Credit card debt…next shoe to drop?

[jpinpb]

I’m not saying that the “intention” is to necessarily max out the cc and walk. But that is what’s happening. They have a lifestyle they are trying to maintain and whether out of desire or necessity, they will use the cc until it’s maxed.

Walking away from their upside-down houses makes financial sense, somewhat damaging their credit whether it’s 2 yrs or 7, hopefully a lesson learned. The next financial sense is unloading a big car payment for their truck or SUV that’s going to cost upwards of 500 a month in gas to operate. They won’t be able to sell it. Their credit will be shot already. At that point, take the car.

After that, what’s next? They have used their cc to live.

I agree, it is lifestyle and their sense of entitlement. I for the most part live w/in my means, but I see many just slightly younger than me who don’t. Maybe b/c my dad drilled it in my head and we were frugal. We worked hard and my dad but hardly ever used credit. I can’t say that, but try to limit it.

I don’t know where the excessive consumerism comes from, but the tide will/is changing. It will be a shocker for many.

[Coronita]

I'll offer this information from another perspective.

Don't be so sure that people are done tapping that HELOC atm first. I don't know how it happens, but it appears there is still some HELOC tapping going on. Don't ask how I know, but my neighbor (whom I despise) I just learned recently tapped into an Heloc for around $150k. I was a little surprised he/she was able to pull this off, but I guess because in CV sfh haven't fallen that much to make this unattainable.

Here's the sort of pattern that I saw since 2004…It's pathetic. Neighbor buy all sorts of crap from tv's, toys for kids, and landscaping. In case you folks missed it, these were the neighbors that I b!tched about earlier on this board that cut down a city tree, planted other expensive plam tree/magnolia crap that has root problems right on the property line, etc, despite the fact the the lot is soooo damn tiny, the landscaping doesn't really fit. They spent a fortune on the landscaping that is really doesn't fit the profile of their home.

The hubby is an architect (well, at least he says he is) and the wifey doesn't work. The story behind this neighbor was that originally they were going to buy the house we eventually bought, but didn't think it was good enough and ended up overbidding by $100k on the next door house. This was back in 2004. Then end of 2005, hubby said he was considering selling the home for(after trashing the yard), because they wanted to move to OC. I later found out was because the hubby became sort of unemployed. Obviously, he wanted to sell the home himself and save on commision, and despite how he trashed the yard, he wanted 1.1million. Needless to say, I'm happy to report there wasn't a greater fool to buy that thing back in 2005. And 2006 came around, and there was no way in hell he would be able to sell. Then I started to notice he was behind in prop tax payments. And then all the sudden, they were paid off ( I guess he tapped his HELOC from, yup you guessed it Countrywide). And yet, he's making the minimum payment on the HELOC (interest payments only), such that the principle balance isn't going down. He used the HELOC to "redo landscaping: and doing some remodeling and a couple of other things (which utterly was crap, because he is the sort of the do-it-yourself type person that ultimately spends more on something than if he were to hire a real professional), and yet tap tap tap HELOC. They are again this year late on their tax payments, and yet the other day, he was telling me about how he was going to spend more money on "improving" the home was asking me how much I paid to get my house repainted because he wants to spend $15000 to use this texture-coat paint that supposedly has a lifetime warranty, tapping again into the funds he has off the side from the HELOC.

 

Some people, you give them a buck, they'll spend 4 and never ever learn.  Incidentally, I sort of hope that home ends up in foreclosure and I can get a good deal on it. It would be enough for me to tear down every ugly landscaping that they put on the property line and other things, and I would love to take a swinging axe to a lot of those things.

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

I'll offer this information from another perspective.

Don't be so sure that people are done tapping that HELOC atm first. I don't know how it happens, but it appears there is still some HELOC tapping going on. Don't ask how I know, but my neighbor (whom I despise) I just learned recently tapped into an Heloc for around $150k. I was a little surprised he/she was able to pull this off, but I guess because in CV sfh haven't fallen that much to make this unattainable.

