In my part time job legally I’m a debt collector and must identify myself as such when I contact debtors. One requirement is to inform them anything they say can be used against them. What is involved is contacting people behind on their mortgage payments.
The picture isn’t a home I’ve visited but is offered as an illustration. I bet every one of those vehicles is leased. That is about a $1,500+ monthly nut along with $500+ insurance premium. The house probable runs a $1,000+ mortgage payment P.I.T.I. Again, an assumption based on many years of experience, that household is three paychecks from bankruptcy every month.
Whenever I hear of government bailout programs, my first thought is,
“Why should we protect damn fools from their own folly?”
As always, YMMV.
Oh, WSF, have you no compassion? WSF responds he has been there. Life happens, medical bills, legal issues, job losses, and family problems. What WSF hasn’t done is be a damn financial fool.
11 comments:
Saw the same thing back in Illinois when I was younger. Back in the '70's and 80's when I was making $10/hr, these guys were working in the refineries, power plants, and the almighty Caterpillar Company. They were making $20~$35/hr, and I always wondered how they could afford a house payment, a new truck every year, a new boat every few years, jet skis, trailers, motorcycles, and campers. And the wife always had a new car, didn't work (long time ago!), and was dressed to the nines.
One of these guys decided he "needed" a new Trans Am, and even with $2000 down, GMAC wouldn't finance him because he was so far underwater.
When I was making The Big Bucks At Boeing I splurged on things I didn't need, but I was also stuffing my 401(k) to the max allowed. I also signed up to buy Boeing stock weekly, and to re-invest the dividends into more stock.
Guess it's a matter of priorities.....
In the car biz most places you can take a weekly draw against earned commissions. At the end of the month you get a "wash out" check. I didn't take draws and had a budget. Each month I was living off earnings from three months back. Bonuses, called spiffs, floated around. $100 for three cars in a day as an example. Spiffs were my "mad money" but most was spent on the kids.
One good thing I did as a single custodial parent was to teach my kids budgeting. Actually, fairly easy, as they had the horrid example of their mother as a motivator.
Once I asked the youngest what he remembered most after his mother split.
His reply, "FOOD in the house", shocked me.
Living beyond your means is like having a sword over your neck every month, and that's no way to enjoy life. I wouldn't want you chasing me, WSF. You and your wolf.
I 2nd LL.
And btw, the cash involved in your post is far more than I get. So I don't spend it as if I had it.
To be honest, I'm a bit like one of those old timey people who didn't trust banks and kept their money under the floorboards. Why should I give my money to people to profit from at no gain to myself?
When I lived in the LA area years ago, I worked as a forklift driver, don't remember what I made but I did OK. I lived modestly and drove a piece of shit that I maintained myself. My co-worker Joe, also a forklift driver, drove a new Mustang and lived in a beautiful house with a pool.
"Joe, what's the deal? You and I make the same bucks, and yet you are living large, and I am scrimping by." Joe simply said 'I am up to my eyeballs in debt, and don't really own anything." BTW, Joe's nice house had no furniture. Or curtains, or landscaping, none of that. And he was one paycheck away from losing everything. Not sure how people can live like that.
LL
Far too many people live that way. I often wonder if that is a primary reason fro so many divorces. After you? Ipick and choose my assignments, but I always complet them.
LSP
My educated guess about the cash. I have no dealings with commercial banks. Because of the financial structure of this country I do need an account and have accounts at two different credit unions. Credit unions operate under different rules.
Fredd
As part of almost all car deals a credit report is pulled. I've read thousands, many with a shake of the head and the thought, "You can't finance steam on a hot dog". The world is full of "Joes".
I always use the "Ants and Grasshopper" analogy.
In the reupublican version the grasshopper dies.
In the dimocrat version, the ants have pity on the grasshopper and feed him because he plays while they eat their dinner.
I still think they eventually eat him too.
How does dimocrat taste?
The lines between parties are vague. even the party insiders can't explain what they stand for.
With you on Credit Unions, and cash in the safe.
Concur with all!
OldNFO
Thank you. Happy to hear you are working on the prairie dog population.
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