Quote:
Originally Posted by VINMAN
We need to let it hit bottom. People need a reality check. Maybe that will change societies "I want more than my neighbor" attitude.
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Yes, but unfortunately, most Americans do not understand the concept of living within their means. And this goes deeper than just the current housing crisis.
Some proof of this:
1. Well, the obvious current housing crisis. "Yes, honey - we could make due with the $400,000 home, but the banks say they will spot us for $750,000. So why not get that mansion across town instead? With those adjustable rates they have now, we can do it -- and won't have to worry one bit..." BTW: Last year, I PAID OFF my house - 3 years early on a 15 year mortgage.
2. How many luxury cars out there are being leased? Probably more than 1/2 the high end cars out there are not bought. Why? Because we Americans just love to keep up with (or exceed) the Joneses. "They have a BMW 5 series in their driveway? Well, I MUST GET A Mercedes S-class! And the current leasing rates are so reasonable, why not?!?" Disclaimer: While I do not lease cars myself, I do understand that in many circumstances, leasing does make sense. However, all too often people use leasing as a way to show others that they are rich, when in reality they are living above their means.
3. Credit Card debt / Revolving debt: Not sure what the average dept of CC's are nationwide, but I am sure there are many, many folks with $20k + in CC debt. That is crazy! And it doesn't seem to bother them! Instead of trying to get out of a tremendous debt (not to mention the sky high interest rates), they choose to continue to buy on credit and pay only the minimum amount due. Ludicrous! If you can't manage your credit cards, then cut them up and use cash! If you do have a bit of dept on your cards, then PAY THEM OFF instead of spending more!! Disclaimer: I use my credit cards heavily. But I pay them off completely with each payment.
I think folks need to return to "old school values." Minimize debt. Live within your means. If you don't have the funds necessary, then don't buy the needless stuff. Those concepts will go a lot further in repairing our economy than government bailouts and foreclosures...
My $0.42,
-Z-man.