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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsHow We Got Out of $50,000 Worth of Debt
They knocked out the first personal loan by allocating their entire $8,000 tax refund toward it, as well as the proceeds from selling Angelas car ($3,000) and Teds luxury watch ($1,000). They also used the $3,000 theyd saved since January and, by April 2012, theyd deleted a third of their debt.
To pay off the remaining $35,000, they lived on half of Teds $6,000 monthly paychecks and put Angelas entire $1,500 monthly income toward the debt. By August, theyd wiped out the second personal loan and the car was finally paid off in December.
A spending allowance for Ted proved essential. He limited himself to just $100 a week in cash for gas, food and incidentals. Gone were their days of eating out. Their grocery list shrank to just 10 basic items theyd use for all three meals: eggs, milk, bread, salmon, chicken breast, broccoli, asparagus, Brussels sprouts, berries and oatmeal.
An even greater sacrifice came with the couples living arrangement, when they boomeranged back to live at home with Teds mom and dad. We wanted to get our own place, but after we looked into our finances and realizing that we pay $700 to stay here and just to help with the mortgage and the utilities, we can save half or even more than half, says Angela.
http://finance.yahoo.com/news/how-we-got-out-of--50-000-worth-of-debt-201705706.html
srican69
(1,426 posts)We all get fucked.
Don't be a spendthrift - but don't be a miser either. Moderation
closeupready
(29,503 posts)some of those items are exactly what I said could make $3/day livable - eggs, bread, chicken - and I forget exactly what else - oh, bananas, couple other things. But yeah, you can really stretch money if you can cook, and if you are imaginative. K&R
Liberal_in_LA
(44,397 posts)closeupready
(29,503 posts)Very cheap when bought like that - I just bought some recently, and it was not expensive.
Honeycombe8
(37,648 posts)It's pricier than chicken, but for the health benefits, it's a bargain. Lots of Omega 3 oil, and you can make it go farther by making salmon salad, sandwiches, casserole.
Laura PourMeADrink
(42,770 posts)in it...you can get for $5/lb. you can get chicken dirt cheap - if you opt for the who-knows-what they were fed family pack.
what about tuna in a can - pretty cheap?
Make7
(8,543 posts)I myself considered selling my $1,000 watch, but I only have the pocket watch I received as a gift that is worth about $50. I'm sure my $117 tax refund payment will go far to pay down my debt.
Great advice, Farnoosh!
Response to Make7 (Reply #4)
A HERETIC I AM This message was self-deleted by its author.
Make7
(8,543 posts)[div class="excerpt" style="margin-left:1em; border:1px solid #bfbfbf; border-radius:0.4615em; box-shadow:-1px -1px 3px #999999 inset;"]I hope you realize that two truckers salaries can equal $90K
You make it sound as if a COUPLE making ninety thousand a year are somehow living large.
I'm saying a couple with no kids making $90,000 a year shouldn't really be having trouble making ends meet absent some catastrophic expense (e.g. a major medical issue, natural disaster, etc)? Perhaps you disagree.
The couple in the article wiped out 30% of their debt with these four items:
- $8,000 tax refund
- $3,000 from savings account(s)
- $1,000 from sale of a watch
- $3,000 from sale of second car
I'm saying that compared to people with low-paying jobs and people that are unemployed, the "struggle" this couple is going through to pay off their debt is wholly unremarkable and not really worth writing an article about.
There are people out there that actually do have money problems, many through no fault of their own - this couple doesn't seem to qualify.
Do you think a couple can live on $40,000 a year?
Response to Make7 (Reply #44)
A HERETIC I AM This message was self-deleted by its author.
Honeycombe8
(37,648 posts)When you look at it that way, that's not that much. Middle class. If it's New York, that's REALLY not very much.
That's why they were able to run up that much debt, though...because they made a good income.
Good for them that they buckled down, realized the value of a dollar, and decided to get out of debt. Think about it. For really buckling down for a year, they wiped their debt out entirely. Excellent.