Here's the sort of pattern that I saw since 2004…It's pathetic. Neighbor buy all sorts of crap from tv's, toys for kids, and landscaping. In case you folks missed it, these were the neighbors that I b!tched about earlier on this board that cut down a city tree, planted other expensive plam tree/magnolia crap that has root problems right on the property line, etc, despite the fact the the lot is soooo damn tiny, the landscaping doesn't really fit. They spent a fortune on the landscaping that is really doesn't fit the profile of their home.

The hubby is an architect (well, at least he says he is) and the wifey doesn't work. The story behind this neighbor was that originally they were going to buy the house we eventually bought, but didn't think it was good enough and ended up overbidding by $100k on the next door house. This was back in 2004. Then end of 2005, hubby said he was considering selling the home for(after trashing the yard), because they wanted to move to OC. I later found out was because the hubby became sort of unemployed. Obviously, he wanted to sell the home himself and save on commision, and despite how he trashed the yard, he wanted 1.1million. Needless to say, I'm happy to report there wasn't a greater fool to buy that thing back in 2005. And 2006 came around, and there was no way in hell he would be able to sell. Then I started to notice he was behind in prop tax payments. And then all the sudden, they were paid off ( I guess he tapped his HELOC from, yup you guessed it Countrywide). And yet, he's making the minimum payment on the HELOC (interest payments only), such that the principle balance isn't going down. He used the HELOC to "redo landscaping: and doing some remodeling and a couple of other things (which utterly was crap, because he is the sort of the do-it-yourself type person that ultimately spends more on something than if he were to hire a real professional), and yet tap tap tap HELOC. They are again this year late on their tax payments, and yet the other day, he was telling me about how he was going to spend more money on "improving" the home was asking me how much I paid to get my house repainted because he wants to spend $15000 to use this texture-coat paint that supposedly has a lifetime warranty, tapping again into the funds he has off the side from the HELOC.

 

Some people, you give them a buck, they'll spend 4 and never ever learn.  Incidentally, I sort of hope that home ends up in foreclosure and I can get a good deal on it. It would be enough for me to tear down every ugly landscaping that they put on the property line and other things, and I would love to take a swinging axe to a lot of those things.

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

I'll offer this information from another perspective.

Don't be so sure that people are done tapping that HELOC atm first. I don't know how it happens, but it appears there is still some HELOC tapping going on. Don't ask how I know, but my neighbor (whom I despise) I just learned recently tapped into an Heloc for around $150k. I was a little surprised he/she was able to pull this off, but I guess because in CV sfh haven't fallen that much to make this unattainable.

Here's the sort of pattern that I saw since 2004…It's pathetic. Neighbor buy all sorts of crap from tv's, toys for kids, and landscaping. In case you folks missed it, these were the neighbors that I b!tched about earlier on this board that cut down a city tree, planted other expensive plam tree/magnolia crap that has root problems right on the property line, etc, despite the fact the the lot is soooo damn tiny, the landscaping doesn't really fit. They spent a fortune on the landscaping that is really doesn't fit the profile of their home.

The hubby is an architect (well, at least he says he is) and the wifey doesn't work. The story behind this neighbor was that originally they were going to buy the house we eventually bought, but didn't think it was good enough and ended up overbidding by $100k on the next door house. This was back in 2004. Then end of 2005, hubby said he was considering selling the home for(after trashing the yard), because they wanted to move to OC. I later found out was because the hubby became sort of unemployed. Obviously, he wanted to sell the home himself and save on commision, and despite how he trashed the yard, he wanted 1.1million. Needless to say, I'm happy to report there wasn't a greater fool to buy that thing back in 2005. And 2006 came around, and there was no way in hell he would be able to sell. Then I started to notice he was behind in prop tax payments. And then all the sudden, they were paid off ( I guess he tapped his HELOC from, yup you guessed it Countrywide). And yet, he's making the minimum payment on the HELOC (interest payments only), such that the principle balance isn't going down. He used the HELOC to "redo landscaping: and doing some remodeling and a couple of other things (which utterly was crap, because he is the sort of the do-it-yourself type person that ultimately spends more on something than if he were to hire a real professional), and yet tap tap tap HELOC. They are again this year late on their tax payments, and yet the other day, he was telling me about how he was going to spend more money on "improving" the home was asking me how much I paid to get my house repainted because he wants to spend $15000 to use this texture-coat paint that supposedly has a lifetime warranty, tapping again into the funds he has off the side from the HELOC.

