[iWrite]

Question is simple enough: How in debt are you?

This year I gave our entire family a big gift: The gift of being debt-free.

I paid off every single one of our loans, credit cards, and outstanding bills, including the car loan. It was a huge chunk of change. Additionally, no one was allowed to buy a gift for anyone else unless it was with cash.

The trade-off? It meant buying a LOT less over the holidays and it meant watching the savings account go bye-bye. (And maybe it means no new Macs for a while ---> )

Why? Because I'm sick of owing, owing, owing money to everyone and worrying about interest rates on credit cards. We had, total, 23 credit cards. I paid them off and cut them up and canceled them and we now have one credit card which is in the lockbox and only to be used for traveling. I didn't even know how many credit cards we had until we ran a credit report and saw them all. Some didn't have balances on them, but they were open nonetheless.

What keeps you from paying off your own credit card balances or loans or debts owed? Seriously?

[Spheric Harlot]

23 credit cards!?

As for your question...no comment.

[iWrite]

Yeah, 23. Weird. Some were open all the way back from 1992, oddly enough. We even had one for Home Depot.

I remember some of them because I fell for that old trap of, "Sign up for one of our credit cards and get 10% of your purchases today." So, I did it then paid it off after that first charge and never used it again -- I just wanted the 10% off. I'm cheap that way.

Anyway, about 12 of them had no balances and were old, but open accounts.

I'm surprised my/our credit rating isn't shot.

[spiky_dog]

sweet jeebus, 23! i have two, and pay off the balance in full each month. this month will be no different than the others.

[iWrite]

Good for you. I'll be interested to see what people have to say. (I wonder how many people will be honest about it, though! )

[philzilla]

i've got more money in my account today than i have for a while, and i spent about �600 in the last 2 weeks, just partying.

no debt for me, suckers

[lil'babykitten]

Originally posted by philzilla:
no debt for me, suckers

ditto.
mwahahhahaha

[iWrite]

<snicker>

Love your sig, li'l baby kitten.

<snicker>

[lil'babykitten]

Originally posted by iWrite:
<snicker>

Love your sig, li'l baby kitten.

<snicker>

Thankee! I might return the compliment, if you had a sig. <snicker>

[iWrite]

(Yeah, I'll have to think about that siggy thing!)

Getting back to the credit card thing, I was surprised by how much debt it was. It was an ASTOUNDING amount of money -- I can't even tell you how much it was because it is truly staggering. I got the bills and simply paid out what was due plus a couple hundred and didn't think about it. I just didn't care. I didn't even pay attention to the amounts of the interest that we were being charged, I just paid it.

Weird thing is, I kept getting more and more pre-approved credit cards. Every day I got them.

[gorickey]

I am a debit card man...no credit...

[spiky_dog]

Originally posted by iWrite:
Weird thing is, I kept getting more and more pre-approved credit cards. Every day I got them.

it makes sense, since the credit card companies live solely because of people who have your habits. they make no money off me and my ilk, since my cards have no annual fee and they haven't made a penny in interest off me. all they get is the slim processing fee from merchants...

[Disgruntled Head of C-3PO]

Well I am no more in dept then usual, but I did spend a lot on others along with myself. I am also going on vacation next week so that won't help my pocket.

[voyageur]

I heard on the radio today that the average American carries $18,000 in debt, and that's not counting mortgages.

[Eriamjh]

Pfffft. I probably have 15 CCs with all balances paid off each month. Well, not all of them get used, but I use CCs. They don't use me.

I don't pay interest. I don't pay late fees. I use credit so I don't have to carry cash. I don't use debit cards because they offer ZERO protection from theft. (Let someone steal Visa's money, not mine.)

I have a home mortgage and two car loans. I have enough credit to buy them a couple times over.

[mitchell_pgh]

I'll be 100% honest...
Total Current Balance = $153.43

Last year at this time, it was over $7,000!!! I'm in debt recovery and have been for the last year. I even took on a second job to deal with the debt (working evenings and weekends at Best Buy). I'm lucky I didn't ruin my credit. It's going to be a few years before I can even consider buying a house with a FICA score like mine (high 600's).

I've officially given up on "keeping up with the Jones's."