HiPointDem
(20,729 posts)New York City's per capita income in 2000 was $22,402; men and women had a median income of $37,435 and $32,949 respectively.
21.2% of the population and 18.5% of families had incomes below the federal poverty line; 30.0% of this group were under the age of 18 and 17.8% were 65 and older.
http://en.wikipedia.org/wiki/Demographics_of_New_York_City
JDPriestly
(57,936 posts)income have $50,000 in debt unless it is education or health-related.
KentuckyWoman
(6,688 posts)I'm glad someone out there is doing well. I don't begrudge anyone who works for a living whatever income they can pry out of the job creators. I do wish more of these type articles would cover people who clear a lot less. I'm not poor by any means but for folks clearing 40 or 50 in a good year seem to be invisible.....as usual (Roseanne Barr's show excepted).
Anyways I regret if I gave the idea in a different post I don't respect that they got out of debt.
Th1onein
(8,514 posts)Welcome to DU!
KentuckyWoman
(6,688 posts)not sure what to make of it yet but I think I'm glad I found this place.
duffyduff
(3,251 posts)Two-income households completely distort the figures.
Make7
(8,543 posts)[div class="footer" style="margin:0px; text-align:left;"]http://www.mybudget360.com/how-much-do-americans-earn-what-is-the-average-us-income/
Based on 2011 Social Security tax records. (Therefore the figures would exclude income that isn't reported as wages, tips, or salary.)
I don't have a lot of time to dig (that article was number four in a google search) - but it is interesting that a couple making the median wage would be earning about $54,000 - close to the median household income. Looks like $90,000 is quite a bit better than your average American couple.
JDPriestly
(57,936 posts)per year get into $50,000 debt. That's a problem right there.
reformist2
(9,841 posts)Orrex
(63,216 posts)They could have paid off that entire $50K debt from one year's salary and still brought home more than most people I know
I wish I had a $3000 car and a $1000 watch to hock. Boo hoo hoo.
As is always the case in these "you can be debt free" exhortations, step one is "start with more money than you're likely to have any time soon."
freshwest
(53,661 posts)It is no small thing and when you think about it lightly first consider how many others in the same situation haven't done anything at all to get out of debt.
CBGLuthier
(12,723 posts)Anytime any american can get out from under their debts it is a time for celebration.
Doesn't help the rest of much but still not a negative thing.
reformist2
(9,841 posts)Honeycombe8
(37,648 posts)It's almost the same thing. They owed 55% of their annual income, and that debt was only going to grow because of the high interest.
AND they paid off all their debt in one year. That's amazing. Look at how much they had to buckle down to get that done. It's admirable.
blueamy66
(6,795 posts)Who can I go live with?
Honeycombe8
(37,648 posts)But jealousy has never been a problem I've had to deal with. Thank goodness. Wishing others had no one, either, well...it's just not where my head is.
blueamy66
(6,795 posts)Don't put words in my mouth.
It's much easier to pay down debt when one has people to go live with.
Just admit that this is not the norm and a non-story.
Oh, and along with not having any living parents, I don't have any debt.
Marrah_G
(28,581 posts)Its far easier to live off 45,000 then 25000... especially with very little living expenses.
The amount of income does matter.
Yeah it's great that they paid it off, but they were never in any real hardship over it.
What they had to live on, with almost no expenses is almost twice what I raised 3 children on...while paying the bills.
Honeycombe8
(37,648 posts)55% less, though.
They moved in with parents (paying rent, food, utilities), SOLD a car or something, got a big tax refund, and then cut expenses to the bone on the remainder.
It might take longer to pay off 55% of $45,000, but it can be done in the same way as the OP.
