Comments on: The next meltdown?

By: Carnival of Consumer Credit #3 — Arrive Financial

Carnival of Consumer Credit #3 — Arrive Financial — Wed, 26 Nov 2008 16:03:35 +0000

[...] asks whether credit cards could be the next meltdown, Mickey C. has some helpful tips to not abuse your credit card, and CreditAddict shows us how to [...]

By: LivingAlmostLarge

LivingAlmostLarge — Fri, 07 Nov 2008 17:52:59 +0000

A lot of people Fengshui are Dave Ramsey followers and do not use CC. A lot more people use debit cards only. But most do have car loans.

So I think car loans and the size of an average car loan $20k is more prevalent than $20k in credit card debt.

Everyone says CC debt is bad. NOT everyone says car loans are bad. Like Kristy said, you need a car to get to work. Of course the argument is you don’t need a $20k car. But semantics.

I’ve been looking at cars for my DH, he’s been begging and we’ve considered taking over someone’s lease for a few months. A way to get a car for fun without getting entangled really. Yes it’s a waste of money but it might only for be 1 year or less.

I think a lot of people are in trouble with cars.. The deals going on with cars are crazy right now.

By: Kristy

Kristy — Fri, 07 Nov 2008 15:00:21 +0000

Fengshui – At least you have learned from your mistakes! Congrats!

LAL – I have no idea how long it is before they repossess a car, though I have seen more cars being repossessed lately. I am sure in the next year we will see what the next meltdow actually is!

By: fengshui

fengshui — Fri, 07 Nov 2008 03:24:31 +0000

I wouldn’t doubt that the average student loan debt is $20k. Mine is about $30k. However, I really don’t see it as a problem or even a big deal (for me). Sure, $30k is a lot, but I look at is as getting a big return out of my investment. However, for students who graduate with a BA in liberal arts or something, I’m presume that they will struggle with the payments unless they land a great job, but in this economy, who knows….

As far as credit cards, and the mess that we are in now, I find it hard to believe that only 9% of households have a balance over $9k. It seems as if everyone I know have large balances, mainly from being new homeowners and buying new appliances and furniture that they don’t really need.

As far as a car loan, I learned that the hard way. I just HAD to have this cute little hot rod that cost me $23k aobut 3 years ago. It was SO cute and fast, and I just had to have it. What the h*ll was I thinking????? Now I wish that I didn’t have it because I got stuck EVERYWHERE last winter in our 100″ of snow. And I have a $450 car payment every month to boot. So, thankfully I’ve paid it down to where it is worth more than I owe, but I will tell you that I will NEVER, EVER do that again. No more brand new cars. However, the only good thing about buying that car brand new was the great warranty. I’ve had my transmission replaced in it free of cost, through the warranty. And it came with $60k mile roadside assistance and I’ve used that a few times too. But, over all, I still wouldn’t buy new again. I can afford the payment, but I would much rather invest the $450 a month instead of on that damn car…..

By: Mary@SimplyForties

Mary@SimplyForties — Fri, 07 Nov 2008 02:47:23 +0000

From what I hear about huge credit card debts, suveys notwithstanding, I suspect it will be credit cards.

By: LivingAlmostLarge

LivingAlmostLarge — Fri, 07 Nov 2008 00:52:45 +0000

Ah that’s true about cars. But don’t you get at least a few months before they repossess it? I think it’s all going in the same direction.

By: Kristy

Kristy — Thu, 06 Nov 2008 18:34:15 +0000

Who knows what will be next? I guess if I had to choice between making my car payment or paying on my credit card, I would make my car payment so I could drive to work or look for work. Maybe that’s why the experts are seeing that as the next meltdown. People can always defer their student loans until they are in a better situation. Good topic though!