Debt

[mr rick]

there is good debt and bad dept. House good, credit cards bad.

[Icy]

Allways in debt with the bank, I don't like to have my money at banks and let them play with it, i preffer to have bank's money and play with it myself, so as soon as i have enought money to start a new project i ask for a loan to my bank and go for it. Last one was to build a hotel with some partners, $1.2 millions in total, the bank is happy with us and that loan

[PersianKitty]

I did the debt free thing for several years, then was advised that it wasn't a wise thing to do for your credit history. If you ever go to finance something and have been debt free for several years, lenders look at it as having 'little or no recent credit history". This can lead to not being able to finance something or falling into a higher risk category (lower credit score) which increases your interest rate.

In 1997, I financed about 70% of my house, but have paid so much extra on the principle each month that it will be paid off before the end of this year. In 1998, it was the boat (about 65% financed). It's done and gone now so the loan is too, but it shows positive on my credit. I pay cash for vehicles. My CPA advised me that while my credit score was high to get 2 or 3 major credit cards (at the lowest interest rates possible) and a couple of store type revolving charge cards (almost always a higher interest rate). Then to use these cards once in a while and pay them off within a few months. It actually increased my credit score even more. Recently I got a very low interest home equity line of credit. Used part of that to pay for my portion of my parent's new motor coach. Nice thing about the line of credit (it's even got a Mastercard credit card with it), it doesn't go away. Even when the home is paid off, etc. I will still have it and be able to use it periodically to keep my credit history alive.

I recently had a friend who hadn't done anything creditwise in 10 years, attempt to get a car loan. They required a cosigner and the interest rate was still alot higher than standard car loans. They advised him to pay on it for 2 years and then refinance it when the car loan had helped his credit.

Moral of the story... if you ever plan on possibly needing or wanting to use credit, you have to use crediti consistently and wisely even when you don't really need it.

[HeadPimp]

Consumer debt is the only demon to worry about, and we will be free of that shortly. As for long term debt, gimme $10,000,000 loan secured by decent properties that generate and income sufficient to pay their mortgages... I will take it any day!

[Naughty]

Originally posted by Icy
Allways in debt with the bank, I don't like to have my money at banks and let them play with it, i preffer to have bank's money and play with it myself, so as soon as i have enought money to start a new project i ask for a loan to my bank and go for it. Last one was to build a hotel with some partners, $1.2 millions in total, the bank is happy with us and that loan

Icy, hit me up on ICQ please. I have a question.
125586484

[FlyingIguana]

Originally posted by Gary
I've turned living beyond my means into an art form.

Over past few years, every time my income increases 10% my expenses increase 20%. Fortunately, I got a plan. A big fat life insurance policy. Eventually, i throw myself in front of a bus, bills get paid.

Sweet

throw yourself in front of a bentley, go out in style.

[Herb Kornfield]

Its there from being a young married couple, but, its almost gone!, we are in the home stretch on a few projects that I can own my home, trucks and all bills 100% paid off.

After that, I am just slamming all my cash into the bank. No need to live large here, just want to know that I can live year in and out without having to worry about when things get funny.

[Andy P]

Originally posted by Gary
I've turned living beyond my means into an art form.

Over past few years, every time my income increases 10% my expenses increase 20%. Fortunately, I got a plan. A big fat life insurance policy. Eventually, i throw myself in front of a bus, bills get paid.

Sweet

Bwaaahahahahahaa, thats the funniest shit i read all day!

[Phoenix]

debt sucks large..i have an enormous debt over my head from university, although i have been paying it off in chunks

thanks topbucks

but let me say, things are still not easy for me, as i have little or no credit history...to get a car, i had to take a high finance rate...where everyone else i know paying as much as i do has a M3 or audi S4 or something cool

i am driving a honda for the same price

so yeah, if i could do it again, i would get a credit card as early as possible, and just keep paying it off before they make any interest

[brutus]

I don't know what to do with all my bloody bucks...
I pay always in cash - upfront - everything. But casinos are BAD - I have lost every single visit since Dec 02 and trying tonight again!

[Lane]

100% Debt free.. saving money at least 10 out of 12 months of the year..

[xxxcam]

fuck financing ... reminds me of the day when I bought my first car when i was almost 18... went to the dealership and gave the salesman $20k cash for the car, you should of seen his face ;)

[KRL]

When you're young its very easy to get in over your head. The funny thing the more money you make when you're young the deeper into debt you will go because everyone starts offering you money left and right because you are doing so well.

The biggest debt I've ever taken on was in 1991 for over $1 Million to build a house. I remember walking out of Bank of America's offices thinking to myself, I can't believe a bank just gave me a million dollars so easily. It was a real mind blower because I was in my early 30's and that type of loan at that age range is hard to qualify for if not next to impossible for most people. When I showed the loan officer copies of some of our AT&T checks, she asked if I would be interested in getting a $2 Million mortgage instead.

