Moderators ThudMaker Posted March 6, 2009 Moderators Share Posted March 6, 2009 It's easy to blame homeowners for getting in over their heads, but what's irresponsible about buying something you've been told you can afford and then having multiple rugs pulled out from under you in the form af job losses or pay cuts, and property devaluation? In many cases, the easiest thing for the owner to do is walk away let the bank take it, which in turn leads to further devaluation. This is an effort to break that cycle.These guys in Washington are dealing with macro issues, and trying deparately to save the rest of our asses. Give 'em a chance.Why? People should have the opportunity to purchase some homes on the cheap and become rental property magnate. Some people have paid their bills and live well within their means. Why shouldn't that be rewarded with the opportunity to purchase further real estate and bargain prices. It's only fair. And screw Washington. They're dealing with macro issues by trying to put out individual fires. Link to comment Share on other sites More sharing options...
Members catphish Posted March 6, 2009 Members Share Posted March 6, 2009 BTW the unemployment rate went over 8% today nationally. Yup. Tough times. Link to comment Share on other sites More sharing options...
Members Mac_C Posted March 6, 2009 Members Share Posted March 6, 2009 Yes!!!! We cut the foreclosure rate! Granted, we completely changed what it even means and made it impossible to happen in some cases. Regardless, yes!!! It's like the cutting the STD rate by redefining what STDs are and how you get them. Link to comment Share on other sites More sharing options...
Moderators ThudMaker Posted March 6, 2009 Moderators Share Posted March 6, 2009 Well, I can only put PART of the blame on the credit card companies. I can also put a lot of it on our society which has focused on instant gratification for years and years and years. ....... I agree. There are plenty of cases, as you would know, where a dude or dudette maxes the card, makes the minimum payment and for being good minimum payment payers, they up their credit limit. Now I also blame the credit card user for lack of self-control, but I was specifically addressing the big card companies, their soon-to-be fall from grace and why I won't be shedding any tears. Let the free market work and and some enterprising banks will fill the void. Link to comment Share on other sites More sharing options...
Members NitroBobby Posted March 6, 2009 Members Share Posted March 6, 2009 Spoken by someone that's never owned a house. You honestly believe a house is an investment? Seriously? A house isn't an investment. It's never been an investment. It's a liability until the day it's paid off. Also, {censored} you and your condescending tone. "Mommy and Daddy"? You have no {censored}ing clue as to what you're talking about. Yeah, i suppose I could have put my foot down, broke off contact with my family, my wife's family, my wife....all who were pressuring me to "invest" in this {censored}ing house. I was out-voted. I was out-numbered. I didn't want the house, they all knew I didn't want the house, but guess what, we're in the {censored}ing house. Why? It's called compromise. My wife, my family, her family...they all wanted us to get the house and we got it. I was the lone person that didn't want it. So according to you and your {censored}ed sociopathic advice, I should have just turned my back on them because "I'm an adult and I make my own decisions". What a perfect world you must live in. As far as bailing out people that afford it, I agree. I don't want my tax money going to them. I don't want it going to failed businesses either. I don't want it going to this {censored}ing idiotic war that monkey that left office 2 months ago saddled us with. I don't want a lot of {censored}ing things. Bend over though, no one gives a {censored}. good call on the 'someone who's never owned a house' thing, well, except that you're dead wrong. i am currently paying a mortgage each month. on time. with no help from the fed or the family. just my wife and i. so it sounds to me like the root of your issue is communication. if you were able to do that effectively then the wife and her family wouldn't pressure you into something. that's still on you buddy. my condescending tone stemmed directly from your post about the 'pressure from all sides...parents...banks...predatory lenders...etc...'. my tone was condescending, yours was childish. i'll call us even. either way we do agree on one thing, we don't want our taxes going to where the government currently wants to spend it. i'll agree to disagree with your little rant about peer pressure and ignore the FU you gave me. good luck to you in the future. anyone who can be forced into buying a house by thier in-laws is gonna need it. oh, btw the house IS an investment. any investment is a liablility until it starts making money for you. when you invest in the stock market it starts as a liability because you're down the initial money. it can then either be further debt if you lose $$ or a sound investment if the value goes up. the house is historically a sound investment because the value typically stays the same or goes up. it starts as a huge debt but as you pay the principal down, the debt to value ratio goes up. this is very basic and of course there are a million things that factor into this discussion. the bottom line though is that once you pay the loan off your sitting in a very valuable asset. Link to comment Share on other sites More sharing options...
