- This topic has 86 replies, 13 voices, and was last updated 17 years, 3 months ago by
Raybyrnes.
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October 12, 2007 at 12:29 PM #88505October 12, 2007 at 12:29 PM #88497
HLS
ParticipantRAY..
I think that you and I are on the same page, but CBAD has been traumatized, and understandibly so…Their decision is more emotional than from a rational or business perspective. Hard to fight that.
People who see things through their own eyes have a different perspective.
I have seen a few things through my eyes that I wish I could erase from my mind but cannot.It affects who you are and your perspectives.
A child of an alcoholic sees life differently, and sometimes even years of therapy can’t change them.
A cancer survivor views life differently.I’m not picking on CBAD who has lived through hell.
I try and help people through foreclosure today as best I can, but I haven’t lived it like CBAD has.and,, it’s not the Louisiana hurricane, it’s going to be the earthquake or tsunami around here that is going to be the event……..
October 12, 2007 at 12:50 PM #88503patientlywaiting
Participantcbad could compromise and payoff his starter house then rent it out as an investment. He can then move up and leverage away to build wealth. As time goes by and his earnings increase, that would not be too much money tied up in his house.
For the financially disciplined, cash flow and leverage are fine. For most people cash will burn holes in their pockets and disappear anyway.
People do many stupid things with their money such as borrowing for cars, vacations, weddings, electronics, etc.. In a broader context, paying off a house is pretty wise to me.
Yes, leverage is good but you need to know how to use it. My cousin buys everything on credit and pays off the bill before the interest accrue. She even plans the delivery of her appliances to the day so the bill goes on next month’s statement. She and her husband make lists, sit down at the dinner table and discuss everything before bed. Thanks to leverage, they built a good fortune from middle class salaries and good investments.
HLS I read an economist (can’t remember his name) whose research shows that worldwide debt is growing much faster than our productive ability to service that debt. Somewhere down the line, the economic machine will seize-up. That’s what is happening to US housing right now.
October 12, 2007 at 12:50 PM #88510Participantcbad could compromise and payoff his starter house then rent it out as an investment. He can then move up and leverage away to build wealth. As time goes by and his earnings increase, that would not be too much money tied up in his house.
For the financially disciplined, cash flow and leverage are fine. For most people cash will burn holes in their pockets and disappear anyway.
People do many stupid things with their money such as borrowing for cars, vacations, weddings, electronics, etc.. In a broader context, paying off a house is pretty wise to me.
Yes, leverage is good but you need to know how to use it. My cousin buys everything on credit and pays off the bill before the interest accrue. She even plans the delivery of her appliances to the day so the bill goes on next month’s statement. She and her husband make lists, sit down at the dinner table and discuss everything before bed. Thanks to leverage, they built a good fortune from middle class salaries and good investments.
HLS I read an economist (can’t remember his name) whose research shows that worldwide debt is growing much faster than our productive ability to service that debt. Somewhere down the line, the economic machine will seize-up. That’s what is happening to US housing right now.
October 12, 2007 at 1:00 PM #88507Raybyrnes
ParticipantPeople who say that won’t happen to me.
I suppose that not many people were saying that a plane could crash intothe place they work but it happened in NY.
I suppose that the families in New Orleans could have logically predicted and prepared for Katrina.
I suppose there are a lot of people in La Jolla (Mt Soledad) who felt pretty safe before their homes were destroyed and shared your sentiment. Wonder waht they are sayiung today.
October 12, 2007 at 1:00 PM #88514ParticipantPeople who say that won’t happen to me.
I suppose that not many people were saying that a plane could crash intothe place they work but it happened in NY.
I suppose that the families in New Orleans could have logically predicted and prepared for Katrina.
I suppose there are a lot of people in La Jolla (Mt Soledad) who felt pretty safe before their homes were destroyed and shared your sentiment. Wonder waht they are sayiung today.
October 12, 2007 at 1:56 PM #88519ParticipantPatient,,,
I am more like your cousin. I even borrow credit card money at 2% and bank it at 5.50%.
I rack up airline mileage and cruise credits at zero cost to me, and earn interest on the money up until the day that I have to pay that dang bill.
It’s been working for me.Of course debt is growing, that’s what the govt and big business wants and that’s how govt gauges a healthy economy. Saving and investing wisely isn’t good for the economy.
Money is just a tool, just like a hammer to a construction worker. When used correctly it produces results.
