What’s on your mind?

[Apple fanboy]

Credit cards are very handy when you are abroad in the sort of countries where the very idea of having a bank account in the local currency is risible; I use them as debit cards to extract money from (secure) ATMs, and couldn't do without them.

Handy, too, for some of the online stuff I have bought over the years.

Well I’m not often in the same sort of remote countries you are.
But you can use a debit card to make online purchases. How do you think I shop?
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Definitely. Going back to that (and ). Much prefer it.

@Scepticalscribe I understand this situation. Glad to be in a space where credit cards are not necessary though.

Debt free is the way to be!

 

[Clix Pix]

I have a credit card that I pay off each month and also am thoughtful about what I use it for. Much of the time I prefer to use a debit card as that way the item is bought and paid for -- done. The credit card does come in handy if one is met with a large unexpected expense and one can use the card to pay immediately and then that provides some time to get the resources together to pay the card off when the bill comes. Credit cards can be dangerous, though, and too many people fall into the trap of using them a little too casually and then only making partial payments, thus incurring interest accumulations, which can lead to major financial problems.

 

[kazmac]

I have a credit card that I pay off each month and also am thoughtful about what I use it for. Much of the time I prefer to use a debit card as that way the item is bought and paid for -- done. The credit card does come in handy if one is met with a large unexpected expense and one can use the card to pay immediately and then that provides some time to get the resources together to pay the card off when the bill comes. Credit cards can be dangerous, though, and too many people fall into the trap of using them a little too casually and then only making partial payments, thus incurring interest accumulations, which can lead to major financial problems.

No arguments there: CCs work for other folks that's cool. They can be helpful in crisis. And, yes, they can be dangerous. I went through CC debt before, and it took identity theft for me to pay the last card off 15 years ago.

I've dealt with emergencies just fine without a CC though. I like being in control of waiting or not for a big purchase. It's been very satisfying to rely on myself for big purchases, and I continue to see this as a viable option. I also see the money always being there (as it has been even when unemployed), my insurance is covering the vast majority of my medical bills and they will continue to do so.

Debit cards keep me in control and that's a perfect for me.

With a credit card, the bank is in control, which I'd rather skip. I also dislike paying off things (that's the biggest annoyance about the small medical bills I do have). I am used to paying in full. Looking forward to be back to that this year.

Anyway, whatever works for the person is fine by me. I realize I was correct in this situation and will go back to it as soon as I can.

 

[Clix Pix]

For homeowners, sometimes those big expenses come out of the blue, and are often totally unplanned -- and that can be very disconcerting. Hot water heater, washer, dryer or some other appliance suddenly breaks and needs replacement, or the heating/air condition system gives up the ghost....

Yes, whatever works best for someone with regard to personal financial management is key.

 

[Apple fanboy]

I have a credit card that I pay off each month and also am thoughtful about what I use it for. Much of the time I prefer to use a debit card as that way the item is bought and paid for -- done. The credit card does come in handy if one is met with a large unexpected expense and one can use the card to pay immediately and then that provides some time to get the resources together to pay the card off when the bill comes. Credit cards can be dangerous, though, and too many people fall into the trap of using them a little too casually and then only making partial payments, thus incurring interest accumulations, which can lead to major financial problems.

So right. The amount of (mostly younger) people I work with who moan they can’t afford a deposit for a flat, yet buy cars on finance, phones on finance and have holidays abroad.
You can’t have it both ways. But unfortunately the concept is saving and waiting is lost on many.

For emergencies I can easily access more than enough savings. But I work on the principle that the day before pay day, there is always at least a months salary left in the current account. That way I know I’m covered.
I generally earn more than I spend.

