Suze Orman Book Free on Oprah site

[pilotbob]

Originally Posted by lilac_jive

With the stock market, I'm viewing in long term (decades). Lets not talk about this year...

Ok, but you still get a return each year right? So, if you loose 24% this year (market went from 13k to 8k) then you have to regain that loss. But, if you put that same say 5k into your mortgage that is now equity in your house... the value of your house is going to grow, probably very similarly to the market... probably better in many cases.

Also, you said you won't be in your house long. But, if you are paying principal down faster, you are paying less interest and you have more equity. So, when you do sell you will need a smaller loan for the next house, or perhaps you can move up to a bigger house with similar payments.

But, we each have our own strategies. I think we agree to disagree on this.. but we certainly seem to agree that short term unsecured debt is REALLY bad.

BOb

EDIT: Alot of people don't realize, if a stock goes down 50% then it has to double to get back to the original value. Not many stocks double as quickly as they loose half their value.

[lilac_jive]

Originally Posted by pilotbob

Ok, but you still get a return each year right? So, if you loose 24% this year (market went from 13k to 8k) then you have to regain that loss. But, if you put that same say 5k into your mortgage that is now equity in your house... the value of your house is going to grow, probably very similarly to the market... probably better in many cases.

Also, you said you won't be in your house long. But, if you are paying principal down faster, you are paying less interest and you have more equity. So, when you do sell you will need a smaller loan for the next house, or perhaps you can move up to a bigger house with similar payments.

But, we each have our own strategies. I think we agree to disagree on this.. but we certainly seem to agree that short term unsecured debt is REALLY bad.

BOb

EDIT: Alot of people don't realize, if a stock goes down 50% then it has to double to get back to the original value. Not many stocks double as quickly as they loose half their value.

You just confused the bejeesus out of me

But yes, I agree completely with you on unsecured short term debt. Not only are you paying ridiculous interest rates, but in particular with credit card companies they can jack your rate up any time, even if you pay on time.

[pilotbob]

Originally Posted by lilac_jive

You just confused the bejeesus out of me

I'm sorry... I hope you get your bejessus back.

What confused you?

BOb


BTW: This is a great discussion if a bit !

[zelda_pinwheel]

Originally Posted by pilotbob

I'm sorry... I hope you get your bejessus back.

BTW: This is a great discussion if a bit !

i agree. i'm learning a lot. (i currently have no debt at all, but i hope to buy an appartment one day).

[lilac_jive]

Originally Posted by pilotbob

I'm sorry... I hope you get your bejessus back.

What confused you?

BOb


BTW: This is a great discussion if a bit !

My parents advice confused me...



Zelda- if you are thinking about buying an apartment, what is your timeline?

[zelda_pinwheel]

Originally Posted by lilac_jive

Zelda- if you are thinking about buying an apartment, what is your timeline?

"dreaming" about it might be more accurate, for the moment... i don't have a concrete timeline. housing prices are sky high right now but they are starting to go down, so that is one factor. i also have to wait to have enough money saved up, and that is far from the case currently. let's just say i keep that goal in mind and do what i can to get there but it won't be for another few years, i imagine, unless i win the loto or something (note to self : remember to play the loto) or discover that i have a long-lost rich uncle who died and chose me as his sole heir (stranger things have happened).

i'm closer than i was five years ago, but sadly not as close as i was last year. but since last year i still was not all that close i suppose it's not a big deal.

[pilotbob]

Originally Posted by zelda_pinwheel

or discover that i have a long-lost rich uncle who died and chose me as his sole heir (stranger things have happened).

this rich guy with the same last name as me died a year or so ago. And since he has no living relatives his lawyer is going to present me as the heir if I will give him 50% of the $8.6 million US. I have forwarded my bank info to him and should have the deposit soon.

I hope it happens soon, all my checks have been bouncing lately.

Once I get that 4mil I'll be happy to help you out.

BOb

[Sparrow]

Originally Posted by lilac_jive

...with credit card companies they can jack your rate up any time, even if you pay on time.

In the UK, you don't pay any interest on your credit card if you pay on time; also you get consumer protection that makes paying by CC a better option than paying with cash (as long as you pay it off each month).

Do credit cards operate differently in the states?

[zelda_pinwheel]

Originally Posted by pilotbob

this rich guy with the same last name as me died a year or so ago. And since he has no living relatives his lawyer is going to present me as the heir if I will give him 50% of the $8.6 million US. I have forwarded my bank info to him and should have the deposit soon.

I hope it happens soon, all my checks have been bouncing lately.

Once I get that 4mil I'll be happy to help you out.

BOb

sounds great !! and maybe you could advise me on what's the best way to get all my bank info to this nigerian prince, he needs my help to recover his rightful heritage that the rebels are trying to steal from him.

[pilotbob]

Originally Posted by Sparrow

In the UK, you don't pay any interest on your credit card if you pay on time; also you get consumer protection that makes paying by CC a better option than paying with cash (as long as you pay it off each month).

Do credit cards operate differently in the states?

WHAT !!!??? I think you mean if you pay the FULL balance. If you carry a balance surely you pay interest, even if you pay on time.

Most in the US carry large balances on their cards... some people up to 100% or more of their annual salaries. (Just crazy that they have this much credit). Also, some credit cards had reverse amortization, so the minimum balance could be LESS than the monthly interest. But, I think a recent law disallowed that and the minimum payment must cover AT LEAST the interest.

BOb

[Sparrow]

Originally Posted by pilotbob

WHAT !!!??? I think you mean if you pay the FULL balance. If you carry a balance surely you pay interest, even if you pay on time.

Oh yes, I meant paying off the full balance - personally, I wouldn't dream of carrying any over .

[pilotbob]

Originally Posted by Sparrow

Oh yes, I meant paying off the full balance - personally, I wouldn't dream of carrying any over .

Yes, US CCs work that way too. Pay off the full balance no interest. That is how I use mine.

But, if you don't pay off the full balance double cycle billing kicks in and you have to pay interest for the full time since the original charge. I think there is a proposal to make this illegal too.

BOb

[DaleDe]

Originally Posted by Sparrow

In the UK, you don't pay any interest on your credit card if you pay on time; also you get consumer protection that makes paying by CC a better option than paying with cash (as long as you pay it off each month).

Do credit cards operate differently in the states?

They work exactly the same. Mine even gives me a cash discount on every purchase I make using the card. I do pay it off every month.

Dale

[lilac_jive]

Originally Posted by DaleDe

They work exactly the same. Mine even gives me a cash discount on every purchase I make using the card. I do pay it off every month.

Dale

Mine has no rewards, it sucks.

[pilotbob]

Originally Posted by lilac_jive

Mine has no rewards, it sucks.

What's in your wallet? Gee there are so many cards out there and they all want your business. If you paying off every month you really should have one that is good for that scenario. We use Citibank which gives straight cash back. Also, discover has a good cash back, and also they will have bonus cash back for various stuff. Like one money might be 5% on gas, another month 5% on entertainment stuff.

The only funky thing about Citibank is they limit the card to $300 cash back per year. But, we just got a second account so when one cash back is maxed for the year we use the other. Stupid that they let us do this, why not just not limit cash back.

BOb

HINT: Sign up for mint.com its totally free.... once you have your accounts in there they will suggest areas you can save. Credit cards are the most popular savings they list.