Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Time to pay the Piper?
Old 12-23-2007, 10:24 PM   #1
Full time employment: Posting here.
UncleHoney's Avatar
 
Join Date: Aug 2006
Location: Columbus
Posts: 769
Time to pay the Piper?

Looks like things are getting a little dicey for those who owe.

American's credit card defaults seen surging - Dec. 23, 2007
__________________

__________________
UncleHoney is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-24-2007, 12:24 AM   #2
Recycles dryer sheets
 
Join Date: Apr 2005
Posts: 118
Which means it might get a little dicey for those who have also. If the money is in the market and the credit card debt influences the economy, it might be more than dicey.
__________________

__________________
runnerr is offline   Reply With Quote
Old 12-24-2007, 08:20 AM   #3
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,877
Right now, I feel so fortunate to have neither a mortgage, nor credit card debt, due to my own version of LBYM and preparing for ER in a couple of years. The difficulty people are having in paying their mortgages and credit cards is certainly an unanticipated turn of events. Well, at least I didn't anticipate it.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is online now   Reply With Quote
Old 12-24-2007, 08:42 AM   #4
Recycles dryer sheets
 
Join Date: Apr 2005
Posts: 118
About twenty years ago, I started thinking, “what is going to happen when all these people in credit card debt have to pay up.” When that happens what will be the consequences to those of us who have sacrificed to gain the position we are in? To tell you the truth I am a little scared.
__________________
runnerr is offline   Reply With Quote
Old 12-24-2007, 08:43 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
dex's Avatar
 
Join Date: Oct 2003
Posts: 5,105
We must be at the bottom - this is the third posting about this.

http://www.early-retirement.org/foru...tml#post592663
__________________
Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral
dex is offline   Reply With Quote
Old 12-24-2007, 09:16 AM   #6
Recycles dryer sheets
poboy's Avatar
 
Join Date: Jan 2006
Posts: 362
Get what you want, pay the minimum each month and then......when that gets in the way of important things, like the power bill or food.
__________________
Fat, drunk, and stupid is no way to go through life, son.
poboy is offline   Reply With Quote
Old 12-24-2007, 10:52 AM   #7
Thinks s/he gets paid by the post
 
Join Date: Aug 2006
Posts: 1,358
Did anyone else read this as good news? If defaults are under a billion after the recent uptick, I'm not going to be worried yet.

I would expect things to get worse after Christmas, as people who charged their way through the holidays have to cope with the bills.

This report doesn't seem terrible though.

Everyone's been talking about the complete collapse of our credit system, but this doesn't feel like the end of the world.
__________________
Hamlet is offline   Reply With Quote
Old 12-24-2007, 11:34 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,465
Folks on CNBC this morning were talking about the next credit crisis being auto loans, and how there is a whole lotta bad auto paper floating around out there....

But at least auto loans don't have adjustable rates (or did I miss that?), and the payments are a LOT smaller than a house payment....

Gosh, still shaking my head at all the investment houses that took on all this risky commercial paper!

And how can the banks get away with hiding this stuff "off the books"? Huh?

Audrey
__________________
audreyh1 is offline   Reply With Quote
Old 12-24-2007, 12:29 PM   #9
Thinks s/he gets paid by the post
OAG's Avatar
 
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,598
Many Auto Loans over the past 3-5 years HAVE been interest only loans with Balloon Payments coming at the end of the IO period, usually at the end of the loan term. The thing is with these types of loans your down payment may have been 0 and the collateral (the car) is now 3-5 years old and if you have one of these you are "up-side-down" on the deal. The numbers are not that big but if you are a lending institution with a lot of these you may have a bit of a fire sale on used cars coming your way.
__________________
Vietnam Veteran, CW4 USA, Retired 1979
OAG is offline   Reply With Quote
Old 12-24-2007, 12:30 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,465
Oh boy, here we go again!

Audrey
__________________
audreyh1 is offline   Reply With Quote
Old 12-24-2007, 12:35 PM   #11
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,102
Quote:
Originally Posted by R Wood View Post
... if you are a lending institution with a lot of these you may have a bit of a fire sale on used cars coming your way.
http://www.early-retirement.org/foru...omy-32048.html
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 12-24-2007, 12:43 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,881
After all of my stash is spent and I am 102 years old, my final financial move will probably be to max out all of my CCs and, when I die, all of this unsecured debt will have to be written off by the CC companies. Blaze of glory....
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Old 12-25-2007, 04:31 PM   #13
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,099
Quote:
Originally Posted by mickeyd View Post
After all of my stash is spent and I am 102 years old, my final financial move will probably be to max out all of my CCs and, when I die, all of this unsecured debt will have to be written off by the CC companies. Blaze of glory....
13 years back when my mom had cancer, Dad kept telling about all the stuff she was buying from catalogues on the 'never never'. He managed to intercept some but most he couldn't return. I was living in the USA while they were in England so it was difficult to help. She died within 6 months and when I went over for a couple of weeks to help sort out finances etc I was dreading the worst. I had written a will for each of them some years earlier - they have simple affairs.

