Gods blessings

[evangelist6589]

But you are purchasing "luxury" items when you complain that you cannot get out of debt. You have made a promise to pay back what you have borrowed and yet you take that extra money and use it to purchase things that you do no need. Yes, it is "nice" but it is not a necessity. But you don't get that, do you?

I just do not agree. It's okay once in a while to buy luxery items. I owned a tube since 2007, and have never had an appleTV or blue ray player and it's 2016. It's not like they cost much. TV was free and blue ray player cost $60 and APPLETV $80 and boom box $80. All combined about $230. Hardley a stab at my massive debts.

If I was always doing this kind of thing then I would agree with you.

 

[evangelist6589]

Folks, wheels are spinning....

His new place of residence provides cable, and he was given a TV; the TV could have connected directly to the cable outlet, or he could have paid less than $20 for a cable converter; but he chose to buy the Apple TV so that he has access to internet TV.

And then he states that he can only make minimum payments on his long-term debts.

Then he talks about his car, which is needful for getting to work.

And when people comment on his choices, he defends those choices with logic about "it's okay to fully pay for things I want"; while complaining about only being able to make minimum payments; while disregarding that he can only make minimum payments because he's using his extra income to "fully pay" for immediate wants...instead of needs.

-----
John, identify how many accounts you're making minimum monthly payments on. Multiply that number by 10. Add that amount to the lowest balance account. For example: if your lowest balance account is typically $25/month payment, and you have 5 accounts, add another $50 (5 x 10) to that payment, for a total of $75. If you don't think you can do $10 per account, do $5 (5 x 5); then you'd be paying an additional $25, for a total of $50 for that account. Meanwhile, keep making minimum payments on the other accounts.

Don't think about it; just do it.

Then, when that account is paid off, look at the next lowest balance account. For example, if it's $30/month, add those two amounts (the $25 payment and the additional amount--preferably $50, but at least the extra $25) to that, for either $105 or $80.

Then you just keep "snowballing" the accounts.

Keep praying, obeying, and paying.

I make far more than min payments on the credit cards that I use. In fact I plan to pay all three of them off by the end of the month.

 

[evangelist6589]

But you guys are right about one thing. I do go out to eat and buy snacks far too often and need self-control in this area.

 

[Don]

On page 2 of this thread, you said in response to Sovereign Grace:

I can pay all my bills. I just cannot go beyond min payment so I won't ever pay off my debts.

Now you say:

I make far more than min payments on the credit cards that I use. In fact I plan to pay all three of them off by the end of the month.

You're being deceitful and dishonest--with yourself. You're making a distinction between your credit cards and your debts; credit cards ARE debt. The financial institutions do NOT make a distinction when they figure your credit score; they look at ALL your debt, and they don't care if it's credit card, student loans, or anything else. To them, it's all money that you owe. Period.

With that in mind, my suggestion to you on how to handle your debt still stands; and is further strengthened by the thought that you should add the minimum payment for each of your credit cards, along with the added amount I mentioned in the formula, to the next lowest balance of your debt.

It took me 14 years to pay off my and my wife's student loans, because we made minimum payments. I *wish* I had known about and followed that formula much, much earlier in life.

 

[annsni]

I just do not agree. It's okay once in a while to buy luxery items. I owned a tube since 2007, and have never had an appleTV or blue ray player and it's 2016. It's not like they cost much. TV was free and blue ray player cost $60 and APPLETV $80 and boom box $80. All combined about $230. Hardley a stab at my massive debts.

If I was always doing this kind of thing then I would agree with you.

You just don't get it. I don't have a blue ray. We never have. Yes, it's 2016 but that doesn't mean you have to have the latest or greatest. We do have an Apple TV but hubby used points on one of his credit cards to purchase it. A boom box? Nope. Don't have one. I DO have a small wireless speaker that we can use that I got free from a trade show.

It's NOT OK to once in a while buy luxury items when you have PROMISED to pay someone and you now cry that you can't pay those debts. Let's go back to see what you said:

"I can pay all my bills. I just cannot go beyond min payment so I won't ever pay off my debts."
"I am in my 3rd week of my second job. Lord willing in time I will pay down my credit cards. Student loans hardly as I do not make enough."

You DO make enough - you just choose to not pay them down because you've decided that they are not important. That your promise that when you borrow money you will pay it back does not mean anything. You are being a very poor steward of your money. Being in debt and paying it down means that you DON'T do luxuries. Nothing. Yes, it hurts. Yes, you want other things. But right now, you fulfill your promise, be a man and pay your bills.

 

[JonC]

I do not agree that buying the Mac Computer was a mistake because I was able to pay back the debt. I also do not agree that buying things is wrong if I am able to pay back the debts. What I do agree with is that buying things that takes me a long long long time to pay them back is not wise in most situations. If my engine or transmission or something major blew on my car then I would probably put the repairs on a credit card before I bought a new car as that would be cheaper, or would that not be wise? Perhaps not, perhaps better to invest in a new car.

