Holy Shit Credit card rates!,,

[Mileage Psycho]

GM Business Card, no limit on GM $$$$, I used $7,000.00 in GM rewards on the purchase of a Sierra, I'm guessing my lifetime GM rewards somewhere around 70K 

Generous Motors  

Another great card is the Costco Visa, I picked up $1,200.00 in cash rewards on that one this past year.

I still carry a fair amount of cash but use my credit cards for 95% of my purchases.

[revkevsdi]

1 minute ago, DISABLED DAVE said:

Thats you...you dont even ride anymore.

Not everyone wants junk or 2nd hand.

You poor pathetic bitch. I put 800 Miles on this year. Plus went on two trips to the mountiains boarding and a two week trip at Christmas. Definitely not sittIng and doing nothing. 

Not having a mortgage makes life stress free and easy. 

A few sacrifices and financial discipline when I was younger paid off. 

Keep debt low and pay yourself first. My parents convinced me when I started a paper route to always put away 10% and just pretend it wasn’t there. The  Rrsp 18% limit and later Tfsa ‘s convinced me to up that 10%. 

It’s easy if you pay that first.          

When some of my friends were borrowing for new cars interest rates were stupid high. My Dad said “do the math and see how much that car will cost by the time it’s paid off”. 

Other people buy on credit  or lease and borrow against home equity to finance their lifestyle. 

Their choice.  Like I said. They pay for my credit card perks. 

[revkevsdi]

1 minute ago, Mileage Psycho said:

GM Business Card, no limit on GM $$$$, I used $7,000.00 in GM rewards on the purchase of a Sierra, I'm guessing my lifetime GM rewards somewhere around 70K 

Generous Motors  

Another great card is the Costco Visa, I picked up $1,200.00 in cash rewards on that one this past year.

I still carry a fair amount of cash but use my credit cards for 95% of my purchases.

Yup and the people who carry a balance are paying for those perks. 

[Dave]

1 minute ago, ArcticCrusher said:

I do, however for us we have never had a cc balance and only had loans with major purchases. ie, house, cottage etc.  Small 0% or near loans are nothing.

Theres a fine line with loans on anything....if the interest is crazy just to get something you dont get it....

[Dave]

Just now, revkevsdi said:

Yup and the people who carry a balance are paying for those perks. 

Ya...so what...be happy with your situation....and stfu.

[Dave]

3 minutes ago, revkevsdi said:

You poor pathetic bitch. I put 800 Miles on this year. Plus went on two trips to the mountiains boarding and a two week trip at Christmas. Definitely not sittIng and doing nothing. 

Not having a mortgage makes life stress free and easy. 

A few sacrifices and financial discipline when I was younger paid off. 

Keep debt low and pay yourself first. My parents convinced me when I started a paper route to always put away 10% and just pretend it wasn’t there. The  Rrsp 18% limit and later Tfsa ‘s convinced me to up that 10%. 

It’s easy if you pay that first.          

When some of my friends were borrowing for new cars interest rates were stupid high. My Dad said “do the math and see how much that car will cost by the time it’s paid off”. 

Other people buy on credit  or lease and borrow against home equity to finance their lifestyle. 

Their choice.  Like I said. They pay for my credit card perks. 

Then why do you bitch so much?

You seem very unhappy. Im sure most the forum would agree.

[Angry ginger]

29 minutes ago, revkevsdi said:

That’s a hole some people never get out of. 

The banks love it. 

They also love lines of credit.  People in Canada use to try to pay down their mortgage. Then banks convinced people that a line of credit will help them with unexpected expenses.  A car, a few vacations etc suddenly they were going the wrong direction and paying 6% for the privaledge instead of 3 % on their mortgage. 

line of credit for a rainy day is smart-  using it for anything but is stupid.

[Dave]

Just now, Angry ginger said:

line of credit for a rainy day is smart-  using it for anything but is stupid.

I know lots of people who use it to buy things...why wouldnt you if the interest is so low...

[steve from amherst]

Just now, Angry ginger said:

line of credit for a rainy day is smart-  using it for anything but is stupid.

I hhave one that I will us when work starts and I need operating money for a few weeks. Usually paid back by the second month we are working.

[snoughnut]

39 minutes ago, DISABLED DAVE said:

Not at all....people cant afford new vehicles...but want them....they can afford the payments....same with anything else....its a dumb statement.

I thought you were smarter than that, I was wrong.

8 minutes ago, awful knawful said:

My dad was a loans officer for 35 years. He said it's scary.

With all the dumb people wandering aimlessly that don't have the first clue about their own personal finances, it appears your dad was in the right business.

[steve from amherst]

Personal finance should be a mandatory high school class.

[revkevsdi]

7 minutes ago, DISABLED DAVE said:

Ya...so what...be happy with your situation....and stfu.

