Faking the good life just got harder

[fltoo]

Although sometimes curt, I have never seen Cali "go off" on someone as I have seen others do here. Some of these threads are downright juvenile, lol. It has gotten better lately, so I have "mosied" back in here.

When I first moved to FL after living outside NYC most of my life, people used to tell me I was abrupt. I used to think to myself....I am not abrupt, you are just too damn slow!

[AngelinaCat]

Hi fltoo, I'm glad to see you are back.

[AngelinaCatHub]

Me too, fltoo.

[cool33097]

Great article. Thanks for posting.

[Cali]

OMG, are we related. LOL

I used to have people tell me all the time that I talked to fast, and I always told them they listen too slow.

Although sometimes curt, I have never seen Cali "go off" on someone as I have seen others do here. Some of these threads are downright juvenile, lol. It has gotten better lately, so I have "mosied" back in here.

When I first moved to FL after living outside NYC most of my life, people used to tell me I was abrupt. I used to think to myself....I am not abrupt, you are just too damn slow!

[One Half Full]

I've lived in poverty all my childhood, and most of my adulthood. I actually can't imagine people buying all that they buy. I'm frugal as all get out, but I am still going BK. It was not overspending that did it. It was the continual "hand out" that everyone has. The town gets a new garbage service and without your say-so charges 50 dollars more a year, the gas company decides to raise the rates so they can give their own employees more money, food costs twice as much as it did last year at this time, the company drops the pension plan, and the insurance deductible is hiked to more than you can afford to pay, and pay does not go up. I don't believe is it about luxurious living, people, I think it is about just trying to pay the same stuff you were paying before. I don't have a choice not to pay taxes because I can't afford it, or my gas bill, they force you to pay things like that if you are a home-owner. It is your "overhead" and eats into your profit.

[BKParalegal]

I am not one to start something...or maybe I am, but that was a pretty dark tirade, and you call yourself "frugal as all get out" but in another thread you mention you easily bought a home way out of your budget. That is a bit contradictory, and the "bills" you are forced to pay are bills that you accrued as a homeowner. BK is a means to get a fresh start, but no one forced you into your financial situation, and its not society's fault either. You made your own financial choices, and due to things possibly in or out of your control you are exercising your right to file BK. You act as if having good credit is an addictive drug (I am referencing another comment you made in another thread) and therefore you need to keep good credit at bay lest you be tempted again. Well a lot of society can handle their credit choices and are able to absorb curve balls just fine. And if those people weren't buying things, needed or wanted, a lot of people would be out of job, as we are seeing that occur now. How many people did I help keep their job by buying a boat last year?

[shabam]

Many people think that those that file BK were living above their means, and that isn't always true.

The only people who can legitimately claim they did not live above their means is someone filing bankruptcy for a medical illness or someone who has been defrauded.

If someone bought a house they cannot afford, loaned money out, loaned money for a business deal, started a business which failed etc, then they lived above their means. Living above one's means is not limited to someone buying a $5,000 plasma, for example, when they can only afford a $200 tv.

[fltoo]

I think you are the exception rather than the rule.

I think most people covered the basics with their paychecks. Everything else went on credit cards. Homes were stripped of equity to pay the credit cards or to make purchases that otherwise could not be made.

Lenders had a field day inventing new products to make money....bank cards,
store cards, home equity loans and lines of credit, buy now/pay no interest for a year, cash advances, balance transfers.

And qualifying had nothing to do with your paycheck. They just checked the almighty credit score to see if you paid your bills on time.

Generalizing, if you notice, after BKing debt, people say they can live on their paycheck.
It's the debt payments that were hurting them, not everyday living expenses.

IMO, people who go BK and then buy an expensive car and start using credit cards again didn't learn a lesson and are just starting the cycle all over again.

