Debt-ridden Americans Still Spending & Spending

[SummerSailing81]

http://money.aol.com/usat/credit/canvas2/_a/spending-is-hotter-than-a-month-in/20070719134709990001

Count me as a voluntary simplifier. I remember the days of being heavily in debt and still spending, spending, spending. No thanks! God blessed me with the revelation that I needed to get out of and stay out of debt and start saving instead back in Dec. 2002. About two years later we were out of debt and had some savings which was a good thing because dh's company downsized and he lost his job. He was out of work for 3 months. If the Lord had gotten my attention beforehand I don't know what we would have done.

Unfortunately, most Americans are only concerned with getting what makes them happy right now and if they have to go into debt to get, then so be it. I grew up in the 70s and the only things my parents ever financed were their house and a car to go to work in so they could make money. Everything else was paid in cash or we saved for it. Saving seems to be a novel idea to the average American nowdays. I think the article hit the proverbial nail on the head though. The government's lack of self-control with spending and being in debt does encourage Americans to do the same thing. Sadly, there is going to be a payday and it could be sooner than people think.

Btw, I live in Fairfax County which is ranked third in the country. Everything is expensive in this area and you'll see lots of luxury cars and SUVs, expensive designer clothes, Rolex watches, etc. I've often wondered how so many people afford to live in big expensive homes and all these luxury items here - now I know. They're in debt up to their eyeballs! Not me, I'd rather be debt-free and have savings for that inevitable rainy day. Of course, looking at the global economy, the U.S. seems to be headed for a long monsoon season.

[Issachar]

SummerSailing81, you post much, much wisdom imho.

Debt and inflation (increase of money supply - rising prices is merely a symptom of inflation) are killers. I owe on my house (which I wouldn't even owe that if I'd known better a lot of years ago) and that is it. Cars? eh ... maybe. I hate cars and won't go into debt over one. I pay cash for cars. Anything from $300 to 2 or 3 thousand will get a car that will run a long time. Several years ago I needed a car when three of my kids were still at home (2 now) and bought a 1980 Ford Fairlane for $500. It lasted us 7 years and I sold it, still running. I bought two tires for it in that time, a battery, etc. I think that the most expensive thing I did to it was $155 when I put new brakes on it. Some folks tell me that those things will "nickle and dime ya to death" .... while they spend 3 or 4 hundred dollars every month for 4 or 5 years! I guess I'd rather be spending nickles and dimes than hundred dollar bills. :) I paid cash for the van I have now. $3100. That was 5 years ago. It needs a new cap, rotor, wires and plugs. I already priced them $65 dollars. It has 217,000 miles on it and still works great except for the tune up that I'll do next week. We took it on a 4 week tour out west last June and the trip started with it at 198,000 miles. So lots-o-bucks can be saved in the area of cars too.

I remember right after 9/11, the president of the Federal Reserve in Dallas was on tee vee telling everyone to do their patriotic duty and spend, spend, spend; don't save. What does that tell us?

Issachar

[SnoDog]

Way to go summersailing81!:thumb I think it is a wise move to live below your means. You never know what curveballs life will throw at you. Its sure thrown its fair share at us and i'm glad we had some savings to fall back on. Lots of people today feel that they are entitled to expensive things, and thus dont save for tomorrow. Later in life you will be thankfull that you saved.

As for me I have never tried to keep up with the Jones's. The only debt we have is a small balance left on our house mortgage that we could pay off if we wanted to. I'm 38 years old and a while ago I learned that the more stuff you have the more complicated life gets. And also the stress for having to make payments for all that stuff must be unbearable. I only spend about $50- $60 per month on things that are not necessities(mostly cable and internet). I guess i'm just naturally frugal. My dad is the same way. We dont need money to have a good time. I also am concerned about where our country is heading with so many living on the edge.

[PlumBob]

Amen, amen, and amen!

'Just because,' we wound up in a rented condo 4 years ago - last summer we sold our house in another part of the state (it was paid for, so the cash is in the bank.) We still are in the rented condo, but with housing going south, we will go further west next summer, and pick a cherry.

This summer we sold the '81 Toyota, it only had 168,000 on it, and I got my asking price. I now drive the '92 Toyota that has 165,000 miles and since they are all MY miles, I know exactly what it needs - and doesn't :)

SnoDog, I guess that in today's world, Internet is almost a necessity - I don't trust the lame-stream media with anything more than a conjunction - and quite often they get those wrong. They usually mess up the verbs terribly and I'm convinced they mess up the nouns on purpose - "insurgent" instead of "terrorist" for example. So in order to have anything like a clue of current prophetic events, I have to have some other outside source - :)

No Debt, No Fret......

[Cameron]

Kudos to PlumBob......A car does not define a person, or shouldn't. I have two luxury cars, a Mercury Gran Marquis and a Lincoln Town Car. Both were used when we got them and we bought them for a fraction of the price of a new one. The Gran Marquis still hasn't changed style yet, so it looks like a 2006, even though its a 1998.

One has 128,000 miles and the other has 182,000 miles. I just don't understand how people grapple with a $600 a month car payment for a new SUV and then complain about not making enough money.

But then again, when things get slack they whip out the plastic card and go for another month.

And yes!! What a great time for home buyers who have the cash. Wait six months and you can easily shave 25% off the asking price in many areas.

[PlumBob]

. . . Wait six months and you can easily shave 25% off the asking price in many areas.We took our Sunday afternoon bike ride (note: no gas burned) out to our lunch and coffee place today.

Yup, there it was in the paper - the first crack in the facade of 'These prices will hold up forever' in our area. A house reduced in price by - sit down - 37.5%.

[PlumBob]

. . . Wait six months and you can easily shave 25% off the asking price in many areas.We took our Sunday afternoon bike ride (note: no gas burned) out to our lunch and coffee place today.

Yup, there it was in the paper - the first crack in the facade of 'These prices will hold up forever' in our area. A house reduced in price by - sit down - 37.5%.:heythere

[PlumBob]

. . . Wait six months and you can easily shave 25% off the asking price in many areas.We took our Sunday afternoon bike ride (note: no gas burned) out to our lunch and coffee place today.

Yup, there it was in the paper - the first crack in the facade of 'These prices will hold up forever' in our area. A house reduced in price by - sit down - 37.5%.

[funmudder]

Wow!

37.5 %

:faint

We are looking to buy sometime in the next year. I suppose this will be a good thing for us eh?

[buckshot]

how did you get out of debt? if you don't mind me asking