That’s right. The money market is now so unpredictable that banks have decided joe public is a safer bet. They will actually pay you to hold their money for them.
So if you’re looking for a section of tech-savvy well-off people to look after your cash for free, but with the possibility of earning interest that might actually get paid back, then GS might be thinking there’s one company that has a customer base who’re a fairly safe bet.
Helping customers avoid excessive and crippling debt doesn’t mean they will follow basic guidelines. In my experience, people are generally lazy and lack forethought—all of us are guilty of this at some point and some of us all guilty of it most of the time.
Then we have GS not having been in this market before so they won’t be cannibalizing their other cards.
These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
Hey do you say the same to the entire construction and commercial development industry, which is based entirely on credit? Huge swaths of corporate America is run on credit, not cash. They do the exact same thing people do. And guess what happens when they fail or file bankruptcy? Creditors lose out. But you know what happens to the actual people running those corporations? The executives? Nothing. Absolutely nothing.
In reality it is normal citizens, non-corporate people, who suffer in lending. Corporations aren't people and as such do not experience suffering. Irresponsible executives continue to become personally wealthy.
This is the nature of the rigged economy. Corporations don't suffer failure the way small fry do.
It's a little bit different taking out a loan to build a house or skyscraper vs. a loan to go on a vacation or pay for dinners out. One is way more secured and lower risk than the other. Don't take out loans and you'll never have any issues about not being able to pay. Studies have shown 100% of bankruptcies are on those with loans.
Because everyone can get by in life without taking out loans...[rolls eyes]
The borrower is slave to the lender. It's called only buying what you can afford. Except for a house (and only because it goes up in value) there is nothing else you should take a loan out to buy.
What about a car?
Definitely not a car.
Cars depreciate so quickly an auto loan on a new vehicle is a big bag of suck. Hell, you drive it off the dealer lot and it loses 20% of its private party resale value.
At least here in the USA, the only worthwhile typical consumer loan is a mortgage. At least you can include mortgage interest payments in your federal income tax deduction calculation. Perhaps in the UK it is different. I don't know. This thread is about the US consumer credit industry.
Pretty much any other interest payment is a drain. If you are paying interest more than 3%, you are not keeping up with COLA.
These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
Hey do you say the same to the entire construction and commercial development industry, which is based entirely on credit? Huge swaths of corporate America is run on credit, not cash. They do the exact same thing people do. And guess what happens when they fail or file bankruptcy? Creditors lose out. But you know what happens to the actual people running those corporations? The executives? Nothing. Absolutely nothing.
In reality it is normal citizens, non-corporate people, who suffer in lending. Corporations aren't people and as such do not experience suffering. Irresponsible executives continue to become personally wealthy.
This is the nature of the rigged economy. Corporations don't suffer failure the way small fry do.
It's a little bit different taking out a loan to build a house or skyscraper vs. a loan to go on a vacation or pay for dinners out. One is way more secured and lower risk than the other. Don't take out loans and you'll never have any issues about not being able to pay. Studies have shown 100% of bankruptcies are on those with loans.
Because everyone can get by in life without taking out loans...[rolls eyes]
The borrower is slave to the lender. It's called only buying what you can afford. Except for a house (and only because it goes up in value) there is nothing else you should take a loan out to buy.
What about a car?
Definitely not a car.
Cars depreciate so quickly an auto loan on a new vehicle is a big bag of suck. Hell, you drive it off the dealer lot and it loses 20% of its private party resale value.
At least here in the USA, the only worthwhile typical consumer loan is a mortgage. At least you can include mortgage interest payments in your federal income tax deduction calculation. Perhaps in the UK it is different. I don't know. This thread is about the US consumer credit industry.
Pretty much any other interest payment is a drain. If you are paying interest more than 3%, you are not keeping up with COLA.
This is overly dogmatic.
If taking out a loan to buy a car enables you to take a job that will pay you enough extra to pay off that car, then it is worth it. Same with any other purchase, it's not just the dollar value of the thing, it's how much value you get out of it.
These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
Hey do you say the same to the entire construction and commercial development industry, which is based entirely on credit? Huge swaths of corporate America is run on credit, not cash. They do the exact same thing people do. And guess what happens when they fail or file bankruptcy? Creditors lose out. But you know what happens to the actual people running those corporations? The executives? Nothing. Absolutely nothing.
In reality it is normal citizens, non-corporate people, who suffer in lending. Corporations aren't people and as such do not experience suffering. Irresponsible executives continue to become personally wealthy.
This is the nature of the rigged economy. Corporations don't suffer failure the way small fry do.
It's a little bit different taking out a loan to build a house or skyscraper vs. a loan to go on a vacation or pay for dinners out. One is way more secured and lower risk than the other. Don't take out loans and you'll never have any issues about not being able to pay. Studies have shown 100% of bankruptcies are on those with loans.
Because everyone can get by in life without taking out loans...[rolls eyes]
The borrower is slave to the lender. It's called only buying what you can afford. Except for a house (and only because it goes up in value) there is nothing else you should take a loan out to buy.
What about a car?
Definitely not a car.
Cars depreciate so quickly an auto loan on a new vehicle is a big bag of suck. Hell, you drive it off the dealer lot and it loses 20% of its private party resale value.
