Seven out of Ten? Really??

[Mark_Hardware]

Don't ever let anyone tell you how stupid you are for paying your debt off early. I have already saved $30,000 in interest from making extra principal payments. I will save an additional $22,000 for paying it off the rest of the way.

Just be careful with that, too. Especially mortgages. They will usually sneak in some early payment penalties. They can be kinda hefty too. You gotta think, the interest is the bank making money, so if you aren't paying it then they have to make their money another way.

[x88x]

I would say 7 out of 10 is actually probably pretty accurate, especially considering how many people I know who used their credits cards to pay for college. Personally, there are two things I'll ever let myself be in debt for: a house and education. A house, you can't really get away from borrowing for, but even now, finishing off my degree, I'm trying to pay everything up-front in cash. I have my check card, and that works just fine for me; I just don't buy anything if I don't have the money to do so. I might get a credit card at some point, just for emergencies, but honestly I'd rather stay away from that entirely.

[gramatton]

i have never owned a credit card, and I don't think I ever will. IMO its really just a way to trap people and make money off of idiots that can't control themselves. And seeing as how I ran into problems with a debit card, that I got rid of awhile ago, I want to keep myself from having problems with a credit card. I pay cash for everything, and if I just so happen to need a credit card to pay for something, ie online, I use my SO's debit card and just pay her for it.

I guess part of why I feel that way is that out of 5 of my ex-coworkers, 4 were pretty much screwed by their debt.

[slaveofconvention]

I find it very odd how so many people have no understanding of "If you don't have the money now, why would you have it later?".

This is a bit black and white though... What about the person or people who don't have, for example, £1000 now but do have about £70 a month spare in their budget - if that person is willing to pay a little interest, they can get that £1000 item today, and pay it off with the £70 a month. It's all very well saying "they can just save up" but that would mean waiting 15 months for the item. Even with interest, you'd end up paying that item off in about 18-19 months so you could argue that they're paying the extra £200 so they don't have to wait that 15 months - and I pretty much guarantee you that you wouldnt be able to rent a £1000 item for 15 months for £200 - it does make sense in its own way, if you have an open mind to the possibilities....

[slaveofconvention]

Just be careful with that, too. Especially mortgages. They will usually sneak in some early payment penalties. They can be kinda hefty too. You gotta think, the interest is the bank making money, so if you aren't paying it then they have to make their money another way.

Banks are starting to get a little better with this though - still a long way from perfect but better. Even these massive businesses only have a finite amount of money they can loan out and if you repay early, it does free that money up to loan to someone else so arguably, they still make their cut if you pay it off early...

[Airbozo]

Just be careful with that, too. Especially mortgages. They will usually sneak in some early payment penalties. They can be kinda hefty too. You gotta think, the interest is the bank making money, so if you aren't paying it then they have to make their money another way.

Banks are starting to get a little better with this though - still a long way from perfect but better. Even these massive businesses only have a finite amount of money they can loan out and if you repay early, it does free that money up to loan to someone else so arguably, they still make their cut if you pay it off early...

I have had about 5 different mortgages and none of them had an early payoff fee. There are loans out there that do charge an early payoff fee, but I would avoid them. If you are getting a mortgage and you see that it does have this fee, tell the mortgage broker to find another loan (if possible).

[Spawn-Inc]

This is a bit black and white though... What about the person or people who don't have, for example, £1000 now but do have about £70 a month spare in their budget - if that person is willing to pay a little interest, they can get that £1000 item today, and pay it off with the £70 a month. It's all very well saying "they can just save up" but that would mean waiting 15 months for the item. Even with interest, you'd end up paying that item off in about 18-19 months so you could argue that they're paying the extra £200 so they don't have to wait that 15 months - and I pretty much guarantee you that you wouldnt be able to rent a £1000 item for 15 months for £200 - it does make sense in its own way, if you have an open mind to the possibilities....

but then thats how the whole debt thing starts, you say yes i make 70 extra a month. you go ahead buy what ever it may be, you figure it will take 12 months to pay it off. halfway through something happens and you don't have that extra 70 a month. then the debt piles up.

but then again you should have some rainy day money banked, but not everyone can afford to do that. it's all back and forth.


i would love to go buy a ps3 and not worry about the interest, but the idea of paying someone to loan money bugs the hell out of me.

[Xpirate]

Just be careful with that, too. Especially mortgages. They will usually sneak in some early payment penalties. They can be kinda hefty too.

This is very true. I made certain that my loan did not have this kind of penalty. They sometimes get people to agree to something like that with a lower interest rate.

[simon275]

Money is a real tough issue especially with the tight job market these days.

I have noticed that taking public transport more and not eating out. Save a lot of money. Also having pre drinks at home before going to a club is a good way to save money.

[Mark_Hardware]

I have noticed that taking public transport more and not eating out. .

Idk man, I had to take a bus the other day cause my car died, (I was on my way to buy a new car, how ironic) and I was shocked at the fare price. I almost didn't have enough to pay for it! I used to take a bus to work everyday, but it would cost me so much more than driving. In fact, I couldn't afford to take the bus anymore!
But that's Phoenix. Our mass transportation is a joke, and we are about 15 years behind every other major city.