smurfette in nyc Posted October 3, 2008 Report Share Posted October 3, 2008 ...maybe it's not such a horrible decision to just say no? Perhaps I'm being naive, or overly simplistic here, but I constantly hear that if this bailout doesn't get approved, one of the results would be very limited credit extended to consumers for credit cards, mortgages, car loans, etc. Is that such a bad thing? Personally, for the last three years I haven't had or used even one major credit card, and that is by choice. I do have and use a Visa debit card, issued to me by my bank, but that is really no different than paying with cash in my opinion. I currently have FICO scores of 700+ across the board, but refuse to get another credit card, even with come-on offers of 0% introductory interest bombarding my mailbox. My ways of living for the past few years consist of only buying what I can afford to pay in full, and in cash-that's it.Can I afford to buy a new car? Yes. Will I? No. I drive a good used car, that I paid for in full with cash several years ago. It may have its share of bumps and bruises, but gets me where I need to go, without causing me to pay interest on a car loan. I like having that extra money to invest as I see fit instead.Would I like to buy a house? Yes, but I don't feel I'm ready to afford one yet. I can qualify for a 30 year fixed rate mortgage, and can put 20% down, but I would rather save and wait until I can afford to get a 15 year mortgage, and maybe even put more than 20% down-that way I'll live a more secure, and less house-poor existance.Basically, all this uproar I hear about how credit must be extended to consumers to maintain the economy confuses me? Perhaps if it were a lot tougher to obtain loans, we would all be forced to live more within our means? Is that such a bad thing? I don't think so. Quote Link to comment Share on other sites More sharing options...
smurfette in nyc Posted October 3, 2008 Author Report Share Posted October 3, 2008 I'm happy to see a few others here agree with me in rejecting the proposed bailout. The House is probably voting now, as I type this post. It seems from all that I've read, it is more likely that the bailout will go through today. I still don't see how this will "rescue the lives" or even improve the situations of working middle-class people? Quote Link to comment Share on other sites More sharing options...
TTigggers Posted October 4, 2008 Report Share Posted October 4, 2008 This bailout is a joke.Where were all these people to save me when I made a couple of bad business decissions??? Quote Link to comment Share on other sites More sharing options...
smurfette in nyc Posted October 4, 2008 Author Report Share Posted October 4, 2008 For those interested in better understanding the "bailout", please follow this link; the comments section is full of great and informative opinions:http://www.fool.com/investing/general/2008/10/02/everything-you-want-to-know-about-the-700-billion-.aspx Quote Link to comment Share on other sites More sharing options...
AboveAverage Posted October 4, 2008 Report Share Posted October 4, 2008 I voted undecided about it because it is unknown if it will be enough to inject liquidity in the markets. In reality though, I do reject this bailout as no one ever bailed me out when I was down and added to my own liquidity. I had to provide for that myself. But the government pretty much made sure that it would touch my life in more than one way and thus was going to do what it wanted to do anyway. Here are real life examples:1) Can't apply for new credit because lenders are only going to extend credit to those with minimum 750...and if I do get credit, it will really be at F-U rates. A mortgage right now may be difficult, and plus I will have to really wait to refi my auto loan.2) My 10k retirement plan is now worth 8k...I will NOT lock in my losses by moving stuff around...just have to hope that the market will rebound. 3) Very scary time to bounce around jobs. Gotta stay put where I'm at or face serious unemployment. If it were just me, I'd take the risk, but I have DF to take care of. It would have been preferable for the US Government to not become a socialist government for the wealthy, but here we are. Now my kids' kids are going to be paying debt that saved some old rich guys millions of bucks. We're all in for some major pain, but all I can do is keep my fingers crossed and hope for the best. What's done is done and there really isn't anything anyone can do to reverse this. Quote Link to comment Share on other sites More sharing options...
tommy32 Posted October 4, 2008 Report Share Posted October 4, 2008 AA has a good point there...No one has ever bailed him out...I think that is the same for a lot of us. Why should we have to pay higher taxes for people who lived way beyond their means and now can't afford to pay for all their big homes and fancy cars and big vacations. Quote Link to comment Share on other sites More sharing options...