At least here in the USA, the only worthwhile typical consumer loan is a mortgage. At least you can include mortgage interest payments in your federal income tax deduction calculation. Perhaps in the UK it is different. I don't know. This thread is about the US consumer credit industry.
Pretty much any other interest payment is a drain. If you are paying interest more than 3%, you are not keeping up with COLA.
This is overly dogmatic.
If taking out a loan to buy a car enables you to take a job that will pay you enough extra to pay off that car, then it is worth it. Same with any other purchase, it's not just the dollar value of the thing, it's how much value you get out of it.
Not all car loans are for new cars, btw.
Great mention @crowley ; FWIW I've taken short term loans in the past at fairly egregious rates exceeding 10% when a special opportunity to quadruple that or more in profit suddenly comes up.
Taking a loan on equipment you expect to profit from is another very common move. Waiting until you have the money set aside might miss the best opportunity for maximizing a market advantage. Your example of buying a car or truck in order to make a better living is the consumer version of it.
Borrowing money to go out to dinner or getting a bigger big-screen doesn't likely make a lot of sense financially. Always HONESTLY consider cost/benefit and you should be good. I want the shiny thing is a bad reason.
These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
Hey do you say the same to the entire construction and commercial development industry, which is based entirely on credit? Huge swaths of corporate America is run on credit, not cash. They do the exact same thing people do. And guess what happens when they fail or file bankruptcy? Creditors lose out. But you know what happens to the actual people running those corporations? The executives? Nothing. Absolutely nothing.
In reality it is normal citizens, non-corporate people, who suffer in lending. Corporations aren't people and as such do not experience suffering. Irresponsible executives continue to become personally wealthy.
This is the nature of the rigged economy. Corporations don't suffer failure the way small fry do.
It's a little bit different taking out a loan to build a house or skyscraper vs. a loan to go on a vacation or pay for dinners out. One is way more secured and lower risk than the other. Don't take out loans and you'll never have any issues about not being able to pay. Studies have shown 100% of bankruptcies are on those with loans.
Because everyone can get by in life without taking out loans...[rolls eyes]
The borrower is slave to the lender. It's called only buying what you can afford. Except for a house (and only because it goes up in value) there is nothing else you should take a loan out to buy.
What about a car?
Pay cash. If you only have $1000, then buy a $1000 car and save up so next you can buy a $5000 car and so on. Look up Dave Ramsey. You'll sleep better at night knowing you don't owe penny to anyone.
These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
Hey do you say the same to the entire construction and commercial development industry, which is based entirely on credit? Huge swaths of corporate America is run on credit, not cash. They do the exact same thing people do. And guess what happens when they fail or file bankruptcy? Creditors lose out. But you know what happens to the actual people running those corporations? The executives? Nothing. Absolutely nothing.
In reality it is normal citizens, non-corporate people, who suffer in lending. Corporations aren't people and as such do not experience suffering. Irresponsible executives continue to become personally wealthy.
This is the nature of the rigged economy. Corporations don't suffer failure the way small fry do.
It's a little bit different taking out a loan to build a house or skyscraper vs. a loan to go on a vacation or pay for dinners out. One is way more secured and lower risk than the other. Don't take out loans and you'll never have any issues about not being able to pay. Studies have shown 100% of bankruptcies are on those with loans.
Because everyone can get by in life without taking out loans...[rolls eyes]
The borrower is slave to the lender. It's called only buying what you can afford. Except for a house (and only because it goes up in value) there is nothing else you should take a loan out to buy.
What about a car?
Or an education?
Going $100k in debt for a sociology degree that pay $30k/yr makes no sense. I would avoid debt as much as possible.
We once ran the workforce through test applications, and found that contractors with higher pay and no debt were less likely to get an approval.
Several years ago I paid off my car and student loans early within a month of each other which caused my credit rating to drop from well into the Excellent range with an 800+ score to around 740–750 range which only Good. Within a couple months I had gone back up to Excellent, but I would've been hurt had I tried to secure a great interest rate during that time.
Wow, that’s awful and insanely abusive. It’s also entirely counterintuitive. I paid off my first new car early too (back in the day; I’m poor as shit now), but never thought it would have anything but a positive impact on my credit. This economy is horrific.
Not for the banks.
In in the UK, there was a credit card called Egg. I had one and after paying If off at the end of the month for about four years, I received a letter that my card was being withdrawn. Me and a few thousand other people. Egg realised that people who don’t incur interest by paying off loans early are bad for business because they don’t earn interest.
And not having any debt means that I haven’t been able to get any credit card outside of my regular bank.
That's surprising as credit cards (at least in the US) make 1-2% on everything you charge ("swipe fee") regardless if you pay it off in full every month. That's probably more than they make on interest fees. I've had credit cards canceled that I haven't used in years but never ones I use even just occasionally.
These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
Hey do you say the same to the entire construction and commercial development industry, which is based entirely on credit? Huge swaths of corporate America is run on credit, not cash. They do the exact same thing people do. And guess what happens when they fail or file bankruptcy? Creditors lose out. But you know what happens to the actual people running those corporations? The executives? Nothing. Absolutely nothing.
In reality it is normal citizens, non-corporate people, who suffer in lending. Corporations aren't people and as such do not experience suffering. Irresponsible executives continue to become personally wealthy.