 

Some people, you give them a buck, they'll spend 4 and never ever learn.  Incidentally, I sort of hope that home ends up in foreclosure and I can get a good deal on it. It would be enough for me to tear down every ugly landscaping that they put on the property line and other things, and I would love to take a swinging axe to a lot of those things.

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

I'll offer this information from another perspective.

Don't be so sure that people are done tapping that HELOC atm first. I don't know how it happens, but it appears there is still some HELOC tapping going on. Don't ask how I know, but my neighbor (whom I despise) I just learned recently tapped into an Heloc for around $150k. I was a little surprised he/she was able to pull this off, but I guess because in CV sfh haven't fallen that much to make this unattainable.

Here's the sort of pattern that I saw since 2004…It's pathetic. Neighbor buy all sorts of crap from tv's, toys for kids, and landscaping. In case you folks missed it, these were the neighbors that I b!tched about earlier on this board that cut down a city tree, planted other expensive plam tree/magnolia crap that has root problems right on the property line, etc, despite the fact the the lot is soooo damn tiny, the landscaping doesn't really fit. They spent a fortune on the landscaping that is really doesn't fit the profile of their home.

The hubby is an architect (well, at least he says he is) and the wifey doesn't work. The story behind this neighbor was that originally they were going to buy the house we eventually bought, but didn't think it was good enough and ended up overbidding by $100k on the next door house. This was back in 2004. Then end of 2005, hubby said he was considering selling the home for(after trashing the yard), because they wanted to move to OC. I later found out was because the hubby became sort of unemployed. Obviously, he wanted to sell the home himself and save on commision, and despite how he trashed the yard, he wanted 1.1million. Needless to say, I'm happy to report there wasn't a greater fool to buy that thing back in 2005. And 2006 came around, and there was no way in hell he would be able to sell. Then I started to notice he was behind in prop tax payments. And then all the sudden, they were paid off ( I guess he tapped his HELOC from, yup you guessed it Countrywide). And yet, he's making the minimum payment on the HELOC (interest payments only), such that the principle balance isn't going down. He used the HELOC to "redo landscaping: and doing some remodeling and a couple of other things (which utterly was crap, because he is the sort of the do-it-yourself type person that ultimately spends more on something than if he were to hire a real professional), and yet tap tap tap HELOC. They are again this year late on their tax payments, and yet the other day, he was telling me about how he was going to spend more money on "improving" the home was asking me how much I paid to get my house repainted because he wants to spend $15000 to use this texture-coat paint that supposedly has a lifetime warranty, tapping again into the funds he has off the side from the HELOC.

 

Some people, you give them a buck, they'll spend 4 and never ever learn.  Incidentally, I sort of hope that home ends up in foreclosure and I can get a good deal on it. It would be enough for me to tear down every ugly landscaping that they put on the property line and other things, and I would love to take a swinging axe to a lot of those things.

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

I'll offer this information from another perspective.

Don't be so sure that people are done tapping that HELOC atm first. I don't know how it happens, but it appears there is still some HELOC tapping going on. Don't ask how I know, but my neighbor (whom I despise) I just learned recently tapped into an Heloc for around $150k. I was a little surprised he/she was able to pull this off, but I guess because in CV sfh haven't fallen that much to make this unattainable.

