Slaves to Credit -- Giving Up Your Life One Loan at a Time.

heh my credit score has got to be below 600. I have massive medical bills that I couldn't pay because I just happened to develope epilepsy at a time that I was unemployed and had no health insurance.

You don't need a credit card full stop. I am a '22 year old kid' myself and don't own a credit card. I am not rich either and that is exactly the reason I pay for everything by cash. If i can't afford something there and then I don't buy it. It keeps you out of a lot of trouble. Sure I may have to compromise my social life at times or cut back on certain luxuries but it's either that or committ myself to a lifetime of debt... I do not want the latter

I made my first mistake by getting a car on finance, I sold the car earlier this year and i am still paying for it after 3 years! This is my only debt and I plan on keeping it that way. As long as I keep my payments up, my credit score will be ok. Once all of the payments which I owe now are done, i'm not going to borrow any more money.. ever (apart from a mortgage) which is unfortunately something that is needed if I ever want to support a family and have some security.

So in a nutshell to the OP.. keep away from credit cards, keep away from borrowing money and you won't have any credit problems.

SEEMS LIKE YOU COULDN'T AFFORD THAT ONE!



Neither was I. Your belief that you have to be is why you are and will continue to be a slave.

---

Then why didn't you?

I'm not trying to be cruel, but s*** happens. It happens to everyone. Proper planning and preparation can minimize the damage caused by any crisis.

I fully agree! I use a debit card regularly but am 23 and haven't once considered getting a credit card. I don't want to start conditioning myself into thinking that debt is normal and that it's ok to spend money before I've earnt it. As a recent poster said, "debt is slavery"! I want to be free of debt for as much of my life as possible. In fact, right now, if someone were to ask me "what's the meaning of life?", expecting some kind of spiritual philosophy, they might be shocked to find me respond with a rather mundane "to escape debt once and for all".

HOWEVER (and this is a big "however"), to a certain extent I'm with the OP. I want to own a home. This is a life ambition of mine. But how can I hope to achieve this without taking out a mortgage? According to what I've read in this thread, you guys in the US see $35,000 as a low wage. Well I'm 23, with a degree, on £15,000 before tax (that's $30,425 to you). Now consider how much higher the cost of living is here in the UK (gas, food, rent, etc). And NOW consider that house prices here are so high that officially, only something like 20% of first time buyers can afford to buy. Where I live, an average 2 bedroom house costs about $400-450,000. So if I rent a flat at $1200 a month (yes rent really is that expensive here) and continue to spend the bare minimum (gas, food, phone, car insurance), I'm left with no more than $400 a month to save.

Someone care to do the maths on this? Ah screw it I'll do it. It would take me about 88 years to save up to buy a house without borrowing from a bank to do it. Ok we could factor in payrises but even if my wage doubles next year, we're still talking min. 25 years.

So do I rent for 25-88 years and then buy a house, in this way avoiding all debt (but incidentally paying the landlord's mortgage for them), or do I sell my soul and sign up for a mortgage (if I can get one)?

It's a tough one.

For all posters talking about fleeing America - whatever you do don't flee to the UK. It would be a severe case of "out of the frying pan, into the fire".

reply to post by fiftyfifty

---

Tell me that in a few years.


What's a mortgage if not credit? And what will your interest rate be on that mortgage even if you are able to get one?


Jasn

reply to post by Cythraul

---

Therein lies the dilemma. You NEED good credit in order to get certain necessities in life.



Far too many people (including a few on this thread) seem to make the mistake in thinking that bad credit and credit debt comes solely from credit cards.

They forget to consider the home mortgage, car payment, accidental bank overdrafts, medical bills and the vast number of other things that can put your credit score in the toilet.


Best of luck to you!
Jasn

reply to post by SimiusDei

---

I agree that a mortgage is one debt that a person cannot escape. However using a credit card is your choice. I am on £17,000 before tax (Tax is another subject and i dont want to get started on that) and I have a company car.. i come out with less than the previous poster who earns £15k. This is enough for me to rent a place, pay the bills, eat and have a couple of nights a month to enjoy.. I do not come from a wealthy family. I would love to be able to buy an LCD TV and kit my flat out with the latest stuff but the fact is.. i cant afford it. . My view is though, if you can't afford something then don't buy it. There is no reason that you can't follow the same philosophy as me is there?