This is the nature of the rigged economy. Corporations don't suffer failure the way small fry do.
It's a little bit different taking out a loan to build a house or skyscraper vs. a loan to go on a vacation or pay for dinners out. One is way more secured and lower risk than the other. Don't take out loans and you'll never have any issues about not being able to pay. Studies have shown 100% of bankruptcies are on those with loans.
Because everyone can get by in life without taking out loans...[rolls eyes]
The borrower is slave to the lender. It's called only buying what you can afford. Except for a house (and only because it goes up in value) there is nothing else you should take a loan out to buy.
What about a car?
Pay cash. If you only have $1000, then buy a $1000 car and save up so next you can buy a $5000 car and so on. Look up Dave Ramsey. You'll sleep better at night knowing you don't owe penny to anyone.
Scenario: You want a $50k car and the dealership is offering a 0% APR for 60 months for Excellent credit, which you have.
In your world you’d rather sell $50k in stock that is working for you instead of making month installments that will likely make that car free by how much the stock value grows over the next 5 years. You do you, but I prefer to have my money work for me.
These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
Hey do you say the same to the entire construction and commercial development industry, which is based entirely on credit? Huge swaths of corporate America is run on credit, not cash. They do the exact same thing people do. And guess what happens when they fail or file bankruptcy? Creditors lose out. But you know what happens to the actual people running those corporations? The executives? Nothing. Absolutely nothing.
In reality it is normal citizens, non-corporate people, who suffer in lending. Corporations aren't people and as such do not experience suffering. Irresponsible executives continue to become personally wealthy.
This is the nature of the rigged economy. Corporations don't suffer failure the way small fry do.
It's a little bit different taking out a loan to build a house or skyscraper vs. a loan to go on a vacation or pay for dinners out. One is way more secured and lower risk than the other. Don't take out loans and you'll never have any issues about not being able to pay. Studies have shown 100% of bankruptcies are on those with loans.
Because everyone can get by in life without taking out loans...[rolls eyes]
The borrower is slave to the lender. It's called only buying what you can afford. Except for a house (and only because it goes up in value) there is nothing else you should take a loan out to buy.
What about a car?
Or an education?
Going $100k in debt for a sociology degree that pay $30k/yr makes no sense. I would avoid debt as much as possible.
Nice straw man with a sociology as the only financed degree option. /s
Your weak rebuttal aside, if you got a started a job starting at $30k that would be your career over decades that would eventually lead to tenure and and a 6-figure salary then I would have a problem with that route. What’s funny is your implication on the pointlessness of studying human society when that is one subject you really need a better understand of. Also, business and finance, but that takes a certain of brain which I don’t think you possess.
These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
Hey do you say the same to the entire construction and commercial development industry, which is based entirely on credit? Huge swaths of corporate America is run on credit, not cash. They do the exact same thing people do. And guess what happens when they fail or file bankruptcy? Creditors lose out. But you know what happens to the actual people running those corporations? The executives? Nothing. Absolutely nothing.
In reality it is normal citizens, non-corporate people, who suffer in lending. Corporations aren't people and as such do not experience suffering. Irresponsible executives continue to become personally wealthy.
This is the nature of the rigged economy. Corporations don't suffer failure the way small fry do.
It's a little bit different taking out a loan to build a house or skyscraper vs. a loan to go on a vacation or pay for dinners out. One is way more secured and lower risk than the other. Don't take out loans and you'll never have any issues about not being able to pay. Studies have shown 100% of bankruptcies are on those with loans.
Because everyone can get by in life without taking out loans...[rolls eyes]
The borrower is slave to the lender. It's called only buying what you can afford. Except for a house (and only because it goes up in value) there is nothing else you should take a loan out to buy.
What about a car?
Pay cash. If you only have $1000, then buy a $1000 car and save up so next you can buy a $5000 car and so on. Look up Dave Ramsey. You'll sleep better at night knowing you don't owe penny to anyone.
I’ve heard Dave Ramsey. Full of himself, bordering on narcissistic, judgmental and incredibly dogmatic. I quit listening after 2 podcasts because he was so narrow minded. It explains a lot about your posts.
Debt but has a cost - both monetary and intangible. Like everything you need to weigh the costs and benefits. I took out well over $100k in education loans, but it also gave me an education that enabled me to pay back those loans. I took a car loan for $35k at 1.9%. Putting money in investments yields a higher return. Yes it’s debt, but it’s cheaper than no debt.
The ‘reasonable’ financial advisors talk about ‘good debt’ vs ‘bad debt’ it all has to do with the costs and benefits.
These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
Hey do you say the same to the entire construction and commercial development industry, which is based entirely on credit? Huge swaths of corporate America is run on credit, not cash. They do the exact same thing people do. And guess what happens when they fail or file bankruptcy? Creditors lose out. But you know what happens to the actual people running those corporations? The executives? Nothing. Absolutely nothing.
In reality it is normal citizens, non-corporate people, who suffer in lending. Corporations aren't people and as such do not experience suffering. Irresponsible executives continue to become personally wealthy.
This is the nature of the rigged economy. Corporations don't suffer failure the way small fry do.