I could live on $25k for a year, though. No problem. I wouldn't like it, but I could do it. I was unemployed for a while last year and figured out how much it'd take me to get by for a year. It was something like $20k to $25k, including property taxes, decent amount of food, care and feeding of two spoiled dogs, gas, utilities, lawn care, etc. But there's one of me, although it doesn't take THAT much more for two. Married couples get a break on income taxes, too.
quakerboy
(13,920 posts)There's a huge difference in living on 20k for a year and 40k per year. The percentage of income is far less important than the remaining amount.
Or would you argue that having income of 20k and paying a debt of 10k is almost the same as having income of 20 million and paying off 10 million in debt as well?
Honeycombe8
(37,648 posts)That income is in the range of poverty. And not likely to have a debt of $11k (who would loan someone that poor $11,000?).
Let's stick to my example.
I've lived at all levels. From dirt poor to plenty of expendable income. So I've experienced it all.
The more income you have, the more debt you are likely to have. When I made $25k income, I didn't have much debt because I didn't qualify for much debt.
So let's stick to realistic scenarios. I get it that some posters are apparently angry and possibly jealous that the OP deals with people who are not poor. Which is ironically exactly why they have that large debt. Buckling down and paying off your debt, regardless of your income level, is an admirable thing. I don't hate people who have more than I do and who work for a living. Why would I? I think it's great for them. And it's great they are changing their charging lifestyle.
quakerboy
(13,920 posts)My 23 year old cousin has never in his life made more than 10k/year, and they set him up with 7k in credit cards, which he promptly abused. Most people I know seem to carry similarly high percentage of debt loads, for a variety of reasons , regardless of their specific income bracket. Everything from basic living beyond their means, to party lifestyle, to a gun collection, to utter poverty, to an inability to say no to their kids. Oh, and cant forget buying a car, nor student loans. Nor a home loan. there are many reasons for debt, but ive largely seen that theres almost always a creditor willing to take the risk.
For myself, I had credit cards in college, before I had any real income. I had far more debt when I had low income, and my debt shrank rapidly when I had income, vanishing completely as my income peaked, if you dont count my student loans, which have remained fairly constant. Though, we were on the verge of having collected enough to pay those off before we were struck with unemployment. Now, its been fortunate we hadn't sent in that final check, it leaves some flexibility while searching for work.
I think you are projecting a bit. Im not angry about them making a fair amount of money. I think more people should be able to make that kind of money. But to me, this story looks like part of a very common "personal responsibility" narrative. IE, just work hard, cut your expenses, and you too can be out of debt, and if you arent out of debt, then you arent trying hard enough.
And that's just not fair or realistic. To me, these are not a good example. They made easy choices. They paid off $35,000 from an income of 90K(by the article, the 55k was taken down to 35k by selling an extra car, a watch, a large tax return, etc). Which means that after paying that debt, they were living on 55k. Which is still over the average household income. And most of those households still have debts to pay out of that income.
So its not the same as 20k debt pay off on a 40k income(yes, Im rounding). Not even remotely. And While the goal of getting out of debt is good, and should be encouraged, the numbers just don't add up that way for most people. People spend too much on stupid things. I'm the guy everyone comes to to build a budget, believe me, I think i've seen almost every bad choice possible. But even if you cut that down, there's a lot of people who still don't make enough to make ends meet for the trimmed down basics. Its astounding when you actually sit down with the numbers for peoples income and basic expenses, and wonder how they've stayed afloat so far.
Honeycombe8
(37,648 posts)Maybe because he's male. As a female, earning $25k to $30k, without any credit (no bad credit, just no credit), I had a hard time buying a car on time.
I do recall that American Express sent me a credit card when I was in my early 20's. I cut it up and threw it away. For one thing, it cost $ to even have the card. Not something I wanted to pay for. Second, why would I charge anything? If I didn't have the money, that would mean I couldn't afford it.
I was no sucker. I knew it was a racket to get money out of a turnip. I threw it away and never got a credit card until I was about 31 years old, when it became difficult to buy things without one, or rent a car.