AboveAverage Posted October 4, 2008 Report Share Posted October 4, 2008 AA has a good point there...No one has ever bailed him out...I think that is the same for a lot of us. Why should we have to pay higher taxes for people who lived way beyond their means and now can't afford to pay for all their big homes and fancy cars and big vacations.While those folks are getting their own bailout, the bailout most Americans are talking about are the banks that provided the loans and mortgages to the people you're talking about. Because the banks provided billions (if not trillions) in subprime loans that are defaulting (because they somehow thought they were going to make beaucoup interest), the government has to come in like Mighty Mouse and save their behinds.Meanwhile, people like you and me get the finger from the government, and that is what makes me ill. Quote Link to comment Share on other sites More sharing options...
tommy32 Posted October 5, 2008 Report Share Posted October 5, 2008 While those folks are getting their own bailout, the bailout most Americans are talking about are the banks that provided the loans and mortgages to the people you're talking about. Because the banks provided billions (if not trillions) in subprime loans that are defaulting (because they somehow thought they were going to make beaucoup interest), the government has to come in like Mighty Mouse and save their behinds.Meanwhile, people like you and me get the finger from the government, and that is what makes me ill.BOHICA!!!! LOL I know it is real discusting what is going down. I am no saint when it comes to credit or saving money....BUT I always made darn sure I had a job that was in demand although I don't make 80or 100K a year at least I had a decent income, paid my rent(gotta have a place to live), made sure that I had a back up plan for rent, buy food, pay utillities, whatevers left over goes to CC'S. I haven't had a car note since 2001 so I dont have a car payment but I do all my own repairs so my car costs me about 600$ a year to operate not including fuel. Yeah I don't drive a hummer, Beamer, Mercedes, but she get's me to work and where I need to be. Heck, I should have got a home loan back then too, they would have probably gave me one, but I knew that I couldn't afford one so I never went for it. I could have filed BK also, and I should have now that I think about it but I didn't, I decided to just let things sol because my debt was not so bad where I would get sued. I know the creditors still could have but it was several small amounts with several creditors, it would have cost them more to sue than it was worth. I basically have lived paying cash since 2001 with no checking or savings accounts, straight cash. I am trying to change that now.I think these people need to rethink their standards and leave a little cushion for Getting fired, laid off, sick, etc. So now I am pretty much giving up on a home for a while till things settle down. I will just focus on saving, investing, and rebuilding my credit, and KEEPING it good. Quote Link to comment Share on other sites More sharing options...
newbie7069 Posted October 5, 2008 Report Share Posted October 5, 2008 The whole thing infuriates me to no end. We currently, or DH, make enough that we didn't qualify for the "give back" earlier this year. But we don't own a home, so we constantly get screwed over on taxes, where we pay around 40%. Can't buy, because he's constantly getting transferred and with the housing market the way it is, we aren't willing to wind up getting stuck with a house that we can't sell and living in another city. So meanwhile, we pay nearly half his income in taxes because we don't have any deductions. How is that remotely fair? But let's worry about reimbursing companies that made bad decisions! ....................................Never mind!!!!!!!! I'll just start rambling, and no one wants that. Quote Link to comment Share on other sites More sharing options...
AboveAverage Posted October 5, 2008 Report Share Posted October 5, 2008 Never mind!!!!!!!! I'll just start rambling, and no one wants that. If your rambling leads to doing something productive, then please...ramble away. Quote Link to comment Share on other sites More sharing options...
smurfette in nyc Posted October 6, 2008 Author Report Share Posted October 6, 2008 If your rambling leads to doing something productive, then please...ramble away. I agree! I think we learn a lot from each other here via some of our rambling rants! Quote Link to comment Share on other sites More sharing options...
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