It's my own fault, and I can't blame anyone, but I'm happy without a new iPod or Mac... because I know it will pay off in a few years.

My 733 G4 tower keeps on going...

[DeathToWindows]

Don't have a cc... will get one before I go off to Uni this fall

Rules for Credit Cards

1. Pay off your balance each month!
2. Repeat rule 1.

[wdlove]

I pay my Credit Cards off each month in full. Still have a home equity loan.

[andi*pandi]

I kept myself in check, for the most part, this holiday season. I think I tallied it up roughly and ...

~
$250 at target +
$120 at amazon +
$60 at local craft fair +
$40 itunes gift cards +
$90 TJMaxx
$15 JCPenney (more, but used up gift card)
$25 at Filene's
$50 misc at CVS (batteries, makeup, candy)
___________
$650 (but there was probably some things I'm forgetting, so let's say 800)

/number of people bought gifts for (25)
= $32 per person.

plus I think the husband spent maybe $150 on me + $100 Sharper image for my brother in law.

I don't foresee carrying much debt for long. This was spread out over the fall.

[Gankdawg]

Zero. We started buying gifts in September and have paid cash as we went along. Of course, still have one CC from way back still working on.....

[OreoCookie]

I am not, because I usually work in the summer. But I have spent a huge chunk of change in Tokyo. But I am not in debt though.

December till February is pretty rough: Xmas and all birthdays of my significant others! Expensive!

[Alezone]

I'm in debt. It'll take me forever to pay it off.

[Link]

AFAIK we broke even a few months ago (no seriously), mortgages and all. Right now on both of our houses we either have more "down" or in equity than the mortgage companies, and the difference is definately much more than enough to cover the CCs as well

Houses make great investments..

[Krusty]

Saved up a pile of cash over the course of several years, quit my job a little over a year ago and had fun for about 10 months, I've been working extended part-time (~35hrs/wk) for the last 6 months while looking for a "real" job -- at a loss of $300-$400 per month. So ... I'm not in debt yet, but I will be in the next few months if I don't start making more money soon.

As eriamjh said, you can use credit cards without letting them use you. Even if you do find yourself in a situation where you have to take CC debt, you can often structure it in a way that will minimize the hit you take if you plan in advance ... especially if you have good credit.

[iWrite]

Well, everyone seems to be in good shape here, then, for the most part.

We were not. We were credit "sick" and it's my own fault because I just didn't pay attention.

Although, I also paid off other loans, like the car loans, also.

All I can say is that I HATE CREDIT CARDS.

[philzilla]

Originally posted by iWrite:
All I can say is that I HATE CREDIT CARDS.

that's all you can say? cool. let's keep it that way, shall we?

[mitchell_pgh]

Originally posted by iWrite:
Well, everyone seems to be in good shape here, then, for the most part.

We were not. We were credit "sick" and it's my own fault because I just didn't pay attention.

Although, I also paid off other loans, like the car loans, also.

All I can say is that I HATE CREDIT CARDS.

Credit Cards are great for what they were designed to do. They were designed so that you wouldn't have to walk around with stacks of cash in your wallet.

You buy $500 TV with Credit Card
You get bill for $500 from Credit Card
You send in a check for $500

It has now mutated into a way of having things before you can afford them (or buying things and then paying them off over a long(er) period) and a way for airlines, car rentals, hotels etc. can keep track of you.

Working at Best Buy was the best thing I could have ever done to get rid of my debt. I saw hundreds of people just like the old me. I'll admit that I once was rather easily up-sold. I also realized that wanting is usually much more interesting then having.

It killed me to see people buying digital cameras (1/2 in cash, 1/4 on the Best Buy Credit Card and 1/4 on their own credit card) when I knew they couldn't really afford it.

As I grow older, I look back on purchases I made in my early 20's with a sense of anger. Did I really need that $700+ TV when a $300 would have probably done fine, Did I need that $400 DVD player when the $200 model would have been fine, Should I have even bothered buying a $200 PDA that now sits on my desk unused. What about that CamCorder that has 15 tapes, and hasn't been used in over a year...

