Quote:
Originally Posted by onewhippedpuppy
I think it's a combination of our ultra superficial society, entitlement mentality, and a total lack of education. I want it, I want it now, and look I can put it on this shiny new credit card and have it TODAY! I think some don't care about the consequences, but many don't even understand what they're signing up for.
Years ago my wife and I were shopping mortgage lenders prior to looking for a house. This was 2007 during the big housing boom when money was easy, and we stopped by Countrywide to see what rates they would offer. They concocted some sort of 0% down 70/30 ARM that was based on my PROJECTED income at the time of purchase and were willing to pre-approve based solely on a suggested number and our excellent credit. Ultimately they were willing to offer approximately double what my wife and I were willing to spend. I asked the lending officer for an amortization schedule as well as the total cost of the mortgage and he was stupefied. Not only was he not sure how to output that information from his computer, but he told us "nobody has ever asked me for that before". 
Obviously you should learn financial responsibility at home, which is probably why this problem keeps perpetuating. I've also often thought that a required high school class should be some sort of personal finance, where they teach teens about banking, responsible use of credit, mortgages, investing, and retirement. In our society today, what is more important than the responsible management of your money? |
When we talked to our credit union about buying the hose we are now living in they said we qualified for a loan 2.5 times bigger than what we wanted and we did not even need to sell the old house!
We sold the old house within a month of moving and dumped all of that on the new mortgage except a few grand to buy new appliances and furniture. For some reason my wife did not want our old harvest gold refrigerator in our new kitchen
