How can people get in debt?

At the till when the cashier asks if I‘d like the receipt, I always say yes. I rarely hear anyone else doing this. It might help people if they did this and looked back at the end of the day or week. Or they take the receipt and just toss it directly into the nearby trash.

I wonder how many actually review their debit or credit card statement. They might see the pattern to their overspending.
 

Jules said:
At the till when the cashier asks if I‘d like the receipt, I always say yes. I rarely hear anyone else doing this. ...
I wonder how many actually review their debit or credit card statement. ....
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I have my card set up to send me notifications so I wish they wouldn't foist those little receipts on me.

I wasn't good at reviewing my credit card statement until after I retired (back in the paper statement days they would sit unopened in a drawer until enough accumulated to be worth the effort of getting the shredder out of the closet).

Now that I review the online statement all the time I've noticed some of the charges have payment offers under them (such as, pay in three equal payments instead of the whole thing at once). I don't know if those offers charge interest or not, maybe they are to encourage a person to spend more now?
 
I think the more important question is "how do some people keep falling into unmanagable debt?" Almost everyone will experience carrying some debt at some point, new house, new car, unexpected job loss, etc. Most of us learn debt sucks, and then learn how to avoid it.

What I don't understand are those that are always living with unnecessary debt. How does experience not teach you how to manage money? Don't take a vacation you can't afford, buy a $30k car instead of a 70k, buy a modest home instead of an estate, eat dinner at home. EXPECT and PREPARE for emergencies.

Seems simple, yet many never figure it out, or aren't willing to sacrifice a little today to ensure a better tomorrow.
 

HoneyNut said:
I have my card set up to send me notifications so I wish they wouldn't foist those little receipts on me.
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I get notifications too. The receipt is proof that they charged the right amount; sometimes I get home and wonder why the bill seemed so high. Mistakes can happen. It can prove that you bought something that needs to be returned. My husband has even caught a double charge.

For those with bad spending habits, if they had every receipt and reviewed them weekly, they might spot their problems.
 
Here's my plan. I no longer have any immediate family, and no reason to leave any estate to anyone, so once my health gets much worse, I'm going to spend every stinkin' penny I have, and run up every credit card to the max. Maybe an around the world cruise at the very end. Then once I die, there will be no estate or cosigners to collect from. The credit card companies take that hit. My goal is to have $100k in debt and zero assets.

I'm not in a hurry to do this, but since I was recently told I have Congestive Heart Failure, low kidney function, Restrictive Lung Disease, as well as the previous Diabetes, high blood pressure, neuropathy, prostate problems, etc, it may be sooner than I think. The only down side risk would be that if I lived too long.
 
Jules said:
At the till when the cashier asks if I‘d like the receipt, I always say yes.
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I ask for and save ALL receipts for anything I purchase. I go over them at the end of the year to see how much I spent on this and that.

My dad was so debt-fearing, when he received a bill for anything, he'd rush home, immediately write a check and drive back to the Post Office and mail it out.
 
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Judycat said:
Medical debt. Gambling debt. Don't file taxes for years. Falling in love with the first person who shows interest and keep doing that no matter how much money they scam out of you. Start a business then don't bother with a bookkeeper. Get a credit card and keep spending and begging them to raise the limit because you have a certain lifestyle to maintain.
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Fortunately, I'm not in either - -Medical or Gambling, but to put them both on an even plane seems ludicrous.
Gambling is a voluntary choice ( although some would say it's a mental problem beyond their control), while a Medical problems ( heart attack, car crash, pneumonia. etc..}is truly beyond the control of most of us.

Medical situations deserve our compassion but IMHO, for the most part, gambling situations do not.
 
Carrying more than a modest amount of monthly debt, which is paid off soon after the bill arrives, can be a financial drain. Major purchases....house, car, etc., require debt for most people, but paying the minimum on a credit card bill, etc., is a sure way to wind up with money problems.
 
gruntlabor said:
Words and promises and assurances are reversible. No-one necessarily owes us medical care. No-one even owes us food. At present, the world is sympathetic with the needy, but that may be temporary.
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I don't feel like I'm owed medical care. During my entire working life I paid SS and Medicare taxes so I would have additional income and healthcare in retirement. It is, in my way of thinking, prepaid, not free, not an entitlement but a product I've already purchased. Universal healthcare like in Canada, and I'm certain in England as well, is paid for through taxes. Everybody pays, everybody benefits. The American system is profit based and it is the number one cause of bankruptcy in the America.
 
