[KYTGuy]

I had a good job, making BIG bucks, and had been doing so for more than ten years....

Went to the Mercedes store to buy a nice car, and went through the usual financial stuff (I had more than enough money in my accounts to buy the car cash, but wanted to keep my money in the market, so was financing the purchase). Even though I was making over $125k at the time, (this was back in 1990 or so) they refused me!!!

Here's why:

The ex, more than six years before, had taken out a credit card in our joint names, including my info (and faking my signature) to the lender, and had the bills sent to her address. (this was more than seven years after we divorced!)

She got a high limit on the card due to our "Combined" incomes, then proceeded to charge it past the limit - over $26,500!! She never paid on the card after the second month she had it. She kept using it until it was confiscated, long after she had exceeded the credit limit. Since she had changed her name back to her maiden name, the credit company "couldn't find" her, even though she was still living at the address she had listed for the bills!! So they posted notice in the papers in the area where she lived, sent dunning letters to her address, and then referred it to a collection agency. I never got anything, even though I still had the same name, and still lived at the address I had had for many years. The debt was "charged off" and notes were made on MY credit rating.

Back to the future - when I found about the charge-off, I offered to pay it, even though I was really mad about it, they wouldn't even accept a payment!

The black mark stayed on my credit report for years, even though I had a Lawyer send explanatory letters showing the date of our divorce predated the credit application by several years.

So, don't judge someone just by their credit rating. I now have a rating over 840, but it took a loooong time, with no other problems.

 

[StevieDvd]

Odd as it may seem some people have a bad credit rating because they have never borrowed or had a credit card.

Without using finance and building up a good history of repayments the industry has no feedback on what you would be like. So it is possible for one person to have a better credit rating than someone earning more than they do.

 

[jpr703]

Most Americans just don't realize how terribly low real incomes are nowadays. Fifty years ago, an uneducated, blue collar worker could own a home and support an entire family. In recent times, I know many college educated couples who both work and are still renting and struggling to make ends meet. The US economy is just a mess and I have a hard time understanding why people aren't more aware of and upset by this fact.

Add in the heightened job insecurity that seems to be rampant and skyrocketing health care costs and it's no wonder that more and more people are fighting over money, getting divorced and winding up with bad credit.

Hey, I'm all about personal responsibility but there are real reasons why bankruptcies and bad credit are on the rise and it isn't becuase people are suddenly much more lazy, reckless and stupid than they were in previous generations.

Despite the fact that worker productivity is way up, Americans still can't earn what they used to earn and therefore can't live like they're used to seeing normal, hard-working people live. Bottom line--your government and your corporations have sold you out and you ought to be pissed off about it.

 

[Spyro]

That's a gross exaggeration. The best analysis is to take the cost of a 4 year education at a state school and the cost of a home and determine how many years annual salary it cost. If you compare 1975, 1985 and current, yes, it is a little more difficult now, but not by much. Wall Street Journal had an article on this about a month ago. I wish I had saved it for more details.

Credit is much too easy to get. People buy too much on credit because of a shift towards selfishness and instant gratification and people buy much larger homes than they need.

 

[NiceCans]

Quote:

Originally Posted by jpr703 Most Americans just don't realize how terribly low real incomes are nowadays. Fifty years ago, an uneducated, blue collar worker could own a home and support an entire family. In recent times, I know many college educated couples who both work and are still renting and struggling to make ends meet. The US economy is just a mess and I have a hard time understanding why people aren't more aware of and upset by this fact. Add in the heightened job insecurity that seems to be rampant and skyrocketing health care costs and it's no wonder that more and more people are fighting over money, getting divorced and winding up with bad credit. Hey, I'm all about personal responsibility but there are real reasons why bankruptcies and bad credit are on the rise and it isn't becuase people are suddenly much more lazy, reckless and stupid than they were in previous generations. Despite the fact that worker productivity is way up, Americans still can't earn what they used to earn and therefore can't live like they're used to seeing normal, hard-working people live. Bottom line--your government and your corporations have sold you out and you ought to be pissed off about it.

I cannot applaud this post enough! It speaks volumes.
And the problem is not going away, especially as they are now selling off the JOBS themselves.