Here's the sort of pattern that I saw since 2004…It's pathetic. Neighbor buy all sorts of crap from tv's, toys for kids, and landscaping. In case you folks missed it, these were the neighbors that I b!tched about earlier on this board that cut down a city tree, planted other expensive plam tree/magnolia crap that has root problems right on the property line, etc, despite the fact the the lot is soooo damn tiny, the landscaping doesn't really fit. They spent a fortune on the landscaping that is really doesn't fit the profile of their home.

The hubby is an architect (well, at least he says he is) and the wifey doesn't work. The story behind this neighbor was that originally they were going to buy the house we eventually bought, but didn't think it was good enough and ended up overbidding by $100k on the next door house. This was back in 2004. Then end of 2005, hubby said he was considering selling the home for(after trashing the yard), because they wanted to move to OC. I later found out was because the hubby became sort of unemployed. Obviously, he wanted to sell the home himself and save on commision, and despite how he trashed the yard, he wanted 1.1million. Needless to say, I'm happy to report there wasn't a greater fool to buy that thing back in 2005. And 2006 came around, and there was no way in hell he would be able to sell. Then I started to notice he was behind in prop tax payments. And then all the sudden, they were paid off ( I guess he tapped his HELOC from, yup you guessed it Countrywide). And yet, he's making the minimum payment on the HELOC (interest payments only), such that the principle balance isn't going down. He used the HELOC to "redo landscaping: and doing some remodeling and a couple of other things (which utterly was crap, because he is the sort of the do-it-yourself type person that ultimately spends more on something than if he were to hire a real professional), and yet tap tap tap HELOC. They are again this year late on their tax payments, and yet the other day, he was telling me about how he was going to spend more money on "improving" the home was asking me how much I paid to get my house repainted because he wants to spend $15000 to use this texture-coat paint that supposedly has a lifetime warranty, tapping again into the funds he has off the side from the HELOC.

 

Some people, you give them a buck, they'll spend 4 and never ever learn.  Incidentally, I sort of hope that home ends up in foreclosure and I can get a good deal on it. It would be enough for me to tear down every ugly landscaping that they put on the property line and other things, and I would love to take a swinging axe to a lot of those things.

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[dharmagirl]

I’m willing to be that millions of words have been written about how anyone born after WWII has had an “entitlement chip” hardwired into their brains.

The difference between, say, the Depression era folks and those who came later is that “I DESERVE this” mentality – dont you think?

It has only gotten worse in the last 10-15 years IMO.

I worked with a woman about 10 years ago. Her husband had lost his job running a car dealership. So, they immediatley lost their “dealer” cars and had to get new ones. Tina wasnt making much money, the husband was unemployed and they had two daughters who wouldnt even look at clothes unless they were designer duds.

They refused to tell the teenage girls that daddy wasnt working. Instead, they applied for about 20 credit cards and lived off Mr. MasterCard and Mrs. Visa. They used cash advances to pay the mortgage, leased new cars, etc. They even switched to Merry Maids (from the normal housekeeper) so they could pay with plastic.

Worse yet, Xmas was around the corner and they didnt want to “disappoint” the girls. Tina and her idiot husband wanted to make sure they all had a “good xmas” so they went out and rammed some cards up to the limit so the girls could have everything on their “wish lists.”

I dont have kids, so maybe I dont “get” this mentality. But I remember telling Tina, “wow…dont you think it would be better to let the girls in on the situation – which is just a reality of life – so they might pitch in more around the house and understand that life isnt always perfect?” The girls were horribly, horribly spoiled.

Tina said, “I dont want them to know what struggle is – I had to struggle for years and I wont put my girls through that.” WTF?

So, guess what? Tina and Tom eventually had to file for bankruptcy. One of the girls got pregnant and the other (last I heard) was headed to rehab for the second time.