It's a little bit different taking out a loan to build a house or skyscraper vs. a loan to go on a vacation or pay for dinners out. One is way more secured and lower risk than the other. Don't take out loans and you'll never have any issues about not being able to pay. Studies have shown 100% of bankruptcies are on those with loans.
Because everyone can get by in life without taking out loans...[rolls eyes]
The borrower is slave to the lender. It's called only buying what you can afford. Except for a house (and only because it goes up in value) there is nothing else you should take a loan out to buy.
What about a car?
Pay cash. If you only have $1000, then buy a $1000 car and save up so next you can buy a $5000 car and so on. Look up Dave Ramsey. You'll sleep better at night knowing you don't owe penny to anyone.
Scenario: You want a $50k car and the dealership is offering a 0% APR for 60 months for Excellent credit, which you have.
In your world you’d rather sell $50k in stock that is working for you instead of making month installments that will likely make that car free by how much the stock value grows over the next 5 years. You do you, but I prefer to have my money work for me.
In my world I would never buy a $50k car that would depreciate 90+% in a short time (and I have several million to my name). So you would also remortgage a paid off house at 4% because you can make 8% in the market. Of course you wouldn't because of risk that you left out of your equation. Scenario: you're 1 year into your interest free $50k loan, you lose your job, have no savings and the car is now only worth $30k, you freak out struggling to think how you'll come up with the other $15-20k that you're underwater on. This happens more often than not.
Even at 8% annual growth, you'd only make $23k on your money, so the car certainly wouldn't be free.
These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
Hey do you say the same to the entire construction and commercial development industry, which is based entirely on credit? Huge swaths of corporate America is run on credit, not cash. They do the exact same thing people do. And guess what happens when they fail or file bankruptcy? Creditors lose out. But you know what happens to the actual people running those corporations? The executives? Nothing. Absolutely nothing.
In reality it is normal citizens, non-corporate people, who suffer in lending. Corporations aren't people and as such do not experience suffering. Irresponsible executives continue to become personally wealthy.
This is the nature of the rigged economy. Corporations don't suffer failure the way small fry do.
It's a little bit different taking out a loan to build a house or skyscraper vs. a loan to go on a vacation or pay for dinners out. One is way more secured and lower risk than the other. Don't take out loans and you'll never have any issues about not being able to pay. Studies have shown 100% of bankruptcies are on those with loans.
Because everyone can get by in life without taking out loans...[rolls eyes]
The borrower is slave to the lender. It's called only buying what you can afford. Except for a house (and only because it goes up in value) there is nothing else you should take a loan out to buy.
What about a car?
Pay cash. If you only have $1000, then buy a $1000 car and save up so next you can buy a $5000 car and so on. Look up Dave Ramsey. You'll sleep better at night knowing you don't owe penny to anyone.
I’ve heard Dave Ramsey. Full of himself, bordering on narcissistic, judgmental and incredibly dogmatic. I quit listening after 2 podcasts because he was so narrow minded. It explains a lot about your posts.
Debt but has a cost - both monetary and intangible. Like everything you need to weigh the costs and benefits. I took out well over $100k in education loans, but it also gave me an education that enabled me to pay back those loans. I took a car loan for $35k at 1.9%. Putting money in investments yields a higher return. Yes it’s debt, but it’s cheaper than no debt.
The ‘reasonable’ financial advisors talk about ‘good debt’ vs ‘bad debt’ it all has to do with the costs and benefits.
I don't like someone telling me to be responsible with my money and not go into debt, so I'll call him full of himself. His net worth is ~ $40M vs. yours which is probably < $100k, I'll take his advice, thanks. Following your advice is like asking Oprah how to lose weight.
You're forgetting about risk. What happens if the market tanks, you lose your job, your car is underwater, etc... Most financial advisors are idiots (like pushing whole life insurance so they make the most commission). Personal finance is not that hard that you would need a financial advisor.
These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
Hey do you say the same to the entire construction and commercial development industry, which is based entirely on credit? Huge swaths of corporate America is run on credit, not cash. They do the exact same thing people do. And guess what happens when they fail or file bankruptcy? Creditors lose out. But you know what happens to the actual people running those corporations? The executives? Nothing. Absolutely nothing.
In reality it is normal citizens, non-corporate people, who suffer in lending. Corporations aren't people and as such do not experience suffering. Irresponsible executives continue to become personally wealthy.
This is the nature of the rigged economy. Corporations don't suffer failure the way small fry do.
It's a little bit different taking out a loan to build a house or skyscraper vs. a loan to go on a vacation or pay for dinners out. One is way more secured and lower risk than the other. Don't take out loans and you'll never have any issues about not being able to pay. Studies have shown 100% of bankruptcies are on those with loans.
Because everyone can get by in life without taking out loans...[rolls eyes]
The borrower is slave to the lender. It's called only buying what you can afford. Except for a house (and only because it goes up in value) there is nothing else you should take a loan out to buy.
What about a car?
Or an education?
Going $100k in debt for a sociology degree that pay $30k/yr makes no sense. I would avoid debt as much as possible.
Nice straw man with a sociology as the only financed degree option. /s
Your weak rebuttal aside, if you got a started a job starting at $30k that would be your career over decades that would eventually lead to tenure and and a 6-figure salary then I would have a problem with that route. What’s funny is your implication on the pointlessness of studying human society when that is one subject you really need a better understand of. Also, business and finance, but that takes a certain of brain which I don’t think you possess.
