Mostly: Classical

[Sexton O Blake]

Re: Our parents did not have credit cards and big car loans.

Well at 35, neither have I. On my second car (in my life; only own 1 car), in a town house (put 25% down - and that was a $200K CDN townhouse to boot; apparently worth $300K now if anyone can believe it because I can't). Two kids, stay at home wife. Never a credit card balance outstanding. Never. Only loan is a mortgage (basic; monthly; non-accelerated). Only thing I did do was borrow against retirement savings to raise the downpayment and lower the monthlys (evil perhaps but happily I am close to repaying that in full about 50% earlier than allowed). --- and not to mention a modest sized portfolio to manage - not bad for my age.

But most people I know - battle with car loans or leases; have higher mortgage payments due to lower downpayments; have credit card debt. RSPs or RESPs? What the FCUK is that? May or may not have two cars; both people work; maybe kids. But the car is probably far newer than mine and the lifestyle affords trips and the like regularly. My last trip was 97. Before that about 5 times in a row to Vegas in the early 90's. Spend spend spend.

All I hear - ALL I HEAR is credit card debt. No mortgage debt. This article was the first to mention "mortgage debt is larger than credit card debt". Since when is mortgage debt bad? (he didn't think so) Perhaps when you are barely making the payments and/or you are using the home for line of credit to pay off the credit cards? Only two reasons I know. If Mortgage was the only debt (mine) I would be laughing. (that is me chuckling by the way).

I listen to Suze Orman (yeah, the l0zer on CNBC who is telling people how to avert financial disaster - like a Porno Star turned Preacher is more like it - since she was bankrupt before). Anyways, I hear these calls "my husband has a credit card debt of $50,000" "we have cc debt of $25,000" ALL THE TIME! Even 100,000!! It is outrageous.

I can't fathom how people live month to month paying out so much credit card interest. Yes the occasional and even running a balance of $5K over time is manageable. But these numbers are massive - and it is as rampant as obesity. Seriously. Somehow people out there think they can drink, spend and eat with no reprecussions. Drugs? Thats another Trick of the Tail..

I had to point out your statement of "our parents" because I don't see buying more than I can afford. Never have. I wanted a lot whilst in school - but when I got my first job in Mar 13, 1989, I bought nothing until that fall - even then it was a few modest home electronics. In the spring of 90 a modest used car - paid cash. Deferred payments - don't touch them. Managing the use of the credit card to the hilt - almost everything goes through it - but always pay on time. Right now I have about $1500 in free travel from Royal Bank thanks to using the credit card from 97.

I had to chuckle - a pair in the office I worked - the guy leased a car. (to me the only purpose of leasing is for business use only; regular joes that lease - paying far too high a premium to have the smell of new leather instad of ass under their "seats"). Anyways, I can't tell you if it was our fault but we mentioned - "you better watch the mileage - unless you prepaid or got a good fixed amount, you might pay through the nose when you turn it in". The trip was about 40KM/day. I have no idea on the numbers for the lease. So what do you think happened? His girlfriend, who turned in two ways -- she became his wife and she wore the pants in the family -- leased a car (!!!!) Because they realized that perhaps they would have problems and figured if they alternate driving, the mileage would be sufficient. Now chuckle. Unreal.

BTW: It is always cheaper to rent if you don't plan on staying in a home for more than 5 years since the interest part is higher than the principle.

Anyways, I rather look at how long it takes to buy a car with my wage. Seeing as hopefully everyone gets to a point and move to a bigger/better home - I think comparing to the mortgage has less of an impact. Cars today are more than they were - but then again they are better too. But every 5-10 years you need a new/different car..

My tree cents anyways.. now to off to have a caufee..
Cheers!

PS: I wondered all day how I could get the words PORNO and PREACHER in the same sentence..

EDIT: I may be atypical of most families - but that cuz Johnny jumped off the bridge, doesn't mean everyone should follow. I am happy that I can control my expenses and have a portfolio to manage and not have outrageous debts. I just see the everyone out there spending with disregard. I don't agree with it. If I am not the norm, so be it. If I can make money from their heartaches (via the likes of AXP), even better.