I guess my point is that entire generations HAVE become accustomed to immediate gratification and having all that they want – regardless of how much it actually costs. Like it’s a birthright.

I think something drastic will have to happen to kind of bring everyone back down to earth when it comes to money.

[dharmagirl]

I’m willing to be that millions of words have been written about how anyone born after WWII has had an “entitlement chip” hardwired into their brains.

The difference between, say, the Depression era folks and those who came later is that “I DESERVE this” mentality – dont you think?

It has only gotten worse in the last 10-15 years IMO.

I worked with a woman about 10 years ago. Her husband had lost his job running a car dealership. So, they immediatley lost their “dealer” cars and had to get new ones. Tina wasnt making much money, the husband was unemployed and they had two daughters who wouldnt even look at clothes unless they were designer duds.

They refused to tell the teenage girls that daddy wasnt working. Instead, they applied for about 20 credit cards and lived off Mr. MasterCard and Mrs. Visa. They used cash advances to pay the mortgage, leased new cars, etc. They even switched to Merry Maids (from the normal housekeeper) so they could pay with plastic.

Worse yet, Xmas was around the corner and they didnt want to “disappoint” the girls. Tina and her idiot husband wanted to make sure they all had a “good xmas” so they went out and rammed some cards up to the limit so the girls could have everything on their “wish lists.”

I dont have kids, so maybe I dont “get” this mentality. But I remember telling Tina, “wow…dont you think it would be better to let the girls in on the situation – which is just a reality of life – so they might pitch in more around the house and understand that life isnt always perfect?” The girls were horribly, horribly spoiled.

Tina said, “I dont want them to know what struggle is – I had to struggle for years and I wont put my girls through that.” WTF?

So, guess what? Tina and Tom eventually had to file for bankruptcy. One of the girls got pregnant and the other (last I heard) was headed to rehab for the second time.

I guess my point is that entire generations HAVE become accustomed to immediate gratification and having all that they want – regardless of how much it actually costs. Like it’s a birthright.

I think something drastic will have to happen to kind of bring everyone back down to earth when it comes to money.

[dharmagirl]

I’m willing to be that millions of words have been written about how anyone born after WWII has had an “entitlement chip” hardwired into their brains.

The difference between, say, the Depression era folks and those who came later is that “I DESERVE this” mentality – dont you think?

It has only gotten worse in the last 10-15 years IMO.

I worked with a woman about 10 years ago. Her husband had lost his job running a car dealership. So, they immediatley lost their “dealer” cars and had to get new ones. Tina wasnt making much money, the husband was unemployed and they had two daughters who wouldnt even look at clothes unless they were designer duds.

They refused to tell the teenage girls that daddy wasnt working. Instead, they applied for about 20 credit cards and lived off Mr. MasterCard and Mrs. Visa. They used cash advances to pay the mortgage, leased new cars, etc. They even switched to Merry Maids (from the normal housekeeper) so they could pay with plastic.

Worse yet, Xmas was around the corner and they didnt want to “disappoint” the girls. Tina and her idiot husband wanted to make sure they all had a “good xmas” so they went out and rammed some cards up to the limit so the girls could have everything on their “wish lists.”

I dont have kids, so maybe I dont “get” this mentality. But I remember telling Tina, “wow…dont you think it would be better to let the girls in on the situation – which is just a reality of life – so they might pitch in more around the house and understand that life isnt always perfect?” The girls were horribly, horribly spoiled.

Tina said, “I dont want them to know what struggle is – I had to struggle for years and I wont put my girls through that.” WTF?

So, guess what? Tina and Tom eventually had to file for bankruptcy. One of the girls got pregnant and the other (last I heard) was headed to rehab for the second time.

I guess my point is that entire generations HAVE become accustomed to immediate gratification and having all that they want – regardless of how much it actually costs. Like it’s a birthright.

I think something drastic will have to happen to kind of bring everyone back down to earth when it comes to money.

