Economy Fitful, Americans Start to Pay as They Go

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

[Flash Bazbeaux]

“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.)”

You get protections with credit cards that you don’t get with debit cards. A lot of risk is shouldered by the credit card company, and there’s no direct pipeline to your bank account. I have one ATM card, which I never use except to take out cash. Most of our purchases go on one credit card, which we pay off every month.

[Notary Sojac]

If you haven’t got the money you don’t need it.

Got that right. My dad grew up in the '30's, by the '60's he was making good money and did so for the rest of his life.

But we never had a new car, us kids always shared bedrooms, and we never got a color TV until the B&W sets went out of production.

All good lessons I have not forgotten, as so many have.

[Not A Snowbird]

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

I don't either.

[TenthAmendmentChampion]

We wouldn’t listen to the Depression era generation anyway. We were sooo much smarter and more educated than they were.

/sarc

[Notary Sojac]

Nor do I.

[redgolum]

Her behavior will completely destroy the US economy if it becomes widespread.

Which means we are pretty much screwed then. If we have to burn credit to keep our economy alive, then it is already dead.

[MoochPooch]

I’m in a similar situation, where I got hit with a surgery (out-of-pocket expenses) plus roommate problems where I had to pay the extra rent. I consolidated everything & put in one credit card, which I hope to pay off.

I get irritated reading these how-to-save type books. Maybe in these people’s world no one ever gets sick or loses a job. (That was another problem years ago.) Savings can get depleted very rapidly.

[MoochPooch]

finance a child's acting lessons (the "big break" was just around the corner...)

I learned the hard way years ago: DON'T COUNT YOUR CHICKENS BEFORE THEY'RE HATCHED.

The biggest mistake I made was spending money while unemployed but assuming a job was just around the corner. Or that I was going to get a large payback from somebody. Or that some paintings I inherited were going to bring me $$$$ in the art market.

I was young & simple then. Oh boy, at least I'm not so young now.

Though unfortunately emergencies or accidents do arise, & debt can't always be avoided, it's best not to stumble there blindly. If anything, debt is a crash course in reality.

[Freedom_Is_Not_Free]

Nicely said. All of it.

[RSmithOpt]

I'm in the middle of out-of-pocket medical & dental expenses (2 not related) that started last summer living on a very tight budget, plus the possibility of some legal stuff (not my doing) where a lawyer will be needed. Fortunately, at this time...I'm barely squeaking by. Credit Card debt < $250 and my last truck payment in July this year.

Hopefully it will all be OK.

These bills now coming on top of divorce in Dec 2002 (not my wishes or decision).

To give you a snapshot on how life can be:

Father, major surgery August 9, 2001;

Brother major surgery on Sept. 8, 2001 (recovered at my home);

Wife (after 19 years) walked out in Nov., 2001;

Luke (my 11 yr old golden / lab mix ) died on Christmas night Dec. 25, 2001;

Dad fell and broke his hip Jan 2002;

Company downsized from 850 to 160 in summer 2002 (I survived it fortunately);

Dad died 09/18/2002;

Divorce final 12/02/2002; Mom fell broke her hip Jan 2003;

Brother (who had surgery) died May 05, 2004 while on the road;

Mom to retirement home in Oct 2004.

The kicker to all of the above is I was suffering from depression because of hypothyroidism - Hoshimoto's - which is 9 times more common in women than men.

For 4 years I could sleep 6-10 hrs and felt like I hadn't slept more than 2 (therefore constant fatigue) and I had to tell 4 different doctors in a year what to check as until the 4th one listened (an ENT of all) to get it straightened out August 2004. It was a slow stop on the thyroid, not all of a sudden, fatigue onset gradually got worse...just tough to get it diagnosed for some reason.

After all this said, I know God will get me through it all....He always has.

The ex did mention 2 years ago over the phone she'd made a mistake by walking out...one of them "Oh well...." things.

Sometimes we may have stuff inside God gave us and we don't even know it's there until we really need it; I do wonder in my case.

Hang in there and may God Bless you all.

[CDHart]

Yes, they can. And then you're stuck paying off bills for a long time. I've found that most hospitals and doctors will accept $50 a month, and they don't charge interest. But that doesn't cover the transportation, meds, and other necessities when there's a catastrophic illness.

Carolyn

[CDHart]

You have my prayers and good wishes. You've had it pretty rough for a number of years. But God willing, you will be stronger for it. God bless-

Carolyn

[RSmithOpt]

Thanks Carolyn, you have my sister’s name....good kid. (40+, both of us actually - LOL!).

[CDHart]

Well, I'm 60+ - still hanging in there, with God's help.

Carolyn

[RSmithOpt]

You GO GIRL!!! Give’em heck!!

[PennsylvaniaMom]

My prayers and best wishes go out to you RS...you have had a very rough time...stay strong in your faith (I can tell from your posts you are!) and you will be fine.

:)PaMom

[q_an_a]

good points - who knows when wisdom will strike?