Consolidation loan...

That's why Ramsey calls them "pets" - people keep them around forever paying $70/month for 20yrs

 

"I've never met a millionaire that told me that cash back changed my life - it put me over the top, those airline miles, they made the difference"

That's what I like about listening to his show, the humor.

 

What you have to understand is that we Americans (and others nowadays) have been conditioned since a VERY early age to BUY STUFF. I think it starts with cereal commercials.
Once you buy stuff, there's always more stuff to buy. Always.
Someone, somewhere, is always coming up with a new way to get you to buy this "new and improved" thing that you absolutely have to have or you'll die lonely. You'll be the king of the neighborhood if you have more stuff. Can't afford to pay cash? No problem....apply for our bestest CC that'll allow you to buy that stuff and it'll even pay you cash back (no where near what you're paying them). Have I got a deal for you.
It's all designed to take that money you worked so hard for. Money lending is eons old, and might be in a "neck and neck" battle for "the oldest profession".
That $800 (or whatever you paid for your couch) couch is gonna' cost you more than $800 if you put it on a card and only pay the minimum. Same with everything else you buy if it's done that way.
CCs are the absolute scourge of the working class.
We become slaves.
Rant over.

 

Life will only suck for awhile until you come to the realization that all that crap just weighs you down, and you don't need most of it.
If you're lucky enough to have the "AHA" moment, you'll learn you don't need all the stuff that is constantly being hawked at you to buy.
Turn off the radio and TV for a few days and you'll notice how much calmer life is w/o that endless drivel spewing at you. 25% or more of what you watch and listen to is commercials. You pay for cable TV, AND also have to listen to commercials. WTH? Seems like someone is double dippin'.
Break outta the trap. Free yourself.
Ok, now rant over. Maybe.

 

If it was possible to have 16-18 yr olds in the US learn what you just wrote, and imprint it forever in their minds... they'd find happiness and contentment they're peers would marvel at.

Well said papadave ...

 

Great post but I would modify it by saying credit cards if not used correctly are a huge problem. If you can pay off the credit card promptly (immediately or VERY quickly) they can serve a purpose but letting the balance stay on that card after a month or two is nuts.

Anyone who doesn't have that ability to pay them off is being taken for a ride.

We as parents have to help kids resist the feeling to buy the newest just to have the newest.

 

When I met my wife she was one of too many with big debt. Student loan and credit card balances were scary.

Told her right up front that before I would propose to her I wanted to see progress on getting out of debt and staying out of debt.

I waited for about a year to see how she was doing. She did an amazing job.

We ended up getting a home equity loan at 4% for the credit card debt that she paid it off a year early.

We put off all sorts of stuff...even our honeymoon to pay down debt and put money in savings.

 

Actually, I really think that their peers would look at them like they had 3 heads and an alligator tail (cue visions of Game of Thrones dragon here), because they wouldn't understand.

Agreed schlot. The problem seems to be that a lot of us don't know how to use other people's money to get stuff. I didn't, for a long time.
When using a CC you're still borrowing against your future to have something RIGHT NOW and are a slave to having stuff. Zero% for 18 months means diddly, if you don't pay it off in 18 months or less.
When you see that shiny thing in the store that you're being told you just have to have, wait a few weeks to buy it. If the urge is still there, you're either addicted, or you really need it.
I guess in the end it doesn't matter.
I wonder how many die with 1,000s in debt? What happens to that debt?

 

OK, so devils advocate here. Debt free, what does that really mean?????
How many of us giving advice have things we pay for and do not NEED, truly NEED.
Smart phone with unlimited talk, text and data?? one for each person in the family. true NEED or WANT?? I do not know many people that use them for more than playing around.
Internet access at home, on top of the smart phone?????
cable tv and / or satellite so you do not miss the big game???
probably 300 a month you don't need.
Just because you can pay cash monthly, does not mean it is GOOD, take a good hard look and you will realize you are WASTING mucho money every month.
Yes, I am different.

 

I have no problem with credit cards. I put EVERYTHING on mine. But I pay it off at the end of the month. When I make a really big purchase I just go online and pay before the statement even shows up.

Willpower. Discipline. Delayed gratification.

 

I don't pay for TV and work pays for my phone. I'd have a prepaid phone if it wasn't reimbursed.

 

It's called the school of hardknocks, it would be great to have someone teach you these things but sometimes learning the lesson yourself engrains it you.

My awakening was a couple years into my 30yr mortgage on this place, I was 26. I'd bought and flipped 6 houses before actually buying one for myself.
Started to realize where I could be in 10yrs (which was a massively daunting time frame) or contemplate paying on the house until I was 56(yeah I'd call that OLD)
I made some sacrifices, saved and paid cash for things I felt I needed, worked tons of overtime - shake my head when people tell me to get off my wallet.

I'm pretty close to the end of that ten year battle, it'll be nice going to work and knowing I'm working for me and not a house payment

 

"until I was 56(yeah I'd call that OLD)" ....... ...

 

Goes against their estate.
Friend of mine had found a nice cabin on a 6acres not to far from me. Secured a contract, home inspection and was ready to close when the title search came back with liens from the Widow's late-husband.

He ended up being out 4-500 for the inspection & title search, contemplated going after the seller for the expenses but lawyer stonewalled him.
He still sees the widow, in her 70's, working as a clerk at Walmart.

That's probably not the way you want to leave your loved ones should any of us depart before expected

 

In my opinion buying goods and services on a "want" basis is perfectly fine if it does not create issues like not paying off debt or saving.

In my mind satisfying a want is better (as said above) if delayed and saved for first.

 

Two of the un-sheeple.

The only reason for using a CC is to get a credit rating, which is used (among other things) so you can get more credit to buy more stuff. Potentially puts us all on a hamster wheel. Still stuck in the "buy more stuff" mentality. We all need some stuff, but I don't even remember all the stuff I've bought and no longer have.
Sooo many people looking for that low payment and not thinking about the total cost. "Yep, I can afford that $23/month".....for 60 months. Will you even have that thing for 60 months?
Simplify, unless you don't want to.


I think what this boils down to is how we use credit, instead of it using us.

 

Thinking back on my post...my wife got out of debt...but got me. Maybe I should ask her if that was a good deal or not.

 

Dammed if you do dammed if you dont?