Members bassplayer7770 Posted March 6, 2009 Members Share Posted March 6, 2009 I agree. There are plenty of cases, as you would know, where a dude or dudette maxes the card, makes the minimum payment and for being good minimum payment payers, they up their credit limit. Now I also blame the credit card user for lack of self-control, but I was specifically addressing the big card companies, their soon-to-be fall from grace and why I won't be shedding any tears. Let the free market work and and some enterprising banks will fill the void. My wife and I just mostly paid off our largest credit card balance. The result? I just got an e-mail today informing me our credit limit was increased. Link to comment Share on other sites More sharing options...
Members RSBro Posted March 6, 2009 Members Share Posted March 6, 2009 My wife and I just mostly paid off our largest credit card balance. The result? I just got an e-mail today informing me our credit limit was increased. Aren't those the best? One of my cards I use for little things like groceries and to eat out just to keep it active always wants me to increase my balance... I'm like "NO thanks- 10k is enough to get me into plenty of trouble!" And it's with my bank so they see I pay all my online bills and keep savings acct balances, etc. up, so, yeah. Link to comment Share on other sites More sharing options...
Moderators ThudMaker Posted March 6, 2009 Moderators Share Posted March 6, 2009 A house isn't an investment. It's never been an investment. It's a liability until the day it's paid off. If it's paid off with money made on the sale and there is money left over after the sale, it was a successful investment. Why is it considered such? Because you made a gain on the sale of an asset and the IRS is going to want their portion. Link to comment Share on other sites More sharing options...
Members RSBro Posted March 6, 2009 Members Share Posted March 6, 2009 If it's paid off with money made on the sale and there is money left over after the sale, it was a successful investment. Why is it considered such? Because you made a gain on the sale of an asset and the IRS is going to want their portion.:idea:Yeah- just try not to pay your capital gains tax on that vacation property where you made a killing! C'mon Goofball, try it! Me and the IRS dare ya...I would recommend doing it now though where you can get a loss and not take a 30% hit on when it jumps back up. Link to comment Share on other sites More sharing options...
Members NitroBobby Posted March 6, 2009 Members Share Posted March 6, 2009 My wife and I just mostly paid off our largest credit card balance. The result? I just got an e-mail today informing me our credit limit was increased. if you don't need the increased limit, i'd suggest telling them to lower it back down. that can work against you in terms of credit rating. when you buy a house/car or apply for a business loan the lenders will look at your potential debt. that is the debt you can potentially accrue based on your credit cards and other sources of credit that you currently have.thanks but no thanks.kgb Link to comment Share on other sites More sharing options...
Members Les_Izzmor Posted March 6, 2009 Members Share Posted March 6, 2009 Now, the thing is...for YEARS we got it from all sides. Our friends, our parents, lending organizations, our bank....everyone was saying the same thing "hey, why are you throwing away your money each month on some rental when you could OWN your own home! Come on, you can get a GREAT house!" This is sound financial advice. 1. Buy a $100,000 home. Pay the mortgage for 30 years. House appreciates and is now worth $250,000. You want to retire somewhere else. You sell your house for $250,000. You get money. 2. Rent and pay $1000 a month in rent. 30 years later you've paid $360,000 and you want to retire. But. You rented and don't own. So. You don't get any money. Buying a house is the right thing to do if you can afford it. Hell. Now is the best time to be a first time home-owner. Prices are super low and mortgage rates are good. The financial markets are cyclical. In 10 years your house may double in value, or even more. The great thing about a mortgage is that it won't go up significantly over 30 years. But. Your income should. My best friend's parents told us that at the end of their mortgage their utility bills were more than their monthly mortgage payment. So. It may be tight the first couple of years, but down the road you'll be glad you bought a house. Link to comment Share on other sites More sharing options...
Members Jugghaid Posted March 6, 2009 Members Share Posted March 6, 2009 I agree. There are plenty of cases, as you would know, where a dude or dudette maxes the card, makes the minimum payment and for being good minimum payment payers, they up their credit limit. Now I also blame the credit card user for lack of self-control, but I was specifically addressing the big card companies, their soon-to-be fall from grace and why I won't be shedding any tears. Let the free market work and and some enterprising banks will fill the void. What is wrong or immoral aobut upping the credit limit for someone who always makes their payments on time? Since they are maxed, I doubt I would do that, and it may not be the best business decision, but I don' see that very often. Link to comment Share on other sites More sharing options...
Members rcz Posted March 6, 2009 Members Share Posted March 6, 2009 It's stuff like this that pisses me off for having the good sense to live within my means. 90%+ of mortgagees are current yet we have to pay for the ~10% that for whatever reason cannot pay their bills? Doesn't sound too capitalistic to me. we socialize the losses, but we never seem to socialize the profits. robb. Link to comment Share on other sites More sharing options...