I think I have worked rather hard to overcome my buying habits. Like I said earlier, I have a 733 G4 tower with no plan on buying another for at least two years. When I do, it's probably going to be an iMac or iBook as I'm starting to realize that I don't use the power of the tower. When I purchased my computer, I went all out, and that was foolish. Bragging rights are cool... but not at the expense of your financial future.

[dcmacdaddy]

Originally posted by voyageur:
I heard on the radio today that the average American carries $18,000 in debt, and that's not counting mortgages.

That wold be about where I am. Although, about one-third of my debt is graduate school tuition loans, not just from conspicuous consumer consumption. I am paying it off on a regimented plan and will be debt free by the end of 2005.

[iWrite]

Well, I was just stupid about it.

My spouse is working (I'm on leave) and the money went into the bank and I just wrote out the checks for bills mindlessly.

Then, I took a look at the interest rates and I was shocked to see that the previously low interest rates had turned into much higher rates after the previous rates had apparently expired. Discover Card went from 2.9% to 18.99% for example. They were all like that. I just decided to pay off every single debt that we have, that's all, so that we owed no one any money at all. Even car loans.

Now I have an American Express card and that's it. Everything else will be paid for outright and the credit card is for travel purposes.

We live in a time and society where using credit to pay for our lifestyles is part of the status quo and is the norm. The average American lives beyond his or her means and they want and need help from banks to help them do this -- even though it's frivolous and unnecessary in most instances.

It's actually quite an interesting phenomenon if you think about it.

[voyageur]

Originally posted by dcmacdaddy:
That wold be about where I am. Although, about one-third of my debt is graduate school tuition loans, not just from conspicuous consumer consumption. I am paying it off on a regimented plan and will be debt free by the end of 2005.

Then you're in much better shape than average, dcmacdaddy! The $18,000 figure I heard excluded student loans, car loans and mortgages.

[dav]

always pay off credit cards. could pay off the car, but the rate is good. mortgage, no time soon.

[Spheric Harlot]

Originally posted by iWrite:
We live in a time and society where using credit to pay for our lifestyles is part of the status quo and is the norm. The average American lives beyond his or her means and they want and need help from banks to help them do this -- even though it's frivolous and unnecessary in most instances.

It's actually quite an interesting phenomenon if you think about it.

Indeed, and it's not just Americans.

What I find scary is the number of teens with debts. Twelve percent of 13-24-year-olds in Germany have cellphone bill debts, *averaging* $1500 (�1800)!! That's just for cellphone usage!

-s*

[iWrite]

I believe the cellphone debt, yes.

It's amazing how fast cell bills will rack up, unfortunately.

Teens chat with each other ALL of the time. If my kid was a teen and wanted a cell phone he'd have to pre-pay all of his time, period.

As far as teens and debt goes, I remember getting into college and having NO credit at all and just by virtue of the fact that I was a college student, I started receiving pre-approved credit cards. They start targeting early.

I heard that 2003 was a record year for debt and bankruptcies and 2004 will exceed 2003 in debt and bankruptcy filings. It's really quite amazing. We're just fortunate that we were ABLE to pay off the debt the way we did, but I know that for some debt is something that is unavoidable. Like someone who gets sick or a family member gets sick and medical bills add up for them. Or something similar. That kind of debt is understandable. Or tuition debts. Or a mortgage and even a car I suppose. But anything else is really not necessary. It's no wonder that the banks are continuing to get bigger and bigger and have all of the clout and money.

[GoGoReggieXPowars]

Less than ever! I paid down another grand on my line of credit, leaving about $700, and a few hundred on my VISA, which should be down to under $200. Still have student loans that I'm just paying the minimum each month until I figure out my taxes for 2003, then I might just pay them off in one fell swoop. Another 2 years of the "full time work" thing and I'll be in really good financial shape.

Originally posted by mitchell_pgh:
Credit Cards are great for what they were designed to do. They were designed so that you wouldn't have to walk around with stacks of cash in your wallet.

More like:

You buy $500 TV with Credit Card
You get bill for $500 from Credit Card
You send in a check for $250+interest one month
You send in a check for $250+interest the next month

or however you want to do it. They're great for paying things off over time that you know you can afford, just can't pay for all at once.

[starman]

None.

Paid cash for it all.

