Surviving the crash

[Heyjoe]

High energy cost is tanking the housing market like it crashed in 08

Where? The market is almost perfectly inverse to what happened in 2008.

Your television lies.

 

[VinnieBoomBah]

Where? The market is almost perfectly inverse to what happened in 2008.

I had to log out to see who you where responding to (JK, I knew, I just couldn't see what Longwalk said unless I logged out) and he did not disappoint!

Your television lies.

QFT! *


* Just to drive all you anacronym haters nuts

 

[Jay Walk]

Americans owe $1 trillion in credit card debt

America’s credit card balance has passed $1 trillion, or it’s about to, depending on whom you ask. The average interest rate on a new card is 24 percent, the highest figure since …

thehill.com

Not all American's.

 

[Jay Walk]

Dave Ramsey is "No credit cards ever" because using one and paying it off every month costs you way more than using cash, no matter how much cash back it pays you.

I do use a credit card however and pay it off every month.
Otherwise, following the plan.

 

[VinnieBoomBah]

Americans owe $1 trillion in credit card debt

America’s credit card balance has passed $1 trillion, or it’s about to, depending on whom you ask. The average interest rate on a new card is 24 percent, the highest figure since …

thehill.com

Adjusting for population (and not even considering inflation) CC debt was over 10% higher in '81

If you factor in inflation it was over 300% higher in '81

ETA: but that's with me doing the math . . .

 

[slimmer13]

Serious question:

If TEOTWAWKI is inevitable and imminent what's the downside to using credit cards to get all the gear you will need? I mean, who's going come after you for late payments?

To me, preparedness means planning for possible scenarios in order of likelihood. Pretty much at the top is status quo continuation. Things seem to have a way of keeping on chugging along despite the warning signs.

I spend a lot preparing to retire comfortably some day. After that I spend resources preparing for power outages, natural disasters, food shortages etc in a descending order of likelihood in my mind.

 

[VinnieBoomBah]

To me, preparedness means planning for possible scenarios in order of likelihood. Pretty much at the top is status quo continuation. Things seem to have a way of keeping on chugging along despite the warning signs.

I spend a lot preparing to retire comfortably some day. After that I spend resources preparing for power outages, natural disasters, food shortages etc in a descending order of likelihood in my mind.

Understood and agreed, but if you read though this thread (even if you need to log out to see it all) you will see a bunch of folks that are invested in the actual TEOTWAWKI with fire and brimstone coming down from the skies… rivers and seas boiling… Dogs and cats living together... mass hysteria, the whole enchilada!

 

[The Heretic]

Dave Ramsey is "No credit cards ever" because using one and paying it off every month costs you way more than using cash, no matter how much cash back it pays you.

I don't see how. I buy a LOT of stuff/services online and a CC gives me fraud/satisfaction/etc. protection in that regard, where an ATM card does not. Also a bit of reward points and Amazon discounts, etc.

I pay close attention to how much I spend on my CC because I know that I will need to pay it off when the statement comes due (plus 30 day grace period).

I appreciate the sentiment though; few people have the discipline to use their CC properly, and it doesn't hurt to send that message.

 

[Bobbygun]

I don't see how. I buy a LOT of stuff/services online and a CC gives me fraud/satisfaction/etc. protection in that regard, where an ATM card does not. Also a bit of reward points and Amazon discounts, etc.

I pay close attention to how much I spend on my CC because I know that I will need to pay it off when the statement comes due (plus 30 day grace period).

I appreciate the sentiment though; few people have the discipline to use their CC properly, and it doesn't hurt to send that message.

I was having the same thoughts as you. The only things I could think of (because I don't follow Dave Ramsey) are gas prices are cheaper if you use cash instead of credit cards, and maybe Dave is surmising folks buy stuff with credit cards more easily - stuff that they wouldn't have bought otherwise.

That's a good point you make about fraud and additional warranty protections provided by credit cards that aren't provided by paying cash. Those should definitely go in the "positives" column.

 

[Mono1]

Therefore, I have not paid a cent of credit card interest since 2012. Yes, that's 2012, not 2022. So, 10+ years of interest-free use of the banks' credit.

And then there's the points too! Hope you're getting some!

 

[VinnieBoomBah]

Dave Ramsey is the Tucker Carlson of financial advice

 

[The Heretic]

gas prices are cheaper if you use cash instead of credit cards,

Not at Costco which has some of the cheapest gas, if not the cheapest - and will not accept cash, only Visa.

 

[Jay Walk]

You know how many millionaires got rich off from "points" don't ya?

 

[Bobbygun]

Not at Costco which has some of the cheapest gas, if not the cheapest - and will not accept cash, only Visa.

My wife probably knows that. I try not to go there. I generally try to avoid Eugene when possible. As a result, I do end up paying more for gas out in the country.

At least the folks that own the local store/gas station are really good people.

 

[Jay Walk]

I don't see how. I buy a LOT of stuff/services online and a CC gives me fraud/satisfaction/etc. protection in that regard, where an ATM card does not. Also a bit of reward points and Amazon discounts, etc.