 

[Clix Pix]

It is rather alarming how many young people don't seem to have grasped the concept of saving, of setting funds aside for emergency situations as well as for major purchases such as a car or a house. A lot of people here in the US seem to prefer to lease their cars rather than buying them, and that way they can always drive around in a recent model and probably one which they otherwise would not be able to afford to purchase. This keeps them in the continuous cycle of paying each month, and then at the end of the lease they either have to turn the car in and get another, thus starting everything all over again, while owning nothing, or they have the option of buying the car at that point -- at a still steep price. I think these days the amount of time for car loans has been extended, too, by several years, which is another way of lowering the payments on a monthly basis but then at the end of the loan period it's just about time for a new car!

 

[chown33]

Buy more.

Bake some.

Or, forego this delight and torture yourself with a diet.

I was thinking more along the lines of brewing a very hot cup of tea, and seeing if a basket of Christmas cookies improbably pops into existence. Of course, the existence of the mental imagery leads to the Observer's Paradox, where the cookies simultaneously exist and don't exist, and the probability field collapsing remanifests the cookies that would have existed, except for the field's collapse, and instead becomes a tiny rock on the surface of Ultima Thule's nearest companion, which has the name Penultima Thule.

 

[Gutwrench]

I was thinking more along the lines of brewing a very hot cup of tea, and seeing if a basket of Christmas cookies improbably pops into existence. Of course, the existence of the mental imagery leads to the Observer's Paradox, where the cookies simultaneously exist and don't exist, and the probability field collapsing remanifests the cookies that would have existed, except for the field's collapse, and instead becomes a tiny rock on the surface of Ultima Thule's nearest companion, which has the name Penultima Thule.

If brewing is involved I’m not looking for cookies to spontaneously appear that’s for sure.

 

[Apple fanboy]

It is rather alarming how many young people don't seem to have grasped the concept of saving, of setting funds aside for emergency situations as well as for major purchases such as a car or a house. A lot of people here in the US seem to prefer to lease their cars rather than buying them, and that way they can always drive around in a recent model and probably one which they otherwise would not be able to afford to purchase. This keeps them in the continuous cycle of paying each month, and then at the end of the lease they either have to turn the car in and get another, thus starting everything all over again, while owning nothing, or they have the option of buying the car at that point -- at a still steep price. I think these days the amount of time for car loans has been extended, too, by several years, which is another way of lowering the payments on a monthly basis but then at the end of the loan period it's just about time for a new car!

Oh agree. I doubt there are 5 people in my office who own their own car. Leasing seems so attractive, but what if you lose your job or when you retire?
I’d rather buy a car and keep it until it suits me. Not because my lease is up. I recall a conversation with a colleague about his new lease car.
He said it was only costing him £50 a month. Really I asked? When pressed further he said well £50 more than he was paying on his last lease car, so like £350 a month!
Hardly the same thing.
This guy is one of our top earners and is in his 60’s but still has a mortgage.

 

[kazmac]

It is rather alarming how many young people don't seem to have grasped the concept of saving, of setting funds aside for emergency situations as well as for major purchases such as a car or a house. A lot of people here in the US seem to prefer to lease their cars rather than buying them, and that way they can always drive around in a recent model and probably one which they otherwise would not be able to afford to purchase. This keeps them in the continuous cycle of paying each month, and then at the end of the lease they either have to turn the car in and get another, thus starting everything all over again, while owning nothing, or they have the option of buying the car at that point -- at a still steep price. I think these days the amount of time for car loans has been extended, too, by several years, which is another way of lowering the payments on a monthly basis but then at the end of the loan period it's just about time for a new car!

The exact reason why I like to pay in full. Plus, I own the item.

@Apple fanboy - excellent point about savings.

 

[Apple fanboy]

The exact reason why I like to pay in full. Plus, I own the item. I do not lease it.

@Apple fanboy - excellent point about savings.

I know I'm at a comfortable time in my life. Earning quite well, no mortgage or dependents (well sort of) etc.
But I've always made sure I spend less than I earn. No matter how low that might be. When I was younger I'd do overtime, take a second job or whatever I needed to pay my way.
But I see so many people who think they shouldn't have to pay their way in the world. When I'm old and retired it will these people who are paying into the state pension.

