Elwar
02-11-2009, 03:27 PM
Ok, so basically...before...we were like a country with a big credit card bill. We were like a typical household that spends more than they have, so they "charge it" and pay off the minimum balance each year.
We're now moving into the phase where it gets out of control for most families...they start using other credit cards to pay for their first credit card to try to avoid paying the penalties...you get a good card with low rates and feel like things aren't as bad as they might be because you got a great rate. You basically have no money to spend on stuff since any income is going right toward paying the minimum balance that you start looking at the "max" on your card. Screw it, let's buy a car while we still can...we'll put it all on credit, might as well get as much on credit now as possible because pretty soon our credit score will be so shot and we'll be in such a deep hole that we won't be able to buy anything so we might as well do it now.
Next phase for families is that they start missing payments and racking up credit card fees, the balance on the card goes from manageable to out of control and you see no way out. You've got $50k worth of credit cards along with huge house and car payments and you have no idea how you got here.
At this point people start looking at either...bankruptcy, deals with the creditors or suicide. Or they call Dave Ramsey and he guides them through getting on a budget and paying off their debt slowly but surely...selling everything in the house, selling the car and getting a beater and eating just beans and rice, rice and beans.
I'm not sure how a nation deals with that last step.
We're now moving into the phase where it gets out of control for most families...they start using other credit cards to pay for their first credit card to try to avoid paying the penalties...you get a good card with low rates and feel like things aren't as bad as they might be because you got a great rate. You basically have no money to spend on stuff since any income is going right toward paying the minimum balance that you start looking at the "max" on your card. Screw it, let's buy a car while we still can...we'll put it all on credit, might as well get as much on credit now as possible because pretty soon our credit score will be so shot and we'll be in such a deep hole that we won't be able to buy anything so we might as well do it now.
Next phase for families is that they start missing payments and racking up credit card fees, the balance on the card goes from manageable to out of control and you see no way out. You've got $50k worth of credit cards along with huge house and car payments and you have no idea how you got here.
At this point people start looking at either...bankruptcy, deals with the creditors or suicide. Or they call Dave Ramsey and he guides them through getting on a budget and paying off their debt slowly but surely...selling everything in the house, selling the car and getting a beater and eating just beans and rice, rice and beans.
I'm not sure how a nation deals with that last step.