Why are people desparate to give the bank their money? vol. expired debt

[franco23x]

Originally Posted by kickstart

Who actually takes the bullet when these peoples' loans are forgiven?
He consumes $10,000 in debt and then it is forgiven because of statues of limitations. So has to foot the bill for that?

In regards to the article: Honestly, there needs to be a course in high school alongside math, language arts, history, and p.e. that talks finance. Not an ec class but a mandatory one.

In New York state there is a mandatory economics class you must take in order to graduate as a senior. It is a half- year course. It's actually taught me a lot and surprising, opened a savings/credit account and next year will start earning a credit score. Taking the class now and it teaches about how to save, over drafting etc etc

 

[crcballer55]

Originally Posted by cguy610

Originally Posted by crcballer55

Originally Posted by BrotherForReal

Why you continue to live your life based on articles is beyond me. you're comparing 2012 to 1920? really?

You can't compare 2011 to 2012. New year, new day.

I have a 780 credit score. Car loan at 2.9, house at 5% and a bunch of credit cards. I only use 1 and it has at the most a $100 balance at any given time.

Why would you ever want to pay for anything as big as a car or house in cash at once? You still have cost associated with owning either. Why wouldn't you want full coverage on a car whether its paid off or not, if you're going use that excuse.

You rush to pay of your house and guess what? that yearly property tax and monthly insurance premium is going to come FOREVER. You're never out of DEBT. Period.

You have to eat and live. Learn how to use credit to your advantage and you will be ok.

There is a difference between debt and bills.  You will always have bills because those are associated with things you use.

I also have a high 700-low 800 score with no car loan and plenty saved in the bank.  I save what would be the payment and let the market make money for me.  Then I get to let someone else help pay for an even better car.  Why do I want to pay off my house so soon?  Because I don't want to pay the bank a dollar in order to get a 28 cent tax break.  With what will be saved on that house payment over 20 years will easily account to over $1MM and that is a reasonably sized house in California.

But what if you aren't here 20 years from now though?  Just saying, you talk like you spend your life eating spam and drinking water just to become debt free.  It'd be sad to eat spam for 15 years and then die with millions in the bank and not have enjoyed your life. 

Also, a better idea is to max out the retirement match from your employer retirement plan than to put it into paying off the house. 

Who said I'm not having fun?  Just because I don't buy "stuff" doesn't mean my life isn't fun.  It means I have to be creative and/or stimulate my mind with stuff that isn't Jersey Shore.

If I die in 20 years, I'll never know whether I had fun or not here anyways.  If you look at most people approaching retirement age now, they're frantic because they didn't put away enough money and will be forced to live on the couple hundred dollars a month the government pays from Social Security. The life insurance will cover my family and the assets that I have worked for will be transferred to them.

I encourage you to read "Millionaire Next Door" by Thomas Stanley.  He has some great insight on who the wealthy actually are and what their lifestyle is actually like.