[edit on 22-10-2007 by fiftyfifty]

Well, I don't mean hate your the country you were born in, or abandon your family. I mean, do what free people do. I don't even mean abandon your country. I mean, drop your citizenship in order to build a better life for yourself elsewhere. That would be a benefit to your family, and a benefit to your country. After all freedom is what it is about, right? You're born a citizen and you have the choice to give it up. Did anybody ever ask you if you wanted to be a citizen of the U.S. Ever fill out an application? Why not give it up if it makes sense? From the beginning folks are told how wonderful it is to be a citizen. And then the debt comes. And if you make some money, the IRS comes. And on and on. Seems like one important choice would be to choose if one wants to be a citizen or not anywhere.

Anyway, I understand where you're coming from.

reply to post by fiftyfifty

---

I actually don't buy things that I cannot afford. In fact, the ONLY reason I have used my credit card in the last several years has been to try to reestablish my good credit for the things that require it.

As a matter of fact, I have NEVER purchased anything with a card that I couldn't afford with the exception of that one necessity.

Unfortunately, that was required to fix my car and, no car-no job.

Life has it's funny little ironies, however, since I lost my job anyway hahaha.


Jasn


EDIT TO ADD: Did I mention that I freaking HATE Wal-Mart? hahahaa, but that's for another thread. "Corporate Greed -- ALWAYS!"

[edit on 22-10-2007 by SimiusDei]

I can personally vouch for knowing the following information to be 100% true, as I was informed by an employee of a technological recruiting company who was courting me for a potential placement. Well, at least in the state of Virginia.

If you have 3 or more outstanding balances that are past due on credit cards that are $1,000 or higher, or something of equal nature, you will be screened and 9 times out of 10 not get the position. Not only that, but should you apply for a security clearance, even a basic interim first level one, you'd be denied due to the potential of selling secrets, lol.

That is all neatly hidden in the "background check", you thought it was just for criminal record and drug test! no sir, credit has gained prominence as a new discriminatory tool of choice for employers because there are not laws on the book saying you cannot discriminate on the basis of credit score. It's sad but true, and I think a grassroots movement needs to take place while the Democrats have the Congressional Majority, one that seeks to have a bill passed, or a law passed adding credit score to the list of things employee's cannot discriminate based upon, with exceptions being if it is a company working with or for the government or any military or any other affiliated groups. In such a case, discrimination based on credit does make sense, but only due to access to secret data.

reply to post by SimiusDei

---

I'll admit that I don't know how the US credit system works but surely you don't need to buy with a credit card to improve your credit history? Surely things like rent payments, a steady salary, timely bill payments and lack of debt are enough to satisfy any credit checks?

I have never used a credit card in my life but I have managed to rent a place and ll the responsibilities that come with it ie utility bills.

If you were to ditch your credit card now what would be your situation? If you have no job can you not claim any benefit until you are re-employed?

reply to post by SimiusDei

---

Yes well of course the banks rape you when you borrow a loan. But when you talk about good reputation making it less extreme, that is still true. The better credit you have the lower your % increase in what you owe. It is still alot of money these places are gaining from loaning you money, but it makes sense because it's alot of money to just hand out to a stranger.

The biggest problem I see is that it hurts the lower and middle classes much more than the rich. Which is just another problem as to why there shouldn't be a cap on the $ amount taxed and such. This country is based around the rich staying rich. It's not really capitalism when we are all working for these rich bastds.

reply to post by fiftyfifty

---

I can't speak for anyone with this, but I know that for me personally, the credit card was the only thing that ever significantly effected my credit score either way.


Even to this day, when my credit score is pulled, not a single rent payment, car payment or much anything else shows up in a positive light. Much like a medical bill that is paid will not be on your credit report, but one that hasn't will.

There are many many things that can hurt your credit, yet seemingly few that wil help it.


It sucks, i must say.