[shabam]

I've lived in poverty all my childhood, and most of my adulthood. I actually can't imagine people buying all that they buy. I'm frugal as all get out, but I am still going BK. It was not overspending that did it. It was the continual "hand out" that everyone has. The town gets a new garbage service and without your say-so charges 50 dollars more a year, the gas company decides to raise the rates so they can give their own employees more money, food costs twice as much as it did last year at this time, the company drops the pension plan, and the insurance deductible is hiked to more than you can afford to pay, and pay does not go up. I don't believe is it about luxurious living, people, I think it is about just trying to pay the same stuff you were paying before. I don't have a choice not to pay taxes because I can't afford it, or my gas bill, they force you to pay things like that if you are a home-owner. It is your "overhead" and eats into your profit.

I have found there are two types of spenders.

Spender A (Compulsive spender): who is constantly buying stuff regardless of whether they need it or can afford it.

Spender B (Careless spender): who is probably frugal but wastes a lot of money by not being responsible with money. For example: probably doesn't look out for the cheapest deal (shop around). Probably doesn't try to reduce their expenses, such a utility bills or $140 premium cable bill. Will probably move to an area they cannot afford, simply because they never did their homework or based their decision on their attachment to the house. Probably doesn't ever bother looking at stuff like interest rates on a credit card; a card which they are probably paying the minimum only. Probably does not know how much they have in retirement or what they will need to retire. Never thought about moving to a place with lower unemployment or better employment opportunities, such as the coastal states.

Personally, I think spender b is worse than spender a as they are slowly spending themselves to death. And are basically in denial. I know of a few people who have bankrupted themselves $20 dollars at a time.

[shabam]

I think you are the exception rather than the rule.

I think most people covered the basics with their paychecks. Everything else went on credit cards. Homes were stripped of equity to pay the credit cards or to make purchases that otherwise could not be made.

Lenders had a field day inventing new products to make money....bank cards,
store cards, home equity loans and lines of credit, buy now/pay no interest for a year, cash advances, balance transfers.

And qualifying had nothing to do with your paycheck. They just checked the almighty credit score to see if you paid your bills on time.

Generalizing, if you notice, after BKing debt, people say they can live on their paycheck.
It's the debt payments that were hurting them, not everyday living expenses.

IMO, people who go BK and then buy an expensive car and start using credit cards again didn't learn a lesson and are just starting the cycle all over again.

So true. I am shocked to see people excited about getting credit cards again post BK. Even if these people never filed due to excessive cc spending, CC are supposed to be a 30 day loan, if that. They are not a income stream.

They are what I call "fools gold". Where you think you have money to burn. In reality most people who use them do not.

My parents never had credit cards. Only now do I realize and appreciate the satisfaction of not being indebted to someone else. I know of a lot of kids who are set in life thanks to many of our spending habits. Their trust funds are built on so many people's addiction to debt and thirst for the quick buck.

[MomIcantFindmy]

The only people who can legitimately claim they did not live above their means is someone filing bankruptcy for a medical illness or someone who has been defrauded.

Ummm....Ok,
I actually dislike the words "only".....and "legitimately".

I really don't think you can lump all people who file BK into a box. Many of us are here for different reasons. Just because someone has a house that is currently above their means or a car they cannot afford does not mean that at the time it was purchased that was the case.
People get laid off from jobs, death of spouse, unexpected things occur. Many people are here because of more than medical illness, being defrauded and didn't live above their means.

I however....was not one of them
But I have recovered and I live well within my means now.

[fltoo]

Don't agree. Barring catastrophe, most people don't have enough money saved to weather losing a job. If you are living paycheck to paycheck with not enough savings to cover your expenses for 6 months, you are living above your means. If you are a two income family and dependent on both incomes to support yourselves, you are living over your means. JMO

Would you believe there was a time that a lender wanted to see 3 months reserve of mortgage payments before they approved you?

[Cali]

Shabam - I don't like your assumption to why someone is living above their means.

So if you make a lot less(mid 6 figures to lower end) but have the same things, how is that living above your means?

[epiphany]

Shabam - I don't like your assumption to why someone is living above their means.

So if you make a lot less(mid 6 figures to lower end) but have the same things, how is that living above your means?

sigh...if you only knew how that sounds...........

I'm really not trying to berate you...but you obviously don't get it and good for you that you don't have to.

ep