Members bassplayer7770 Posted March 6, 2009 Members Share Posted March 6, 2009 if you don't need the increased limit, i'd suggest telling them to lower it back down. that can work against you in terms of credit rating. when you buy a house/car or apply for a business loan the lenders will look at your potential debt. that is the debt you can potentially accrue based on your credit cards and other sources of credit that you currently have.thanks but no thanks.kgb Once that card is paid off, we have every intention of closing the account, but thanks for the advice! Link to comment Share on other sites More sharing options...
Members Jugghaid Posted March 6, 2009 Members Share Posted March 6, 2009 if you don't need the increased limit, i'd suggest telling them to lower it back down. that can work against you in terms of credit rating. when you buy a house/car or apply for a business loan the lenders will look at your potential debt. that is the debt you can potentially accrue based on your credit cards and other sources of credit that you currently have.thanks but no thanks.kgb They also look at percentage of amount owed on cards/amount available on cards. If you only owe $10k on your cards but only have $12k available that will hurt you more than having $10k on your cards and having $60k available. That's how part of your FICO score works as well. Link to comment Share on other sites More sharing options...
Members catphish Posted March 6, 2009 Members Share Posted March 6, 2009 we socialize the losses, but we never seem to socialize the profits. robb. Soon, Comrade. Very soon. Link to comment Share on other sites More sharing options...
Members NitroBobby Posted March 6, 2009 Members Share Posted March 6, 2009 Once that card is paid off, we have every intention of closing the account, but thanks for the advice! that's even better. i'm doing the same thing. Link to comment Share on other sites More sharing options...
Members Jugghaid Posted March 6, 2009 Members Share Posted March 6, 2009 This is sound financial advice. 1. Buy a $100,000 home. Pay the mortgage for 30 years. House appreciates and is now worth $250,000. You want to retire somewhere else. You sell your house for $250,000. You get money.2. Rent and pay $1000 a month in rent. 30 years later you've paid $360,000 and you want to retire. But. You rented and don't own. So. You don't get any money. Buying a house is the right thing to do if you can afford it. Hell. Now is the best time to be a first time home-owner. Prices are super low and mortgage rates are good. The financial markets are cyclical. In 10 years your house may double in value, or even more. The great thing about a mortgage is that it won't go up significantly over 30 years. But. Your income should. My best friend's parents told us that at the end of their mortgage their utility bills were more than their monthly mortgage payment. So. It may be tight the first couple of years, but down the road you'll be glad you bought a house. Yup. Link to comment Share on other sites More sharing options...
Moderators isaac42 Posted March 6, 2009 Moderators Share Posted March 6, 2009 One day, people will actually have to be responsible for their actions... just not today;) Some of us will be, regardless of whether or not we "have to be". Link to comment Share on other sites More sharing options...
Members catphish Posted March 6, 2009 Members Share Posted March 6, 2009 Once that card is paid off, we have every intention of closing the account, but thanks for the advice! My understanding is that your credit score would be better served to keep the card with no balance. Link to comment Share on other sites More sharing options...
Members Emprov Posted March 6, 2009 Members Share Posted March 6, 2009 Once that card is paid off, we have every intention of closing the account, but thanks for the advice! Don't close it out, keep it but put the card in a drawer or something like so you don't use it if it's caused an issue. While I'm not an expert at this stuff, it's been my observation that closing out cards hurts your FICO score for about two years, as does getting new cards. Link to comment Share on other sites More sharing options...
Moderators ThudMaker Posted March 6, 2009 Moderators Share Posted March 6, 2009 What is wrong or immoral aobut upping the credit limit for someone who always makes their payments on time? Since they are maxed, I doubt I would do that, and it may not be the best business decision, but I don' see that very often.Never said it was immoral. It's a bad business decision. That's the credit card issuer's problem. It's defninitely not mine. Link to comment Share on other sites More sharing options...
Members Jugghaid Posted March 6, 2009 Members Share Posted March 6, 2009 These guys are correct ^^^^^^^^^^ Link to comment Share on other sites More sharing options...
Members bassplayer7770 Posted March 6, 2009 Members Share Posted March 6, 2009 My understanding is that your credit score would be better served to keep the card with no balance. Well, IMO, we already have too many cards with no balances sitting around... I would prefer to close some of them... Link to comment Share on other sites More sharing options...
Moderators ThudMaker Posted March 6, 2009 Moderators Share Posted March 6, 2009 Yes. They are correct. Put it in a place you won't have easy access to the card, such as a safety deposit box. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.