Americans Collectively Owe Almost $1 trillion in Credit Card Debt.

At the same time if DOOMSDAY ever happens what good is your wealth or your business anyways? That's not much fun either. So either way you need a balance. Better safe than sorry would be a more safe philosophy on life than better more now and worry about it later philosophy.

 

Exactly! But I prefer not to be a "total pussy".

 

I saw an infomercial how you can make tons of money putting tiny ads in newspapers all over the country. Maybe the government should try that to get out of debt!

 

I never implied there was anything wrong with taking business risks. But I would personally rather lose my own money than someone else's money, especially when I will have to pay interest on it.

The banks aren't stupid. They know the moment you go in asking for a business loan that more than likely, you're going to fail, and your business will flop. But the bank doesn't care, because they will win, no matter if you win or lose. If you win, great. If you lose, now you're in debt to the bank.

The bank sees it like this: since they know most businesses fail within the first five years, they will happily lend you the money if you have good credit, because if you fail, and the mathematics says you will, the bank will then own you, you will be their slave, and they get to charge you interest payments each month on the money you borrowed.

If you're going to fail, better to do it with your own money. In this scenario, you will just be broke, or have less money than you had previously. If you fail with the bank's money, now you're in debt, and being in debt is always worse than being broke.

If I had to choose between the two, I would rather be broke than be in debt. Of course, the ideal situation is to have positive cash flow and a high net worth.

 

I think it's all about taking calculated risks in what you do.


Is that expensive vehicle or tv worth the risk that it could put closer to bankruptcy if something goes wrong in your life? Is that business venture or expense worth it? Will that mountain provide enough sense of accomplishment or joy if you climb it, but risk falling?

If it's worth the risk, then go for it!

 

This is always important. I went to a seminar one time, and the millionaire speaker said the same thing, to avoid taking blind risks.

 

"These TINY ads in 30 newspapers across the country made me MILLIONS!"

What was that clown's name? Don Lupre?

 

Agreed! Keyword calculated!

 

Yep, Donny Lupre! They made fun if it on The Onion years ago. Hilarious!

 

Welcome to the wonderful world of risk.. Try it some time.

Good grief is right... Yeah, it's all a conspiracy to keep the banks rich.. To be honest, I make more (savings) by righting off the interest on debt at tax time... The right debt to tax ration means paying ZERO in taxes... I'll take 7-9% interest over my tax rate any day.

No one is saying being in debt is good.. What we are saying is that there is good debt. These banks you are bitching about also borrow money.. They borrow it from you and me, and then lend it out at a profit to someone else, all the while paying us a little in return as well...

You might want to take some time off from DP and take a few courses in economics... It might help.

You mean you could not get your reply all in one post? I did not say to stop saving.. Savings should be done intelligently.. Save for things like a child'd education, a vacation, Christmas, etc... As for everything else, why live like a miser? Penny pinching gets you no where if you die tomorrow... Again, you cannot take it with you....

I have a friend who has this saying: "it's only money, I can always make more"... I like that attitude... It's true... You can always make more.

Speak for yourself.. Sounds to me like you have some big financial issues.. Please stop taking your hard luck out on everyone on this forum. Pick yourself up and find something you like to do and do it well.. Everything else will follow. If you are working around the clock just to make interest payments, then you are living beyond your means... Just because you cannot spend wisely, does not mean you have to lecture everyone here about how they are not spending wisely...

I think you are describing the other end of the spectrum, ie., bad debt....

Do keep in mind that a large portion of the CC debt is interest on high risk secured cards... In the real world, that 1 trillion is likely only about 1/3 or less of that value in debt.

Agreed... Move forward, relax, and find something you like to do and do it well.. the rest will follow!!!

 

It's just a discussion Mia, calm down.

 

Americans want everything they can't have and I'm assuming they thought money could buy it all, typical

haha

 

Is there something wrong with that? That is after all the "American Dream".. It's forward thinking and positive thoughts like that that drive Americans to work harder than anyone on the planet...

I've not had a vacation in over 6 years.. Can't say the same of most Europeans that when not on Bank Holiday are taking 2-3 months off at a time.. Must be nice...

Look, it's just a different ethic... That's America. The beauty here is ANYONE can achieve EVERYTHING! We all have an equal opportunity here... So again, what is so bad about wanting everything? You work hard enough for it, you can have it!

 

Looks like another successful "America sucks" thread. Congrats, tesla

 

lol I knew that post would get someone going!

 

I've only had him off ignore for a few months now.. He's one of the 2 or three people I have ever had on ignore.. Now I know why I had him there... The bitter, negative, and sour posts he makes... It's a real downer at times...

 

Also you know what they say right?


As long as we owe you, you will never be broke HAHAHA

 

Well sorry mate but if you have not had a vacation in 6yrs that says a lot. Sorry to hear, I wish you could take a vacation every person deserves one once in while. Myself I was in Central America for 3 weeks in January and 5 weeks in Europe Aug-Sept. and will spend another 3-4 weeks in Dec. in South America. And I do work very hard, but I always find time to reward myself with a nice vacation. Why can't you do the same? Is it because you are not working hard enough, are not good enough at what you do to earn enough for a vacation or simply saving has become very difficult for most Americans?

Dude! Obviously you must work harder since its been 6YRS without a vacation! Those damn Europeans must be doing something right. 2-3 month vacations, healthy living, they can come here and buy stuff for 0.53 cents on the dollar.

 

That's an interesting point...

I think everyone should have goals. Perhaps wanting to always have something to pay off could be a motivating factor for some.

 

No, I just do not work weekends... I tend to buy a lot of toys, bikes, cars, boats, etc... Between that and an active family life, there is really little time to take off, especially in my business... Like I said, we just have a different work ethic...

My business and speaking engagements keeps me busy and traveling quite a bit, that said, I just do not have the time.. Again, different work ethic...

Consider this... Most Europeans are lucky if they have a garage, or more than one car... Most flats are about 1/3 the size of an apartment or condo in the US... It's all relative.. We work more because we want more. I will admit, like most Europeans, I am kinda of a day shopper when it comes to groceries.. I tend to make dinner most every night, myself.. It's healthier, cheaper and tastes better IMO...

I suppose if I too sacrificed my health by allowing the government to pay for my health care, let other countries provide for my defense, let the government take more of my money, and lived in a little flat with 1 TV and 1 car with no garage, I too would be taking off 2-3 months to do nothing....

Vacations for me are not an issue of money.. It's just time... Run your own business and raise kids, and buy toys, and you too will see what I mean...

I suppose given that I do not work weekends, I have 52weeks of vacation / year... Just not all at once.