Many bloggers and readers in the corner of the blogosphere I inhabit are conservative in their political outlook and their financial philosophy. They will likely survive the coming economic collapse. Don’t think there will be an economic collapse?
No need to waste time reading further.
Decades retailing automobiles, trucks, and utility trailers required my reading credit reports. I’ve probably seen thousands. Common conclusion often were,
“They can’t finance steam off a hot dog”, or, “They have earned the right to pay 35% APR”.
Nowadays I work as an agent, part time, contacting people behind on their mortgages. I bring them solutions. They usually don’t like the solutions.
My sympathy does go out to a few, very few people I contact. Recently, the thirty something woman with children told me she was nine months pregnant and had a restraining order against her husband who was lying about making the mortgage payments. That prompted more detailed remarks in my report than usual. Hopefully, something can be worked out.
More common was a house with two full dressed motorcycles in the garage (the door was partially open) a newer Jeep Rubicon in the driveway, and the couple $9,000+ in arrears. I delivered a refinance offer that would roll over their deficiency. Their monthly payment will go up $200 higher.
“We can’t afford that high a payment”, was their outraged comment.“Call that number”, was my response.
Over and over I’m sent to homes with $3,000 a month mortgage payments and there are $150,000 worth of vehicles (probably leased) scattered around plus boats and/or ATVs.
I don’t envy successful people their success and their rewards. Bless them, rewards for their hard work honestly earned.
It is the damned fools that set my teeth on edge because I know, as sure as the sun rises, when their personal shit hits the fan they will be screaming for someone else to bail them out.
As always, YMMV
8 comments:
Living within our means is something 'we' learned... These new generations, not so much, until the 'bill' comes due. Then they try to blame somebody else!
I knew people like that back in Illinois, decades ago. They worked for Caterpillar Tractor, or the Power Company, or one of the several big refineries in the area. When I was making $10/hr, they were making $30. They all owned houses (well, they had a mortgage), had brand new trucks, a sporty car, a motorcycle and/or boat and trailer, and the wife had a new car. I marveled at making that much money, until my buddies in the car biz told me 90% of these people were one or two paychecks away from default.
Woke me up real quick, it did!
Suggest to them that they watch Dave Ramsey.
OldNFO
I raised me kids to be frugal. Put a strain on their relationships but they held fast. Now my grandchildren are money sensible.
DRJIM
Your buddy did you a favor.
RHT447
I would if it will make a difference. Seldom see anyone receptive to advice.
We've been careful with what money we have... never been a lot but one look tells ya we're not missing any meals.
People don't think about the whole price of things, they just say to themselves that they can afford x amount payments. And then suddenly there's too much month at the end of the money.
I know more than one family who is in trouble not because they overspent but because it's just damn hard to make a living. I could not go do what you do for sure.
Ami
What I do is nothing more than a job of work. I'm not emotionally invested in it. Some jobs are more pleasant, some are less pleasant, but they are simply work that needs done.
When I worked First Payment Defaults I spoke to a lot of people on what happened. Saddest was a self employed man who owned a couple multi family units + the home refinanced. Credit was perfect pay record so what went wrong. Self employed skipped getting health insurance, wife got cancer and it all went downhill from there. To support all the medical every refi he did was in foreclosure. Still felt sorry for them but he made a choice that had disastrous consequences.
Margi
Margi
Key here is "choices". Bad things can happen to the best people.
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