The point made above, that the credit buying has masked the fact that this has been occurring, is very insightful.

 

[ken36]

A great lesson in how the world works.

 

[viator122]

check out the total cost of this mediocre Dell laptop in this "special" from rentway....

http://rentway.shoplocal.com/rentway...toreid=2499927

 

[redshifter]

Quote:

Originally Posted by Arainach In my mind, education and a house are both worth going into debt over. A car is if absolutely necessary. Past that, barring some sort of unforseeable emergency (insane medical costs or whatever), I just can't see it. There's absolutely no reason ANYONE should have Credit Card debt. The idea of spending more than you have is mind-boggling. It's called living within your means. More people should try it.

try a massive medical emergency and emergency surgury before your new health insurance kicks in. $20,000 in debt in just a few hours. it can happen.

renting to own is like paying 300% interest or something. avoid it.

 

[twc5964]

I'm one of those that suffers terrible from very bad credit.Not by choice or misuse on my part.Both my wife and I lost our jobs in a three week time frame. it put the last nail in my coffin.

No more good salary,no more nice new home,it simply sucks period.Now,I make way less than before both our previous employers decided to go belly up.It's just a fact of life that i'm trying to cope with and is very difficult with two children to support.

 

[Mercuttio]

I keep digging myself in deeper with education (going for a masters now). Fortunately, my year of work between undergrad and grad allowed me to pay off my credit cards. It's a really nice feeling to have that burden gone.

 

[YamiTenshi]

Quote:

Originally Posted by Mercuttio I keep digging myself in deeper with education (going for a masters now). Fortunately, my year of work between undergrad and grad allowed me to pay off my credit cards. It's a really nice feeling to have that burden gone.

Yup, I'm going to have a 6 digit debt by the time I'm done with education. Then I realize with that money I could have brought a house and started a life by now. Luckily, I've always been really good with credit cards so I pay them off every month.

I'll admit that I have no health insurance right now. Do I think I am invincible and will never get sick or injured? Hell no. Can I afford to pay over a $1000 a year to cover myself? Not unless I take out another $1000 in loans every year. Best I can hope for is to not need medical treatment for the next three years and to get a very well paying job when I graduate.

This thread is rather depressing.

 

[crazyhatusc]

I remember reading an article somewhere that a lot of those Rent-a-Center type places were being investigated by states (I think it was NY among others) for deceptive business practices. It seems that they didn't tell people about a ton of charges, interest, etc. and were preying on lower-class/uneducated/non-English-speaking people.

I'm one of the fortunate ones in that I got a full scholarship for my undergraduate education and will be graduating this year with ZERO debt... though after law school I'm sure I'll be up to my ears in it.

 

[Mercuttio]

Quote:

Originally Posted by YamiTenshi Yup, I'm going to have a 6 digit debt by the time I'm done with education. Then I realize with that money I could have brought a house and started a life by now. Luckily, I've always been really good with credit cards so I pay them off every month. I'll admit that I have no health insurance right now. Do I think I am invincible and will never get sick or injured? Hell no. Can I afford to pay over a $1000 a year to cover myself? Not unless I take out another $1000 in loans every year. Best I can hope for is to not need medical treatment for the next three years and to get a very well paying job when I graduate. This thread is rather depressing.

I was uninsured for half the year this year while I paid off my cards (and, of course, bought headphones... curse you head-fi!) and it was certainly kind of scary. It kicked in after 6 months of my job for free, whew.

And God Damn it this is a very depressing thread. I don't like to think about my college debt!

 

[terrymx]

i'm wondering if its possible for my apr to go down, right now it at 11.5%, it begans with 9.25%. say if i pay off all my balances and leave it alone for a while would or go down?

otherwize i would just try to pay off everything and cancel the thing,

 

[Squeek]

Quote:

Originally Posted by terrymx i'm wondering if its possible for my apr to go down, right now it at 11.5%, it begans with 9.25%. say if i pay off all my balances and leave it alone for a while would or go down? otherwize i would just try to pay off everything and cancel the thing,

Call and ask. CC companies won't lower it without a request. What's the prime lending rate right now? Expect to tack a few % points on to it. Noone lends money for nothing.

The average APR is 15%-19%.