I have a PhD in chemical engineering (all self funded, didn't take out any debt). My net worth is just under $3M (much of that was made through my investments, none though inheritance). Even though I work in industry (which rarely publishes) I have over a dozen peer review publications to my name including one about to be published in Science (the top scientific journal). I also have about 30 patents to my name and I'm listed as first inventor on over half of them. So, if you want to compare brains, anytime.
Your post is so garbled it make little sense. Paying $100k to study human society and to make only $30k/yr in return is asinine, even you should be able to realize that. Half the callers into the Dave Ramsey show are in this exact scenario. Anther recent caller into his show had $500k in student loan debt between her and her husband. They are both lawyers and their combined income is $150k/yr. Their annual interest is $35k/yr. They will never pay off that loan unless they get massive career advancements (but if they were that good, they wouldn't have started at $150k/yr combined). They will be forever screwed as they can't even bankrupt their loans. Meanwhile, I sleep like a baby at night as I'm debt free.
These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
Hey do you say the same to the entire construction and commercial development industry, which is based entirely on credit? Huge swaths of corporate America is run on credit, not cash. They do the exact same thing people do. And guess what happens when they fail or file bankruptcy? Creditors lose out. But you know what happens to the actual people running those corporations? The executives? Nothing. Absolutely nothing.
In reality it is normal citizens, non-corporate people, who suffer in lending. Corporations aren't people and as such do not experience suffering. Irresponsible executives continue to become personally wealthy.
This is the nature of the rigged economy. Corporations don't suffer failure the way small fry do.
It's a little bit different taking out a loan to build a house or skyscraper vs. a loan to go on a vacation or pay for dinners out. One is way more secured and lower risk than the other. Don't take out loans and you'll never have any issues about not being able to pay. Studies have shown 100% of bankruptcies are on those with loans.
Because everyone can get by in life without taking out loans...[rolls eyes]
The borrower is slave to the lender. It's called only buying what you can afford. Except for a house (and only because it goes up in value) there is nothing else you should take a loan out to buy.
What about a car?
Or an education?
Going $100k in debt for a sociology degree that pay $30k/yr makes no sense. I would avoid debt as much as possible.
Nice straw man with a sociology as the only financed degree option. /s
Your weak rebuttal aside, if you got a started a job starting at $30k that would be your career over decades that would eventually lead to tenure and and a 6-figure salary then I would have a problem with that route. What’s funny is your implication on the pointlessness of studying human society when that is one subject you really need a better understand of. Also, business and finance, but that takes a certain of brain which I don’t think you possess.
I have a PhD in chemical engineering (all self funded, didn't take out any debt). My net worth is just under $3M (much of that was made through my investments, none though inheritance). Even though I work in industry (which rarely publishes) I have over a dozen peer review publications to my name including one about to be published in Science (the top scientific journal). I also have about 30 patents to my name and I'm listed as first inventor on over half of them. So, if you want to compare brains, anytime.
Your post is so garbled it make little sense. Paying $100k to study human society and to make only $30k/yr in return is asinine, even you should be able to realize that. Half the callers into the Dave Ramsey show are in this exact scenario. Anther recent caller into his show had $500k in student loan debt between her and her husband. They are both lawyers and their combined income is $150k/yr. Their annual interest is $35k/yr. They will never pay off that loan unless they get massive career advancements (but if they were that good, they wouldn't have started at $150k/yr combined). They will be forever screwed as they can't even bankrupt their loans. Meanwhile, I sleep like a baby at night as I'm debt free.
These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
Hey do you say the same to the entire construction and commercial development industry, which is based entirely on credit? Huge swaths of corporate America is run on credit, not cash. They do the exact same thing people do. And guess what happens when they fail or file bankruptcy? Creditors lose out. But you know what happens to the actual people running those corporations? The executives? Nothing. Absolutely nothing.
In reality it is normal citizens, non-corporate people, who suffer in lending. Corporations aren't people and as such do not experience suffering. Irresponsible executives continue to become personally wealthy.
This is the nature of the rigged economy. Corporations don't suffer failure the way small fry do.
It's a little bit different taking out a loan to build a house or skyscraper vs. a loan to go on a vacation or pay for dinners out. One is way more secured and lower risk than the other. Don't take out loans and you'll never have any issues about not being able to pay. Studies have shown 100% of bankruptcies are on those with loans.
Because everyone can get by in life without taking out loans...[rolls eyes]
The borrower is slave to the lender. It's called only buying what you can afford. Except for a house (and only because it goes up in value) there is nothing else you should take a loan out to buy.
What about a car?
Or an education?
Going $100k in debt for a sociology degree that pay $30k/yr makes no sense. I would avoid debt as much as possible.
Nice straw man with a sociology as the only financed degree option. /s
Your weak rebuttal aside, if you got a started a job starting at $30k that would be your career over decades that would eventually lead to tenure and and a 6-figure salary then I would have a problem with that route. What’s funny is your implication on the pointlessness of studying human society when that is one subject you really need a better understand of. Also, business and finance, but that takes a certain of brain which I don’t think you possess.