But if someone is stupid enough to load up on debt when he is in poverty level income range, then that person doesn't deserve much sympathy. But if he gets a second job, moves in with his parents (paying his parents rent, utilities, and food), buckles down and pays off the debt, he is to be admired.
Don't hate people because they learned a vocation or profession so that they could earn more than minimum wage. That's what we all want, right? Why hate someone who did it? But if they were stupid enough to get into debt, it's to be admired they get out of it, and more importantly, stop borrowing money from loan sharks.
There are two valid reasons to borrow money IMO: House, car. Period. And a car is questionable. When you have a car, keep it long enough to pay it off, then keep it longer, and pay the car payments to yourself for your next car. Then when you have enough $ for your next car, you can pay for it cash, or borrow for it but pay for it with the $ you saved and which is earning interest.
Charge? Never, if you don't have the $ to pay cash for it. I charge for convenience only. If I don't have the $ for something, I don't buy it. Because I can't afford it.
quakerboy
(13,920 posts)You may have been no sucker. More power to you. My cousin is.
In all actuality they did "set him up" with debt. He's seriously developmentally delayed. He is just able enough to want things, without being able enough to really understand consequences. But legally he is an adult, so they gve him credit. His "earning potential" in no way ever justified any credit, much less as the amount they offered to him
To make it worse, once he was in debt, they kept offering him more debt options. Checking account advances. That kind of thing.
And hes not the only one, though I would venture to say most people are at least in theory more able to fiend for themselves. Its not just a matter of "stupid". There is a serious lack of education in regards to personal finances. I find your personal restraint to be admirable. I would alter your conditions slightly, and say no borrowing for anything but a house or education. Ive never borrowed to buy a car. If you cant afford the car you want, go for a cheaper one till you can. Like you, I also don't charge anything unless I have cash to pay the card. Convenience isn't really even an excuse for credit card use, in an age of debit cards. I use a card because I know that I can pay it off each month and because they give me between 1-5% cash back. Which adds up to a couple hundred a year, usually.
But that's not the American life style, and most people flat don't know how to live without it. You get a credit card, because that's what people do. You take a car loan because that's what people do. Try to buy a non-junker car without financing and you get some awful funny looks at the dealership. And maybe you take a payday loan, because you had to take a day off when you were sick, and so you dont have cash to pay last months power bill, so if you dont get the money somewhere, now, your power will go out and the groceries you were proactive and smart in buying in bulk like the budget minded people told you to do will spoil. Or maybe you wont have gas money to get to work. Theres a hundred reasons people take on horrible debt, and 60 of them we can both probably agree are stupid (eating out too often. Wanting a new TV now). But there are others that are less stupid and more tragic. And I find your lack of any willingness to have empathy or understanding of that to be personally appalling.
In the mean time I don't mind people making 100k a year. No hate here. I aspire to reach that level and maybe beyond at some point. But, keeping in mind that, factoring in people like Romney making his 5 million, and these people making their 100k, and the Kochs billions, the average household income is somewhere around 50k per year, the idea that we can all just get a job making 50k or 100k is not realistic, nor does using an example who has achieved that income level as their "heres your way out of debt" present a useful or applicable example for most people.
Going back a step, getting a good paying job is getting harder to do . Learning a vocation or profession is no guarantee, in a world where pilots sometimes end up on public assistance, and most jobs can be outsourced or done using illegally imported labor. My perception is that, outside of a few select professions that most people don't have any realistic opportunity to get into(ie doctors), its mostly a matter of luck and connections to get above about 30k per year. Ive done it. I had connections. Plus I tend to be good at what I do, whatever that is. As long as it doesn't require too much physical coordination or athletic ability.
But back to the example at hand. These people, with 100k income paying off $35k of debt in a year is much more equivalent to someone making 60k paying off 5 k in debt in a year. Or someone making 40k winning the lottery for 15 grand and having no debt to start with. The percentage is not important. The absolute numbers are whats important. IE, how much they have left over to live on after paying the lottery. And in their year of paying off debt, they still spent more on general living expenses than I have in any year of my life, including the one where I made a down payment on my home. So, what is to be admired in that? They didnt "buckle down". they made a few slight adjustments.
