So I'm watching TV, and the people are

G

GeorgiaXplant

Well-known Member
Location
Georgia
"spending money they don't have" and living large in a big house, own a boat and lake property, expensive cars, eat out. How is that possible? I mean...I get that you can spend on credit cards, but eventually they'll be maxed out. What happens where there's no more "money" on the credit cards? What am I missing?
 

Yabbut how do they keep spending if there's no money to spend? It's not like you can waltz into a supermarket, load up with groceries, and waltz out the door without paying. Or pull up to the gas pump, fill up, and drive away. How would they keep the utilities on or pay the phone bill? There are some things that just plain REQUIRE money.
 

Many decades ago my buddy somehow figured out one can max out credit cards then not pay any of the bills and then get more credit cards without blinking. He never told me how he did it and actually I was not interested.
 
A few years ago our business partner was buying and selling used Rolls Royces. A guy flew into the local airport in a private jet and looked at the car. Said he wanted to have it taken to Florida. Long story short, our business partner was so awed over the fact the guy smooshed him and had a jet, he let him have the car picked up without getting the money first. He never did get the money and later it was traced to a "chop shop" in Florida.

These folks have more ways of impressing people and getting "free stuff" than you could ever imagine. Even when they make good money, some will live larger than life (over the top) and supplement their "income" with
these scams I'm guessing. It does take two to tango though, doesn't it.
 
GeorgiaXplant said:
Yabbut how do they keep spending if there's no money to spend? It's not like you can waltz into a supermarket, load up with groceries, and waltz out the door without paying. Or pull up to the gas pump, fill up, and drive away. How would they keep the utilities on or pay the phone bill? There are some things that just plain REQUIRE money.
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I used to work with a guy who told me he would take turns with his wife maxing out credit cards and whatever loans they could get on his credit, they would ride that out as long as they could around 5 or 6 years, then he would file bankruptcy and the wife would take her turn on the credit wheel and she would eventually file bankruptcy. I'm not sure how true this story is, but it sounds feasible.

There are so many people living beyond their means these days, it's nuts.
 
GeorgiaXplant said:
"spending money they don't have" and living large in a big house, own a boat and lake property, expensive cars, eat out. How is that possible? I mean...I get that you can spend on credit cards, but eventually they'll be maxed out. What happens where there's no more "money" on the credit cards? What am I missing?
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Not much to go on. What program were you watching?
 
"....ValuePenguin found that more than 40% of all US households carry credit card debt, with the average American household carrying a balance of $5,700. For only indebted households, which excludes people who pay their balances in full every month, the average debt is $9,333.Aug 9, 2018...".
The median debt is only $2300. If you look at credit card debt by age, aged 35 to 65 are significantly higher that overall average.
For some people, bankruptcy is the answer. But according to stats, 2/3rds of bankruptcies are caused by medical debt.
 
GeorgiaXplant said:
"spending money they don't have" and living large in a big house, own a boat and lake property, expensive cars, eat out. How is that possible? I mean...I get that you can spend on credit cards, but eventually they'll be maxed out. What happens where there's no more "money" on the credit cards? What am I missing?
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Curious...how do you know how much money they have or don't have? Were they on a show about financial intervention for people who overspend? Truthfully, I wonder the same thing about very young people on the house hunting shows that can afford $750,000 (and up) homes, then talk about loving the neighborhood because they can entertain and eat at all the restaurants and yes, maybe buy a boat (if waterfront homes). Where are they getting all this money? Maybe they've gotten an inheritance, maybe they have high power jobs or successful businesses. I don't know.
 
They must have had a bundle of money because the husband quit his job in a fit of pique, turned into a drunk/drug addict, and spent...I forget...many months in rehab. Those people on the house hunting shows...LOL. Nice house but it's all going to have to be gutted and redone, of course, and that after they spend $100K more than their "budget" allows. He: runs a shoe repair business and has a side gig selling colored pencils to upscale daycare centers; she: illustrates children's books part-time but only part-time because she travels a lot as an entrant in professional dance contests. Or some such!;)
 
GeorgiaXplant said:
They must have had a bundle of money because the husband quit his job in a fit of pique, turned into a drunk/drug addict, and spent...I forget...many months in rehab. Those people on the house hunting shows...LOL. Nice house but it's all going to have to be gutted and redone, of course, and that after they spend $100K more than their "budget" allows. He: runs a shoe repair business and has a side gig selling colored pencils to upscale daycare centers; she: illustrates children's books part-time but only part-time because she travels a lot as an entrant in professional dance contests. Or some such!;)
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ROFLM*O Georgia!! 😂😂😂
 
The only time I have $1000 on a credit card is when my car and house insurance is due. I put them both on a rewards card and pay off at the end of the month. Each month I have a set amount deposited to a separate savings account from my regular account and both pay interest. When insurance bills come I put on rewards card, pay 10 days before due from savings account that has a little interest on it. The rewards card is a Kroger credit card that gives points. They send me a $20.00-$30.00 check to be used at Krogers only depending on how many points I have. I try to put everything on that card as the points add up and you get double points for in store purchases. Right now I have a $20.00 check to be used next time I shop. Will spend when there is a good sale on things I need. Doesn't sound like much but a few dollars here and there add up. I am going to pay the bills anyway so I might as well get a little extra money where I can.
 
In order to maintain the lifestyle of the typical American family as depicted on TV a minimum income of $500,000 per year would be required. This is by design in order to brainwash the public into believeing that they are behind everyone else and need to spend more to catch up.
 
In my town, Austin, there are many, many multi million dollar homes all over the place. This new highrise that just opened, has $4M units, and it's sold out! Yeah, where are these people getting the money for this type of spending? Janet always tells me that I'm in better shape than most of them, since I own everything in my realm, free and clear. She has said that she's willing to bet that most of the lush life folks are probably so far in hock that they will never be out of debt, in their lifetimes. I could never hack having payments over my head. My folks always said, "If you can't afford to pay cash for something, you can't afford it, and probably don't really need it." Right or wrong, I learned that lesson, well, and my life has been fine, for learning it.
 
treeguy64 said:
My folks always said, "If you can't afford to pay cash for something, you can't afford it, and probably don't really need it." Right or wrong, I learned that lesson, well, and my life has been fine, for learning it.
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I had the same kind of parents, and their lessons have served us well. The last "interest" I paid was back in the early/mid 1980's when we made our last house payment. Now, if I don't have the price in my wallet, or checkbook, I probably don't need it.
 
GeorgiaXplant said:
"spending money they don't have" and living large in a big house, own a boat and lake property, expensive cars, eat out. How is that possible? I mean...I get that you can spend on credit cards, but eventually they'll be maxed out. What happens where there's no more "money" on the credit cards? What am I missing?
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Living beyond our means is irresponsible imo. In other words, more money going out than coming in. People are doing it all the time though, and I think especially young people that don't quite understand the pitfalls of that, are falling for the "Gold Plastic" and getting all they want (they think) at once instead of learning early on about wisdom in managing your money.
 
Some experts suggest that you can afford a mortgage payment as high as 28% of your gross income. If true, a couple who earn a combined annual salary of $100,000 can afford a monthly payment of about $2,300/month. That could translate to a $450,000 loan, assuming a 4.5% 30-year fixed rate.

And that's how they do it. They never really intend to pay it off, it's just an investment. By the way, two engineers that are married can make well over 100K. Not me, but I know there are allot of them.
 

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