I'm doomed! As are many others. Daytime TV is full of adverts for equity release plans. Another con for the senior citizen as far as I can see.

 

[kazmac]

I know I'm at a comfortable time in my life. Earning quite well, no mortgage or dependents (well sort of) etc.
But I've always made sure I spend less than I earn. No matter how low that might be. When I was younger I'd do overtime, take a second job or whatever I needed to pay my way.
But I see so many people who think they shouldn't have to pay their way in the world. When I'm old and retired it will these people who are paying into the state pension.

I'm doomed! As are many others. Daytime TV is full of adverts for equity release plans. Another con for the senior citizen as far as I can see.

^LoL. Lots of people could learn from what you do. I’ve gladly worked OT and sold things I loved to pay my way.

It’s kind of scary how the lease/subscription/installment plan scenarios have taken hold, isn’t it?

 

[Clix Pix]

Is that "equity release plan" similar to what we have here in the US, where senior citizens can supposedly cash in on the equity in their home and receive monthly payments instead of making monthly payments? That is indeed a huge trap for the unwary! Anyone who goes for that is likely to be very, very sorry......

Actually, AFB, you are in the minority when it comes to at your age already owning your home outright instead of still carrying a mortgage. In the US, many people fell afoul and got into real financial difficulties because they had overextended themselves on a mortgage in the first place and then when the bottom dropped out in the real estate industry, suddenly found themselves "underwater" with that mortgage and in many cases unable to pay. Some declared bankruptcy or simply walked away from the house and that debt altogether, their credit ruined.

Others seem to fall into the trap of refinancing their mortgage or getting a home equity loan in order to be able to use some of their equity for things such as home remodeling projects or replacing major appliances, etc., and while that is all well and good on the surface it does extend the period of their mortgage loan for additional years, which in the end benefits the bank or mortgage holder far more than it does the person who refinanced, as of course that equity money is usually fairly quickly spent while the mortgage payments must continue month after month, year after year......

 

[Apple fanboy]

^LoL. Lots of people could learn from what you do. I’ve gladly worked OT and sold things I loved to pay my way.

It’s kind of scary how the lease/subscription/installment plan scenarios have taken hold, isn’t it?

Sure is. Lease software, phone, car.
Subscribe to Netflix, ISP, Amazon Prime, Spotify etc.
Doesn’t take long before that all mounts up to the equivalent of a mortgage.

These days I’m salaried so all the OT I do is free of charge so to speak. But I can’t complain.
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Is that "equity release plan" similar to what we have here in the US, where senior citizens can supposedly cash in on the equity in their home and receive monthly payments instead of making monthly payments? That is indeed a huge trap for the unwary! Anyone who goes for that is likely to be very, very sorry......

Actually, though, AFB, you are in the minority when it comes to at your age already owning your home outright instead of still carrying a mortgage. In the US, many people fell afoul and got into real financial difficulties because they had overextended themselves on a mortgage in the first place and then when the bottom dropped out suddenly found themselves "underwater" with that mortgage and in many cases unable to pay. Some declared bankruptcy or simply walked away from the house and that debt altogether. Others seem to fall into the trap of refinancing their mortgage or getting a home equity loan in order to be able to use some of their equity for things such as home remodeling projects or replacing major appliances, etc., and while that is all well and good on the surface it does extend the period of their mortgage loan for additional years, which in the end benefits the bank or mortgage holder far more than it does the person who refinanced, as of course that equity money is usually fairly quickly spent while the mortgage payments must continue month after month, year after year......

Yes the equity release schemes. A friend of mines Mother has one and by the time they have taken the huge % they charge there won’t be much (if any) inheritance left.

I realise I’m in the minority and a lot of our financial security comes from Mrs AFB mother dying in her early 50’s and moving out of London.
But most people would receive an inheritance and spend it on new cars or exotic holidays. But we decided to pay off our mortgage and save the rest.
A few years later when I was made redundant, it was a godsend knowing my family wouldn’t be out on the street.

