5.14.2010

Living Beyond Your Means

The average DFW resident has $24,775 in "consumer debt" which includes things like credit card debt and car loans (but excludes mortgages.) But it seems to me like there's a huge difference between a $24,000 car loan that has a scheduled monthly payoff vs. a similar credit card debt that would be like a black hole.

13 comments:

Kat said...

Hey mother, Just in case you are read this post:
I'd like to thank you again for strongly advising me when I was a itty bitty kid NOT to buy stuff with credit cards, but to save and pay cash instead.

Love ya!

Anonymous said...

And then there is me. Credit score higher than 800. Hardly any debt. If only I had a ton of debt, I could qualify for free college money for my kiddos, but because I live beneath my means, I have to pay full price.

Anonymous said...

1:17, Welcome to the liberal weenie way of life.

Anonymous said...

1:17, happened to us also. I never understood that.

Anonymous said...

Maybe you guys are oversimplifying just a bit. It seems like these kind of preachy pronouncement invariably come from those who sit on wallets stuffed with a big paycheck. (i. e. lawyers, doctors)

I guess if you made $150K-$500K a year you wouldn't need to use credit cards that often, would you?

Just smugly say "if you don't have the money to pay cash you are living beyond your means". I bet the stories that go with these debts would surprise you.

Walk a mile in their shoes

Anonymous said...

2:01 I too have a credit score of 800, no debt, college degrees, veteran, non-felon, no drugs or alcohol, and white...

Nothing but part-time work for me for the past three years, living on +/- $1000 a month, and feel as though I can't buy proper employment. Over 1500 resumes sent out in the past three years. BTW, I rent a cheap apartment and drive an old pick-up. It's all I can afford.

How's that for your American Dream?

Anonymous said...

2:01, I pay good money not to walk in their shoes. I prefer my own and I don't skip when I walk. (Hint, Hint).

Anonymous said...

A person can have $24,000 in consumer debt and not be living above his or her means. It's kind of silly to have that much consumer debt if you make big bucks, but nevertheless you can have a lot of debt and be well within your means.

Anonymous said...

Anyone who claims to have a maximum credit score, tons of money and no debt is a liar. Some of the lowest credit scores are given to people with lots of money who never borrow and have nothing on credit. They are lousy customers for credit card companies, so they have a low score.

Anonymous said...

Every time I'm in the Metromess, and look back over my shoulder as I'm driving up north to home, and see all those cookie cutter homes jammed up against each other in my rear view mirror, I thank Dog I am able to live in Gawd's Country. And Wise County sure isn't Gawd's Country.

Anonymous said...

I have absolutely NO debt. I own my own home, own my own Ford and owe nobody. Am I rich? No. I have worked and saved and do not buy anything I can't pay for. Others could do this if they wanted to. I believe most people choose to live beyond their means. I agree with 1:17. And, by the way, I have no idea what my credit score is, probably 0.

wordkyle said...

516 - Living "within your means" is a vague term, but I'd have to disagree with your opinion that you can have a "lot of debt" (another nebulous phrase) and be doing so. Carrying a large debt leaves you more vulnerable to catastrophe, such as losing your job. Prudence suggests that spending tomorrow's cash today is counterproductive to living within your means.

The authors of The Millionaire Next Door explain it much more thoroughly and eloquently.

Anonymous said...

Nigs make everybody look bad.