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Have the current conditions made you rethink or change your mind about debt?

Seems every story I read on the news is about "credit crisis" and mortgages in default, now they are predicting credit cards will go into massive levels of default, and car loans. I have for a while been anti-debt. I am pro Dave Ramsey myself and see the ways of people today doing nothing but digging a hole we can't get out of. Most stemming from our obsession with stuff and buying on easy credit. Car loans are now a norm, when use to be you had to pay cash. There were no loan options. Have you rethought your financial spending plans? The government is very obviously not getting the lesson in this. They keep throwing more (borrowed) money at it. And most any "normal" person that has tried this will agree you can't borrow your way out of a financial crisis. Payday loans anyone? How has this situation changed your view on debt, or your finances in general?

Answer Question
 
MissAlisabeth

Asked by MissAlisabeth at 8:55 AM on Oct. 14, 2008 in Politics & Current Events

Level 17 (3,625 Credits)
Answers (6)
  • Nope... Then again my DH and I saw were we were heading an year ago. And made an conscience decision then to get out of debit. (We've listen to Dave Ramsey and have several of his books). Any way a year ago we made a conscience decision to get out of debt. This time last year we had 4 credit cards with a total of $12,000 debt on those cards plus a car loan and mortgage. That was this time last year. Today we have $2,700 in credit card debt on 1 card, plus the car loan and mortgage. It's not totally gone, but it's a start; it's amazing what we've been able to do in 11-12 months. On top of that we've had a major house fix and car fix to take care of: those together cost us: $1,200 and we paid CASH to fix those things. We have no more EM fund, but that's okay.... we will just start over. We had no change in our income, we just had change in our spending habits.
    SAHMinIL

    Answer by SAHMinIL at 9:09 AM on Oct. 14, 2008

  • Thats awesome! We are on baby step 2 also. Down to just the car payment left! We have paid off so much crap. It is just so much of a relief!
    MissAlisabeth

    Answer by MissAlisabeth at 9:17 AM on Oct. 14, 2008

  • Thank-you...we can't wait until the $2,700 is credit card debit is gone. Once that is gone we are going to add what we are paying there to our car payment, which will DOUBLE the car payment every month. Once the car loan is paid off, we are going to save that money until we have 3-6 months of income in the bank... After that we are going take that money and add it to our mortgage payment: It would DOUBLE the mortgage payment. Once our mortgage is paid we will have thousands of dollars per month to do with as we please: We are going to TRAVEL (and save for our kids college)!!!!! We believe that we will be able to do our TRAVELING in 5-7 years.
    SAHMinIL

    Answer by SAHMinIL at 9:30 AM on Oct. 14, 2008

  • I have been debt free for over 20 years now. I enjoy the lifestyle that our income affords. <---that being the key to financial peace and everyday happiness (along with other spiritual mandates.)
    I have, tho, in light of our economy and the concern of who will become the next President, have chosen to save even more money and make decisions of larger purchases based on the fact that we need to not spend money on wasteful things and non-needed things , but save for those larger items. We would love to go on a short cheap cruise, but noo. Not right now. We have the money saved, but we feel like it may be needed in the future.
    lifeasinoit

    Answer by lifeasinoit at 10:05 AM on Oct. 14, 2008

  • The average working person will always be experiencing debt. The scare is- when job cutbacks are top news. Not everybody has emergency funds. And those who do, are burning through the funds just to pay bills (which means this won't last long).
    BlueSaphire

    Answer by BlueSaphire at 12:28 PM on Oct. 14, 2008

  • My husband and I don't own a single credit card now, and I have never owned one.
    casperskitty

    Answer by casperskitty at 3:12 AM on Oct. 16, 2008

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