Freethought & Rationalism Archive

openeyes · 04-15-2003, 04:23 PM

I have to think that $75000 figure is wrong also.

cheetah · 04-15-2003, 04:55 PM

Quote:

Originally posted by openeyes
I have to think that $75000 figure is wrong also.

That's exactly what my mom and I thought. I cannot vouch for the accuracy of the article, of course, ut I can vouch for the fact that that's what it said!

We were literally talking about it for hours. I mean, we ALL know Americans live debt lifestyles, but we had no idea. We particularly thought it might be wrong about NOT counting a home mortgage, but it SPECIFICALLY excluded that. Yeah, we were flored, too. Especially if you think that that's only the average and the worst people are a LOT worse than that!

Loren Pechtel · 04-15-2003, 04:59 PM

I have a hard time with the number also. $75k not including home and car is some deep doo-doo for anyone other than the rich.

I wonder if things like margin accounts are creeping into that figure.

Incidently, on those same-as-cash deals they will often offer a discount instead.

Ojuice5001 · 04-15-2003, 06:18 PM

I've only had my own place for a year and a half. So far, I haven't racked up any debt of my own. Hell, if it were up to me, I could pay for everything, even bills, with cash.

However, my roommate has run up big bills for both phone and cable, which are in my name. The result was that they disconnected my phone recently, and the cable company took a lot of money out of my checking account.

He's not deliberately screwing me, he's just bad with money. It's a bad situation.

Undercurrent · 04-15-2003, 06:53 PM

Quote:

Originally posted by Loren Pechtel
I have a hard time with the number also. $75k not including home and car is some deep doo-doo for anyone other than the rich.

Maybe the rich are the ones who are bringing up the average. A few guys out of a hundred who are a couple of million in debt would bring the average up a lot. And if you're moderately rich, having a good amount of the right kind of debt (a bank loan to start or grow a business, for example) isn't that bad an idea.

More likely, though, the figure is at least a dozen times removed from the study that spawned it and has been embellished. I worry more about the claims that the average houshold has some several thousands in credit card debt. That's the most horrible debt to have, and you can bet that it's not the rich people who are paying 17%.

As for me, I just paid off my car (a 2001 Saturn SC1) eight months early, and pay off my credit card every month -- some months I haven't even used it, and have a good nest-egg in the bank and another in my 401(k).

oriecat · 04-15-2003, 07:00 PM

Quote:

Originally posted by Undercurrent
I worry more about the claims that the average houshold has some several thousands in credit card debt.

I went looking to see if I could find articles with the figure quoted in the OP, and I didn't look much, but I did see a couple that said the average cc debt is about 8500.

Scotty · 04-15-2003, 07:32 PM

Opps, I have a boat 15k in debt (then big house payment!)
No car loans, but I wouldn't care about having another one

I could pay it all off I guess, but my oddness with money has paid off that when I needed the cash I had it to use instead of a loan.
The amount of money we have helped people out just amazes me, it must be something like 75k. Hey, that fits pretty good!

-Scott

Gurdur · 04-15-2003, 07:38 PM

Quote:

from here:

In 2000, the average credit card debt for Americans who carry a balance reached $5610, and increase of nearly one-third since 1995. [ix]

Consumers file for bankruptcy to bring enormous debts under control. The typical Chapter 7 bankruptcy filer has high credit card debts - in 1996, $17,544 in credit card debt and an annual after-tax income of $19,800. [x] From 1996-2000, revolving debt, such as that incurred by the use of credit cards, accounted for about 20% of total household debt, according to the Federal Reserve.

Gurdur · 04-15-2003, 07:41 PM

Quote:

And in Britain:

....Unsecured personal debt, such as credit cards and loans, has now reached a record �140bn.

That equates to more than �2,300 owed by every man, woman and child in the UK.

At Leeds-based debt charity the Consumer Credit Counselling Service (CCCS), a service that helps people with often chronic debts, the picture is clear.

They recently said their client's average personal debt had now reached � 24,000.

