Disney Debt?

[Judique]

Everyone's situation and comfort level with debt is different. I don't believe you should go into extreme debt to fund luxuries, or take vacations on credit when you can't afford your basic needs, but at the same time you can't take it with you.

The first sentence says it all. I've had what many may have perceived as extreme debt at times in the past. For me it was moderate with a means to an end.

The extremely cautious money wise folks would have been full of 'What if's'. What if you lose your job - etc.

The rest of us live the American way - we use credit in some form or another. It's the risk level we choose.

In my world I 'chose' to use credit to fund certain things. Many would not have been able to do what I've done in the past 30 years.

My first house had an interest rate just under 12%. How many of you would pay that now to get a home?
An apartment would have been cheaper. I have a credit card that is 8.9%. (I don't let it get a balance these days because I don't have to.)

How many of you trust the stock market or invest in various funds to make your money grow?
What if there's a crash and your portfolio goes belly up?

Our lives are full of risks, and most of us make some credit mistakes. Most of us will pay the cost.
A few of you are so 'wise' this will not happen to you or you've had something handed to you by someone else who worked and saved and took some risk to get what they passed on to you.

Live in moderation. Do not let debt swallow you. But don't miss life because you might have to pay a little interest to keep the American economy alive.

 

[snarlingcoyote]

We too put every purchase on a credit card. Everything. Our debit cards and accounts have been hacked and money stolen from our accounts so we don't swipe debit cards at all any more. We pay our credit cards daily or weekly. So it's a safeguard for us. You can get your money back but faster if cc info is stolen vs getting it back from your bank. Plus all our our CCs have perks so it's like getting free money!

This soooo much! I hear so many horror stories about debit cards. Credit cards are much safer and easier; as a bonus, if you plan effectively, you get money back on top of it.

 

[Jason_V]

I've had exactly one issue with my debit card (I'm 38...been using one since I was 19). Happened a few years ago with some transactions in France. Chase immediately flagged them and called me. I wasn't in France, obviously, and confirmed that fact. They shut down the card, stopped the transactions and sent me a new card. Sure, it was a pain not having a debit card for a few days (it is a great way not to spend money, though) but that's it.

I do use credit cards for travel: rental cars, hotels and plane tickets. And the rare big purchase (like a TV). But really, I think they're more trouble than they're worth. On top of any issues with late payments or over spending, CC's eat away at the cash you have to do other things with, like save and invest.

 

[DLgal]

I use a credit card just for the perks and pay it off literally the next day. I'm that obsessive about not going into debt. I would never go on a vacation if I couldn't afford it, and if you have to use credit then that means you can't afford it.

My philosophy with almost anything is - If you can't afford 10 then you can't afford 1. The only real exception to this is a house, and maybe a car, but I use the philosophy on cars as well, which is why I don't see myself having a new car anytime soon.

I could say if you have to use credit for a car or house purchase, you can't afford that either.

I always wonder why so many people seem to be okay with a multi hundred thousand dollar debt for a house but the idea of $5K in credit card debt is horrifying.

 

[CounselorX]

I could say if you have to use credit for a car or house purchase, you can't afford that either.

I always wonder why so many people seem to be okay with a multi hundred thousand dollar debt for a house but the idea of $5K in credit card debt is horrifying.

Well I actually agree with you on your first line, but I know that most people would never wait to buy a house until they can afford to pay for one with cash, but I think it's completely ridiculous when people get a mortgage that the bank tells them they qualify for. It's a huge problem in society. I can "qualify" for a loan that is about 5 times the house I have, which I would never do.

This is all just my opinion and how I live my life. Everyone is welcome to spend the money they won't even earn until another 30 years has passed.

 

[Jason_V]

I could say if you have to use credit for a car or house purchase, you can't afford that either.

I always wonder why so many people seem to be okay with a multi hundred thousand dollar debt for a house but the idea of $5K in credit card debt is horrifying.

Well, here's the thing. It's a need vs. a want. Food, in moderation, is a need. Adequate clothing, in moderation, is a need. A vacation, is a want. It may be smarter to buy a house, with a mortgage, than rent. Why? When the mortgage is paid off, you own the house. Renting...you own nothing and are at the whim of a landlord or property management company. The mortgage may also be cheaper than the rent (mine was)