Loan Sharks

[ninnymary]

I have always hated credit cards. It defeats the purpose of buying something on sale, plus 18% interest is just crazy. Never use them and I love that all 3 of my kids don't either. In fact 2 of them save quite a bit. The third is very frugal and is always on a tight budget. But boy can she find deals.

Mary

 

[aftermidnight]

or, more likely, in company towns outside the factory gate.

Yep did that for 6 years 1959-1965. Company town, paper mill, we rented a two bedroom company house for $32.50 a month. When we left there we sold most of our furniture and appliances, nobody had a car in Ocean Falls unless you lived out in the valley.
In 1965 we moved to where we are now, we had enough money for a down payment on a car, a down payment on a house, a down payment on a new range, the rest we bought second hand. We refused to go into debt big time.

Annette

 

[so lucky]

If you pay your credit card bill in full every month, you are considered a "deadbeat" in credit card land. You are making them lose money. They live in the hopes that you fall into hard times and have to rely on credit.

 

[aftermidnight]

If you pay your credit card bill in full every month, you are considered a "deadbeat" in credit card land. You are making them lose money. They live in the hopes that you fall into hard times and have to rely on credit.

I can live with that, just don't call me late for dinner .

Annette

 

[digitS']

The banks make money off the retail merchants who accept credit cards.

If the banks are losing any money on the arrangement, it isn't apparent to me ... or to the mail carrier with the continuous flow of credit offers he/she brings to my mailbox almost daily.

If the banks are losing money it's because of those knucklheaded investment schemes corporations can get into because they are only risking someone else's money and taking a chance on early retirement for themselves. Screw everything up and walk away in their Saks Fifth Avenue Armani loafers ...

Steve

 

[Larisa]

Larisa, In Russia do people not buy their cars, houses and large appliances in installment payments? It would be best to save up for these things and pay in full at purchase, but most people here are too impatient to wait. (The neighbors all have it, I need it too)
We are such a "I deserve it" bunch of consumers. Some people even rent their furniture and appliances, paying $25 a week for each thing. That eats up a paycheck in a hurry, and they don't even own it.

I agree that the house and buy a car right away is very difficult. Of course, people here take the credit. But the problem is that there are specifically in Russia high interest rates on mortgage payments . And unstable economic situation. This means that people take credit in some conditions of his life, and return the loan to other conditions. Most people can lose his job with a high salary. This credit for the fact - it is legalized slavery. If a person can not pay, the bank can sell this debt to collectors. This "debt collection specialists" on the verge of the law. Now the bankers offer to legalize credit for housing for 80 years. This means that debt bondage will get children and grandchildren. Personally, I absolutely do not want to live in debt to their children. But I am also convinced that such "parents" are there.
The credit for appliances, of course, is easier, but irresponsible. Some people are too addicted to the prospect of "all at once". And then realize the sad reality.
I'm not an economist, but it is necessary to change something in this life. Because appears as a result is another God with named "Money."

 

[digitS']

credit for housing for 80 years

Whoa!

No. That would mean "the company" would be the bank.

They would own our housing with next to no chance of independent homeowners.

Steve
You load sixteen tons, what do you get?
Another day older and deeper in debt
Saint Peter don't you call me 'cause I can't go
I owe my soul to the company store

 

[baymule]

Larissa are you saying that you can get a house loan in Russia for 80 years? Or is that the banks are trying to get a 80 year loan legalized? Either way, that is just plain crazy. I think the top here is 35 years, but I could be wrong. Housing prices are stupid high right now.

 

[Larisa]

Larissa are you saying that you can get a house loan in Russia for 80 years? Or is that the banks are trying to get a 80 year loan legalized? Either way, that is just plain crazy. I think the top here is 35 years, but I could be wrong. Housing prices are stupid high right now.

As long as banks are only trying to. And we very much hope that this will not happen.

 

[so lucky]

Maybe the hook is that the house will appreciate in value, monthly payments would be low, and then the house would be sold at a profit for the homeowner long before the loan would have been paid up. (Unless there is a housing market crisis like we had here, and the value falls instead of increases...) Risky business.