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hollydolly said:
This seems to be the most unfair.. because the time when most of us need healthcare more than ever is as we become older . I wonder if the US could implement a law whereby everyone be required to have some level of medical insurance under retirement age, and from then on.. be entitled to socialised care ..
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This was, to a degree, attempted under the Obama administration. It's called the Affordable Care Act but is commonly know here as the affordable care act. The Republicans voted 100 times to try to repeal this act which actually did make healthcare affordable to millions of lower income people. Most civilized countries look at healthcare as a right, here it's viewed as an opportunity to produce profit. It's nothing more than a business.
 
debodun said:
How can credit card companies make any money if people pay their balances?
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Credit card debt tops $1 trillion, trapping even six-figure earners
High-income households are more likely to carry credit card debt for at least a year, and many for more than five years

by Michelle Singletary
August 8, 2023 at 6:21 p.m. EDT

A report from Bankrate found that 60 percent of those who carry a balance on their credit card — or 54 million Americans — have been in debt for at least a year. Overall, nearly half (47 percent) of credit cardholders have revolving debt, meaning they don’t pay off their balance in full.


https://www.washingtonpost.com/business/2023/08/08/credit-card-debt-1-trillion-high-earners/
 
When I was working, I was often required to drive long distances (4 to 7 hours). I had Sirius radio in the car, and I would often listen to the Dave Ramsey show. This is NOT a Dave Ramsey endorsement. People would call in for financial advice, and Dave would collect a quick history: what's your family income, how much do you have in savings, how much do you have in your 401K, how much is your mortgage, car payments, etc. I was shocked at the amount of debt people are carrying—not just lower-income or middle-class people, but lots of really high-income earners are deeply in debt. The stories were fascinating. Not a Dave Ramsey fan but I did enjoy the show.
 
At my last job, I worked with a bunch of young-ish ladies who had fairly high-paying jobs (I know because I did payroll), but who couldn't seem to hold onto money. Why? Because they were mad for luxury goods and concert tickets and clubbing.

They constantly complained about not having any money but always managed to have a good time and buy purses. Especially purses, for some reason. For example, one who was always complaining about her finances came in one day with a new purse that she proudly announced that she had paid "only" $350 for. It normally was $1,000, so, to her, it was a GREAT bargain. The fact that she didn't have an extra $350 to spend on it didn't faze her.

So, a month later, she sells the purse to one of the other ladies for $200 because she desperately needed money. She didn't look on that as a loss, though......

I know that most of them were only paying the minimum on their charge card balances, because they were always discussing it.

And this is how they get in debt......and can't get out....
 
Jules said:
I wonder how many actually review their debit or credit card statement. They might see the pattern to their overspending.
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I have found errors on my CC statement more than once over the years. If I hadn't checked, I'd have paid more money than I should. Some over charges, double charges or fraudulent charges. All were corrected.

And your right about seeing how your money has been spent over that month also.
 
Flarbalard said:
It depends who you are and where you live. Before Obamacare, in the state I lived in if you were under 65, not considered disabled, or not the legal guardians of minor children, there was no aid available. I don't know if that has changed now, but they did refuse to expand medicaid under Obamacare.

I knew a couple of folks that were affected by that. Having a job doesn't mean you have adequate insurance. Both eventually filed bankruptcy, but that did effect some of their on going treatment options.

Where I live now, to the best of my understanding, that is not the case and some assistance is available.

My life long friend would love to retire, however because his medical coverage is so good through his job he can not. If he does, his wife (she's still in her '50's) who has a very serious condition wouldn't be able to get the level of care she currently receives. Some of that care has been live saving. He's told me a little bit of what some of this costs, and I really don't know many millions of dollars one would have to have if you were to self insure.
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If your friend retired his wife could get insurance under ACA but it’s likely to be more expensive than her husband’s work plan.
 
