PDA

View Full Version : Fear of Debt



Junket
14-07-08, 12:02 AM
Like anybody, I'm afraid of the unknown.

Not only that, but I hate the idea of being in debt. But in this day and age, it seems impossible to live out of debt unless you take some intense measures.

To the point: I will have to buy a new(er) car. Period.

I brought mine back into the shop and it turns out the last people to do repairs f*cked it up. Repairing has become too costly. But...to get a new car, a car I think would be really worth having, would require that I pull out a loan. A loan that would bear interest. I hate the idea of it, truly.

Remember how I paid off my student loans in one fell swoop? I'm still trying to recover from that. Not that I'm hurting or anything, but $15,000+ for a car is nothing I'm capable of payin' for in cash. Having a monthly payment scares me. I don't like the idea of living outside of my means. All my credit cards I pay off every month.

The guys at work tease that I must have a trust fund or something, because I don't always take the overtime offered. Not that I couldn't use it, but I don't need the overtime because I already have enough in my checking, and regularly deposit into my savings despite my meager 12 dollars. Which I've come to realize is really nothing these days. It's nothing.

I dunno if I'm actually looking for answers, I just needed to blow off a little steam. I hate money.

misombra
14-07-08, 02:25 AM
get a small car. small as you can get. gas is very expensive. so is insurance, which you have to get full coverage if you're financing a car.

Lipp
14-07-08, 03:46 AM
How badly do you need a car? The "period" sounds set in stone, but might want to consider alternatives.

Tone
14-07-08, 04:57 AM
Fear of debt is a very good thing to have, Fras.

Illusional
14-07-08, 04:58 AM
you can give me all of your money and i'll take away your worries.

raverboy

Junket
14-07-08, 05:21 AM
I'm an electrician apprentice, which means my job can be at any 1 of several project sites, so I cannot depend upon a bus or a bicycle.

IndiReloaded
14-07-08, 05:56 AM
Wait until you get your first mortage. We scrimped to pay that off asap. I don't like debt, either Fras but somethings like cars & houses are unavoidable. Even ppl who can afford to buy outright will often hold a mortgage b/c its the better financial option.

Have you thought about working as an indep contractor w/your own business? That way you can lease a car & get a tax deduction for the payments.

clearskies
14-07-08, 06:20 AM
Frasbee has to get a car, how could he go here and there w/o one?.
When I got my divorce and I had no home to live in (we put our mortagge for sale and it took long time to be sold), I lived with my family. With the money I had, I could have bought a flat, I delayed that for sometime because the first thing I needed was a car to help me work here and there and thus afford later to buy a flat. You cant depend on cabs or buses while ur time is valuable.

Junket
14-07-08, 06:30 AM
Wait until you get your first mortage. We scrimped to pay that off asap. I don't like debt, either Fras but somethings like cars & houses are unavoidable. Even ppl who can afford to buy outright will often hold a mortgage b/c its the better financial option.

Have you thought about working as an indep contractor w/your own business? That way you can lease a car & get a tax deduction for the payments.

Trust me, I'm not there yet. The average apprenticeship to become a journeyman electrician is 3-5 years. I have a lot to learn.

IndiReloaded
14-07-08, 06:33 AM
You can own your own business at any point, Fras. It doesn't require a special licence or anything. Tho insurance might be a problem, not sure. Its just an alternate way of getting paid.

Are you actually an employee of the guy you are working for? Does he withhold taxes, provide benefits, etc? If not, you are already an IC, so you know.

Its easy to register your own business. Lots of ppl here can explain, Sombra has done it recently, I think & she's in the US so would be most applicable.

anachronistic
14-07-08, 06:59 AM
I hate money too.

Then again you can't really complain because you've been offered overtime. When I am offered overtime, I always take it. I am barely making it anyway.

Consider yourself lucky.

I'm sure you'll get by. You've got Amy and you're pretty damn smart.

Mish
14-07-08, 07:24 AM
I vote for $2,000 second hand car.

My flat mate got extremely unlucky with his second hand car. He bought it for $2,000 and then he had to put in a whole $2,000 worth of repairs to make it run smoothly as it runs now! OMG!!!

$2,000 + $2,000 still = $4,000

$15,000+ - $4,000 = $11,000+ (Amount of money you save in the worst case scenario)

But that's just me.

anachronistic
14-07-08, 07:27 AM
Never forget, that owner's equity diminishes with time.

Junket
14-07-08, 10:09 AM
Any car 2005 and older potentially may have been under the Katrina's flood waters for 6 weeks.

Something to consider when buying used cars in New Orleans.

shh!
14-07-08, 11:46 AM
You might look into buying a used car from a rental car company. Supposedly, they take excellent care of their cars and sell them off with relatively low miles.

clearskies
15-07-08, 05:58 AM
The worst idea you are receiving is to buy a used car... a new one will do you fine, no mechanic for a year at least, will be sold after a couple of years at a good price if taken care of. Better buy somthing good than never. I wd never ever suggest a used car. You wont spend ur weekend in repair.

IndiReloaded
15-07-08, 07:48 AM
According to Click & Clack, Fras (I love them), its always better to repair a car & drive it into the ground.

Depends on how much your time is worth, tho. And if you can claim the expense, like I said.

