WTF: Surviving on Credit Cards?
Article
Huh? "Using their home as an ATM"..why do you want to do that?
Or...umm...they could live within their means?. Geeze, personal finance is not rocket science: This is how much money I (or we) make. These are our expenses, listed from most to least important. Subtract one from another. If they don't balance, cut expenses if you can. Try to live on substantially less than you make, and stop caring what Buffy down at the gym thinks of your old car, K-Mart clothes, and non-designer 'Do.
Truly, we deserve every bit of this mess we're in. Average $29,000 in Credit Card debt. Twenty-nine THOUSAND dollars in compound-interest, hound you 'til you die debt? No wonder our parents and grandparents (who lived through the Great Depression) can only shake their heads.
Here's reality, folks: Gas WILL be $5 to $7 to $10 per gallon in the next 5 years. A good lot of us are going to be changing jobs. Cut up the Credit Cards NOW and start living on 80% of your income (less if you can manage). Yes, it'll be painful, but so is adulthood.
Finding themselves strapped for cash and unable to use their home as an ATM, Americans are increasingly turning to credit cards to cover gas, groceries and other living expenses.
Huh? "Using their home as an ATM"..why do you want to do that?
For many people, racking up credit card debt is not a choice they want to make, experts say. Not too long ago, they could have tapped into the equity in their homes through loans or lines of credit or refinancing. But this debt, which usually carries lower interest rates, is no longer as widely available with the collapse of the housing market.
Or...umm...they could live within their means?. Geeze, personal finance is not rocket science: This is how much money I (or we) make. These are our expenses, listed from most to least important. Subtract one from another. If they don't balance, cut expenses if you can. Try to live on substantially less than you make, and stop caring what Buffy down at the gym thinks of your old car, K-Mart clothes, and non-designer 'Do.
Truly, we deserve every bit of this mess we're in. Average $29,000 in Credit Card debt. Twenty-nine THOUSAND dollars in compound-interest, hound you 'til you die debt? No wonder our parents and grandparents (who lived through the Great Depression) can only shake their heads.
Here's reality, folks: Gas WILL be $5 to $7 to $10 per gallon in the next 5 years. A good lot of us are going to be changing jobs. Cut up the Credit Cards NOW and start living on 80% of your income (less if you can manage). Yes, it'll be painful, but so is adulthood.
"You mock my pain!"
"Life IS pain, highness. Anyone who says differently is selling something."
Amen, brother! Heck, we've been blessed to have enough coming in to pay the builds but there are times when those unexpected expenses come in [like $4 gas :-)]
ReplyDeleteand we declare a moratorium on eating out, eat up whatever is in the pantry at the house, don't buy anthing that's not crucial, etc. We keep cars a looong time.
I think one of the key things I learned from my first year on my own was that "miscellaneous" needs to be a big chunk of that budget. And budgeting on a monthly basis so that you have those extra paychecks every so often to take up some slack.
And how many of these people are tithing? "House as an ATM"? How about the windows of heaven.