What is your monthly payment? Please read.

I put down 10k on my 16 SR.

$272 a month until 2020

 

Not sure I follow. I was replying to Sterdog's comment of "If Americans stopped living the way they do, by racking up debt, then the world economy would collapse in a few hours."

If an individual or family decides overnight to start living below their means that is a great thing. "Money in the bank" sufficient to cover your bare essentials for months or even a couple years (with substantial belt tightening) drastically reduces stress. It's difficult to get there though with all the marketing in our faces about how happy we'll be if we just buy the advertised stuff... then when that wears off we go buy our next "fix"... and pretty soon we're spending money to rent a storage locker to put all the stuff we bought but have no place to put. Where does it end?

IMHO, credit card balances that are paid off each month don't count as "debt" -- particularly if you already have the money you're spending and you're using the card for its benefits such as 2% cash back.

 

I think the global effect would be different, at least in the short timeframe you mentioned. But for a household it could for sure.

Agreed too that we are a society who thinks about "stuff". I'm guilty of that myself..I have a few old bikes I could live without and sure can't use more than one at a time but it's nice to have and some I wanted even when I was a kid. I'd like to get my pool table in my house and assembled too. Not stuff I can't live without of course.

Fair point on the credit cards especially if used for bonus stuff. I don't have one of those but my rate is so low I can't complain. In my case it is more what I buy with it. I could survive without concert tickets to be sure.

 

We must be talking about different things. I'm not seeing how one typical household could affect the world economy in any appreciable manner, let alone cause a collapse.

I honestly have no idea what my credit card interest rates are. I never carry a balance over; as such I never get charged interest and don't pay attention to the rate. My everyday card is a Citi 2% cash back on everything, though I also have a Costco card that gives 4% cash back on gasoline and 3% on restaurant purchases.

Additionally, credit cards are much better than debit cards if/when your card gets compromised. A friend had her debit card number stolen; although she ended up getting her money back, she spent hours on the phone with various places straightening it out. The fraudulent charges reduced her balance enough that some auto-pay items bounced before the fraud was caught and the money put back. Huge headache.

Contrast to having a credit card number stolen. My issuer texted me to ask if a particular charge was valid and I texted back that it wasn't. Called them and spent five minutes on the phone validating that my card was in my possession and which recent charges were valid. They sent me a new card with a new number in a couple days and I used a different card in the interim. Minimal hassle.

I'd much rather be disputing money that it's claimed I owe than disputing money that's already been taken away.

 

Solid advice! I do the same with one of my cashback cards, literally purchase everything on it then pay the full balance when due. Never, ever use my debt card unless I need to get cash.

 

Or I'm being a moron and not saying it right, oops. I mean on a small scale one bad event could cause one's own personal economy (household) to change fast.

Think mine is 7%, $2500 limit. I rarely use my debit other than to hit the Magic Money Machine (yes at my own or a similar bank that doesn't charge, which I think is insane).

Good point about the disputing. I forget if it was my debit or credit but same thing happened when I was in Vegas, they texted asking if it was me and I said yes. Called and 5 minutes later good to go.

 

I use my CCs for everything too--debit for cash at an ATM only. Rewards are the main reason for that.

My two credit cards are pretty high interest, something like 15-20%, and about $12k in limits between the two of them. But those numbers are irrelevant to me because I never carry a balance and don't think I've ever had a statement post with more than about $1500 on it.

 

How do they calculate credit limits anyway. My bank CC has a $25,000 limit yet sits at 0 balance 99% of the time. I never use it but every couple years they raise it. There's no way in hell I'd ever put that much on a card anyway.

 

One of mine started low and they've automatically raised it over time. Usually every 6 months or so. The other one has just been sitting at what it was approved at 6 years ago, but it's my emergency backup card if my other one won't work or something, so I don't care about that. It just sits at a 0 balance all the time anyway.

I think it's based on credit score/report, just like the initial approval is.

 

Versus mine which I've had for 20 or so years. $2500 and never went up. I bet I could ask for more but I see no need to. My wife has a 10K card for dire emergencies which has only happened once.

 

They bump it up if you don't carry a balance. In college, I had a 9k limit and I made around 1k a month at my job... it's because they want you to be stupid and spend more than you have so you accrue interest. Same reason CCs have cash back incentives to make you spend.

OP, I don't know how old this thread is or if you've made your decision, but I'm in almost the same boat as you in timing of life/moving in with GF and income. I'd reccomend a cheaper vehicle to start out. GF and I just bought a 2016 Civic turbo. Put 13k down, our payment is 190 a month for 60 months. If we tried to do a new Tacoma, it would be around 450 a month with 13k down.

Look into used second gens. Go to a credit union and get a loan to pay for one of those. The third gen is just too damn expensive for us starting out.

 

Okay, thats what I thought you might be getting at...

Yes, many people ride so close to the edge that they have no room to absorb the bumps that life will deliver. The various penalties and charges that incur with late/missed payments can create a heck of a cascade that piles on faster than they can dig out from under.

This is exactly why I stressed financial conservatism with my kids. Spend less than you make. Build up a nest egg and learn not to go on a shopping spree when you see a comma in your bank statement. I've also found I tend to buy less big ticket stuff when I force myself to save up for it... seems like the time spent waiting helps filter out the stuff I'll really find worth it from the stuff that I wouldn't.

(and yes, the only time I use my debit card is at my bank's ATM for a deposit or to get some cash)

 

My parents are very frugal, always have been. Neither I nor my sister followed the lead, though debt was at least not my thing. She had 12k in credit card debt at 20 yrs old and barely worked.

That happened to me 2 yrs ago but mainly because a job on my bathroom turned out a lot worse, both in terms of what was needed and my inability to do most of it myself. But that's life. Just got very strict with spending and made do for the time being.

 

minimum payment is around 500, financed about 15k over 36 months, but will be payed off in less than 12.

i have learned some lessons earlier. working full time and paying my way through school and living independently, i had several cc's with about 35k about maxed. before i graduated i started renting a place just out of my budget knowing i was going to graduate. everything was going on the cc's: tuition, books, rent, food, motorcycle. then the market crashed and i couldnt find a job in that market. ending up moving to a cheaper place and filing bankruptcy. ah, life...

 

OUCH... Hope you were able to bounce back from it.

 

Hey guys its been awhile! but today i pulled the trigger! i got one!

 

Congratz, thanks for the follow up. Any details?

 

Congrats!

 

$0.00. Paid off in cash. Took 3 years to save up.

 

2017 tacoma sr 4x4 access cab 5 speed 4 cyl with convenience package!