Now since I have purchased things the next things I need to purchase are more of an essential nature such as new clothes and some furniture. Yes since I am no longer living with my wife I need new furniture. But I plan to go to the used store to get them if possible.

Thanks for your input, but I do believe its wise to be balanced. For years I have lived without TV and now its nice being able to watch the news and some educational shows. I am mostly reading books that are required at church and so have major ally cut back on my book reading. Combine that with watching TV and I am balanced. Then not to miss that I am working 60 hours a week.

I wouldn’t suggest buying a new car. If it came down to it, I’d suggest trying to do without a car if at all possible. And I don’t think that it is wise to be “balanced” in the terms you suggest here.

There are other ways of keeping up to date with the “news”, if that is important. I purchased a go-phone over a year ago (because I broke my new iPhone a week after getting it as a replacement for the iPhone I had just broke ...and I just never took the time to get another iPhone). Without service I can send and receive text over wifi, read the news, browse the internet, respond to the BB, watch shows, etc. All I need is a wifi connection. And Denver Co is replete with public wifi.

Now, don’t get me wrong. What I am telling you is not how I live, and I am NOT saying that this is what you need to do. I am just saying that you may have to “think out of the box” to remedy your financial woes.

Just for kicks, I’ll tell you what I did when I was younger. In the late 80’s I bought a new Toyota extended cab truck (I like Toyota trucks…I have a Tundra Crew Max now...made down the road from here, BTW). But I loved that truck. However, when it came time to buy tires I didn’t have the money. So guess what I did. Yep…traded it for a new one. Get that? I couldn’t afford tires but I thought I could afford a new vehicle simply because I could make the payments. Thankfully my stupidity back then helped keep me from being even more stupider than I am today because some of those decisions hurt. But if you can’t afford to make repairs on a vehicle then you can’t afford a new ride either. The decision about repairs vs. a new purchase (about which is a better use of your money) only applies to what you can afford.

If you were making over the minimum payments on a couple of low balance credit cards, you were faithful in giving, you were putting money back for emergencies, and you had the cash to buy the mac...then and only then would I agree that charging the computer "on good terms" may not have been a mistake. There is a term you may know from college - "opportunity cost". The cost of that mac was not just the purchase price but also those unrealized opportunities so that you could make the purchase.

 

[evangelist6589]

On page 2 of this thread, you said in response to Sovereign Grace:


Now you say:


You're being deceitful and dishonest--with yourself. You're making a distinction between your credit cards and your debts; credit cards ARE debt. The financial institutions do NOT make a distinction when they figure your credit score; they look at ALL your debt, and they don't care if it's credit card, student loans, or anything else. To them, it's all money that you owe. Period.

With that in mind, my suggestion to you on how to handle your debt still stands; and is further strengthened by the thought that you should add the minimum payment for each of your credit cards, along with the added amount I mentioned in the formula, to the next lowest balance of your debt.

It took me 14 years to pay off my and my wife's student loans, because we made minimum payments. I *wish* I had known about and followed that formula much, much earlier in life.

I can only make min payment on my high balance credit cards and student loans. On my low balance credit cards I can and do pay far more.

 

[evangelist6589]

You just don't get it. I don't have a blue ray. We never have. Yes, it's 2016 but that doesn't mean you have to have the latest or greatest. We do have an Apple TV but hubby used points on one of his credit cards to purchase it. A boom box? Nope. Don't have one. I DO have a small wireless speaker that we can use that I got free from a trade show.

It's NOT OK to once in a while buy luxury items when you have PROMISED to pay someone and you now cry that you can't pay those debts. Let's go back to see what you said:

"I can pay all my bills. I just cannot go beyond min payment so I won't ever pay off my debts."
"I am in my 3rd week of my second job. Lord willing in time I will pay down my credit cards. Student loans hardly as I do not make enough."

You DO make enough - you just choose to not pay them down because you've decided that they are not important. That your promise that when you borrow money you will pay it back does not mean anything. You are being a very poor steward of your money. Being in debt and paying it down means that you DON'T do luxuries. Nothing. Yes, it hurts. Yes, you want other things. But right now, you fulfill your promise, be a man and pay your bills.

Well it may not matter one way or the other. I have learned I am working Saturday at my first job which means I can't work at my second job. First time I will miss out and hopefully the last time but my first job is so unpredictable so I may lose my second job because of this.

 

[evangelist6589]

I wouldn’t suggest buying a new car. If it came down to it, I’d suggest trying to do without a car if at all possible. And I don’t think that it is wise to be “balanced” in the terms you suggest here.