Turned out mom was smarter than we imagined under all that morphine. For all her purchases she had signed for insurance which added a small percentage to to the cost of the goods, so we simply sent copies of the will to the catalogue companies and the debt was cleared immediately, no comeback at all. Turns out there was no check to stop folks with terminal cancer who had excellent credit from running up big accounts backed with this extra 'term insurance'
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is online now   Reply With Quote
Old 12-26-2007, 12:46 PM   #14
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 16,532
Quote:
Originally Posted by runnerr View Post
About twenty years ago, I started thinking, “what is going to happen when all these people in credit card debt have to pay up.” When that happens what will be the consequences to those of us who have sacrificed to gain the position we are in? To tell you the truth I am a little scared.
Why? If a bunch of other people lived beyond their means and now have to pay the piper, why is that your concern? I see lots of garage sales, except we don't need any more "stuff".

Maybe I'm missing something....
__________________
I heard the call to do nothing. So I answered it.
Walt34 is online now   Reply With Quote
Old 12-26-2007, 12:48 PM   #15
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 16,532
Quote:
Originally Posted by mickeyd View Post
After all of my stash is spent and I am 102 years old, my final financial move will probably be to max out all of my CCs and, when I die, all of this unsecured debt will have to be written off by the CC companies. Blaze of glory....
Yeah, I like that idea, but only if wife goes first.
__________________
I heard the call to do nothing. So I answered it.
Walt34 is online now   Reply With Quote
Old 12-26-2007, 08:42 PM   #16
Thinks s/he gets paid by the post
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 2,951
Another thing that strikes me is the HUGE margin many are paying on CC debt like 18% or more plus the merchant fee collected at time of sale. When I had a new card stolen from my PO Box and $3000 in unauthorized charges run up, the credit union was extremely quick to write it off and get me a new card no questions asked.
__________________
jazz4cash is offline   Reply With Quote
Old 01-02-2008, 09:54 AM   #17
Full time employment: Posting here.
 
Join Date: Sep 2007
Posts: 514
Quote:
Originally Posted by Walt34 View Post
Quote:
Originally Posted by runnerr
what will be the consequences to those of us who have sacrificed to gain the position we are in? To tell you the truth I am a little scared.
Why? If a bunch of other people lived beyond their means and now have to pay the piper, why is that your concern?

Maybe I'm missing something....

I think perhaps he's apprehensive after witnessing the sympathy and aid being extended to homeowners who signed up for mortgages they couldn't afford. The aid being offered in that case will eventually be funded by those who were otherwise responsible with their mortgage, yet will end up paying part of the price anyway, to bail out the irresponsible ones. Maybe he's afraid a similar "let's-all-chip-in" mentality will prevail to help save these peoples' boats and cars the way we're saving their homes.
__________________
kombat is offline   Reply With Quote
Old 01-02-2008, 12:32 PM   #18
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 16,532
Quote:
Originally Posted by kombat View Post
The aid being offered in that case will eventually be funded by those who were otherwise responsible with their mortgage, yet will end up paying part of the price anyway, to bail out the irresponsible ones. Maybe he's afraid a similar "let's-all-chip-in" mentality will prevail to help save these peoples' boats and cars the way we're saving their homes.
That is a concern and I've already written my congresscritters about not bailing out idiots who can't use a $5 calculator. That's about all I can do about it.

"Overdrawn? I can't be. I still have checks left."
__________________
I heard the call to do nothing. So I answered it.
Walt34 is online now   Reply With Quote
Old 01-02-2008, 04:52 PM   #19
Full time employment: Posting here.
 
Join Date: Aug 2007
Posts: 961
Quote:
Originally Posted by Want2retire View Post
Right now, I feel so fortunate to have neither a mortgage, nor credit card debt, due to my own version of LBYM and preparing for ER in a couple of years. The difficulty people are having in paying their mortgages and credit cards is certainly an unanticipated turn of events. Well, at least I didn't anticipate it.
Now with the barrel of oil hitting $100 - I do beleive that people will have a harder time paying their bills, mortgages, for gas & heating oil, putting food on the table, etc..., etc...

One can only hope that our poor and our elderly who live on limited incomes survive.

GOD BLESS
__________________
War is a poor chisel to carve out tomorrow. - Martin Luther King Jr.
Seek peace, and pursue it. - Psalms 34:14
Be kind to unkind people - they need it the most - by Ashleigh Brilliant.
Wags is offline   Reply With Quote
Old 01-02-2008, 04:59 PM   #20
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,877
Quote:
Originally Posted by Wags View Post
Now with the barrel of oil hitting $100 - I do beleive that people will have a harder time paying their bills, mortgages, for gas & heating oil, putting food on the table, etc..., etc...

One can only hope that our poor and our elderly who live on limited incomes survive.

GOD BLESS
I know -- I hope things get better soon!

Again I seem to have the luck of the Irish (even though my ancestry is Scottish), because I only buy about 150 gallons of gas a year. Even if it went up another $10/gallon, which it won't, I could manage. But what about those in places like California who have 60 mile commutes each way, in order to find housing they can (barely) manage to pay for? It's going to be rough on them. And we don't really need very much heat in New Orleans. But as you point out, the poor and elderly will have a rough time, especially heating their homes in colder climates.
__________________

__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Pay $15K upfront to pre-pay 20+ years of oil heat bills??? farmerEd Other topics 16 02-14-2008 07:46 AM
full-time vs. part-time tradeoff WM Young Dreamers 14 01-18-2007 06:39 PM
Time to pay up. dory36 Other topics 17 11-30-2006 04:22 PM
Military pay (ECI) vs military retiree pay (CPI) Nords Other topics 0 11-05-2005 11:51 AM
tardus finacial ,pay det off in no time *pstd b-4 zuki FIRE and Money 19 04-20-2005 03:19 PM

 

 
All times are GMT -6. The time now is 03:20 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.