Bankruptcy used to be the ultimate of ultimates! The Shame of Shame. I would die a thousand deaths if I had to admit I couldn't make it on my own. Nowadays, it is an accepted way to bail out, and make someone else pay for your excuses. Just go bankrupt, and someone else will pick up the tab. I guess I am getting old, but the American people will not #1-need to feed me as long as they don't take away my guns and *2-provide for my welfare as long as I am willing and able to do it myself. And even then I don't want you to worry about me. I have other options. Thanks government, but no thanks!

 

Your policy is a prudent one. I have had a credit card for many years and use it often, but it is a card that has no pay out option. I receive a statement each month that is due in full. I pay a small yearly fee for this card and have to carry very little cash. I have more respect for an armed robber than most credit card companies - the robber at least admits he is a thief. For example, someone who is over limit sends in a payment of $70., the payment arrives one day late and he is charged $35. late fee plus $35. over limit fee, plus interest over 20% and he ends up owing more than he did BEFORE the payment was made. If he has a large debt below limit and makes the minimum payment on time every month, he will pour money down that sinkhole for many many years - what a waste.

 

I suppose you could call bankruptcy copping out, I had to file chapter 7 about 5 yrs ago lets see I owned a farm that had a bad year in 96 when corn was real high had 250 head of fat cattle on feed when Oprah decided she would never eat beef again that cost me over $50k plus my normal operating expenses so sold the cattle rented the land out, and went into trucking business full time, and continued to make my payments after working a deal with the bank on refinancing, plus financed a newer semi, and trailer so could run over the road, with a 5yr plan to be paid off in 2001, while I was running over the road, my wife started having an affair, and applied for 9 credit cards, in my name, and gave them to her boyfriend, so the two of them paid for his house, his truck, and new furniture to the tune of $60k pluse stole over $35k in cash from the trucking co. instead of paying the bills, then when I caught them she left me for him (yea I am alot better off), and since this is a community property state, and a no fault divorce state I couldn't even bring up the affair to show were the money was (they even had a joint checking account but because his name was on it I couldn't bring that up), and the credit card co. didn't care that my sig was forged ( I tried ) then she filed chapter 7 leaving me with the entire $430k debt. and no income since I had to let the truck go back to the bank, I did sell everything I could and managed to get it paid down to $225k guess I should have just worked for the next 10yrs to pay off a debt that I didn't create but copped out, and filed chapter 7. No I have no sympathies for the credit card companies I gave them every bit of info they needed to file fraud charges against my ex, and the said they didn't care because if she filed they would just come after me.

 

In the real world NOT many americans live within their means, get real here dude things happen in life and if it hasn't happened to you it most likely will sooner than you think. Don't sit up on your high horse and say "All people need to learn to live within their financial means and need to learn to manage credit". "that means I can't buy everything I want for my truck now" This really shows how shallow you are and have no idea what the real world is like. I am at par with the world but in a flash it can all change and maybe i'll be there filing.. remember ENRON

 

Got to agree with archer- If you think you beat the system and have nothing to worry about, you are fooling yourself.

Layoffs happen to people that work 20 years at a job.

Medical problems can happen to anyone, and wipe you out in an instant.

Someone can get you with a lawsuit.

Or if your lucky, you have your money tied up in Enron or the local Savings and Loan.


My friends dad accumulated millions over his lifetime in stocks and real estate. After retirement, we went crazy or something and ended up sending hundreds of thousands to a Canadian lotto telemarketer (scammer). Basically, now what used to be a very smart man is now living out his retirement with nothing.

For every dollar you got, there is someone out there that is willing to kill if needed to get it- sooner or later theyll get it. And if they don't and you do manage to die with money in the bank, then the government steps in and takes a chunk from the family.

The only way to win is kill yourself while you're ahead.

 

 

Quote:

In the real world NOT many americans live within their means, get real here dude.Things happen in life and if it hasn't happened to you it most likely will sooner than you think. Don't sit up on your high horse and say "All people need to learn to live within their financial means and need to learn to manage credit". "that means I can't buy everything I want for my truck now" This really shows how shallow you are and have no idea what the real world is like. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~


Please no personal comments about others.

Keep you reply in the form of :

It is MY belief or opinion .......blah....blah....blah.

 

Hello Jeff T.

There ARE answers to each challenge you posed.....for whatever it's worth: (when I say you and your, I'm not meaning you.....I'm meaning anyone feeling a quandry in these areas, k? )

EXPECT layoffs. Plan ahead and save monthly, instead of living above your means.

Health insurance is to be there when medical problems arise. It's NOT a welfare program you buy when you are sick and need it, cuz you can't get it then! It is to ........ahem......again, plan ahead. (personally I've NEVER seen the need to "blow" money on insurance, but I was ignorant as an "invincible male" to know the benefit of having it)
And if there's concern about the passing or loss of one's estate upon death........that's where life insurance comes in.

Lawsuits suck....and are most-often the worst forms of robbery, but also......over what? Again, you can insure against most of it.

As far as investments......THAT is how investments work! WE AGREE to carry the load/risk when we partake. If one expects to always be profitable, there'd be no true investment as investments go. That's why the people selling them need be licensed, for the sake of accountability, etc. Gambling is the very same way......fun while you win, but tough to lose.....and there are losers every single day; some much more prominent (ENRON) than others.

And going looney or not.......there are ALWAYS takers (which was your point ) ......being wise with what you have in life will provide a level of security, only to the level of your administered wisdom, or for that matter lack of understanding.