I work with a girl who has been paying off her credit card debts for years. She blames the debt on an inheritance from her gran? Apparently that’s why they gave her such a large balance (which she promptly maxed out!).

 

[Clix Pix]

One reason for the incredible success of the iPhone and other brands is indeed that people can simply sign up for a payment plan rather than plunking down the cash for the thing right off the bat. If everyone were required to pay cash for it, not able to put it on an interest-free payment plan such as Apple and AT&T offer, methinks that the sales figures would be quite different!

Leasing software.....another biggie that has become an issue over the past few years. In the old days we bought Photoshop, kept it and used it and when we were ready, upgraded..... and we OWNED the software that was in the box and on our computer(s). Not any more.... well, fortunately for me I am not a professional photographer nor even a serious amateur any more, so no need for me to participate in Adobe's subscription plan, as I don't do enough photography to justify that.

Netflix? Nope. When I want, I'll rent a movie through iTunes and that is not all that often. Spotify? I have the free version, or at least I do on the older computer, not on this new one, come to think of it, and I rarely, rarely bother with it, so no need to pay for it. My ISP -- well, yes, that IS very important to me and I happily pay each month for the benefits and enjoyment that I get when I access the internet, my email, etc. I am with a cable service and also get my television through them but have just the very basic tier for that since I rarely even turn the television on. Last night, New Year's Eve, was the first time in months, and I only had the thing on long enough to watch the last moments of 2018 as the crystall ball was dropping in NYC's Times Square and marking the arrival of 2019. Amazon Prime? Ah, yes, I am hooked into that, and it was only after realizing a couple or three years ago just how much I tend to buy from Amazon that I decided to try it and I do like and appreciate it, even if I don't take advantage of all the benefits which come with it.

My Acura, which I've owned since she came off the dealer's lot (late 2005), is now getting elderly in terms of car years but since I am retired and don't really drive as much as I would if I were doing a regular daily commute to work and such, the car still has fairly low mileage and is in great shape. I am anticipating that we'll be together for at least a few more years.....

 

[Gutwrench]

Oh agree. I doubt there are 5 people in my office who own their own car. Leasing seems so attractive...

This guy is one of our top earners and is in his 60’s but still has a mortgage.

I look at leasing cars as a means to drive something above what one could ordinarily afford. A successful image is so important to many, but especially the young.

Carrying a mortgage into one’s 60’s may not be a bad thing. It depends on the situation. Your coworker’s mortgage is likely the cheapest money he owes so he doesn’t pay it off.

Ps - I just read your comments on your coworker again....ok, he might be foolish. Sorry.

 

[Apple fanboy]

I look at leasing cars as a means to drive something above what one could ordinarily afford. A successful image is so important to many, but especially the young.

Carrying a mortgage into one’s 60’s may not be a bad thing. It depends on the situation. Your coworker’s mortgage is likely the cheapest money he owes so he doesn’t pay it off.

Ps - I just read your comments on your coworker again....ok, he might be foolish. Sorry.

I’m not really that bothered about my image. I guess when I was younger I might have been. But I’ve always just bought a car I can afford. My current car is a VW Golf TSI 2014 model. I’ll keep it a couple more years at least as it’s very low mileage. Then I’ll just trade it in and buy another. It won’t be new. But buying nearly new gives you the least amount of depreciation.

 

[Gutwrench]

I’m not really that bothered about my image. I guess when I was younger I might have been. But I’ve always just bought a car I can afford. My current car is a VW Golf TSI 2014 model. I’ll keep it a couple more years at least as it’s very low mileage. Then I’ll just trade it in and buy another. It won’t be new. But buying nearly new gives you the least amount of depreciation.

Oh, I never meant to imply you. English is my second language. Bad English is my first.

 

[Scepticalscribe]

Oh, I never meant to imply you. English is my second language. Bad English is my first.

Amen to that.