I got upside down quite easily with credit cards as a young man. Important life lesson learned - be the banker.
 
debodun said:
How can credit card companies make any money if people pay their balances?
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They charge the businesses 1%-3% per transaction. ".... Merchant processing fees added up to more than $105 billion in 2021. These costs represent what businesses pay to credit card brands (such as Visa or American Express) in order to process consumer payments when they pay by card. Swipes typically amount to 1% to 4% of the purchase price, but can vary by merchant and type of card. Then, these expenses are baked into prices passed along to consumers.....".
 
Rich said:
I don't feel like I'm owed medical care. During my entire working life I paid SS and Medicare taxes so I would have additional income and healthcare in retirement. It is, in my way of thinking, prepaid, not free, not an entitlement but a product I've already purchased. Universal healthcare like in Canada, and I'm certain in England as well, is paid for through taxes. Everybody pays, everybody benefits. The American system is profit based and it is the number one cause of bankruptcy in the America.
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:) Hello Rich,
1) Of course you are 'owed' medical care. You paid for it, hence it is owed to you. However, the person who ordered your payments can also un-order them. I'm just sayin'. Nothing in this world is guaranteed, or known for certain.
2) I paid SS and Medicare for a different reason. I paid because my income was taken from me by force.
3) Entitlements are not free. They are bought by government, but dearly paid for by the taxpayers.
4) Your 'Everybody pays, everybody benefits' equals communism.
5) I can't even leave without government permission ie a passport.
6) Our profit-based system worked beautifully in the past. Until government knew 'better'.
Just another opinion, everybody's got one..
 
C50 said:
I think the more important question is "how do some people keep falling into unmanagable debt?" Almost everyone will experience carrying some debt at some point, new house, new car, unexpected job loss, etc. Most of us learn debt sucks, and then learn how to avoid it.

What I don't understand are those that are always living with unnecessary debt. How does experience not teach you how to manage money? Don't take a vacation you can't afford, buy a $30k car instead of a 70k, buy a modest home instead of an estate, eat dinner at home. EXPECT and PREPARE for emergencies.

Seems simple, yet many never figure it out, or aren't willing to sacrifice a little today to ensure a better tomorrow.
Click to expand...
Both of my siblings were always in debt; if they saw something (in a store, in an ad, they saw I had one, etc.), their reaction was, "Oh, I want that! How come I never get what I want?! My life is so unfair! You know what? I'm gonna go ahead & just buy it! I am sick and tired of never getting what I want; I don't care about the upcoming bills!" And then their bills would come due and my mom would get out her checkbook and the cycle continued 'till Mom died.
 
Teacher Terry said:
If your friend retired his wife could get insurance under ACA but it’s likely to be more expensive than her husband’s work plan.
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It's not that they can't obtain insurance, they can't find any that will cover many parts of her on going treatment that would have to be totally out of pocket. I suspect he's willing to delay retiring because it may not be that much longer that she'll be incurring these bills.
 
Rich said:
When I was working, I was often required to drive long distances (4 to 7 hours). I had Sirius radio in the car, and I would often listen to the Dave Ramsey show. This is NOT a Dave Ramsey endorsement. People would call in for financial advice, and Dave would collect a quick history: what's your family income, how much do you have in savings, how much do you have in your 401K, how much is your mortgage, car payments, etc. I was shocked at the amount of debt people are carrying—not just lower-income or middle-class people, but lots of really high-income earners are deeply in debt. The stories were fascinating. Not a Dave Ramsey fan but I did enjoy the show.
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i remember years back when he was on tv as well as many others but telling people the truth that you need to do this or that/ cut out frivolous spending / budget etc .... was not a big ratings thing.... lol
i mean at first as onlookers gasp at the stupidity of some fine .... but when was same story over and over and no one seemed to be taught a lesson by even watching a previous episode .... it became redundant. That and he keep pushing his products on people as well.

i do enjoy listening every so often shaking me head.
 
Since I was late afternoon daycare I would have my young daughter(8-10 yo) watch Dave and try to absorb his message about credit cards, over spending, and debt.

For example as a teen she was able to understand that spandex from Target was a much more sensible purchase than the lululemmon brand(which all her friends wore.) Unfortunately the one purchase she made that didn't follow this pattern was the college she choose to attend!

You know the saying "penny wise and pound foolish."
 

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