Credit Crunch
Lordy. Lordy. It looks like Big Rob was right. Not only is Rob the woofiest man on planet Earth, he has premonitions that come true! It seems about once a year, there is some drama that unfolds that makes CNBC actually riveting to watch. Now, it's all about the credit crunch for mortgage backed securities. It's spreading so fast that the credit markets are drying up fast everywhere.
It makes me nervous too. My dad always preached about the wrongs of having a credit card, a car loan, etc. He said if you don't have cash to pay for it, then you shouldn't get it. He sounds like a genius now. Although, technically my parents did have a mortgage way back when they were paying $365 a month in the 1970's. My dad just conveniently forgot about that loan. No, it was for a real house.... not a trailer you bastards.
Boy how times have changed. When I had a mortgage in Baton Rouge, my monthly payment was close to $1,000 a month. I thought that was a fortune I was paying, until some of my out of state friends were telling me how much they pay for rent. My home was beautiful, but it was a money pit. It was something I could be proud of, but it left me dirt poor. I was glad (and lucky) to be able to shed that extravagant expense that I was so proud of.
Yesterday, I decided to shed more expenses that I didn't need... my credit cards. Those pesky credit cards have monthly interest charges and late fees that I didn't need to pay. It is too easy to use them as "free money". So, instead of paying the man anymore, I decided to pay off all of my credit card bills.
Since most of my wealth is tied up into my 401-k retirement plan, I am not touching that. Instead, I cashed out money I was putting into a mutual fund every month for the last year. I will effectively be debt free again. Whew! Life off the credit wagon will be good for me. Lord knows I have had my overindulgences in travel this year.
It makes me nervous too. My dad always preached about the wrongs of having a credit card, a car loan, etc. He said if you don't have cash to pay for it, then you shouldn't get it. He sounds like a genius now. Although, technically my parents did have a mortgage way back when they were paying $365 a month in the 1970's. My dad just conveniently forgot about that loan. No, it was for a real house.... not a trailer you bastards.
Boy how times have changed. When I had a mortgage in Baton Rouge, my monthly payment was close to $1,000 a month. I thought that was a fortune I was paying, until some of my out of state friends were telling me how much they pay for rent. My home was beautiful, but it was a money pit. It was something I could be proud of, but it left me dirt poor. I was glad (and lucky) to be able to shed that extravagant expense that I was so proud of.
Yesterday, I decided to shed more expenses that I didn't need... my credit cards. Those pesky credit cards have monthly interest charges and late fees that I didn't need to pay. It is too easy to use them as "free money". So, instead of paying the man anymore, I decided to pay off all of my credit card bills.
Since most of my wealth is tied up into my 401-k retirement plan, I am not touching that. Instead, I cashed out money I was putting into a mutual fund every month for the last year. I will effectively be debt free again. Whew! Life off the credit wagon will be good for me. Lord knows I have had my overindulgences in travel this year.
Keeping up with the Joneses has never been a game of mine. Hell, I am still driving my seven year old Nissan Pathfinder with 147,000 miles. It was the best investment I ever made because I paid cash for it. In credit crunch times like these, I am enjoying my low-overhead lifestyle just fine. It helps me sleep like a baby with no worries.
posted by Brettcajun at Thursday, August 16, 2007
10 Comments:
Don't you have a Sugar Daddy?
NO. But you would think, huh?
Sooooo you don't have a pot to piss in or a window to throw it out of but your sleeping like a baby? Amazing! And did the Amex card go too? :)
Did I read that correctly: Your car doesn't have hubcaps, but your house does?
You are all cunty bitches.
I don't live in a trailer. I live in a house I own. I plan to add on next year to make it a nicer place to live. I would LOVE to have a big garden whirlpool tub. Hopefully, next year... I'll get to do the expansion.
So you are saying you are making it a double wide?
I'M SO FUCKING PROUD OF YOU! I agree with you 100% and can't be more happy and proud of people who can put it into practice. You're awesome. No keeping up with the Jones family here either. Now, as a side note,DON'T CANCEL THE ACCOUNTS.. That will hurt your credit. Just don't use them.
I just had to junk my 21 yr old '87 Honda CRX w/ 180,000 miles due to some major repairs that were way out of my control. Seems cars just aren't made to last forever! I was depressed for 2 weeks. I didn't have a car payment 3 times longer than I had one. I too am paying off all my debt & scaling back on things I really don't need. It's not easy, but it's also not as hard as some think. Good luck Brett.
Well considering my maximum available credit is around 50k, my paltry 15k of debt is very managable (including the motorcyle). I spent the last few years moving stuff off high interest dept cards onto my low interest credit cards.
I'm very happy w/my finances at current. By years end, I'll have new braces (and a new motorcyle hopefully) and still be about the same.
I'd love to be debt free but just not in the cards for me right now.
Hope to see your revamped house photos soon.
Work hard to get there!!
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