Sorry that I triggered you. 

 

[Dave]

2 minutes ago, revkevsdi said:

Sorry that I triggered you. 

 

Not at all...just an accurate observation.

[snoughnut]

2 minutes ago, steve from amherst said:

Personal finance should be a mandatory high school class.

I agree 100%..... maybe the bank/finance lobby is paying off school systems not to do so.

[Dave]

7 minutes ago, snoughnut said:

I thought you were smarter than that, I was wrong.

With all the dumb people wandering aimlessly that don't have the first clue about their own personal finances, it appears your dad was in the right business.

Im smart enough to know peoples real situations and understand.

[Angry ginger]

13 minutes ago, DISABLED DAVE said:

I know lots of people who use it to buy things...why wouldnt you if the interest is so low...

because for most it becomes a trap just like a credit card.  When i started in lending we would give everyone a line of credit.  Most people would take it but say I will never use ti. then couple years later they would come back looking to refinance with it maxed out.  IMO thats not actually the fault of banks,  sure we enable it but it's their asset to do as what they wish but it's foolish. Sure if you are truly disciplined you can play the interest rate spread but most cannot.  

[Dave]

3 minutes ago, Angry ginger said:

because for most it becomes a trap just like a credit card.  When i started in lending we would give everyone a line of credit.  Most people would take it but say I will never use ti. then couple years later they would come back looking to refinance with it maxed out.  IMO thats not actually the fault of banks,  sure we enable it but it's their asset to do as what they wish but it's foolish. Sure if you are truly disciplined you can play the interest rate spread but most cannot.  

That is the key factor. 

[02sled]

1 hour ago, Angry ginger said:

line of credit for a rainy day is smart-  using it for anything but is stupid.

That depends on the interest rate. Often it may be less than other debt that you may have. I have a line of credit that was set up many years ago when we were buying a piece of property. I needed money for about 45 days while I cleared some funds from other sources. It was set up as prime plus 1/4% with minimum payment being interest only. It served it's purpose well. I also used it for my niece who was buying a car. She was about to pay a significantly higher % rate than prime plus 1/4. We used the line of credit to buy her car and she made the monthly payments.

Edited April 2, 2018 by 02sled

[snoughnut]

15 minutes ago, DISABLED DAVE said:

Im smart enough to know peoples real situations and understand.

Most peoples reality is more of a fantasy because they're too stupid to know the difference between "wants and needs" and they tend to destroy themselves financially because they "want" something.

Saying No To New Cars

 

Thinking about buying a new car?

Try this instead: Take your current car out for a drive, open the window, and repeatedly throw $100 bills out the window. Now that sounds dumb, doesn’t it? But when you buy a new car, you’re doing the same thing the moment you take it off the lot.

If you’re a millionaire, then feel free to go nuts and buy yourself a shiny, new car. But 98% of Americans simply can’t afford it. You’ll save a ton of money and heartache if you will just buy used!

 

So why are we making such a big deal about new cars? One word: depreciation. New cars lose 60% of their value in the first five years.^[1] When you buy used, the original owner has already eaten the cost of depreciation. You, on the other hand, get a great four-year-old car for a great deal—one well below the expensive wholesale prices of new cars.

Let’s dig just a little deeper. Say that you are thinking about financing a new car with payments of $400 a month, just a little below the average car payment. Your current car is worth around $1,500. If you take that $400 and pay yourself, instead of the dealer, you’ll have a $4,000 paid-for-with-cash car in just 10 short months.

Sell your old car and you’ll have $1,500 to bank as you continue saving $400 a month. Ten months later, you have $5,500 for a used car. Repeat this process again, and you’ll have a $10,000 car just 30 months after you started saving. How much more sense does that make than buying a new car and watching its value drop like a rock?

 

Used car lots are overflowing. Millions of cars come from expired leases. For-sale-by-owner magazines are easy to find. Usually, the best deals come from individuals who are eager to get rid of their cars. They have one car to sell, not hundreds of cars like a dealer, so they will be more desperate to get the car out of their yard. Also, call some of the banks in your area and ask them how they dispose of their repossessions. Repo auctions are a great way to find good deals.

Before you buy a used car, make sure you come prepared. Know the value of the car you are considering. Visit websites like KBB, Edmunds and Carmax and do your research, especially if you are working with a dealer.

Remember, unless you’re a millionaire, you can’t afford a new car because you can’t take the hit in depreciation! The new car smell just isn’t worth it.

 

[revkevsdi]

39 minutes ago, DISABLED DAVE said:

I know lots of people who use it to buy things...why wouldnt you if the interest is so low...

Now that’s a stupid statement. Read below. Twice. Then have someone explain it to you. 

