2houndz

Why Not Start Defaulting on Your Credit Cards?

mind-geek,

Just to set the record straight, when I graduated from college in 87 the word to the conservative folks was to save 6 months worth of living expenses just in case the situation you described were to happen. I drove myself and everyone around crazy until I accomplished that. I could order two beers on Saturday night but not three, because that would foil my savings plan.
I have been out of work since September, and I decided to take a sabbatical and learn to trade futures. I am just this month starting to see some real progress, so I may try to do so for a living. It's a great lifestyle, working 2-3 hours a day. If I decide to go back to work, I'll start looking for a job in September. How could I do this, and not fall into the trap you describe? Because I know that no one is immune to loos of a job. I drove a pickup truck for years and my wife drove a 10 year old Honda, when everyone in my neighborhood made less income than us, but had two luxury cars. Instead of eating at the nice restaurants, we saved those for special occasions and frequented the local bar & grill, or just dragged a cooler of beer into our own back yard. Most of the people I know bought way more house than they could afford and chose the pick a payment mortgage.

I know that everyone can't save enough to fund a new lifestyle if they lose their job, but everyone, except for exceptional disaster such as medical bills can live within their means and have a rainy day fund. To say otherwise just provides yet another excuse to spend, spend, spend, and blame someone else when things turn to crap. They were playing Russian Roulette with their future - their retirement, the ability to pay for medical bills, to keep a roof over their family, to send their kids to college. Unbelieavble that so many take it so carelessly. And I don't have a "to hell with them" attitude. This has affected many of my friends and I'm worried about them. But until they own up to the problem and correct it, they will be in the same situation next time. The government can't stop it, and the bankers will probably be there to take advantage of their poor decision making.
I'm really surprised at how many people who post here have bought into that attitude.






On Jun 17 02:58 AM mind_geek wrote:

> * 2houndz:... Sure you AGREE to follow the rules laid out in the
> agreement, but lets just say youve always paid your bills on time
> in the past...now you've lost your job because of the economy. Youve
> sucked up what saving you have to pay the bills, so whats left?..the
> credit cards. Running up the credit knowing full well you you will
> get dinged on the rate when your late paying the bill every month.
>
>
> You dont AGREE to lose your job or AGREE to have your home worth
> 40% less than what you paid do you?
>
> People ride the high horse of prosperity when fully employed, money
> in the bank and wondering to themselves.."hey, Im in great shape
> financially...whats your problem?". If youve never been unemployed
> for any length of time, then your judgment of others carries absolute
> ZERO weight.
>
> Taking responsibility for your own actions is absolutely the way
> it should be...however...having the "evil" bankers/lenders leverage
> up 40 to 1, interest rates set too low for too long and greedy people
> trying to cash in on homes they had no business buying causing this
> recession..well theres a good start to who is actually responsible
> for this mess!

Why Not Start Defaulting on Your Credit Cards?

This whole argument of usurious rates is driving me crazy. If I sign a credit card AGREEMENT then I AGREE that I have read it and I AGREE that I AGREE with it and will abide by it. Hence the name of the document is an AGREEMENT. If a person is too stupid to understand a financial contract then he should consult with some type of attorney or advisor before agreeing to it.

I received a letter from my card issuer awhile back that said they are soon raising the new rate to roughly 24% (quite usurious in my opinion) but if I don't agree to the new rate, then I can return the card and continue to pay the outstanding balance at the old rate. I only get screwed on the old balance if I continue using the card. I don't care, I don't have a balance and only use the card a couple times a year, but it seemed fair to me.

How much longer must we listen to how those evil bankers forced credit cards upon us and somehow through a complete lack of understanding of how they worked, our lives were ruined. For God's sake, can't we grow up and take some responsibility for ourselves?

Mark - I know that your tone has become very facetious, and you are not recommending the course of action described in the title. Keep up the good work. I enjoy reading your work.

Wall Street Breakfast: Must-Know News

So if GDP rose 3.3% in Q2 and inflation was between 2.1 and 4.2% in the same period, where does that leave us?

Thanks for the article. This is maybe the quickest dose of helpful info anywhere on the internet.