People can be taught, they ARE capable of learning.
Most have never had a teacher. They respond to fear and greed. It’s exactly why so many people are in the housing and financial mess that they are in.Why people use debit cards, I do not know. It sucks the money right out your account immediately and does absolutely nothing for your credit score, nor get you free airline trips or other credits, yet you are paying the exact amount for the items that you buy.
Ignorance is bliss.
October 12, 2007 at 1:56 PM #88526ParticipantPatient,,,
I am more like your cousin. I even borrow credit card money at 2% and bank it at 5.50%.
I rack up airline mileage and cruise credits at zero cost to me, and earn interest on the money up until the day that I have to pay that dang bill.
It’s been working for me.Of course debt is growing, that’s what the govt and big business wants and that’s how govt gauges a healthy economy. Saving and investing wisely isn’t good for the economy.
Money is just a tool, just like a hammer to a construction worker. When used correctly it produces results.
People can be taught, they ARE capable of learning.
Most have never had a teacher. They respond to fear and greed. It’s exactly why so many people are in the housing and financial mess that they are in.Why people use debit cards, I do not know. It sucks the money right out your account immediately and does absolutely nothing for your credit score, nor get you free airline trips or other credits, yet you are paying the exact amount for the items that you buy.
Ignorance is bliss.
October 12, 2007 at 2:37 PM #88541ParticipantHLS
The system is stacked against cash buyer. All of those incentives are built into the cost of the goods. So if I choose not to use a credit card, it is costing me 2% more than the guy who is getting the 1% back in the form of points and miles plus the additional 5 or 6 % in risk free opportunity cost on 0% credit cards.
October 12, 2007 at 2:37 PM #88548ParticipantHLS
The system is stacked against cash buyer. All of those incentives are built into the cost of the goods. So if I choose not to use a credit card, it is costing me 2% more than the guy who is getting the 1% back in the form of points and miles plus the additional 5 or 6 % in risk free opportunity cost on 0% credit cards.
October 12, 2007 at 3:07 PM #88547CBad
ParticipantWonder waht they are sayiung today.
Heck I’m wondering what you are saying right now. Seriously, what are you saying? If a catastrophe comes along I’ll regret paying off my mortgage? Again, all my money is not tied up in my house.
October 12, 2007 at 3:07 PM #88554ParticipantWonder waht they are sayiung today.
Heck I’m wondering what you are saying right now. Seriously, what are you saying? If a catastrophe comes along I’ll regret paying off my mortgage? Again, all my money is not tied up in my house.
October 12, 2007 at 3:52 PM #88557ParticipantRAY,
I accept that. If I get a discount I’ll pay cash, otherwise I rack up miles and interest. It’s a choice.
We both pay $10, I get a benefit, you may not.
You don’t have a choice to pay $9.75.I used to pay huge SD property tax bills with one Discover card payment, there was a reasonable max fee at that time. I got a 2% cash rebate from Discover and didnt have to pay the bill for another 6+ weeks. I think that they have changed the fee now.
The new VISA commercials on TV are crazy,,,, If you pay by cash you are an outcast. Marketing is great, who wants to be different ? Swipe that debit card!!!
There are lots of ways to beat the system with little effort.
October 12, 2007 at 3:52 PM #88563ParticipantRAY,
I accept that. If I get a discount I’ll pay cash, otherwise I rack up miles and interest. It’s a choice.
We both pay $10, I get a benefit, you may not.
You don’t have a choice to pay $9.75.I used to pay huge SD property tax bills with one Discover card payment, there was a reasonable max fee at that time. I got a 2% cash rebate from Discover and didnt have to pay the bill for another 6+ weeks. I think that they have changed the fee now.
The new VISA commercials on TV are crazy,,,, If you pay by cash you are an outcast. Marketing is great, who wants to be different ? Swipe that debit card!!!
There are lots of ways to beat the system with little effort.
October 12, 2007 at 4:00 PM #88560ParticipantSorry,
my 3 year old was pulling on me . I am in agreement wiht you HLS. The guy who pays cash loses every time becasue the price of incentives are built into the cost of the goods. Better to use the credit card get the incentives. Best deal is to max out every 0 percent deal out there and pay the minimum payment until the 0% expires. Then either roll it over to another 0% or pay it off in full. During that time you lkeep your money in a money market account and it is earning you 5+ %.
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