Mike

[GoGoReggieXPowars]

Originally posted by Spheric Harlot:
What I find scary is the number of teens with debts. Twelve percent of 13-24-year-olds in Germany have cellphone bill debts, *averaging* $1500 (�1800)!! That's just for cellphone usage!

All the more reason not to give an unemployed, irresponsible teen a cellphone. Or adult for that matter

[pimephalis]

Wow, you folks are responsible. Kind of disgusts me.

My wife and I bought a house in October with less cash in reserve than we would have liked, and thus are now in some debt (excluding the mortgage). Closing costs are a real bitch, and the intransigence and inflexibility of our house insurer led to another $1k cheque being due on the 18th of December. I am soooo shopping around for another company.

We're on the serious austerity plan now, and I intend to whack down all debt, save the mortgage, within the next three months.

As an aside, I can tell you that living as two graduate students for 4 straight years does nothing to help your debt situation. It's all fine and good to say that "I don't need to replace the TV, I'll just save some cash" but when it comes to little things like food and heat, in the survival vs. credit debate survival wins out every time.

[Kilbey]

We paid cash for Christmas this year. The first year we were able to do that.

The debt we have:
My wife's Master's degree loans (this is big because she went to a private school)
2 Vehicles (but they are 0% so I am not bothered by them)


We aren't doing too bad.

[osiris]

I owe, I owe, it's off to work I go.

[macroy]

Originally posted by iWrite:
Yeah, 23. Weird. Some were open all the way back from 1992, oddly enough. We even had one for Home Depot.

I remember some of them because I fell for that old trap of, "Sign up for one of our credit cards and get 10% of your purchases today." So, I did it then paid it off after that first charge and never used it again -- I just wanted the 10% off. I'm cheap that way.

Anyway, about 12 of them had no balances and were old, but open accounts.

I'm surprised my/our credit rating isn't shot.

Yikes... This means that I may have a few that I no longer use. I've always gone for the 0% for 1 year type of thing.... (sears comes to mind). I never hesitate to delay paying anyting if there's no interest involved. Mortgage would be the only interest I pay (or loans associated with my equity)... but thanks to the current housing market... my equity is twice my mortgage. So that makes me feel better.

[SomeToast]

Originally posted by Eriamjh:
I don't use debit cards because they offer ZERO protection from theft. (Let someone steal Visa's money, not mine.)

VISA check cards have the same Zero Liability unauthorized-use policy as their credit cards do.

I don't have any credit cards, but I use my debit card for damn near everything.

[iWrite]

pimephalis and SomeToast:

PLEASE post over at the "What your username means" thread, will ya?



pimephalis: I totally sympathize with you. I remember being in college and using my Mobil gas credit card to buy food I was so broke! Yikes! Those were the days.

SomeToast: Called Bank of America and they said that our Visa debit/checkcard has a $50 liability amount on it -- the most I'd be responsible for is $50 if there was a problem.

(Now, if I gave out my PIN number and some jerk took out all the money then I'd be in bad shape, but why in the world would ANYONE do THAT?)

If anyone sees this, take all of these posts and consider them good advice: STAY OUT OF DEBT.

Especially consider my lack of foresight and idiocy as a good example. I have paying THOUSANDS of dollars a year for NOTHING.

[itai195]

Originally posted by pimephalis:
It's all fine and good to say that "I don't need to replace the TV, I'll just save some cash" but when it comes to little things like food and heat, in the survival vs. credit debate survival wins out every time.

I'm sure a new 60" big screen TV would radiate more than enough heat

I've been careful through college and fortuntaly emerged with no debt, a good amount of savings, and a job. I probably will take on a little debt soon (to buy an engagement ring) but it'll be on a cc with no interest for six months and I'll have it paid by the end of that term. I just don't want to drain my savings to that extent in this economy. Credit can be helpful if you manage it well, most people just don't. BTW, the problem with debit cards is they have a pretty low spending limit and if you have a joint account it can get pretty easy to overdraw.

College seems to be where many people start getting into debt... Students are poor, parents are stingy, and credit cards are tempting. I don't understand why so many schools allow credit card companies to set up booths on campus. Also, a lot of students these days are going on to graduate school in order to avoid facing the job market, prolonging their poverty and probably enlarging their debt.