I have a PhD in chemical engineering (all self funded, didn't take out any debt). My net worth is just under $3M (much of that was made through my investments, none though inheritance). Even though I work in industry (which rarely publishes) I have over a dozen peer review publications to my name including one about to be published in Science (the top scientific journal). I also have about 30 patents to my name and I'm listed as first inventor on over half of them. So, if you want to compare brains, anytime.
Your post is so garbled it make little sense. Paying $100k to study human society and to make only $30k/yr in return is asinine, even you should be able to realize that. Half the callers into the Dave Ramsey show are in this exact scenario. Anther recent caller into his show had $500k in student loan debt between her and her husband. They are both lawyers and their combined income is $150k/yr. Their annual interest is $35k/yr. They will never pay off that loan unless they get massive career advancements (but if they were that good, they wouldn't have started at $150k/yr combined). They will be forever screwed as they can't even bankrupt their loans. Meanwhile, I sleep like a baby at night as I'm debt free.
Well that's a lot of BS for one post.
Nice comeback. Sorry if you're feeling insignificant. Yeah, I went though all that effort and made all that up. Continue taking out all your loans thinking you cracked the code and beat the system.
These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
Hey do you say the same to the entire construction and commercial development industry, which is based entirely on credit? Huge swaths of corporate America is run on credit, not cash. They do the exact same thing people do. And guess what happens when they fail or file bankruptcy? Creditors lose out. But you know what happens to the actual people running those corporations? The executives? Nothing. Absolutely nothing.
In reality it is normal citizens, non-corporate people, who suffer in lending. Corporations aren't people and as such do not experience suffering. Irresponsible executives continue to become personally wealthy.
This is the nature of the rigged economy. Corporations don't suffer failure the way small fry do.
It's a little bit different taking out a loan to build a house or skyscraper vs. a loan to go on a vacation or pay for dinners out. One is way more secured and lower risk than the other. Don't take out loans and you'll never have any issues about not being able to pay. Studies have shown 100% of bankruptcies are on those with loans.
Because everyone can get by in life without taking out loans...[rolls eyes]
The borrower is slave to the lender. It's called only buying what you can afford. Except for a house (and only because it goes up in value) there is nothing else you should take a loan out to buy.
What about a car?
Pay cash. If you only have $1000, then buy a $1000 car and save up so next you can buy a $5000 car and so on. Look up Dave Ramsey. You'll sleep better at night knowing you don't owe penny to anyone.
I’ve heard Dave Ramsey. Full of himself, bordering on narcissistic, judgmental and incredibly dogmatic. I quit listening after 2 podcasts because he was so narrow minded. It explains a lot about your posts.
Debt but has a cost - both monetary and intangible. Like everything you need to weigh the costs and benefits. I took out well over $100k in education loans, but it also gave me an education that enabled me to pay back those loans. I took a car loan for $35k at 1.9%. Putting money in investments yields a higher return. Yes it’s debt, but it’s cheaper than no debt.
The ‘reasonable’ financial advisors talk about ‘good debt’ vs ‘bad debt’ it all has to do with the costs and benefits.
I don't like someone telling me to be responsible with my money and not go into debt, so I'll call him full of himself. His net worth is ~ $40M vs. yours which is probably < $100k, I'll take his advice, thanks. Following your advice is like asking Oprah how to lose weight.
You're forgetting about risk. What happens if the market tanks, you lose your job, your car is underwater, etc... Most financial advisors are idiots (like pushing whole life insurance so they make the most commission). Personal finance is not that hard that you would need a financial advisor.
I was going to check the definition of dogmatic, then I read your posts....
My net worth is considerably north of 100k, I take on debt that I choose to, enjoy life and am set to retire early. Every advisor I have spoken to says I'm doing great, except you and Dave Ramsey. The fact that Dave Ramsey has a net worth of $4M is really irrelevant. He did what worked for him (or perhaps he didn't and just got incredibly lucky.) He can still be rich, and be an arrogant dogmatic narcissist.
I'm not forgetting about risk, but you and your buddy Dave are forgetting that maybe there might be more than one pathway to success and happiness, and maybe success and happiness look different to different people. But then to do that, you'd have to stop being dogmatic, so there's the rub.
These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
Hey do you say the same to the entire construction and commercial development industry, which is based entirely on credit? Huge swaths of corporate America is run on credit, not cash. They do the exact same thing people do. And guess what happens when they fail or file bankruptcy? Creditors lose out. But you know what happens to the actual people running those corporations? The executives? Nothing. Absolutely nothing.
In reality it is normal citizens, non-corporate people, who suffer in lending. Corporations aren't people and as such do not experience suffering. Irresponsible executives continue to become personally wealthy.
This is the nature of the rigged economy. Corporations don't suffer failure the way small fry do.
It's a little bit different taking out a loan to build a house or skyscraper vs. a loan to go on a vacation or pay for dinners out. One is way more secured and lower risk than the other. Don't take out loans and you'll never have any issues about not being able to pay. Studies have shown 100% of bankruptcies are on those with loans.
Because everyone can get by in life without taking out loans...[rolls eyes]
The borrower is slave to the lender. It's called only buying what you can afford. Except for a house (and only because it goes up in value) there is nothing else you should take a loan out to buy.
What about a car?
Pay cash. If you only have $1000, then buy a $1000 car and save up so next you can buy a $5000 car and so on. Look up Dave Ramsey. You'll sleep better at night knowing you don't owe penny to anyone.
