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(Yahoo)   $80,000 in credit card debt later, woman decides that maybe she shouldn't have a credit card   (finance.yahoo.com) divider line 225
    More: Obvious, credit card debt, credit cards, Journal of Consumer Research, impulse purchases  
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8600 clicks; posted to Main » on 03 Jun 2013 at 12:07 PM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-06-03 11:24:34 AM
Sheesh, and I get all out of joint when ours gets to $3-4k.

But, that is our current national mindset, buoyed by commercials for Bankruptcy lawyers where declaring bankruptcy is just "something you do, no big deal!".
 
2013-06-03 11:36:22 AM
Yes, but if we don't have credit cards then how will the economy grow? Increasing wages is certainly off the table.
 
2013-06-03 12:11:44 PM

dletter: But, that is our current national mindset, buoyed by commercials for Bankruptcy lawyers where declaring bankruptcy is just "something you do, no big deal!".


I wonder if you go into it knowing you are going to file for bankruptcy if you could turn defaulting on your debt into a profitable move.
 
2013-06-03 12:12:05 PM
GACK!  I can't imagine being saddled with that amount of credit card debt.
 
2013-06-03 12:13:02 PM
There's nothing worse than the feeling you get when the cashier passes a card back to you and tells you it's been declined.

Had that happen the other day while I was overseas. Luckily I had other cards, but I hate to miss out on the free mileage points.
 
2013-06-03 12:13:09 PM
80K.. A slow learner?
 
2013-06-03 12:14:37 PM
That's why I attempt to barter as much as possible. I was really surprised the gal at Nordstrom's wouldn't sell me a $100 pair of pants in exchange for a capybara that supposedly is trained to juggle, according to the Argentinian guy I got it from at the loading docks.
 
2013-06-03 12:15:16 PM

AverageAmericanGuy: There's nothing worse than the feeling you get when the cashier passes a card back to you and tells you it's been declined.

Had that happen the other day while I was overseas. Luckily I had other cards, but I hate to miss out on the free mileage points.


Ha. I had that exact same thing happen. I had told my bank I was traveling, but they shut it off anyway. It's incredibly embarrassing, especially when you're traveling for work and your co-workers are around you.
 
2013-06-03 12:16:46 PM
Meanwhile I can't even get one with a measly $500 limit (minimum limit possible) because I made a choice when I was younger and less responsible to NOT get credit cards so I WOULDN'T rack up a bunch of debt being a dumb ass. Pricks.
 
2013-06-03 12:16:49 PM
I love my credit cards. The only ones with a balance are 0% for 18 month deals, the others are rewards card that I pay off every payday. I have never paid a cent in interest, and get about $500 or so a year in rewards. I understand how someone could get into debt with a $25k card if all they see is the limit, and don't care about the bill at the end of the month. These are the people who should not have credit cards to begin with.
 
2013-06-03 12:16:51 PM
It can happen when you least expect it. Just last week, I had another knee surgery and SOMEBODY left a computer by my bed. After 5 days when I decided that I had my fill of morphine... I had realized that I bought a bunch of ugly jewelry off of ebay.

Coincidentally, I came up with "cowgirl toffee" after a computer was left in my room after a knee operation.
And yes... drugs were involved.
 
2013-06-03 12:17:46 PM
Where are you getting $80k? The article says $20k, still pretty bad but no where near $80k. Can any individual just out of school get a line of credit for $80k?
 
2013-06-03 12:18:11 PM
 
2013-06-03 12:20:04 PM
I was one of the people who got into credit problems in college and shortly after, not due to frivolous spending, but to not having any money to speak of.  I had four low limit cards that maxed out and then even the minimum payments couldn't keep up with interest, over limit fees, and sometimes late fees.  I think it got up to about $8K at the worst.  I managed to pay it all off once I started to earn a bit more money, and the last of all the bad stuff just rolled off my credit report.  These days I pay everything with one card and pay the bill off each month.  Years living just off of what was in my bank account (often nothing for a week or two between paychecks) means I have developed kind of an equilibrium where I don't spend much aside from the usual bills and groceries unless it's planned.  When I do, it's easy enough to cut the spending down for the next month or two and stick to basics.  Of course I'm not a shopoholic by any means - for me it's "I need a bunch of shiat for my new hobby!".  I think this was a mistake I was bound to make at some point so I'm glad I did it early.  Still, it shocks me the level that some people get in.  My former roommate and his wife are 10s of thousands in credit card debt.  We both make good money, he a good deal more than I (25%), yet I'm in far stronger financial footing because I've gotten so conservative with my personal spending.

tldr; version: Save money, then spend it.
 