And, for your last statement. What do you do if you dont have the cash for a trip to the Doctor? Or your dogs trip to the Vet. Or your electric bill? Do you just not pay for these things, because you cant afford it?
Skittles
(153,169 posts)they make 93,000 a year - selling a luxury watch and living with mom and dad seems to trump aparagus and oatmeal - can't they find more realistic stories - people in debt with medical expenses, for example, who never bought luxury watches and do not have the option of living with mom and dad?
Lex
(34,108 posts)I think I'd have to think twice about that.
Skittles
(153,169 posts)is it me or do all too often the "examples" they use in articles regarding jobs / economy / debt sound utterly ridiculous?
Squinch
(50,955 posts)Honeycombe8
(37,648 posts)to live because you can no longer live alone but don't require a nursing home, maybe they'll have to think twice about it.
Lex
(34,108 posts)Honeycombe8
(37,648 posts)Lex
(34,108 posts)KentuckyWoman
(6,688 posts)pretty sickening.
most people's plan to shed 50 grand in debt is to pay on it for a lifetime and then die after barely making a dent in the principle.
and they certainly didn't run it up on luxury watches.
HiPointDem
(20,729 posts)Honeycombe8
(37,648 posts)That's not much where I live. A receptionist....and data entry guy. Very middle class. They weren't making enough money to warrant buying a luxury watch, for sure.
Bluenorthwest
(45,319 posts)they make 90,000. 40 thousand more than the middle. Where do you live? Do you know the median income where you live? Are you in a very snazzy place? If you look at a list of the cities with the highest median incomes 90K is at about 15 highest. The highest median in the nation is 113,000 in Skaneateles, New York.
dkf
(37,305 posts)As per Bush tax cuts.
hollysmom
(5,946 posts)never had to live with the folks, even though my in-laws wanted us to - hated that house. Hated the demands on me by the mother in law - she wanted me to stay at home and have lots of kids. To cook and sew all the time. it is bad to live with in-laws. bad bad. We lived cheaply in a poor neighborhood with nice neighbors. I learned to deal with roaches. Baking soda and bay leaves are wonderous things. Keeping all clothes in plastic bags is a good thing. clean house is a good thing. Only no upholstered furniture and beds away from the walls, also good.
PDJane
(10,103 posts)We have it in the walls here; it works, never becomes ineffective that I can see, and confines any infestations to one or two apartments.
I live right downtown, in a co-op. Have for almost 30 years. We do have wolf spiders, the occasional infestation of fungus gnats and flour beetles, but not roaches, silverfish, centipedes, millipedes.......
Mosby
(16,319 posts)Generally you get them from infested houseplants, you bring it home and they infest all your other plants.
Here's the solution, take out about an inch, inch and 1/2 of soil out of the pot, replace it with sand. Any sand will do. Then put a little soil, moss or whatever on top to hide the sand. This does two things, it prevents the gnat from digging down into the dirt to lay eggs and prevents the existing larve from getting out. They simply cannot get past the sand, but water still can.
It takes a week or so to see the results but once you do this to all your houseplants you will never again have gnat infestations.
JNelson6563
(28,151 posts)I always learn things at DU.
Julie
PDJane
(10,103 posts)We live in a brick veneer building. The gap between the load-supporting wall and the brick veneer wasn't done properly, and there were leaks, ergo fungus, and then the gnats. We have an infestation twice a year. I spray the screens and above the windows, and it goes away for another six months or so.
Skittles
(153,169 posts)combative little fellows with HUGE attitudes
Honeycombe8
(37,648 posts)When I was poor, it was a big concern having to live in poor areas because of the high crime. Also, women are targeted for crime.