You really do have to be careful though especially if you have an AMEX card because you can really go to town and not realize how much money you are spending every month till the bill comes in.

And be careful what your gf or wife does with your debt. I had one fiance who I ended up not marrying and she was all fucking jerky when we broke up. Like a dummy I had trusted her because we were engaged and had given her an AMEX card on my account and she lied and said she had ripped up the card when we broke up, but went on a Beverly Hills shopping spree on it and charged almost $40,000.

Anyway avoid debt. Its really not a good thing in most cases. I think its much better to pay cash for everything and have everything paid for. I don't even believe people should use credit cards. You're much better staying with debit cards so you never spend more than you have.

[evildick]

Originally posted by PersianKitty

Moral of the story... if you ever plan on possibly needing or wanting to use credit, you have to use crediti consistently and wisely even when you don't really need it.

What if you have credit cards, but pay them off every month so you pay no interest?

Would that help your credit or not show up at all?

[PersianKitty]

Originally posted by evildick


What if you have credit cards, but pay them off every month so you pay no interest?

Would that help your credit or not show up at all?

I guess it would help. Not sure how it shows at all. Normally each creditor reports only once a month. What if they report after your paid off the card? I don't know if the fact you actually had a balance and paid it off would show.

[quiet]

fuck debt.

i recently paid for the lot where i'll be building my ski-in/ski-out chalet. cash.

what a great feeling

[Mr. Marks]

It is a BASIC RULE in life. The higher your income, the higher your expenses creep up. When income goes up, former "luxuries" quickly become "necessities."

Originally posted by boneprone
It seems like we never have enough money.
Its strange...

I do ok, and the wife even works and makes over 100k her self but we never have money, and our credit is just now getting good.

I just dont get it.

But I am under 30 and I have traveled a lot around the world for someone my age. Asia is next including India.

If that SARS thing would ever go away. But damn it seems like come every month things get tight.

Strange.

[freeadultcontent]

Aside from what is left on my mortgage which I do pay extra on the principle each month, I am debt free. I am pretty much doing what PK did, keeping some debt to keep my credit going and to improve it.

[SleazyDream]

Originally posted by quiet
other than possibly a low interest mortgage, i think you become owned by debt. never.

yes and no. debt for toys and crap is not a good idea - (other than my monthly visa balance which always gets paid off)

a low interest mortage in today's investment enviroment isn't a bad idea if leaveraged for financial gain....but that requires ownign the house first though.....

and if you don't have money an affordable mortage IS a hell of a lot better than rent......

but other than borrowing for a home I live by the words of my dad - DON"T BORROW UNLESS it's for a business purpose.


I don't and never have sceen anything wrong with borrowing for business reasons - i did a LOT of it in the financial business (buying out other agent's cleint bases).
I've never had to borrow a dime for this business though, which is amazing cause there is VERY few businesses out there where that's possible.

[quiet]

Originally posted by SleazyDream



yes and no. debt for toys and crap is not a good idea - (other than my monthly visa balance which always gets paid off)

a low interest mortage in today's investment enviroment isn't a bad idea if leaveraged for financial gain....but that requires ownign the house first though.....

and if you don't have money an affordable mortage IS a hell of a lot better than rent......

but other than borrowing for a home I live by the words of my dad - DON"T BORROW UNLESS it's for a business purpose.


I don't and never have sceen anything wrong with borrowing for business reasons - i did a LOT of it in the financial business (buying out other agent's cleint bases).
I've never had to borrow a dime for this business though, which is amazing cause there is VERY few businesses out there where that's possible.

it's like you want to argue with me, but you wind up not really having anything to argue about.

[SleazyDream]

Originally posted by quiet


exactly. and i always get these looks about it. no i don't want the 'plan'. i don't need financing. i just want to buy it. they almost seem disappointed.

worst part is buying somethine on interac and finding out that even though I have a $5k a day limit (the most my bank will allow)the stores often only allow $2k per transaction... like when I bought my 65" tv - I had to use my interac card three times and then put the extra on my credit card when I hot my interac daily limit. - real pain in the ass..............

had I known about these limit things I would have just put the damn thing on my credit card in the first place

[High Quality]

Debt makes me work way harder. The thought of interest accruing faster than my sales while I sleep drives me nuts. Just a personal thing. Not credit card debt mind you but things like boat, house, college, car loans. Stuff at or less than 5%. Above that is just stupid.

[quiet]

Originally posted by SleazyDream

worst part is buying somethine on interac and finding out that even though I have a $5k a day limit (the most my bank will allow)the stores often only allow $2k per transaction... like when I bought my 65" tv - I had to use my interac card three times and then put the extra on my credit card when I hot my interac daily limit. - real pain in the ass..............

had I known about these limit things I would have just put the damn thing on my credit card in the first place

i actually do use my cc quite a bit. for one reason: i love the airmiles. i've got a fucking shitload of airlmiles from my mastercard.

you should talk to your bank... i got my interact raised to 10K just by asking...