Jasn

Most auto insurance companies check your credit rating too. If you have a low score your insurance rates are higher! True, you really never own the dwelling & property you live on. Don't pay your taxes & it's auctioned off to the highest bidder. Here's what some do..... Save back some money each month so you can outright purchase an RV. Get a P.O. Box for your retirement checks and have them forward your checks. Then just keep snowbirding around the country. Wherever, your Post Office box is would be your main place of residence. So you can vote there and have important things like your DL renewed. Picking a small town for auto insurance renewal could mean lower rates. Not the main post office with the most population tho. Get a branch post office box in a lower populated area. Your auto insurance rates are also based on the zip-code. More people the higher your rates! So the place where you park your vehicle at night is..... behind a cactus to the left!

[edit on 10/22/2007 by MountainStar]

Your opening posts reminds me of Gary Cooper's tramp friend in the movie Meet John Doe. I suggest you see that movie, if you haven't.

After I paid my credit off, I now have made a promise to myself not to get into credit debt, or debt of any kind.



[edit on 22-10-2007 by Amelie]

reply to post by blowfishdl

---

The rich in this country definitely make their riches off the backs of the lower and middle classes.

It has been said time and time again that you must have money to make money and that is so very true.

America is set up on a system that coddles the rich and punishes the poor.


I guess, if you really want to put it this way, it's much like a monarchy as the majority of us are the peasants that work day in and day out to to keep the kings on their thrones of platinum, gold and jewels.



Oh well, in the end it's almost a certainty that the peasants will revolt and those that are deserving will pay for their crimes against them.

Am I the only one that finds it sad that you can get ahead in life better by selling drugs, insider trading, insurance fraud, burglary and playing kid games than you can by working to provide for your family and your community and being good, honest and loyal?


Jasn

I've never had a credit card in my life or a loan. I've never been on the electoral register either. I pay all my bills and rent on time and I can't even get a mobile phone on contract as I don't have a credit rating. I'm more or less anonymous to the system, It used to anger me and I contemplated registering myself on the electoral register and getting a credit card. After many attempts of applying for credit cards the only response I got was from the notorious Capital one who wanted a deposit of £200. The interest rates for this card at the time were absolutely ridiculous and I decided not accept the demands and thought sod it I don't need a credit card. I pay everything in cash and use my own money to buy the things I want. I can never own a home unless I win the Lottery or I land a top job and I'll probably never have a luxury car. I have to pay deposits to get cable installed although I got the money back after six months of paying on time. When I look around now and see all the people putting themselves in hundreds of thousands of pounds in debt I feel sorry for them and can only imagine the strain this must put on there relationships and families.

I might not have a fancy house with a fancy car but I have my freedom and my comforts and importantly not a penny of debt.

I did decide to register on electoral register recently because I wanted to vote for the first time, and hey presto within two weeks I was getting so much junk mail from dodgy credit companies offering me money at absurd rates of interest. These companies target vulnerable people and I find it disgusting and the regulations are inappropriate.





[edit on 22uMonday07/27/20 by paul76]

reply to post by MountainStar

---

Very true. Living in the south, I have known quite a few families that have been forced to do just that.

You know another sad fact? A decent number of elderly people have actually taken to retiring on luxury cruise liners. That's right, they live there year 'round.

Why? Because it's CHEAPER THAN A RETIREMENT HOME!

How sad is that?


Jasn

I admit to not knowing how this new credit system is hooked up. I have plenty of credit, more than I need, and an excellent score.

But it used to be that you couldn't get a "good" credit card, like a VISA, without good credit. But, you couldn't get good credit without a credit card.
My job, utility bills, car payments and home ownership didn't count. Owning a home didn't count because it is secured credit, as is a car.
Sound confusing?

I had to get a small department store card first, use it for about 18 months, pay it on time each month. Then I was able to get a CITIBANK card, with a crappy rate.
When I had that for awhile, I got a good bank card which I have to this day.

SimiusDei,

Your victim mentality is why you are a victim. But you are only a victim of yourself. You can keep blaming all your problems on the rich, or Corporate America, or Walmart. But in the end the only one you have to blame is yourself.

I think you're upset because you think people can only be wealthy if it is given to them. So you're looking for someone to hand you success and good fortune.

It ain't gonna happen.

Most millionaires don't reach their wealthy status until they are in their 50s. It takes years and years of hard work day in day out coupled with wise financial practices like NOT using credit and NOT CARING what their credit score is.

You can keep up the delusion that the "rich" get to be rich by cheating, stealing, and stomping on the poor. That is your choice. And you're certainly not alone.