I’ve heard Dave Ramsey. Full of himself, bordering on narcissistic, judgmental and incredibly dogmatic. I quit listening after 2 podcasts because he was so narrow minded. It explains a lot about your posts.
Debt but has a cost - both monetary and intangible. Like everything you need to weigh the costs and benefits. I took out well over $100k in education loans, but it also gave me an education that enabled me to pay back those loans. I took a car loan for $35k at 1.9%. Putting money in investments yields a higher return. Yes it’s debt, but it’s cheaper than no debt.
The ‘reasonable’ financial advisors talk about ‘good debt’ vs ‘bad debt’ it all has to do with the costs and benefits.
I don't like someone telling me to be responsible with my money and not go into debt, so I'll call him full of himself. His net worth is ~ $40M vs. yours which is probably < $100k, I'll take his advice, thanks. Following your advice is like asking Oprah how to lose weight.
You're forgetting about risk. What happens if the market tanks, you lose your job, your car is underwater, etc... Most financial advisors are idiots (like pushing whole life insurance so they make the most commission). Personal finance is not that hard that you would need a financial advisor.
I was going to check the definition of dogmatic, then I read your posts....
My net worth is considerably north of 100k, I take on debt that I choose to, enjoy life and am set to retire early. Every advisor I have spoken to says I'm doing great, except you and Dave Ramsey. The fact that Dave Ramsey has a net worth of $4M is really irrelevant. He did what worked for him (or perhaps he didn't and just got incredibly lucky.) He can still be rich, and be an arrogant dogmatic narcissist.
I'm not forgetting about risk, but you and your buddy Dave are forgetting that maybe there might be more than one pathway to success and happiness, and maybe success and happiness look different to different people. But then to do that, you'd have to stop being dogmatic, so there's the rub.
That's $40M not $4M and it's not irrelevant and he didn't get lucky. He actually went through bankruptcy early in his life as he took out loans to finance his real estate business (amongst other things) that collapsed during one of our recessions. But, to each their own. The fact you need multiple financial advisors to pat you on the back says a lot. I've met a lot of people like you that take out huge loans or leases to drive fancy cars and act like they've made it big, but it's all built on a house of cards. Listen to the callers on his show, they are all just like you. I'll be laughing when our next recession hits. I remember 2008 very well.
These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
Hey do you say the same to the entire construction and commercial development industry, which is based entirely on credit? Huge swaths of corporate America is run on credit, not cash. They do the exact same thing people do. And guess what happens when they fail or file bankruptcy? Creditors lose out. But you know what happens to the actual people running those corporations? The executives? Nothing. Absolutely nothing.
In reality it is normal citizens, non-corporate people, who suffer in lending. Corporations aren't people and as such do not experience suffering. Irresponsible executives continue to become personally wealthy.
This is the nature of the rigged economy. Corporations don't suffer failure the way small fry do.
It's a little bit different taking out a loan to build a house or skyscraper vs. a loan to go on a vacation or pay for dinners out. One is way more secured and lower risk than the other. Don't take out loans and you'll never have any issues about not being able to pay. Studies have shown 100% of bankruptcies are on those with loans.
Because everyone can get by in life without taking out loans...[rolls eyes]
The borrower is slave to the lender. It's called only buying what you can afford. Except for a house (and only because it goes up in value) there is nothing else you should take a loan out to buy.
What about a car?
Pay cash. If you only have $1000, then buy a $1000 car and save up so next you can buy a $5000 car and so on. Look up Dave Ramsey. You'll sleep better at night knowing you don't owe penny to anyone.
I’ve heard Dave Ramsey. Full of himself, bordering on narcissistic, judgmental and incredibly dogmatic. I quit listening after 2 podcasts because he was so narrow minded. It explains a lot about your posts.
Debt but has a cost - both monetary and intangible. Like everything you need to weigh the costs and benefits. I took out well over $100k in education loans, but it also gave me an education that enabled me to pay back those loans. I took a car loan for $35k at 1.9%. Putting money in investments yields a higher return. Yes it’s debt, but it’s cheaper than no debt.
The ‘reasonable’ financial advisors talk about ‘good debt’ vs ‘bad debt’ it all has to do with the costs and benefits.
I don't like someone telling me to be responsible with my money and not go into debt, so I'll call him full of himself. His net worth is ~ $40M vs. yours which is probably < $100k, I'll take his advice, thanks. Following your advice is like asking Oprah how to lose weight.
You're forgetting about risk. What happens if the market tanks, you lose your job, your car is underwater, etc... Most financial advisors are idiots (like pushing whole life insurance so they make the most commission). Personal finance is not that hard that you would need a financial advisor.
I was going to check the definition of dogmatic, then I read your posts....
My net worth is considerably north of 100k, I take on debt that I choose to, enjoy life and am set to retire early. Every advisor I have spoken to says I'm doing great, except you and Dave Ramsey. The fact that Dave Ramsey has a net worth of $4M is really irrelevant. He did what worked for him (or perhaps he didn't and just got incredibly lucky.) He can still be rich, and be an arrogant dogmatic narcissist.
I'm not forgetting about risk, but you and your buddy Dave are forgetting that maybe there might be more than one pathway to success and happiness, and maybe success and happiness look different to different people. But then to do that, you'd have to stop being dogmatic, so there's the rub.
