house (with a nice, big mortgage) we got tons of offers for NEW mortgages, NEW credit cards, etc.

[Scotttheking]

Originally posted by RAILhead:

That's what my check card is for. I buy everything except my morning kolache and glazed twist with it. Groceries, food, online purchases, car rentals, etc. If they take Visa, they take my check card -- and I have the EXACT same protection and it comes directly out of my checking account. You do waaaaaay too much work with all your transfers, but to each his own.

I spend 10 or 15 minutes a month, and it earns me a little bit of money. Sure, it's not much, but it adds up to a few dollars, and that's enough money to go out for a night on. The credit card also helps me see exactly what I'm spending my money on, and lets me absorb unexpected expenses better.
I also get points from my credit card. While I don't spend a lot of money on it, that'll be enough to get me a free plane ticket or two home over the duration of my college time. That's not something I'll complain about.

This is where our lifestyles are different. I went to a private college on scholarships, but I had to buy books, pay rent, pay bills, pay for everything. I didn't get squat from my family. When I ran low on money, you know what I did? I delivered pizzas every weekend outside of the job I had during the week between classes. When that wasn't enough, you know what I did? I got a job at the local newspaper delivering the morning edition at 3:00am five days a week. And when that wasn't enough? I lived like a hermit on ramen noodles and hung out with all the other hermits.

Congrats? I pay all of my expenses. I worked 50-60 hours a week during the summers and saved up so that I can pay for school. It's nice that you had time for a job. Some majors don't have a lot of outside work. Mine does. I have no time for a job. This summer I will have time, and I'll most likely work. I don't spend extravagant amounts of money, but I do buy myself food.

I knew that the average "normal" family is around $12,000 in debt from credit cards alone. I also knew that the "normal" college graduate leaves school with around $8,000 in revolving credit card debt. I was brought-up to never borrow simply because if you don't have the money to pay for it, you ought not be buying it. Any way you slice, that still holds true. There is NOTHING in today's world that can't be bought with cash. Seven years ago, that included my books at college.

I agree. That's why everything I buy I have the money to pay for. Which doesn't preclude me from using the credit card to let that money gain interest for one more month.

Luck is not a factor. Application is. I educate people regarding staying out of debt every week already. In fact, one current "student" of our financial class makes about $23,000 at a grocery store -- and she's opening up ESA next month to begin saving for her daughter's college. By the time she's 18, she'll have around $80,000. For this family, that's a lot. This lady's also deep in debt because she bought more than she could afford, but even on her income, she's killing the debt and actually investing in her future.

That's not a lot, but you can live on it. Now throw her in front of a bus and see if she doesn't get stuck in debt with medical bills. Luck is involved.
BTW, at the rate costs are increasing, $80K will probably be good for 1-2 years at a decent college in 10 years. Pretty sad, eh? Watch out for fiancial aid, 90% of what a kid has is counted as useable for college, versus 10% of what the parents have.

Good for you -- though I hope you meant Roth IRA and not a standard IRA. And that's another lifestyle difference: "ok" is not good enough for me and mine. It's just a personal thing with me.

My IRA is a Roth. Ok is called not great. I'd like to be contributing the maximum to my IRA. Ok is the fact that I contributed a notable amount, something few college students will do. You have the income to contribute more. I don't.

Disappoint? Spare me. I don't know why people always get so pissy about this. Simply look at the facts and the statistics and you'll see that credit card debt is the #1 reason for bankruptcy now. Depending upon which set of data you look at, it's also the #1 or #2 reason for divorce in our country.

And I find that sad. Which is why the only debt I carry is the monthly credit card balance before it is paid off.

People that think they can overcome the odds usually get bit at some point down the road -- and i truly hope you don't. I've counseled scores of people with you same outlook (from what's been posted here) and things finally got bad enough they couldn't handle it.

Don't get stuck in that hole.

Those of us that live debt free have this advantage: we don't have to worry about that bite because we've chosen to change our behavior and lifestyle. Again, to each his own. But while the typical American Family pays and average of $350 per month on car 1, and additional $180 on a second car, $165 in student loans, $850 on a house note, etc., mine will be using that money for giving, saving, investing, and having fun.

Now that's a flawed view. If I am able to earn a higher interest rate than a loan costs, I'll take the loan, invest the money, and pay off the loan and still come out ahead.
I like the play on numbers though.
Missing data:
If the family didn't have the car, could they still earn the money (many need a car to get to work)?
If they didn't have those student loans, and didn't go to college as a result, would they have the same earning power?
As a fellow student noted when he bought a house here, the mortgage is the same cost as his rent was each month, and now he owns a house and has the equity and the ability to sell it later. By buying that house, he's actually coming out ahead, even though he's paying monthly on it.
Congrats on your views, it obviously works for you. I agree with some of it, which is why I don't have a car, I buy my computers used, and I rarely eat out.
I may take out a student loan next fall, with good reason. The loan will cost less than the interest I get from the funds I have. In other words, I'll be making money off that loan. It's an interesting idea that your statistics don't take into account. That is how almost all companies work, you might want to look into it.

We obviously disagree on this, and that's fine. You take your financial advice from whomever you want -- and i'll take mine from the Fortune 400 list.

The advice I get is quite good. I use a very different strategy than you do. That's fine with me. Mine works for me, yours works for you. That doesn't make either one wrong.

--Scott

[RAILhead]

Originally posted by Scotttheking:
The advice I get is quite good. I use a very different strategy than you do. That's fine with me. Mine works for me, yours works for you. That doesn't make either one wrong.

--Scott

True, but mine has given me a liquid net worth of $520k at only 31. When I get financial advice, I always make sure the person giving it is "worth" more than I am.

Maury

Edited to add "liquid" to net worth, meaning pure money not tied to mortgage, stocks, or funds.

[Scotttheking]

Originally posted by RAILhead:
True, but mine has given me a net worth of $520k at only 31. When I get financial advice, I always make sure the person giving it is "worth" more than I am.

I assume that includes your wife's earnings as well. Sorry, but that's not all that impressive. Better than many, sure, but, eh. Not worth arguing about.
I've had some good teachers, my current financial planner isn't bad (doesn't have a lot to do though since I'm in college). To ignore advice from someone because they are "worth" less than half a million dollars isn't the best idea. But, by your statement, I guess you'd have zero problems taking advice from anyone I get advice from.

--Scott

[ManOfSteal]

RAILhead vs. Scotttheking: Round 29

Fight!