Why some people struggle financially.

[OldWiseGuy]

Very revealing article.

‘This doesn’t look like the best economy ever’: 40% of Americans say they still struggle to pay bills

I did some checking. There are 817 used cars for sale in Columbus Ohio priced under $5000. With good credit and 10% down the monthly payment would be $100 or less.

 

[nonaeroterraqueous]

It always seems to come back to debt. People pay a lot of money for nothing, leaving less money for needs.

The student loan thing was poorly explained. Over the last decade we saw the cost of tuition skyrocket, right about the time Obama led a government takeover of the student loan industry. I'm sure he had his reasons, but there's usually a strong relationship between prices and lending in any area where financing is the norm, such as housing, cars and healthcare. The shift in lending practices during the Bush era gave us the real estate boom, snatching the American dream out of many people's reach. We're never going to see our way out of this problem, no matter how much we make, unless we learn to borrow as little as possible or make do without.

 

[Messerve]

But maybe they're junk? Sometimes if you go with the cheapest option you end up having to pay more just to keep it on the road.

I think a lot of it is just poor decisions and no planning for the future. People buy expensive things on an impulse when they're young and then when kids come along they have hardly any savings to raise the kids on, not to mention raising kids uses up a lot of the money they make.

And others have various issues which keep them from holding down a job, but they're either too prideful to admit they need help or they are really so isolated that there is no one close to them who would be able to help.

Addictions play a huge part. Even just drinking beer becomes expensive if you rely on it and drink multiple bottles every evening. It's really not that cheap...

Also... iPhones, Nikes, etc. Tons of people are constantly upgrading their Apple products which usually costs multiple hundreds of dollars. Sure they have the option of less expensive phones but that's not what's popular. The same goes for namebrand clothing. So many people in urban areas only want to buy the expensive clothing brands despite coming from poverty-stricken families. You can only keep doing that for so long...

Those are just some thoughts.

 

[OldWiseGuy]

It always seems to come back to debt.

Often caused by poor decisions. I can relate however as back in the day I would have likely gotten into serious debt if credit were as easy as it is today. "There but for the grace of God (and sensible credit policies) goes...I" (before I became OldWiseGuy).

 

[OldWiseGuy]

But maybe they're junk?

There are some great cars for 5k and under. My daughter just bought a used Honda for $2800, and it's really nice.

This girl has some serious problems with managing her life. Just the kind of story you'd expect the Washington Post to beat us over the head with.

 

[timewerx]

Often caused by poor decisions. I can relate however as back in the day I would have likely gotten into serious debt if credit were as easy as it is today. "There but for the grace of God (and sensible credit policies) goes...I" (before I became OldWiseGuy).

Can't blame people entirely.

Wise spending practices don't usually fly around the internet, especially the advertising or popular/mainstream media.

Because if everyone became wise about spending money, and start saving money, businesses will lose profits and cause a chain reaction leading to a recession!

The Japanese for example are wiser on average when it comes to spending money. And the Japanese banking to discourage the Japanese from saving their money suggested "negative interest"!! Penalizing people for saving money!

We need people spending to keep the economy afloat (I know how absurd that sounds but it's true!)

 

[bèlla]

Debt and a poor understanding of wealth accumulation and economics are often the culprit. Money management requires discipline and most receive no education at home, school, or through extra curricular activities.

I learned by exercising financial restraint, studying the behaviors of the wealthy, understanding the markets and good investments, and ignoring the propaganda fed to the masses.

 

[Messerve]

There are some great cars for 5k and under. My daughter just bought a used Honda for $2800, and it's really nice.

This girl has some serious problems with managing her life. Just the kind of story you'd expect the Washington Post to beat us over the head with.

Yeah, I guess it's probably true. Maybe it depends where you live, but then there's always things like Facebook's Marketplace and Craigslist and even eBay where you can find people selling their own vehicles inexpensively.

Yes, I think poor choices were probably a big part of it, though they never touch on that. There are at least children in the picture already and they are not married...

 

[Messerve]

Can't blame people entirely.

Wise spending practices don't usually fly around the internet, especially the advertising or popular/mainstream media.

Because if everyone became wise about spending money, and start saving money, businesses will lose profits and cause a chain reaction leading to a recession!