2013-06-03 12:20:33 PM

what_now: AverageAmericanGuy: There's nothing worse than the feeling you get when the cashier passes a card back to you and tells you it's been declined.

Had that happen the other day while I was overseas. Luckily I had other cards, but I hate to miss out on the free mileage points.

Ha. I had that exact same thing happen. I had told my bank I was traveling, but they shut it off anyway. It's incredibly embarrassing, especially when you're traveling for work and your co-workers are around you.


Oh I hate that.

1)Call bank tell them, "I'm going to be traveling next week to countires X Y and Z please make sure my card doesn't get put on hold for unusual usage patterns."

2)Buy travelers checks because you know they are going to hold the card anyway.
 
2013-06-03 12:20:54 PM

MayoSlather: Yes, but if we don't have credit cards then how will the economy grow? Increasing wages is certainly off the table.


When you're busy paying interest on debts you've incurred, there's no money for wage increases.
 
2013-06-03 12:21:09 PM

1nsanilicious: Where are you getting $80k? The article says $20k, still pretty bad but no where near $80k. Can any individual just out of school get a line of credit for $80k?


There's a blurb near the bottom about another woman who was divorced due to the $80k debt.

I don't even have a credit card, but I have trouble [remembering to] pay off my $250 BillMeLater account.
 
2013-06-03 12:21:35 PM

Headso: dletter: But, that is our current national mindset, buoyed by commercials for Bankruptcy lawyers where declaring bankruptcy is just "something you do, no big deal!".

I wonder if you go into it knowing you are going to file for bankruptcy if you could turn defaulting on your debt into a profitable move.


www.homevideos.com

Let's assume, for just a minute, that you are a dishonest man.
 
2013-06-03 12:22:09 PM

Egoy3k: what_now: AverageAmericanGuy: There's nothing worse than the feeling you get when the cashier passes a card back to you and tells you it's been declined.

Had that happen the other day while I was overseas. Luckily I had other cards, but I hate to miss out on the free mileage points.

Ha. I had that exact same thing happen. I had told my bank I was traveling, but they shut it off anyway. It's incredibly embarrassing, especially when you're traveling for work and your co-workers are around you.

Oh I hate that.

1)Call bank tell them, "I'm going to be traveling next week to countires X Y and Z please make sure my card doesn't get put on hold for unusual usage patterns."

2)Buy travelers checks because you know they are going to hold the card anyway.


I just used my AmEx. I didn't want to because they have a foreign transaction fee, but I wasn't going to argue with the bartender either.
 
2013-06-03 12:22:16 PM
I had 10k worth of credit card debt in college so I'm getting a kick..

/Paid it all off in 5 years by myself
//Swore off credit cards from that day forward
///Now I'm married with student loans, house payment, and new car payment
////One way or the other, those farking banks are going to get their money.. Regulations be damned..
 
2013-06-03 12:22:46 PM
dletter : Sheesh, and I get all out of joint when ours gets to $3

I buy something from Amazon, and 3 minutes later I'm on my bank's site transferring money to pay off the credit card.
 
2013-06-03 12:23:13 PM

AverageAmericanGuy: There's nothing worse than the feeling you get when the cashier passes a card back to you and tells you it's been declined.

Had that happen the other day while I was overseas. Luckily I had other cards, but I hate to miss out on the free mileage points.


No, there's a lot worse things.  However, it is a damn aggravating thing.  Moved from New Jersey to Texas two years back, had my card frozen five or so times in a two month period.  Started to feel..... RAGE.
 
2013-06-03 12:25:27 PM

Headso: dletter: But, that is our current national mindset, buoyed by commercials for Bankruptcy lawyers where declaring bankruptcy is just "something you do, no big deal!".

