2007-08-26 08:57:38 · 18 answers · asked by Sandy 4 in Business & Finance ➔ Credit
Our house of about $125K with a worht of about $150. Two cars with balances of about $20K and values of about $30K.
That's all!
We have a household income of about $120K before taxes.
2007-08-26 09:01:09 · answer #1 · answered by Anonymous · 0⤊ 0⤋
None. Interest rates credit cards of 18% to 30% double the cost over time for "stuff" consumers don't really "need". Any default on any late payment one makes on anything will increase one's APR from a good rate to 30%+ without warning. I pay cash for everything, and if I don't have any I don't buy it.
The credit crunch (which is the beginning of a severe inflationary recession) was caused by mortgage companies passing out home loans to practically anyone who asked for one; then they bundled these loans together into insured packages and sold suckers, er, 'investers' with the sales pictch that because they've been reinsured they're safer and more profitable than buying single mortgages. Oh dear, they lied again - better yeilds mean higher risk!! Just like they tempted the people who shouldn't be buying homes into lying about their creditworthiness to get one. When most these packages unravel, what's left will be illiquid, which often means unsellable at any price in the free market. That's why the Federal Reserve and the ECB are flooding the market with "liquidity" to save their biggest customers from bankruptcy, and absorbing the losses by buying this toxic waste paper... Like 29' the ignorant 'Publican Dubya Administration assumes that higher prices mean prosperity, and will intervene in exactly the wrong ways, yet again, to make the situation much worse.
The end of the 20's boom, the Great Depression, came about by much the same phenomena of easy credit for dubious price inflated properties. And then, as now, the largest holders of notional assets (stocks, bonds, mortgages deravitives (insurance on insurance)) are "reassuring" the market place by breaking the usual rules to allow big banks to obtain emergency credit - which was the problem in the first place, to avoid bankruptcy for a few more months. That comfort zone of unreality lasted about a month in 29' - it won't last very much longer this time, and this credit bubble, which is far worse than '29 will continue to be inflated, and will eveturally pop with a much louder bang! Since most of the resets (interest rate hikes) on Adjustable Rate Mortgages (ARMs) and "interest only" (an expensive, fancy way of renting while being under the delusion that you're buying a house) are still a few months away, that means even more people won't be able to a afford the interest on their McMansions, which means even more defaults - then the confort zone of unreality preceding the future "Greater Depression" will end without warning! By by Ms. 'Merican Pie, drove the Chevey to the levee..."
Meanwhile employees can now be forced to pay into a "retirement" fund by their employers to prop up the stock market and their performance bonuses, until the inevitable crash!...
2007-08-26 18:22:55 · answer #2 · answered by sheik_sebir 4 · 0⤊ 0⤋
As long as I am in the military I will really be ok!! But I have first I have my daughter, then a credit card, a loan, a target card, my truck payment, insurance for my truck, and then my own personal needs. I was suppose to be preparing for my wedding next year but I think that is going to be cancelled cause me and ol girl are starting to have problems. But I was saving for that too while putting 200 dollars into a Savings Deposit Program and then 75 dollars into a checking account and 75 dollars into a savings account for my daughter as she grows up.
So I think that I am in a lot of debt but I am managing comfortably. Good thing I dont eat that much or go anywhere(I really cant anyway cause I am currently deployed)
2007-08-26 16:07:36 · answer #3 · answered by lilone_onpnt02 3 · 1⤊ 0⤋
How much? Well, let's say I have some debt....a mortgage and nothing else. Our household income is enough to take care of that, put food on the table, keep the lights and gas on, keep the cars properly maintained and gassed up and put a good amount in savings for retirement.
2007-08-26 16:54:27 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Kingofthehill1892
No Thing at all , Not even A Penny ?!!!
you wanna know how is that possible . . . i dont use credit
cards unless i am sure i will pay always and i mean always in
time , i got my savings and i work hard to enhance and grow
it , i live in medium not spend too much , every thing in
reasonable , if you need to know more about how to live with
out loans and credit cards open google and type only best
deals its a blog , please note if you didnt find exactly what you
looking for simply use the top search box which must lead
you directly to the articles and FAQ ,
GOOD LUCK .
2007-08-26 16:29:38 · answer #5 · answered by S a l m a 2 · 0⤊ 0⤋
I think average debt for an American my age (27). Car payment, student loan, credit cards. I do pay all my bills on time (even if it means not having any money for myself) so I still have good credit.
2007-08-26 16:06:24 · answer #6 · answered by HippieChick840 2 · 1⤊ 0⤋
I have credit cards, but I only use them for emergency situations (like car repairs) and they get paid of immediately. I am not in debt at all right now. Car is paid off, credit cards are all paid off, etc.
2007-08-26 16:03:47 · answer #7 · answered by princess_dnb 6 · 0⤊ 0⤋
Just my mortgage which is only about half of my home's value. I only charge on credit cards as a convience and pay them in full every month. Car's paid for and I'll be driving it for four or five more years.
2007-08-26 16:11:29 · answer #8 · answered by bdancer222 7 · 0⤊ 0⤋
Only my mortgage.
No car loans, no credit card debt.
2007-08-26 16:22:47 · answer #9 · answered by mister_galager 5 · 0⤊ 0⤋
26 k my car loan
income before taxes 41 k
2007-08-26 18:36:00 · answer #10 · answered by Anonymous · 0⤊ 0⤋