I tend to agree with "hreed".......where did those days go?
Plastic, credit, and debt are ALL too easy to attain anymore.
Farmers RISK (insure against it?), Homeowners RISK, Drivers RISK, Investors RISK.....

THE KEY, is to pay attention to worse-case scenarios, set yourself up accordingly, and have a nest egg to the side just in case.. Rejoice in your profits, but don't lose grip of reality and what yet could happen, to anyone, at anytime........including MYSELF!

And I DO speak from experience.....I'm very marketable and was QUITE secure in my previous job that I lost in November. I own some very high-end vehicles, am about to buy a new Ford truck (cash), toys, and the like.......as a single man, I pay nearly $900 in rent, and I'm still quite comfortable, with no concern about my lifestyle~~cuz I have need for no adjustments, except to replace my job . I have no other payments due on anything except common utilities, food, and entertainment, and I'm set up to possibly purchase my first home in cash in about 3 years. Please realize that I'm atleast not trying to blow my own horn here AT ALL, but just clarifying that it CAN be done in frugality, and with proper insurance and residual income, or areas of profitability, I expect very few instances of financial risk (debt), and surely not bankruptcy.
But it's COMMON anymore, due to the lack of proper instruction for those following in the same or worse paths of 'our own'.

 

jc-

You can believe that your above financial problems if you would like, that is your right.

Do you have a wife and if so is she 100% behind your methods or could she decide some day to leave you and take over 50% of everything.

Medical insurance is a joke- even when your covered, your not covered. I can site many examples where people have used up to the limits or found out they are uncovered on certain things. On guy I work with ended up with $20,000 in uncovered costs from knee surgery- not exactly life and death even.

You might also feel young and invincible, but when you reach a certain age, are you sure someone will pay you twice what it would cost to hire a young kid in as your replacement.

My point is that probably 1% of the population manage to work around these potholes in life- if you pull it off then cool. But you should understand that not everyone makes perfect decisions and even some that do, still go down the tubes.

 

Jcreality, I couldn't have said it any better if I had said it myself. Well said and very valid and true points.

I have another theory that is worth sharing. I bet that if we took all the money in this country, put it in a pot and split it up evenly amongest everyone that within a year (at most) those that once had money would once again have it and those that had none would be right back in the same old boat. The reason for this is oh so obvious too.

 

The only thing obvious to me in this thread is the people who have been there and those who have not.Would have,could have,should have.Sounds easy enough.

 

I went through Chapter 7 about 2 years ago. I swore id never do it again. SOme things are Just out of your control..
Happily married, making ends meet.. no problems, suddenly Im faced with divorce and at the same time a motorcycle accident.
I struggled for about a year. I lived on 12 dollars a week, no lie.. In order to pay my bills. When I filed I was not behind on a single bill. My income had been cut in half, sometimes you just cant win.
Im since remarried, and Guess what, My wife got layed off.
So we lost 46,000 a year income. She had been there for 14 years. So.. It was another Kick in the face... BUT.. we had some savings, thank god, and cashed in some 401 K and some other things and we are still here.. STRUGGLING, but still here.
She is taking a Job at 20,000 so she can be home more and we are taking steps to reduce our debt to adjust to that salary. which means we are working very hard NOT to use credit cards, etc.. and making extra payements to pay everything down and refinancing.. All and all if works the way it should, we should end up o.k.
It was funny, when we bought our Excursion, we had put down about 1/2 of the price.. and told the dealer we didnt want anything more than a 200.00 a month payement.. they came back with 209, 206, 202, etc.. we went to another dealer and they gave us the deal we wanted.. We STUCK to that payement, because thats what we felt we could comftorably afford and still have money left over for vacations, etc.. without having to put everything on the credit card.
I agree people need to plan better financially.. but sometimes things just plain happen. SO the first time, I say.. I can understand.. The second time im not so easy on someone. I can STILL understand how circumstances can arise, theres just too much uncertainty.. But HOPEFULLy a lesson has been learned after the first time to help safeguard against those circumstances.

Ron
00 Excursion Limited 4x4 V-10

 

"Medical insurance is a joke- even when your covered, your not covered. I can site many examples where people have used up to the limits or found out they are uncovered on certain things. On guy I work with ended up with $20,000 in uncovered costs from knee surgery- not exactly life and death even".

I'd have to disagree with you on that one. Insurance is as good as you pay for. I had a former employer that had his own self funded plan - only covered 90% of usual and customery charges - as determined by them. When we had our first son the surgeon screwed us on the bill and charged more then double the going rate for a C section - insurance paid about $4,000 I paid about $5,000.

Switched companies and the new one had group Blue Cross. Same surgeon tried the same line with our second son - Blue Cross made him write off his over billing. Without Blue Cross insurance I would have lost my home by now, first son has epilepsy and his medication runs over a $1,000 a month plus doctors visits.

My dad raised 12 kids and never carried health insurance in his life - and died in a VA hospital - wouldn't wish that care on anyone. The kids pay my mom's medicare plan B premiums for her so she has complete coverage. Don't go without health insurance unless you nothing to lose.

 

dhermesc

I think your post actually backs what I was saying.

Insurance is important but it doesn't protect you from everything.

 

$9,205 huh. I guess that means I'm above average.
With interest rates so low on credit cards right now, I have no problem carrying a higher CC debt while I make 25% on stocks, etc., but I always have enough liquid to pay off my cards in a reasonable period of time should circumstances change.
The problem, as I see it, is most people run up a lot of CC debt and live beyond their means as a result.
That is a recipe for disaster.