That's $40M not $4M and it's not irrelevant and he didn't get lucky. He actually went through bankruptcy early in his life as he took out loans to finance his real estate business (amongst other things) that collapsed during one of our recessions. But, to each their own. The fact you need multiple financial advisors to pat you on the back says a lot. I've met a lot of people like you that take out huge loans or leases to drive fancy cars and act like they've made it big, but it's all built on a house of cards. Listen to the callers on his show, they are all just like you. I'll be laughing when our next recession hits. I remember 2008 very well.
I don't think anyone is advocating taking out loans for vanity purchases.
Comments
Then we have GS not having been in this market before so they won’t be cannibalizing their other cards.
Cars depreciate so quickly an auto loan on a new vehicle is a big bag of suck. Hell, you drive it off the dealer lot and it loses 20% of its private party resale value.
At least here in the USA, the only worthwhile typical consumer loan is a mortgage. At least you can include mortgage interest payments in your federal income tax deduction calculation. Perhaps in the UK it is different. I don't know. This thread is about the US consumer credit industry.
Pretty much any other interest payment is a drain. If you are paying interest more than 3%, you are not keeping up with COLA.
If taking out a loan to buy a car enables you to take a job that will pay you enough extra to pay off that car, then it is worth it. Same with any other purchase, it's not just the dollar value of the thing, it's how much value you get out of it.
Not all car loans are for new cars, btw.
FWIW I've taken short term loans in the past at fairly egregious rates exceeding 10% when a special opportunity to quadruple that or more in profit suddenly comes up.
Taking a loan on equipment you expect to profit from is another very common move. Waiting until you have the money set aside might miss the best opportunity for maximizing a market advantage. Your example of buying a car or truck in order to make a better living is the consumer version of it.
Borrowing money to go out to dinner or getting a bigger big-screen doesn't likely make a lot of sense financially. Always HONESTLY consider cost/benefit and you should be good. I want the shiny thing is a bad reason.
Going $100k in debt for a sociology degree that pay $30k/yr makes no sense. I would avoid debt as much as possible.
That's surprising as credit cards (at least in the US) make 1-2% on everything you charge ("swipe fee") regardless if you pay it off in full every month. That's probably more than they make on interest fees. I've had credit cards canceled that I haven't used in years but never ones I use even just occasionally.
Your weak rebuttal aside, if you got a started a job starting at $30k that would be your career over decades that would eventually lead to tenure and and a 6-figure salary then I would have a problem with that route. What’s funny is your implication on the pointlessness of studying human society when that is one subject you really need a better understand of. Also, business and finance, but that takes a certain of brain which I don’t think you possess.
Debt but has a cost - both monetary and intangible. Like everything you need to weigh the costs and benefits. I took out well over $100k in education loans, but it also gave me an education that enabled me to pay back those loans. I took a car loan for $35k at 1.9%. Putting money in investments yields a higher return. Yes it’s debt, but it’s cheaper than no debt.
The ‘reasonable’ financial advisors talk about ‘good debt’ vs ‘bad debt’ it all has to do with the costs and benefits.
Even at 8% annual growth, you'd only make $23k on your money, so the car certainly wouldn't be free.
I don't like someone telling me to be responsible with my money and not go into debt, so I'll call him full of himself. His net worth is ~ $40M vs. yours which is probably < $100k, I'll take his advice, thanks. Following your advice is like asking Oprah how to lose weight.
You're forgetting about risk. What happens if the market tanks, you lose your job, your car is underwater, etc... Most financial advisors are idiots (like pushing whole life insurance so they make the most commission). Personal finance is not that hard that you would need a financial advisor.
I have a PhD in chemical engineering (all self funded, didn't take out any debt). My net worth is just under $3M (much of that was made through my investments, none though inheritance). Even though I work in industry (which rarely publishes) I have over a dozen peer review publications to my name including one about to be published in Science (the top scientific journal). I also have about 30 patents to my name and I'm listed as first inventor on over half of them. So, if you want to compare brains, anytime.
Your post is so garbled it make little sense. Paying $100k to study human society and to make only $30k/yr in return is asinine, even you should be able to realize that. Half the callers into the Dave Ramsey show are in this exact scenario. Anther recent caller into his show had $500k in student loan debt between her and her husband. They are both lawyers and their combined income is $150k/yr. Their annual interest is $35k/yr. They will never pay off that loan unless they get massive career advancements (but if they were that good, they wouldn't have started at $150k/yr combined). They will be forever screwed as they can't even bankrupt their loans. Meanwhile, I sleep like a baby at night as I'm debt free.
My net worth is considerably north of 100k, I take on debt that I choose to, enjoy life and am set to retire early. Every advisor I have spoken to says I'm doing great, except you and Dave Ramsey. The fact that Dave Ramsey has a net worth of $4M is really irrelevant. He did what worked for him (or perhaps he didn't and just got incredibly lucky.) He can still be rich, and be an arrogant dogmatic narcissist.
I'm not forgetting about risk, but you and your buddy Dave are forgetting that maybe there might be more than one pathway to success and happiness, and maybe success and happiness look different to different people. But then to do that, you'd have to stop being dogmatic, so there's the rub.