Unbelievable debt!

[Ludi]

The mind boggles:

"Today the debt-to-income ratio stands at a gravity-defying 124 percent....it took 30 years leading up to 1986 for the debt-to-income ratio to grow from 50 percent to 75 percent. From there, it took 15 years to hit the 100 percent mark. Since then, it's taken us only five more years to get to nearly 125 percent."

http://www.dallasnews.com/sharedcontent/dws/bus/columnists/all/stories/DN-dimartino2_07bus.ART.State.Edition2.12a7cdb8.html


What will become of the US economy?:eek:

[Exitof99]

BUY BUY BUY!!!

silly people

[das_nut]

:(

IMHO, there are only a few things in life worth going into debt for: A modest house, a reliable used car (depending on the area), and perhaps a good set of clothes for a new job.

What these things have in common is that they either allow you to earn more money (used car, clothes) or that they save you money by allowing you the use of a necessity that you are still paying for (a house).

Otherwise, credit is a way to pay more for the same item. It shows a lack of fiscal responsibility and poor impulse control. Learn how to budget folks, it is a very useful skill to have.

That being said, I suspect that a lot of this "debt" is due to housing costs. Some of this is unavoidable, and some of it is due to people treating homes as an investment, and buying the largest home that they can afford. But it doesn't bother me. Karma will kick in: Those who buy a home just to sell it in a few years will be burned by fluctuations in home prices, and those who buy houses for shelter and the long term will still reap the benefits.

Just my $.02

[FreshTart]

I would add education to the list of "worth going into debt for".

ETA: Counting my student loan (which is my only debt),my income:debt is 100:200 (but I also had my hours slashed for 15-20 hr/wk for 6 months and then we went on strike). If I was working full time (like I should be), my ration would be 100:100.

I don't regret for a moment going into debt for my education. I enjoyed every moment of it. I am thinking of going back again. I won't take out loans and will continue to work, so that will be different then before.

[Exitof99]

IMHO, there are only a few things in life worth going into debt for: A modest house, a reliable used car (depending on the area), and perhaps a good set of clothes for a new job.

Have you seen there are new home loans that anticipate you will resell before the end of the loan term? I forget what they are called, but it's a new option to pay as if you will buy the house until you decide to sell it!


Otherwise, credit is a way to pay more for the same item. It shows a lack of fiscal responsibility and poor impulse control. Learn how to budget folks, it is a very useful skill to have.

Don't forget the folks who use credit as a foundation to create a business, like me. I've purposely put myself in debt so that I can have the things I need to make money. Since I'm a sole-proprietor, it's up to me to take the risks involved as long as I want the business to remain mine.

The old adage, you need money to make money rings true, and those that don't have it, need to borrow it!

[Ludi]

I never went into debt to start my business.

[das_nut]

Oopsie, didn't mean to imply that there was only 3 good reasons to go into debt. Sorry guys.

I could think of another "good" debt: Dental/medical bills.

[Ludi]

I could think of another "good" debt: Dental/medical bills.


One of the top reasons people file for bankruptcy.

[goettling]

How about remodeling your house? Does that count? My husband thinks it does.:eek:

[Ludi]

How about remodeling your house? Does that count? My husband thinks it does.:eek:


NO!:whip:

[goettling]

NO!:whip:

lol

[Exitof99]

I never went into debt to start my business.

Depends on the type of business you have and the amount of funding you have available.

What business are you in?

[Ludi]

What business are you in?

Commercial art of a sort - I make animal replicas, puppets, and costumes for motion pictures, theatre, museums, live shows, etc.

[Exitof99]

Nice, any photos or a website to peruse?

[Ludi]

I'm in the midst of updating the website and plan to post a link somewhere here at VB when I'm finished, because I think folks would be interested in our work making stunt doubles of animals for motion pictures. :)

[goettling]

I'm in the midst of updating the website and plan to post a link somewhere here at VB when I'm finished, because I think folks would be interested in our work making stunt doubles of animals for motion pictures. :)

Ludi, that is so cool. It is beyond the chickens.:lol: Would love to see it.

[CaptainSwab]

Our debt comes from our house and our education loans.

If we want to buy something like a new computer, we would never do the pay only 10 bucks a month type thing. If we want a new computer, we are paying by check in full. Otherwise, I just don't feel comfortable over extending ourselves.

[Coney]

BUY BUY BUY!!!

silly people


Exactly. You can only combat this depression and stress over being in debt by going shopping.

[ilovemydragon]

I'm happy to report that the only debt I have is a house and car..which are both necessary items. The car has 0% financing and the house 5.6% APR.

[Ludi]

Here's a page about the US National Debt:

http://www.brillig.com/debt_clock/

Prez. Bush borrowed more than all previous presidents combined:

http://www.cnsnews.com/ViewNation.asp?Page=\Nation\archive\200511/NAT20051104b.html