I pay close attention to how much I spend on my CC because I know that I will need to pay it off when the statement comes due (plus 30 day grace period).

I appreciate the sentiment though; few people have the discipline to use their CC properly, and it doesn't hurt to send that message.

You just answered your own question.

 

[The Heretic]

To me, preparedness means planning for possible scenarios in order of likelihood. Pretty much at the top is status quo continuation. Things seem to have a way of keeping on chugging along despite the warning signs.

I spend a lot preparing to retire comfortably some day. After that I spend resources preparing for power outages, natural disasters, food shortages etc in a descending order of likelihood in my mind.

Yup - I put about 25% of my income each year into preparing for status quo & retirement. It, and unemployment, were/are the most likely scenarios, and so far, the ones that have a long history of actually happening.

Doesn't mean that worse things won't happen - even black swan events - and one should prep for those too - but continuation of status quo is at the top of my list.

 

[Siglvr]

See, this is where I think we have a disconnect. I follow the Dave Ramsey Total Money Make-Over model that states that a credit card is for emergencies only, unless you can pay off every charge in the card's monthly cycle. If you can't pay off the statement balance every month, they you need to delay those purchases and save up for them. The Ramsey TMMO model also states that many, many things that Americans treat as emergencies are actually not. Those things should be budgeted and saved for over time. For instance, car repairs are not an emergency, as the need for maintenance is a known issue. So, those repairs are easily forecasted and should be saved for over time with a budget item.

Same with a new fence. You knew the fence was going to hell, so you could have started saving for it's replacement long before it became necessary to replace it. A car wreck with attendant hospital bills, OTOH, is a real emergency, since it is something that you could not foretell. So as I said to begin with, very few things rise to the level of a real emergency for which a credit card could be employed to pay those bills.

If you have the money saved, or the appropriate income stream, to pay off the balance every month, then none of the above would apply to you.

^^THIS^^

When I was young(er) and poor(er) I learned that the hard way. Finally paid the sucker off and started paying cash. Now, with cash back/rewards credit cards, anything I buy gets a rebate and I only buy if I can (and and I can) pay it off monthly, in fact it's on auto pilot now because once I came back from france right about payment due time and my check missed the due by date (I argued and they refunded me the late fee). Now they just auto-deduct from my account and I love that system, my credit score is off the charts as payments are big and 100 % on time.

There's lots of cash back cards out there but I've been happy with the Costco C.Card.

 

[The Heretic]

For instance, car repairs are not an emergency, as the need for maintenance is a known issue. So, those repairs are easily forecasted and should be saved for over time with a budget item.

Yes and no.

PM (preventive maintenance - e.g., tune ups, oil changes, etc.) and replacing things like tires, those are easily forecasted and even scheduled.

A broken axle, a blown head gasket - not easily forecasted. You can set aside $ for such repairs, but they are generally not predictable or even just budgeted for.

But "stuff happens", so one should set aside $ for it - and I do.

A credit card is useful for true emergencies - e.g., a kidney stone, or a car breakdown - towing, repairs, shelter until the car is repaired.

It is important to pay off such debt as fast as possible - preferably all of it with each statement, because

1) You pay interest on debt carried past the due date - making everything cost more.
2) It is better for your credit rating, the record of payments on time, and the fact that you have less debt.
3) You have more available credit for those emergencies.

 

[gmerkt]

Hmm, imminent thread closure, I'd better get this in now.

Mel Tappan

Now there's a name I haven't heard in ages. Yes, yesterday's survivalists are today's preppers. One of my co-workers of that era was a gung-ho survivalist, for a time. He later sold me two AMT Hardballer .45's cheap when he was changing focus. I still have the 90% silver coins he bailed on. I think those were about 3x face value at the time.

A credit card is useful for true emergencies

Yes, but it's a great tool of convenience for normal commerce. I pay mine off in full every month. If you make a nice, fat charge at the beginning of the billing cycle, you've gotten an interest free loan for a month. But left unpaid, that interest rate is a whopper. Like 21%. Whatever happened to usury laws? Did anyone notice how high credit card interest rates were when we were at near zero interest rates for 15 years?

I've said this before in another post. If you're buying a firearm by remote method, like Gunbroker or similar, be sure to use your CC. Don't be tempted to take their 3 or 4% cash discount. Because of the protection that the CC gives you when something goes wrong. That 3-4% premium you pay for using the card is cheap insurance.

 

[Burt Gummer]

In the not to distant future, the new CPDC and electronic passwords/IDs will change all of that. You won't even be able to check email or logging into a forum w/o proving it is you. Of course, being sold as a great tool for our 'safety' but the biggest leap to tyranny and the end of liberties/permissions, not to be confused with 'rights.'

The giant prison island is a great test bed for what is coming here. All tied to a social credit score.
With the next C scam or as Klauss says 'the next virus will be electronic', they will succeed with V passports this time around, again for all our 'safety.' The frightened pincushions will not object at all.