I wonder if you go into it knowing you are going to file for bankruptcy if you could turn defaulting on your debt into a profitable move.


That's called being unethical, with no sense of personal responsibility or integrity.
 
2013-06-03 12:25:56 PM
Because now she needs another card?

/OK
 
2013-06-03 12:26:13 PM
So, does anyone know how much balance you're supposed to keep on your card for an optimum credit rating?  Is it 30% or 0%?
 
2013-06-03 12:26:18 PM
Narcissism + Greed + Derp = $80K in debt.

This formula keeps all credit card companies and banks healthy and rich.
 
2013-06-03 12:27:02 PM
I'm the complete opposite when it comes to spending money. I was raised to use credit cards responsibly, so whenever I use my credit card (which is 99% of the time), I'm like, "whelp, going to have that hanging over me until I pay it off." If I pay cash, whoopee, no debt! As a result, I spend cash on hand much more quickly than I incur CC debt. I guess that's weird.
 
2013-06-03 12:28:39 PM

flyinghouse99: So, does anyone know how much balance you're supposed to keep on your card for an optimum credit rating?  Is it 30% or 0%?


Well, I do not work for FICA and their algorithm is copy write protected, but I have heard that it's less than 30% of your total available credit.  It's tricky- if you have too much available credit, you are a risk because you could rack up a ton of debt, and if you don't have any available credit you're a risk because if something happens you don't have a cushion...
 
2013-06-03 12:29:12 PM

flyinghouse99: So, does anyone know how much balance you're supposed to keep on your card for an optimum credit rating?  Is it 30% or 0%?


probably closer to 30%.  Even if you pay the balance off each month, your average balance will still show that number.  Any transaction is good to keep your numbers up though.  Put a cheapy like your Netflix bill on one.
 
2013-06-03 12:30:28 PM

ISO15693: Headso: dletter: But, that is our current national mindset, buoyed by commercials for Bankruptcy lawyers where declaring bankruptcy is just "something you do, no big deal!".

I wonder if you go into it knowing you are going to file for bankruptcy if you could turn defaulting on your debt into a profitable move.

That's called being unethical, with no sense of personal responsibility or integrity.


That's something I refused to do when I went to a debt counseling place when I decided my debt is getting out of control. They negotiated for me to all my debtors and got my interest rates down to manageable means. It didn't destroy my credit like bankruptcy would have.. In fact I think it helped it as now I can get great low interest loans that many of my new college grad counter parts can't get..

My wife and I also took the Dave Ramsey classes about budgeting and whatnot and those also helped a TON. We're still learning (blew our budget for the past two weeks because we forgot to create a budget to follow).
 
2013-06-03 12:31:21 PM

flyinghouse99: So, does anyone know how much balance you're supposed to keep on your card for an optimum credit rating?  Is it 30% or 0%?



FICO is a mystery, but I suspect if you always keep it under 50%, and try to keep it on average below 10%, I think you are good.
 
2013-06-03 12:32:18 PM

Headso: dletter: But, that is our current national mindset, buoyed by commercials for Bankruptcy lawyers where declaring bankruptcy is just "something you do, no big deal!".

I wonder if you go into it knowing you are going to file for bankruptcy if you could turn defaulting on your debt into a profitable move.


here too. 'piss away' your credit buying gold bars for 4 years, declare bankruptcies. cha-ching.
 
2013-06-03 12:32:50 PM

here to help: Meanwhile I can't even get one with a measly $500 limit (minimum limit possible) because I made a choice when I was younger and less responsible to NOT get credit cards so I WOULDN'T rack up a bunch of debt being a dumb ass. Pricks.


Seriously. Never got a card through college because I thought living without debt was the way to go. Now they decline me for "a lack of history." DUH, morons. Doesn't matter that I'm seeking the card through my own bank and they can clearly see I have a robust income and solid savings account, the fact that I've never taken out loans makes me, in their eyes, financially irresponsible. At best, a unknown risk.

Whatever losers, I'll give my money to the not pants-on-head-retarded credit union.
 