Much better to live FOR A SHORT TIME with relatives than to risk a poor area, if that option is available.
reformist2
(9,841 posts)JVS
(61,935 posts)reformist2
(9,841 posts)Liberal_in_LA
(44,397 posts)trotsky
(49,533 posts)Just so that my wife and I can "tough it out" living off investment income while we're in grad school?
HAVE THE KIND OF PARENTS WHO DON'T SAY, "YOU MAKE ALMOST 100,000 DOLLARS A YEAR; PAY ME SOME F***ING RENT ALREADY YOU DEADBEAT CRETINS."
Honeycombe8
(37,648 posts)PAY ME SOME OF YOUR RETIREMENT SAVINGS, YOU DEADBEATS, IF YOU WANT ME TO HELP FEED YOU AND CHECK UP ON YOU AND RUN ERRANDS FOR YOU!!!
Lex
(34,108 posts)then that is quite a different scenario indeed
Honeycombe8
(37,648 posts)Lex
(34,108 posts)Honeycombe8
(37,648 posts)trouble financially...eff 'em.
Karma.
Lex
(34,108 posts)They just wanted to pay off the debts earlier.
Skittles
(153,169 posts)not even gonna BOTHER with this
Major Nikon
(36,827 posts)The more you make, the higher payments you can afford. People with high incomes get into debt traps like anyone else.
Honeycombe8
(37,648 posts)Where do you live?
Where I live, that's very middle class. She could be a receptionist, and he could be a IT worker or radiology technician.
Maybe you live somewhere where salaries are lower, or you work at Walmart, so these salaries seem like a "boatload" to you? They don't to me.
At $90/yr, they could afford a house costing $180,000. That's less than MY house is worth! And I'm a single middle class working woman who bought her house herself years ago (it's increased in value). $180K is less than houses "within the loop" run in my city, that is...somewhat close to downtown. The houses run about $190,000 to $300,000. Two mid-level middle class workers could buy a house in tha tprice range. But not these two.
They do make a decent living, though. Which is how they qualified to rack up $50,000 in debt.
DiverDave
(4,886 posts)Well, first you start out with a million dollars...
JVS
(61,935 posts)Gotta love tales of the well-off overcoming small problems.
arely staircase
(12,482 posts)and I wouldn't buy a 1000 dollar watch either.
DearHeart
(692 posts)Marrah_G
(28,581 posts)hobbit709
(41,694 posts)I know someone who just makes $30K and had hip replacement surgery. $10K up front even with her insurance. She drives a 10 year old car and has a $10 Timex.
HughBeaumont
(24,461 posts)As evidenced by the amount of bootstrappers/brightsiders in their idiotic comments section, they can easily get a lot of people to believe this to be sage wisdom, until you read further into the story.
I more admire the guy who asked "Another story about how easy it is for already wealthy people with luxury watches, $100K annual salaries, and kind parents willing to let them live at home to "knock out" $50K in debt in just a year! Now, here would be an interesting read: knocking out $50K of debt on my $20K annual salary - and you can't live with your parents because they live in an economically depressed farm community in the middle of nowhere."
HappyMe
(20,277 posts)I don't feel bad for these people.
I do feel bad for the parents though.
4Q2u2
(1,406 posts)If I made that kind of money I would not be in debt in the first place. Kind of the reason i am is that is what I used to make, and over the last 10 years has seen it steadily eroded.
Kali
(55,014 posts)awww poor widdle kids need to live on 90K and pay off some loans? how did they ever manage?
srican69
(1,426 posts)laundry_queen
(8,646 posts)IF, after making 90,000/yr, not having kids, living with parents, getting an $8000 tax return and having assets to sell you CAN'T pay off $50,000 worth of debt, then you might be a total fucking idiot.
I'd like to see a more realistic situation, however. Like someone with a median income, a mortgage and kids, and no parents to fall back on. Maybe a single parent. I'm guessing it's not going to go as smoothly and it's going to take a lot more sacrifice. Just guessing.
Horse with no Name
(33,956 posts)My friend made $20k and owed almost $800.