The Japanese for example are wiser on average when it comes to spending money. And the Japanese banking to discourage the Japanese from saving their money suggested "negative interest"!! Penalizing people for saving money!

We need people spending to keep the economy afloat (I know how absurd that sounds but it's true!)

Well, in that case, investing would be a good alternative to just buying things for yourself.

Negative interest?! That's a nightmare!

 

[OldWiseGuy]

Well, in that case, investing would be a good alternative to just buying things for yourself.

Negative interest?! That's a nightmare!

European banks did that as well, basically charging a fee to warehouse people's money.

 

[OldWiseGuy]

Yes, I think poor choices were probably a big part of it, though they never touch on that. There are at least children in the picture already and they are not married...

The intent of the article was to impose a guilt trip on everyone except the subjects in the story, which is littered with their poor choices.

 

[timewerx]

Well, in that case, investing would be a good alternative to just buying things for yourself.

Negative interest?! That's a nightmare!

Yup, only in Japan to discourage people from saving money! Because people there love to save money!

From an individual perspective, saving money is a good thing.

But if everyone saved money, became happy and content with little and simple things, our economy will collapse!

If people started buying used cars. Imagine what would happen to brand new car dealers..... Disaster??

If much less people went to McDonalds. what would happen to their business?

If every business scaled down - people starts losing jobs.....You guessed it, economic depression!

Always look at the very big picture! (no this is not a sarcasm!)

 

[OldWiseGuy]

Yup, only in Japan to discourage people from saving money! Because people there love to save money!

From an individual perspective, saving money is a good thing.

But if everyone saved money, became happy and content with little and simple things, our economy will collapse!

Before that would happen interest rates would fall and prices would plummet, changing but not destroying the economy. People have to spend a certain amount of money for maintenance, replacement, etc. so money is always circulating.

 

[essentialsaltes]

With good credit and 10% down the monthly payment would be $100 or less.

Almost by definition, the people who are struggling do not have good credit.

This girl has some serious problems with managing her life. Just the kind of story you'd expect the Washington Post to beat us over the head with.

What's your beef with WaPo? That's not the source of your OP.

 

[OldWiseGuy]

Almost by definition, the people who are struggling do not have good credit.

She said she had "no" credit. I was pointing out the huge difference between $100 vs $450 per month car payment. There is no way she bought an inexpensive replacement car. Either that or she wasn't being truthful.

What's your beef with WaPo? That's not the source of your OP.

It says Washington Post. That's all I have to go on.

 

[zephcom]

Very revealing article.

‘This doesn’t look like the best economy ever’: 40% of Americans say they still struggle to pay bills

I did some checking. There are 817 used cars for sale in Columbus Ohio priced under $5000. With good credit and 10% down the monthly payment would be $100 or less.

Well there you go. Get a car for a $100 a month and all the rest of the problems go away.

This is hardly the first article written about America's inequality issue. It won't be the last. Humans are becoming redundant. Capitalism is quickly finding ways to do without workers. And this goes all the way to the top. Already computer trading on Wall Street is running that show. It is just a matter of time before the first computer is charged with being a CEO of a corporation.

On the positive side, once computerization and robotics have completely taken over, Global Warming will cease to be an issue because the machines can function at much higher temperatures than humans can.

Five thousand years from now capitalism will be chugging along just fine and humans will have been extinct for 4,500 of those years.

This is just the beginning of the collapse of civilization. Sit back and enjoy it until it is your turn to be sacrificed to the gods of wealth.

I think I'll get another glass of wine...

 

[Greengardener]

Certain principles seem to apply, many of them are right from the Scriptures! Debt is a huge weight. Seeing a bigger picture seems to help.

 

[zephcom]

Certain principles seem to apply, many of them are right from the Scriptures! Debt is a huge weight. Seeing a bigger picture seems to help.

How big do we need to make the picture? I think if you make the picture too big, no one will be able to see everything at once.

 

[OldWiseGuy]

This is hardly the first article written about America's inequality issue.

I thought it was about poor decisions that lead to 'inequality'.

 

[Greengardener]

How big do we need to make the picture? I think if you make the picture too big, no one will be able to see everything at once.

Good point, zephcom, but the problem may be bigger than at first glance. Granted, we often can only manage a bite of it at a time.