(Closed) Debt on top of debt on top of debt

posted 5 years ago in The Lounge
Post # 3
1896 posts
Buzzing bee
  • Wedding: August 2014

“I know I shouldn’t be judging people and they’re actually helping the economy but seriously” … “I understand that not everyone is as lucky as we are financially” … “I’m not trying to judge, I’m trying to understand and I hope I don’t get flamed for this.”

– For “not trying to judge” and “knowiing that [you] shouldn’t be judging people” it seems to be all that you’re doing.  I’m not sure what observations you’re trying to make, but can’t go along with anyone who for any reason adopts a holier than thou attitude, everyone’s circumstances are different and no matter how well we know our friends we are alway observers on the outside looking in, never privy to the exact details.

Post # 4
1081 posts
Bumble bee
  • Wedding: December 2010

@MrsBeck:  I don’t understand what business it is of yours if your “friends” take out loans or live pay check to pay check? If they were asking to borrow money from you, I could understand your concern however they aren’t so I don’t see the issue. 

Post # 7
12248 posts
Sugar Beekeeper
  • Wedding: May 2013

@MrsBeck:  It’s hard to reasonably spend when you get your first “real world” income!

My Darling Husband bought a PS3, and Xbox360, and a large flatscreen TV on the same day six months after starting his first “real” post-college job! (Back in ’07, long before me!)

Post # 8
2712 posts
Sugar bee
  • Wedding: September 2012

@MrsBeck:  I have a friend who is like this.  His thoughts are that he can always make more money but he can’t make more time.  So he’ll buy whatever he wants now and pay for it later.  As a result, he has tons of student debt, car dept, and CC debt.  It drives me nuts.  

More often than not, I try not to judge people and their spending habits.  Mostly because I have no idea of their financial position.  But if you’re telling me all the details of your finances and your poor spending habits you better believe I’m judging you.  And that’s only because that sort of fiscal irresponsibility can affect me in the long run.

I don’t think your first friend has necessarily done anything wrong.  Student debt is considered good debt and not something I think you have to put all your extra money torwards or go without to pay it down.  As long as you are making the minimum payments, that’s good enough.  And if your friend wanted a new car and can afford the payments, I don’t see why he shouldn’t get it.  Maybe he got some super awesome deal he couldn’t pass up?

Your other friend is a bit annoying because he has CC debt and no savings.  Ok, you buy a pricey car because you need one anyway and you can comfortably afford the payments, but you should make sure you have a healthy savings before spending money on a motorcycle.  

Also, don’t most people take out a loan for a new car?  Or is your qualm more about how much the car was – thinking they should have gotten cheaper cars until teh student debt was paid off?

Post # 10
2457 posts
Buzzing bee
  • Wedding: September 2012

I would say this is really common for a lot of people. 

Personally, I do not plan on getting another car until mine dies. If and when that happens, I will be buying a used car, that I’ll most likely being taking a loan out for because I don’t know that I’ll have $10k laying around that I’m not planning on using for a house or something. I have $75k in student loans and make a decent salary. I have also, however, never defaulted on a car or loan payment, missed rent, etc. I know my monthly limits, how much I should be saving each month, etc. 

It’s about knowing your limits and working with your budget. For all you know, they could be doing just that. You just don’t know the intimate details.

Post # 13
2712 posts
Sugar bee
  • Wedding: September 2012

@MrsBeck:  Yeah, I can see how that’s annoying when they talk about it all the time or when they complain about not having money, but choose to buy an exensive car.  That kind of talk annoys me too.  Fiscal irresponsibility and entitlement drives me insane because it does have an overall affect on the economy and our society.  It wouldn’t be a big deal if it only affected the person in question, but it doesn’t. 

Post # 14
474 posts
Helper bee
  • Wedding: July 2013

@MrsBeck:  Have never been to Japan, but I believe most businesses there don’t accept credit cards.  I recall watching a TV episode a couple years ago on some travel channel where they showed that even the Gucci store will only accept cash…

Seems like they are loathe to carrying debt (hey, me too!).  Wondering if this is still true over there.

Post # 15
60 posts
Worker bee

I can’t understand why anyone would get a loan on a car/motorbike – you are literally throwing money down the drain.  A car loses 20% of it’s value the minute you drive it off the block!  Why would you want to pay interest on an asset that loses it’s value as years go by?

I have friends in similar situations – they want to buy a house, but they can’t save their deposit.  They’ve decided that getting the deposit together is ‘unattainable’ so they spend all their spare cash on dinners, presents, toys, and holidays.  I am certain they will get to 30 and start complaining that they are still living with their parents.  They also spend a lot of time telling me that I should be going on more holidays because you’re only young once.  My parents are in their 50s and have done Europe twice and America/Hawaii twice in the last 10 years – Europe and Hawaii are not going anywhere!

 It wears on my patience.  If they had saved all the money from their numerous o/s trips, they’d have double a deposit by now.

Post # 16
4558 posts
Honey bee
  • Wedding: June 2010

Happens here in Australia too. 

We choose to live very frugally despite making a good income, and all we owe in the world is under $70,000- and that is for a house and two cars (all other debt is paid). We repay our homeloan weekly and triple the minimum amount of repayment.

For me, that is infinitely more satisfying than living with debt stress. Others are more comfortable with debt and that is ok. I just feel that you never know in life what will happen (ie redundancy, death of a spouse, serious illness) and would prefer to know we can live comfortably even in the worst scenario.

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