Interest rates won’t always be this low. Building up debt because you can afford the payments at historically low rates is short sited. 

A credit crunch, unless the government bails everyone out again will trash everyone with high debt. 

 

22 minutes ago, Angry ginger said:

because for most it becomes a trap just like a credit card.  When i started in lending we would give everyone a line of credit.  Most people would take it but say I will never use ti. then couple years later they would come back looking to refinance with it maxed out.  IMO thats not actually the fault of banks,  sure we enable it but it's their asset to do as what they wish but it's foolish. Sure if you are truly disciplined you can play the interest rate spread but most cannot.  

 

[revkevsdi]

8 minutes ago, snoughnut said:

Most peoples reality is more of a fantasy because they're too stupid to know the difference between "wants and needs" and they tend to destroy themselves financially because they "want" something.

Saying No To New Cars

 

Thinking about buying a new car?

Try this instead: Take your current car out for a drive, open the window, and repeatedly throw $100 bills out the window. Now that sounds dumb, doesn’t it? But when you buy a new car, you’re doing the same thing the moment you take it off the lot.

If you’re a millionaire, then feel free to go nuts and buy yourself a shiny, new car. But 98% of Americans simply can’t afford it. You’ll save a ton of money and heartache if you will just buy used!

 

So why are we making such a big deal about new cars? One word: depreciation. New cars lose 60% of their value in the first five years.^[1] When you buy used, the original owner has already eaten the cost of depreciation. You, on the other hand, get a great four-year-old car for a great deal—one well below the expensive wholesale prices of new cars.

Let’s dig just a little deeper. Say that you are thinking about financing a new car with payments of $400 a month, just a little below the average car payment. Your current car is worth around $1,500. If you take that $400 and pay yourself, instead of the dealer, you’ll have a $4,000 paid-for-with-cash car in just 10 short months.

Sell your old car and you’ll have $1,500 to bank as you continue saving $400 a month. Ten months later, you have $5,500 for a used car. Repeat this process again, and you’ll have a $10,000 car just 30 months after you started saving. How much more sense does that make than buying a new car and watching its value drop like a rock?

 

Used car lots are overflowing. Millions of cars come from expired leases. For-sale-by-owner magazines are easy to find. Usually, the best deals come from individuals who are eager to get rid of their cars. They have one car to sell, not hundreds of cars like a dealer, so they will be more desperate to get the car out of their yard. Also, call some of the banks in your area and ask them how they dispose of their repossessions. Repo auctions are a great way to find good deals.

Before you buy a used car, make sure you come prepared. Know the value of the car you are considering. Visit websites like KBB, Edmunds and Carmax and do your research, especially if you are working with a dealer.

Remember, unless you’re a millionaire, you can’t afford a new car because you can’t take the hit in depreciation! The new car smell just isn’t worth it.

 

This is bang on. Cars today are usually reliable for 10 years. Borrowing to or leasing plus taking that 60% hit is money that can go towards your retirement. 

[Dave]

Something tells me Revkev probably has very high debt...

[Angry ginger]

4 minutes ago, revkevsdi said:

This is bang on. Cars today are usually reliable for 10 years. Borrowing to or leasing plus taking that 60% hit is money that can go towards your retirement. 

sort of,  first 100k is usually pretty cheap but the second 100k your going to be spending money on repairs and for many of these people they really can't afford the repairs because the rest of their financial life is in shambles. 

[02sled]

25 minutes ago, snoughnut said:

Most peoples reality is more of a fantasy because they're too stupid to know the difference between "wants and needs" and they tend to destroy themselves financially because they "want" something.

Saying No To New Cars

If you’re a millionaire, then feel free to go nuts and buy yourself a shiny, new car. But 98% of Americans simply can’t afford it. You’ll save a ton of money and heartache if you will just buy used!

Remember, unless you’re a millionaire, you can’t afford a new car because you can’t take the hit in depreciation! The new car smell just isn’t worth it.

 

If only 2% of the people are buying new cars how will there ever be enough used cars to supply the other 98%. New cars can be purchased from the low end to the high end and anywhere in between. The average person can indeed afford a new car. Just one within their means.

The average person can't afford to have an old used car that is in constant need of repair. They need to be confident that when they go out and turn the key to go to work it will start.

[02sled]

17 minutes ago, revkevsdi said:

This is bang on. Cars today are usually reliable for 10 years. Borrowing to or leasing plus taking that 60% hit is money that can go towards your retirement. 

You don't have to be wealthy to afford new. I have always bought new trucks all my life. I just got what I could realistically afford. The first couple were pretty bare bones. The last 5 were F150 King Ranch. After almost 7 years, the longest I've ever had one for, I got about 50% of what I paid for it as a trade and since I only pay tax on the new truck minus the trade value, the net was more than 50% of what I paid for it.