Wonder how that works...
laundry_queen
(8,646 posts)Being a Canadian, I'm not sure how your income tax system works, but here, if you are getting that big of a return, then your company's payroll is totally screwing up by taking out too much money from your paycheck. Or you're claiming tons of shit. Either way, it's not easy to get a return of that magnitude.
Horse with no Name
(33,956 posts)outside of what I know anecdotally...however, my friend's problem is that there wasn't enough being deducted out of his paycheck.
My best guess (right or wrong) is that they are just getting more tax breaks in that tax bracket than my friend does in his.
More class warfare.
vankuria
(904 posts)What they're claiming to get such a big return. My husband and I make much less annually and always seem to owe the IRS, this year we got back about $800 and you would've thought we won the lottery! And the bit about the $1000 watch, must be nice to have the option to sell such an expensive piece of jewelry!
lumberjack_jeff
(33,224 posts)Unless they had significant student debt, they're doing it wrong.
It's good that they're getting their debt under control while the sun is shining, but the fact that everyone is doing the austerity thing all at the same time is problematic for us all.
arely staircase
(12,482 posts)and therefore bad for those same families.
And yeah, they are doing it wrong, I couldn't justify a thousand dollar watch on even a 90 grand salary. and if that was one of their liquid assets, just imagine the other crap they have blown money on.
Joseph Ledger
(36 posts)That doesn't seem that extravagant. I barely make $60K a year and just bought a thousand dollar rifle on a whim.
arely staircase
(12,482 posts)if I pulled in a 250-500 grand a year I could justify a thousand dollar watch.
and a rifle is different. I once bought an 800 dollar shotgun, but I have never left it at a hotel swimming pool.
Joseph Ledger
(36 posts)Come to think of it, that what I wear anyway...
arely staircase
(12,482 posts)pretty good watch and only put me back 50 bucks
lumberjack_jeff
(33,224 posts)At 90k annually + 50k debt, I would expect to have a few tangible assets to show for it.
For me it isn't watches or guns, but tools? Hell yeah.
Adsos Letter
(19,459 posts)I got a weakness for 'em...
ret5hd
(20,499 posts)welcome back, whoever you are.
Gross National Income? Great Northern Iron? Gay Naturists International?
I'm stumped.
ret5hd
(20,499 posts)HiPointDem
(20,729 posts)cbdo2007
(9,213 posts)Rich and poor people all struggle with too much debt. None of us will really be free until we stop buying shit we don't need on credit and get out of debt. That is the only way to truly be free from the choke hold the govt. and private companies have on us all.
duffyduff
(3,251 posts)It has nothing to do with buying shit we don't need but with being kicked to the curb in this rotten economy and not being able to get back on our feet because there are no real jobs out there.
A little empathy would go a long way with you.
Yo_Mama
(8,303 posts)"Shit you don't need" would have to be food and shoes. And you don't eat salmon.
Come on, now!!!
Warpy
(111,277 posts)Most people with student debt are not going to be making $72,000 a year. Many of them will consider themselves lucky to make half that.
In addition, most of us have the kind of parents who charge us rent. We might as well skip the aggravation in live in a rathole apartment.
duffyduff
(3,251 posts)They have NO clue how rough it is to be single with no real income at all and too young to collect SS.
redwitch
(14,944 posts)Grrrrrr...
MindPilot
(12,693 posts)Honeycombe8
(37,648 posts)I'm thinking that means they've claimed a bunch of dependents, so that a lot would be taken out of their checks, so they'd gt a big refund. Using it like a savings account. I've known people who have done that. It's the hallmark of someone who can't manage money. They know if they have it, they'll spend it.
duffyduff
(3,251 posts)Try paying a student loan with not enough income to support oneself.
SoCalDem
(103,856 posts)Something does not smell right..
and I wonder how happy Ted's Mom is to be housing two people for $700 a month
Enrique
(27,461 posts)did you know their first apartment didn't have carpeting?