 

[0388631]

Some car marques are better off being leased due to the rapidly evolving tech the company uses or surprise incidentals outside of the warranty period. It's wiser to lease an Alfa Romeo or a Jeep than it is to finance them. Finance a Honda, Toyota, Lexus, and similar. They hold value and have very good resale. Their maintenance is cheaper.

And when buying a home or land, make sure the lender doesn't include a clause on prepayment penalties.

 

[LizKat]

If brewing is involved I’m not looking for cookies to spontaneously appear that’s for sure.

Well miracles still happen sometimes. Once in awhile I even forget I have stashed some cookies in the freezer and it's fun to discover that by accident!

At the moment I'm very pleased just to be able to brew the tea, to celebrate restoration of electrical service after a six-hour power outage from high winds that buffeted much of central upstate NY earlier today. When the juice kicked back in , I was minutes from leaving the house to seek shelter at a brother's place where they did not lose power.

Not a New Year's resolution exactly, but that experience (not the first such) does make me think about accelerating the pace at which I've been setting aside money for an auto-start generator hooked up to my mains and the propane tanks, yes indeedy.

Six hours of no heat when it's like 20ºF outside is about half as long as one could safely hang out here... been there, done that and it's not that much fun for the second six hours, even under a pile of quilts, so I and surely my neighbors also felt blessed that that power was restored way way sooner than NYSEG had estimated (1130pm tomorrow night, which could have been pretty ugly regarding water pipes seizing up in single-digit weather, taps left dripping or no).

So on my mind, yeah, that genny. Time to quit kidding around about it!

 

[Lioness~]

I have a credit card that I pay off each month and also am thoughtful about what I use it for. Much of the time I prefer to use a debit card as that way the item is bought and paid for -- done. The credit card does come in handy if one is met with a large unexpected expense and one can use the card to pay immediately and then that provides some time to get the resources together to pay the card off when the bill comes. Credit cards can be dangerous, though, and too many people fall into the trap of using them a little too casually and then only making partial payments, thus incurring interest accumulations, which can lead to major financial problems.

I use cards partly for the points that can be used later to buy for. But I save on them til it’s useful.
Credit cards have better deals then debit cards usually.
Just payed half my new MacBook Air with Amex points
Otherwise, cards is cards for me. Always pay same or month after, depending on cards. Never postponing payments. No need for it.

 

[kazmac]

Thinking it is better I skip this Bachelors at the specific school I am going to. I have been fighting this school system for eight years, it is not worth it (and the program is at least 6-7 years out of date).

The insane stress the classes put upon me weakened my system enough to get food poisoning that nearly killed me.

Two peers whom I was very close to, wound up with major diseases from university related stress and I was falling into that trap.

Health is the only thing that matters.

@LizKat glad you’re warm, have electricity and are okay. It was crazy windy on the Island too.

 

[DeepIn2U]

2019 - become bilingual (Espanol) maybe even Francophone (French Canadian as a 3rd langauge).
2019 - DEBT free, deposit on a condo (if I'm smart and lucky)

Be a better father than I was last year (I wasnt' bad but I wasn't near being great to my young adult son; tough love was required).

Talk to my father more (2018 I shut him out for various reasons yet mostly for my mother as i grew that relationship as that was non-existent)

Single until a real woman is worth my time, eyes, focus, my heart (key), thoughts, lust and my unyielding & loyal love.

 

[Clix Pix]

I use cards partly for the points that can be used later to buy for. But I save on them til it’s useful.
Credit cards have better deals then debit cards usually.
Just payed half my new MacBook Air with Amex points
Otherwise, cards is cards for me. Always pay same or month after, depending on cards. Never postponing payments. No need for it.

Yes, my credit card has cash-back benefits, so for me it is good to use it at the grocery store and the gas station, as both give back a higher percentage than in other places, but of course I also already have the cash ready at hand to actually pay the bill at the appointed time later. I allow the cash back benefits to accumulate to a nice tidy sum which can be nice to have for something special further on down the road.