[SleazyDream]

Originally posted by quiet


it's like you want to argue with me, but you wind up not really having anything to argue about.

ok, I'll make it simple for ya. Debt for business reasons is a good thing.

I'm not currently doing it but I have done it and didn't regret it for a second. I made a LOT more money by doing it.

[SleazyDream]

Originally posted by quiet


i actually do use my cc quite a bit. for one reason: i love the airmiles. i've got a fucking shitload of airlmiles from my mastercard.

you should talk to your bank... i got my interact raised to 10K just by asking...

i use a credit union. they won't go over $5k - I'm their highet limit of any customer there at that branch- next highest is $3K.

i use them though cause they are quite good to me on other things - (things you would probally be impressesed with too and that i can't mention here) WAY above and beyond what any bank would do. I drive an extra 15 miles just to deal with this particular branch.

[pornJester]

Only personal debt I have is student loans & the financing on my car. ... Few thousand in business debt, financing some equipment and some upstart costs for paysites. (launching soon!)

Other than that I'm free and clear.


I know many people who 'live beyond their means'.. wracking up thousands in personal credit cards debt. I've never been one to do this. Only time I buy stuff for myself is when I have the cash to pay for it. This philosophy has kept stress levels down and I still have plenty of nice things to be happy

[iroc409]

i intend to make a fortune off someone else's money, i.e. borrowed money. it's how the world turns. why bust my ass to make a lot of money to make a lot of money, when i can borrow someone else's lot of money and make a lot more, quicker?


fuck the g-rides, i want the machines that are MAKING them!

[Paul Markham]

Never really had a problem with debt.

Had an overdraft for the business when I met Eva, no one can say she married me for my money. But it was a business operating thing and was always owed more than I owed.

In the last few years the only time we needed some extra money was when we bought the new house, Eva set her heart on something a bit bigger than we had the money for.

So I sent out a special offer to all our clients, announced it here and a few other boards and raised the money.

Eva controls the purse strings in the partnership, we create it together and she tells me if I can spend it.

[quiet]

Originally posted by SleazyDream


ok, I'll make it simple for ya. Debt for business reasons is a good thing.

I'm not currently doing it but I have done it and didn't regret it for a second. I made a LOT more money by doing it.

and i'll make it even simpler for you. from my first post in this thread:

"What do you think about the whole 'living beyond your means' mentality?"

[SleazyDream]

Originally posted by quiet


and i'll make it even simpler for you. from my first post in this thread:

"What do you think about the whole 'living beyond your means' mentality?"

i loved it. makes me feel alive. all this fucking money now and no debt makes me feel too complacent.

Someday I might just donate EVERYTHING to charity and start over. the fun is in the getting - not the having.

[CigarMan]

I have about 100k in debt but 10 times that in assets. If times get bad I can cash out the assets and pay the debt without losing everything. Where people get in trouble is when they mortgage their only home for 150% of its' value. That's just insane.

[RedShoe]

we live so far below our means, that we feel poor.

What gets me is people that live paycheck to paycheck. I don't understand that. And it's so easy to just live without buying everything you see.

[PenetratinP]

Originally posted by evildick


What if you have credit cards, but pay them off every month so you pay no interest?

Would that help your credit or not show up at all?

My family is in real estate, so I've talked to some mortgage brokers.

Paying off your credit cards each month doesn't really improve your credit score. Carrying a balance and making payments shows that you are credit worthy and consistent.

[Webby]

Debt free and that ain't going to change - If only because I would not contribute a dime to people like VISA. Dumped the American Express cards back cos I wondered why the fuck I should be paying them for some "status" cards. Cash suits me nicely - don't leave home without it!

[TheFLY]

The way I see it -- you should be getting smarter every day of your life...

by the time I'm 90, my urine will trade on NYSE.

[BJ]

I am completely HAMMED up?!

[Icy]

Originally posted by SleazyDream


DON"T BORROW UNLESS it's for a business purpose.

Your father has the key, to get in debt because expending more that you can afford on pleasure, mad expensive cars, party etc it's really stupid as you probably won't be able to recover it and you will end on bankrupt.
In the other hand to ask for loans to the bank to make good inversions is a good way to grow (being secure of what you're doing). If you let your savings at the bank, they won't pay you more than a 2%. Getting a loan from the bank they will get from you a 3% to 5% or so. Then invest it on homes, locals to rent etc and you will double the $$ invested on less than 5 years, plus the money you get renting them. That kind of inversion never go down. Keep doing that and in some years you will have a good secure income for the rest of your life, at least it's working for me in Spain (of course each country economy it's not the same, in Spain the building bussines has no stop, buy today and sell it for an extra 20% in a year).
Look for secure inversions, don't play with it on the stock market for example, mostly of ppl that get ruined at the stocks market is because they invest money from loans, then they need to recover it fast so they sell the stocks underpriced.

That's exactly what the banks do with your money, invest it, get a 20% profit at least and then pay you a 2%, don't be a fool, insted of banks playing with your money, play you with theirs.