There are other ways of keeping up to date with the “news”, if that is important. I purchased a go-phone over a year ago (because I broke my new iPhone a week after getting it as a replacement for the iPhone I had just broke ...and I just never took the time to get another iPhone). Without service I can send and receive text over wifi, read the news, browse the internet, respond to the BB, watch shows, etc. All I need is a wifi connection. And Denver Co is replete with public wifi.

Now, don’t get me wrong. What I am telling you is not how I live, and I am NOT saying that this is what you need to do. I am just saying that you may have to “think out of the box” to remedy your financial woes.

Just for kicks, I’ll tell you what I did when I was younger. In the late 80’s I bought a new Toyota extended cab truck (I like Toyota trucks…I have a Tundra Crew Max now...made down the road from here, BTW). But I loved that truck. However, when it came time to buy tires I didn’t have the money. So guess what I did. Yep…traded it for a new one. Get that? I couldn’t afford tires but I thought I could afford a new vehicle simply because I could make the payments. Thankfully my stupidity back then helped keep me from being even more stupider than I am today because some of those decisions hurt. But if you can’t afford to make repairs on a vehicle then you can’t afford a new ride either. The decision about repairs vs. a new purchase (about which is a better use of your money) only applies to what you can afford.

If you were making over the minimum payments on a couple of low balance credit cards, you were faithful in giving, you were putting money back for emergencies, and you had the cash to buy the mac...then and only then would I agree that charging the computer "on good terms" may not have been a mistake. There is a term you may know from college - "opportunity cost". The cost of that mac was not just the purchase price but also those unrealized opportunities so that you could make the purchase.

It may not matter if I lose my second job due to missing days because of my first job. Well at least I will get some OT.

Tried to reason with the boss about my second job but he would not have it.

 

[JonC]

It may not matter if I lose my second job due to missing days because of my first job. Well at least I will get some OT.

Tried to reason with the boss about my second job but he would not have it.

No, brother, it’s the principle of the thing. It still matters because you don’t have to always be where you are now. Are you tied to the Denver area?

 

[InTheLight]

I can only make min payment on my high balance credit cards and student loans. On my low balance credit cards I can and do pay far more.

In almost all instances you should be paying more on whatever debt that charges higher interest rates.

 

[JonC]

In almost all instances you should be paying more on whatever debt that charges higher interest rates.

That only works if you are disciplined enough not to use credit as it becomes available. Many younger people need to, IMHO, pay off the smallest debt and close that account regardless of interest rate. Far too many people are impulse shoppers. Either way, what is needed is discipline and dedication. I've seen (and experienced) paying off one thing only to charge another. You've gotta be in it for the long run and not stop running when things ease up.

 

[annsni]

I can only make min payment on my high balance credit cards and student loans. On my low balance credit cards I can and do pay far more.

No, you can make more than minimum payment on your high balance credit cards and student loans. You just had an extra $235 to pay towards those debts but you spent them on unnecessary things instead. It is choices, not a "can't".

 

[InTheLight]

That only works if you are disciplined enough not to use credit as it becomes available. Many younger people need to, IMHO, pay off the smallest debt and close that account regardless of interest rate. Far too many people are impulse shoppers. Either way, what is needed is discipline and dedication. I've seen (and experienced) paying off one thing only to charge another. You've gotta be in it for the long run and not stop running when things ease up.

You're right--it takes discipline to get out of debt. If you don't pay off the balances with higher interest rates first you will be in debt longer and pay more in interest. But sometimes the psychological boost of knowing you have zero balance on a credit card is a morale builder and fosters determination and discipline.

 

[evangelist6589]

No, you can make more than minimum payment on your high balance credit cards and student loans. You just had an extra $235 to pay towards those debts but you spent them on unnecessary things instead. It is choices, not a "can't".

Well if I lost my second job it won't matter. But then again I will get 8 hours of OT this Saturday.

 

[evangelist6589]

No, brother, it’s the principle of the thing. It still matters because you don’t have to always be where you are now. Are you tied to the Denver area?

For now I am here for now.

 

[Don]

I can only make min payment on my high balance credit cards and student loans. On my low balance credit cards I can and do pay far more.

So you keep the high balance, high interest cards in perpetuity, paying only minimum payments; but you pay more on the low balance cards.

I think you like being in debt.

Let he who hath ears, hear.

 

[evangelist6589]

So you keep the high balance, high interest cards in perpetuity, paying only minimum payments; but you pay more on the low balance cards.

I think you like being in debt.

Let he who hath ears, hear.

No Dave Ramsey says to pay the smallest debts first. Also you assumed that the high balance are high interest. Actually the high interest is the low balance cards.

 

[evangelist6589]

Do you have any reply Don?

 

[annsni]

I'm not Don but pay off the small debts then and then start working on the larger ones. Don't have a fatalistic attitude saying "I can't pay my student loans." You can. It might take years but that's OK. You give them $50 more a month when you can and then you give them $100 more a month when you can and someday, it will be paid off.