Aegis
15-07-08, 07:55 AM
I've been told one of the worst investments you can make is a brand new car, since they depreciate many thousands of dollars in the first couple years of ownership, regardless of use.

Pears
15-07-08, 07:58 AM
I hate money.

You mean you love money.

I started a 401k plan. Have you invested in retirement funds?

Junket
15-07-08, 08:00 AM
No.
___________

shh!
15-07-08, 08:41 AM
I've been told one of the worst investments you can make is a brand new car, since they depreciate many thousands of dollars in the first couple years of ownership, regardless of use.

I've heard they lose thousands in value the minute you drive them off the lot.

Mish
15-07-08, 08:49 AM
I wd never ever suggest a used car. You wont spend ur weekend in repair.

You won't spend your weekend in repair if you take good care of it. Why throw tens of thousands of dollars to the wind?

Junket
15-07-08, 09:03 AM
I don't care how much I lose when I drive the car off the lot, so long as it lasts me a good 10 years.

Aegis
15-07-08, 09:15 AM
2 10K cars will probably drive farther/live longer than 1 20k car

Junket
15-07-08, 09:19 AM
2 10K cars will probably drive farther/live longer than 1 20k car

Honda Fit.

Preferably 2007.

ShirleyVA
15-07-08, 09:19 AM
Better buy a car now so it will save you time going around places you need to go. One thing that you also have to do while you are still young, healthy and able to do overtime is to take overtime if you feel you have nothing to do at home yet.

Save as much as you can when you are younger and spend on meds when you grow older. Take the opps while you still can and invest on time deposits or something at the bank so it will earn too.

You are very liquid so money won't be a big problem. Investing it so it will earn at the period you don't have any projects will help too.

As I say do it while you are still young and healthy. As you grow older all kinds of illnesses will knock on your door and it will be a great relief to have some savings at the bank.

Aegis
15-07-08, 10:55 AM
.com's in the sig but it's still like a half-assed attempt at real content. I'm torn as to what to do.

lesa
15-07-08, 01:13 PM
I've been told one of the worst investments you can make is a brand new car, since they depreciate many thousands of dollars in the first couple years of ownership, regardless of use.

Purchasing a car should not be considered an investment. I would rather get two cheap cars and use the rest of the money for better investment.

Asparagoose
15-07-08, 01:46 PM
Not that I'm hurting or anything, but $15,000+ for a car is nothing I'm capable of payin' for in cash. Having a monthly payment scares me. I don't like the idea of living outside of my means. All my credit cards I pay off every month.

Financially, it's always a bad idea to pay interest on a depreciating asset. Paying interest on a home isn't bad because your home is appreciating in the long term. A car only goes down in value and very fast. If you need to finance your new car, make sure it's a cheaper car and inexpensive. Cars will depreciate, but cheaper cars hold on to most of their value. Try japanese cars or ford. There's nothing wrong with debt. It's really not that complicated at all, don't let it scare you Frasbee.

Tedel
15-07-08, 11:02 PM
We were just talking about a water-powered car in another thread. Why don't you give it a try? That will be a lot cheaper in the long run.

clearskies
16-07-08, 03:44 AM
Perfect idea to go for new ford Fiesta, focus, Ka...I totally agree with Asparagoose
((If you need to finance your new car, make sure it's a cheaper car and inexpensive. Try japanese cars or ford))

boobaa
17-07-08, 01:53 AM
I have always feared of dept also. When I was little, our family always had money problems and very often I had to donate my savings (I wanted to, because I felt guilty if I didn't. I didn't have to do it) just to live off. I spent very little. This left me a mark and i always need to have at least some of my own money. It must be my own and not lent. I am feared of dept. When my father lost his job, my mother fed the family with minimum wage, but that wasn't enough and rent was unpaid, we were in big dept and had ourselves almost lifted to streets. My father worked very hard to solve the situation, losing his job was because the company was decreasing and his services were never needed again.

I have always had very little money, I gave some of it to my mother. But I have learned to not give away money, only to the closest ones. Sometimes I think that I am a penny-pincher cheapskate because of this. So now I am thinking of investing. I thought about a firm, but which kind, not sure. Maybe buy a nonworking firm and just hold it for a while until I have more education and skills to have it worth more investing. Or maybe fix it a little and then sell again with higher price. Anyone experienced with firms? Of course I have a list of other things I need to buy because I just need them, but maybe some day harder days will come or I suddenly need something more expensive?

DoesntMatter
24-07-08, 06:01 AM
http://i194.photobucket.com/albums/z170/TheHobbyGuy550/povertysucks.jpg

IndiReloaded
24-07-08, 07:28 AM
Ha, DM, that will be you in a few years, never you mind:

http://i108.photobucket.com/albums/n12/indigosoul01/elitism.jpg

Yacker
24-07-08, 09:59 AM
Yes debt sucks. I was in 8k of cc debt only a few years ago to have it down to $600 right now. I cannot wait to get rid of that then never to have a CC balance again! F U DEBT@(#*% and THE MAN that offered that temptation to me. I feel raped :(

lucky614
09-08-08, 10:20 AM
just do what i did go to the casino and win $614,676.83
then just pay off everything and invest the rest