MJones · 04-15-2003, 07:56 PM

Quote:

Originally posted by cheetah
Ok, everyone, 'fess up! Are you the typical American with tons of credit card debt? or are you clean as a whistle? My mom told me she read that the AVERAGE American has about $75,000 worth of debt NOT including their home mortgage or car!!! Whoa!

I have a hard time with the $75,000 dollar figure as well, if it does not include the house.

I'm working to get rid of my debt using a method called the 'Dept Snowball'. It's really neat: You list your debts, smallest to largest in terms of amount owed (Not interest rate!). You then pay minimum monthly payment on everything but the smallest and put as much as you can on the smallest one. When that one is paid off, the snowball rolls over; You have take whatever you were putting on the smallest, add the minimum for the next one, and pay that one off. The amount you have should go way up each time the snowball rolls over! It's working for me so far.

Quote:

I am the type that pays off my credit card each month. I have zero debt, except that I just purchased one house and am buying a home for myself, too. I am considering letting myself go into debt for a short time, in order to afford buying some furniture, appliances and decor for my new home, but my partner feels we must never allow ourselves to go into credit card debt at all. I figure just a few thousand, but he is kinda adamant. I know I would be nervous about that debt and really want to pay it off, but I would also really like to have a nice home, and it's no good buying furniture over a period of 10 years. By the time your done with one room, it's already outdated!

Partner's right. If you allow yourself to go into debt, it's too easy to get caught up in it. Instead of using a credit card to buy the nicest, most expensive stuff RIGHT NOW, it makes more sense to buy cheaper stuff with cash, and then save up for the more expensive stuff. Think of savings as 0% intrest (owed, I mean), and you don't HAVE to have a payment every month, or you save what you can. Then, when you have enough to get the expensive item, it's YOURS! You don't owe a thing on it, you've paid less then if you had to pay interest on it, and you can start saving for the next thing.

Quote:

Secondary poll: who thinks I should go into credit card debt and buy myself some furniture?

Get rid of the credit cards!! Don't go into debt!!!

Dirty Dog

View Poll Results: How much debt do you have?
I am WORSE than the average American. Not counting my car and home, I have OVER $75,000 in debt!	4	4.71%
I am about average. I have approximately $75,000 in debt, not including my car or home.	4	4.71%
I am a good girl/boy! I have MUCH less than $75,000 debt!	30	35.29%
I am financially pious. I anally pay off my credit cards every month and have no debt except for my home and/or car.	47	55.29%
Voters: 85. You may not vote on this poll

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04-15-2003, 04:23 PM	#11
openeyes Veteran Member Join Date: Sep 2002 Location: Minnesota Posts: 4,215	I have to think that $75000 figure is wrong also.

04-15-2003, 04:59 PM	#13
Loren Pechtel Obsessed Contributor Join Date: Sep 2000 Location: Not Mayaned Posts: 96,752	I have a hard time with the number also. $75k not including home and car is some deep doo-doo for anyone other than the rich. I wonder if things like margin accounts are creeping into that figure. Incidently, on those same-as-cash deals they will often offer a discount instead.

04-15-2003, 06:18 PM	#14
Ojuice5001 Veteran Member Join Date: Jul 2001 Location: A city in Florida that I love Posts: 3,416	I've only had my own place for a year and a half. So far, I haven't racked up any debt of my own. Hell, if it were up to me, I could pay for everything, even bills, with cash. However, my roommate has run up big bills for both phone and cable, which are in my name. The result was that they disconnected my phone recently, and the cable company took a lot of money out of my checking account. He's not deliberately screwing me, he's just bad with money. It's a bad situation.

04-15-2003, 07:32 PM	#17
Scotty Senior Member Join Date: May 2001 Location: OutBound Posts: 804	Opps, I have a boat 15k in debt (then big house payment!) No car loans, but I wouldn't care about having another one I could pay it all off I guess, but my oddness with money has paid off that when I needed the cash I had it to use instead of a loan. The amount of money we have helped people out just amazes me, it must be something like 75k. Hey, that fits pretty good! -Scott

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