2013-06-03 12:33:05 PM
And here I am getting screwed because I never used a credit card ever and just spent the money that I had only to have a ridiculous interest rate on my car loan because I have no credit to speak of whatsoever.

Oh well.
 
2013-06-03 12:33:07 PM

BadReligion: flyinghouse99: So, does anyone know how much balance you're supposed to keep on your card for an optimum credit rating?  Is it 30% or 0%?


FICO is a mystery, but I suspect if you always keep it under 50%, and try to keep it on average below 10%, I think you are good.


It's also a scam..
 
2013-06-03 12:33:10 PM

ISO15693: Headso: dletter: But, that is our current national mindset, buoyed by commercials for Bankruptcy lawyers where declaring bankruptcy is just "something you do, no big deal!".

I wonder if you go into it knowing you are going to file for bankruptcy if you could turn defaulting on your debt into a profitable move.

That's called being unethical, with no sense of personal responsibility or integrity.


Although, if you are racking up $80k in CC debt just on "stupidity" ("Boy, I had no idea you could get in such a hole!"), am I supposed to feel any better about their integrity for them having to go bankrupt?

To be fair to people turning to bankruptcy though,  I have heard that the vast majority that are forced to are because of unexpected medical bills, which goes to another whole thread.
 
2013-06-03 12:33:15 PM

flyinghouse99: So, does anyone know how much balance you're supposed to keep on your card for an optimum credit rating?  Is it 30% or 0%?


I wouldn't worry about it too much, I got my scores recently when I purchased a house and despite all three agencies biatching about my revolving credit utilization being too high (I have a single relatively low limit rewards card that all my monthly spending goes on that I never carry a balance on) I was still around 800 and had no issue securing lending.
 
2013-06-03 12:33:17 PM

here to help: Meanwhile I can't even get one with a measly $500 limit (minimum limit possible) because I made a choice when I was younger and less responsible to NOT get credit cards so I WOULDN'T rack up a bunch of debt being a dumb ass. Pricks.


Umm... banks have secured credit cards so you can build credit... also if you do direct deposit the majority of banks will extend credit...
 
2013-06-03 12:33:43 PM
Just clean your slate every 7 years with a bankruptcy, like a colonic.
 
2013-06-03 12:33:44 PM

1nsanilicious: Where are you getting $80k? The article says $20k, still pretty bad but no where near $80k. Can any individual just out of school get a line of credit for $80k?


"I was around $80,000 in credit card debt before I woke up," says Nagler, author of "The Debt-Free Spending Plan."

It was pretty deep in the article (near the bottom).

Also-

Looking back on how she abused credit, Nagler says, "Other people have parents they can go to for large chunks of change, but that wasn't a possibility for me, so I would say I used credit cards as my sugar daddy."

lol
 
2013-06-03 12:34:28 PM

here to help: Meanwhile I can't even get one with a measly $500 limit (minimum limit possible) because I made a choice when I was younger and less responsible to NOT get credit cards so I WOULDN'T rack up a bunch of debt being a dumb ass. Pricks.


That was ignorant of you.
 
2013-06-03 12:34:42 PM

Egoy3k: what_now: AverageAmericanGuy: There's nothing worse than the feeling you get when the cashier passes a card back to you and tells you it's been declined.

Had that happen the other day while I was overseas. Luckily I had other cards, but I hate to miss out on the free mileage points.

Ha. I had that exact same thing happen. I had told my bank I was traveling, but they shut it off anyway. It's incredibly embarrassing, especially when you're traveling for work and your co-workers are around you.

Oh I hate that.

1)Call bank tell them, "I'm going to be traveling next week to countires X Y and Z please make sure my card doesn't get put on hold for unusual usage patterns."

2)Buy travelers checks because you know they are going to hold the card anyway.


When I went into my bank they just said "We don't have any way to track/register where you plan on being in our system, so telling us you will be somewhere won't help stop your card being suspended, here take a leaflet with the phone number to call 24 hours to unblock it". Which was annoying, but at I knew it was going to happen.

