Economy Fitful, Americans Start to Pay as They Go

NYT ^ | 2/5/08 | PETER S. GOODMAN

[xtinct]

Cash n carry is the ONLY way to go.

[Tanniker Smith]

I guess I've always been against the tide. I've started charging everything so I could stop running to the cash machine every few days. One bill at the end of the month gets paid. Keeps track of everything and I have a record.

And when you see it all at once, it's on HELL of an eye opener. (Kinda like what it must've been like before "withholding".)

Helps me save, and I get 1% or more back, so the discount's nice.

[aristotleman]

yep.
it’s too late for most people to learn this. They are already under thousands of dollars of “me-first” debt. What a bunch of spoiled morons. Now they’ve ruined their kids by teaching them the can have it all.

[Slapshot68]

Yup. I finally got smart, moved all of my credit card debt to one card where I’m getting 3.99% for the life of the balance. It will be paid off in a year...and everything else we need, we pay with cash now.

[Intimidator]

Its ok to charge if you pay if off every month, same as carrying cash. Don’t spend more than you make is the key.

[MrPiper]

For 20 yrs, I used a CC and paid it off every month, Zero interest. Why is that so difficult? (I quit using it when debit cards came out.)

[Intimidator]

I’ve never financed anything except my house and my car except I did have to take out a loan to pay off divorce debt but that will be paid off this month.

[Mr. Jeeves]

Today, Ms. Merhaut, 44, manages her money the way her father did. Despite a household income reaching six figures, she uses cash for every purchase. “What we have is what we have,” Ms. Merhaut said. “We have to rely on the money that we’re bringing in.”

Her behavior will completely destroy the US economy if it becomes widespread. I'll bet plenty of bankers and politicians needed some extra Pepcid AC after reading this quote. ;)

[MortMan]

Well, in today’s political climate, you will pay-as-you-go or pay-as-you-stay...

But, either way, they’ll make sure you PAY.

[Intimidator]

Her behavior will completely destroy the US economy if it becomes widespread. I'll bet plenty of bankers and politicians needed some extra Pepcid AC after reading this quote. ;)

Deflation?

[donkey slayer]

Exactly what I do, it works great I charge everything and pay it at the end of the month. Anyone with self control this is the best way to budget. I have payed it off every month for the last 6 years and will always do so.

[yankeedame]

For more than half a century, Americans have proved staggeringly resourceful at finding new ways to spend money.

As opposed to who? To which other country?

Frankly, I'm getting a little weary of this "bash America" slant on so many of these types of articles.

[Breyean]

“With the number of jobs shrinking...”

The NYT has been waiting a LONG time to be able to start getting that phrase into articles.

[what's up]

NYT, the anti-capitalist paper, trying to get more people to NOT spend money.

[Vet_6780]

Deflation?

We finally have a winner !

Debt destruction is reducing the money supply at an accelerating pace and there is nothing the Fed can do when there is declining trust in the banks' solvency and transparency.

[MEGoody]

But now the freewheeling days of credit and risk may have run their course — at least for a while and perhaps much longer — as a period of involuntary thrift unfolds in many households.

Sorry, but I don't see this as a bad thing.

[Blood of Tyrants]

Now if we could only get Washington to live within its means (that means you, too, Pres. Bush).

[Sam's Army]

We are acquaintances of some people who have made some VERY bad economic choices over the last several years. To the tune of upgrading flights to 1st class on a whim for several thousand dollars a pop, buying into sketchy business ventures that didn't pan out, and doing 2 additional home loans (that I know of) to buy brand new vehicles and finance a child's acting lessons (the "big break" was just around the corner...) .

Now that time has passed and consequences of these and other decisions have finally caught up top them, they have fled their home and migrated to another state to rent a house from a friend...creditors holding the bag and a house in foreclosure.

A situation like this, which has been years in the making, now looks like a statistic of the "Bush economy"...even though very few want to address the fact that individual choices; not some bureaucrat in DC, is to blame.

[MEGoody]

Anyone with self control this is the best way to budget.

I don't know if you ever listen to Dave Ramsey or not, but according to him, only about 3% of people who plan to pay off their card every month actually do so. For those with really good self-control, it works. For most people. . .the intentions are good, but the will is weak.

[CDHart]

Not all those with credit card debt are idiots. We have had many medical bills, and even with health insurance, they have been high. Also then you have the transportation, the medications and all that goes with it. We hope to have them paid off within 2 years, with God's help.

Carolyn