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.

Originally posted by SimiusDei
Please, oh mighty gods of wisdom, tell me one time that I have said I used my credit cards for anything that I couldn't afford.

I was in pretty good shape. A 22 year old kid with PERFECT credit and almost ZERO debt. Then, it happened. The job I was working at was put out of business by the evil empire (ie: Wal-mart). This just so happened right after I placed a 600.00 charge on my card.

SEEMS LIKE YOU COULDN'T AFFORD THAT ONE!

I'm sorry you guys but I was NOT born into money.

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

---

Originally posted by undo
apc

We would've needed close to 10k+ sitting in the bank...

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.

Originally posted by apc
It's very simple: If you have to buy something on credit, YOU CAN NOT AFFORD IT!

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".

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.

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]

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]

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.