Ilsa
(61,695 posts)or drug addicts or so abusive they can't be lived with.
My parents simply told me "No" when I asked to move back home to save money, and we got along great. It was still "No."
Honeycombe8
(37,648 posts)Because your parents wouldn't let you move back home to save money, remember to bring that up to them when you refuse to help them when they're old and sickly. Karma.
But seriously...the OP couple didn't just want to "save money." Everyone wants to save money, don't they? They were in a bit of financial trouble. There's a difference. And they were paying rent, part of the utilities, and for their own food. And it was for a definite, short period of time.
HiPointDem
(20,729 posts)usGovOwesUs3Trillion
(2,022 posts)Back in the real world... you outta luck!
LOOK, over there... the mexicans are coming!!!
git your guns!
and so it goes...
tammywammy
(26,582 posts)His whole point is getting rid of debt. It can be done. I highly recommend people listen to his advice.
http://www.daveramsey.com/home/
Skeeter Barnes
(994 posts)He gives good advice but it's out of touch to insist there aren't any poor people out there that work hard every day but I've heard him say it on his show.
Not everyone has the same knack for making money that he does.
He is another right winger that perpetuates this myth that we're all millionaires in waiting. All we have to do is work harder... and buy his books and attend his seminars, of course.
Honeycombe8
(37,648 posts)poor people out there who work hard.
Skeeter Barnes
(994 posts)Right wing propaganda. I'm sure he appreciates you sticking up for him, though.
Honeycombe8
(37,648 posts)Your restatement is something else entirely.
Skeeter Barnes
(994 posts)I stand by what I've said.
Honeycombe8
(37,648 posts)Skittles
(153,169 posts)you're not fooling me at ALL
tammywammy
(26,582 posts)I think he gives a lot of common sense advice. Have an emergency fund - good advice. Pay off debt - good advice. Invest in a retirement account - good advice. College fund - good advice.
Is this meant for someone making minimum wage? No, I don't think so. There are a lot of people that live on credit to live above their means. I think it's good advice for them.
Even the people in the OP. They had 55% debt compared to income. I congratulate them on paying off their debt.
Skeeter Barnes
(994 posts)It's what he believes. He's said it ever since I used to listen to him when he first started on Supertalk FM in Nashville.
He completely disregards the fact that wages have been stagnant for decades and blames the worker, instead. The problem isn't a sense of entitlement. Wages are too low while costs for things like housing, college and healthcare have skyrocketed. His response to that would be that his taxes are too high and poor people have it made since they pay little to no income tax.
Like I said in my first reply to you, I think he does give some good advice. He motivated me to get out of what little debt I had. His show made me realize how stupid credit cards are so I've never used them. He's still a right wing asshole, though.
Thanks for taking the time to reply it was good talking to you.
Liberal_in_LA
(44,397 posts)tammywammy
(26,582 posts)Or don't happen to catch him when he says it. It's possible.
Liberal_in_LA
(44,397 posts)tammywammy
(26,582 posts)That explains it.
fishwax
(29,149 posts)Honeycombe8
(37,648 posts)flvegan
(64,409 posts)So busy bitching about the income, the forest for the trees goes unnoticed.
Well done. Haters gonna hate. <----- own it, you deserve it.
tammywammy
(26,582 posts)madville
(7,412 posts)I was $30,000 in debt not including my $88,000 house note. Now I have paid of everything and owe $66,000 on the house 4 years later, have skimped and pinched but I do make $55k a year right now and am single with one teenage son, it's been a struggle but it always will be I guess.
southerncrone
(5,506 posts)This does not take an advanced degree. Simply a few math skills and the willingness to look at reality & not live in denial.
My guess is they are healthier now because their diet looks quite healthy. It all boils down to:
NEEDS not WANTS.
quakerboy
(13,920 posts)with $150,000 in debt and an annual income of $10,000?
DiverDave
(4,886 posts)I could do it too with no house payment...
FAIL to impress