[dharmagirl]

I’m willing to be that millions of words have been written about how anyone born after WWII has had an “entitlement chip” hardwired into their brains.

The difference between, say, the Depression era folks and those who came later is that “I DESERVE this” mentality – dont you think?

It has only gotten worse in the last 10-15 years IMO.

I worked with a woman about 10 years ago. Her husband had lost his job running a car dealership. So, they immediatley lost their “dealer” cars and had to get new ones. Tina wasnt making much money, the husband was unemployed and they had two daughters who wouldnt even look at clothes unless they were designer duds.

They refused to tell the teenage girls that daddy wasnt working. Instead, they applied for about 20 credit cards and lived off Mr. MasterCard and Mrs. Visa. They used cash advances to pay the mortgage, leased new cars, etc. They even switched to Merry Maids (from the normal housekeeper) so they could pay with plastic.

Worse yet, Xmas was around the corner and they didnt want to “disappoint” the girls. Tina and her idiot husband wanted to make sure they all had a “good xmas” so they went out and rammed some cards up to the limit so the girls could have everything on their “wish lists.”

I dont have kids, so maybe I dont “get” this mentality. But I remember telling Tina, “wow…dont you think it would be better to let the girls in on the situation – which is just a reality of life – so they might pitch in more around the house and understand that life isnt always perfect?” The girls were horribly, horribly spoiled.

Tina said, “I dont want them to know what struggle is – I had to struggle for years and I wont put my girls through that.” WTF?

So, guess what? Tina and Tom eventually had to file for bankruptcy. One of the girls got pregnant and the other (last I heard) was headed to rehab for the second time.

I guess my point is that entire generations HAVE become accustomed to immediate gratification and having all that they want – regardless of how much it actually costs. Like it’s a birthright.

I think something drastic will have to happen to kind of bring everyone back down to earth when it comes to money.

[dharmagirl]

I’m willing to be that millions of words have been written about how anyone born after WWII has had an “entitlement chip” hardwired into their brains.

The difference between, say, the Depression era folks and those who came later is that “I DESERVE this” mentality – dont you think?

It has only gotten worse in the last 10-15 years IMO.

I worked with a woman about 10 years ago. Her husband had lost his job running a car dealership. So, they immediatley lost their “dealer” cars and had to get new ones. Tina wasnt making much money, the husband was unemployed and they had two daughters who wouldnt even look at clothes unless they were designer duds.

They refused to tell the teenage girls that daddy wasnt working. Instead, they applied for about 20 credit cards and lived off Mr. MasterCard and Mrs. Visa. They used cash advances to pay the mortgage, leased new cars, etc. They even switched to Merry Maids (from the normal housekeeper) so they could pay with plastic.

Worse yet, Xmas was around the corner and they didnt want to “disappoint” the girls. Tina and her idiot husband wanted to make sure they all had a “good xmas” so they went out and rammed some cards up to the limit so the girls could have everything on their “wish lists.”

I dont have kids, so maybe I dont “get” this mentality. But I remember telling Tina, “wow…dont you think it would be better to let the girls in on the situation – which is just a reality of life – so they might pitch in more around the house and understand that life isnt always perfect?” The girls were horribly, horribly spoiled.

Tina said, “I dont want them to know what struggle is – I had to struggle for years and I wont put my girls through that.” WTF?

So, guess what? Tina and Tom eventually had to file for bankruptcy. One of the girls got pregnant and the other (last I heard) was headed to rehab for the second time.

I guess my point is that entire generations HAVE become accustomed to immediate gratification and having all that they want – regardless of how much it actually costs. Like it’s a birthright.

I think something drastic will have to happen to kind of bring everyone back down to earth when it comes to money.

[jpinpb]

WOW! Two incredible stories.

[jpinpb]

WOW! Two incredible stories.

[jpinpb]

WOW! Two incredible stories.

[jpinpb]

WOW! Two incredible stories.

[Author]

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