It worked except that leaflet was buried deep in my luggage when I tried to check out (if I hadn't lost it at some point), so I had a A$3000+ bill to the hotel I couldn't pay and the plane leaving in a few hours (after the card had worked fine for 3 weeks and even paid the first weeks hotel bill). Luckily it was business related and we have used the same hotel a couple of times before, so they just said it was fine to go and they would try to recharge the bill early the next week, during which time I got it unblocked.
 
2013-06-03 12:36:25 PM
In the late 80's, early 90's I developed a system of ripping off banks via credit cards by fraudulent applications.  At one point I had 8 different cards with 5 different names on them.  I bought a lot of good things, and eventually traded up to a sweet van.  I lived in that van for 5 years hiding from the banks.  But sometimes rivers flood and next thing you know, you're right on the bank, living in van down by the river!
 
2013-06-03 12:37:18 PM
Pfft... $80k in debt... Typical Naglers.

I have no use for a CC... don't want one... don't need one... don't like using one. Unfortunately... that's not how the game is played. No credit cards... no credit. It's stupid.

So I have one I use once or twice a month for gas... and have an auto-pay set up to pay the full balance each month.
 
2013-06-03 12:39:04 PM
MayoSlather:
Yes, but if we don't have credit cards then how will the economy grow? Increasing wages is certainly off the table.

I disagree.  We should increase executive compensation, that improves the economy, because they spend that money and employ people.  CEO salaries have gone up significantly recently, and look how well we recovered from the last recession.  I don't know about you but my chocolate ration increased from 30g to 25g, life is good.
 
2013-06-03 12:39:15 PM
The bank was greedy and malicious to extend $80k in unsecured loans to someone who can't afford it.  The fault is all theirs.

It serves the bank right to get stuck with an $80k loss.  That's the risk the bank assumes.  The only legitimate consequence that she (or anyone) should get for defaulting on a bank debt is a negative credit report entry.
 
2013-06-03 12:39:54 PM

KrispyKritter: Headso: dletter: But, that is our current national mindset, buoyed by commercials for Bankruptcy lawyers where declaring bankruptcy is just "something you do, no big deal!".

I wonder if you go into it knowing you are going to file for bankruptcy if you could turn defaulting on your debt into a profitable move.

here too. 'piss away' your credit buying gold bars for 4 years, declare bankruptcies. cha-ching.


That... that's not how bankruptcy works, unless you're going to commit fraud.

In a Chapter 7 bankruptcy a third party will liquidate all your assets in order to pay off your creditors. That means they sell most everything you have and use all the proceeds to pay off your debt. Unless you're willing to lie about where the money went (and commit fraud in the process), they'll get it back anyway.

In a Chapter 11 bankruptcy your debt is just restructured, in the hope that you're able to remain solvent under less stringent repayment obligations.

Either way, you don't get away with free money, unless you're willing to commit fraud.
 
2013-06-03 12:39:59 PM

here to help: Meanwhile I can't even get one with a measly $500 limit (minimum limit possible) because I made a choice when I was younger and less responsible to NOT get credit cards so I WOULDN'T rack up a bunch of debt being a dumb ass. Pricks.




You've made this far without a credit card, why do you need one now?

/canceled all my cards almost a year ago and it hasn't affected me
//credit card companies are scum
 
2013-06-03 12:40:26 PM

Killer Cars: That's why I attempt to barter as much as possible. I was really surprised the gal at Nordstrom's wouldn't sell me a $100 pair of pants in exchange for a capybara that supposedly is trained to juggle, according to the Argentinian guy I got it from at the loading docks.


The exchange rate for capybaras has bottomed out lately.  I think someone's been flooding the market with them.

Now, a good Ecuadorian Tree Sloth with an ear for classical music, or a set of boll weevils that are trained in classical Marxist dialectic, that's where the market's heading.  I'd keep an eye out for those, if I were you.
 
2013-06-03 12:41:04 PM
Frankly, responsibility for this sort of thing goes both ways.  Should she have managed her money a little better? Sure, but the credit card companies shouldn't have been throwing free credit at her either.

We are a consumer economy folks, we need people to spend spend spend, not save.  Everything in our economy is geared to encourage spending and taking risk.  We lay the blame on the people who get caught in the crunch and too often gloss over the greedy bankers who have usury down to a science.
 
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