Depressed about being poor?

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YowlingCat
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19 May 2008, 2:42 pm

It's a nasty catch-22, Tim. Your credit score is, unfortunately, everything to you as an American. Unless you're independently wealthy, you need to build your credit score.

1. You should have a credit card, and use it, but pay it off every month. Do not carry a balance. Get a car loan and pay for it using auto-deduct.

2. Never miss a payment on any bill, because a recent change in the FICO algorithm now allows the consumer credit reporting agencies to gather payment history from folks such as utility companies and others, which were not previously considered when calculating a credit score.

3. Almost anything that you make recurring payments on will be reported to one of these agencies. (An exception is debit cards, as the balance is tied to your checking account).

Ironically, the consumer credit reporting agencies have a term for people who pay off their bills completely, every month (and thus accrue no interest, fees or penalties). They are known in the industry as "deadbeats." :lol:



Last edited by YowlingCat on 19 May 2008, 2:43 pm, edited 1 time in total.

Tim_Tex
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19 May 2008, 2:43 pm

I am only using grants and work study as far as financial aid goes. I did get a loan last year, and my parents are paying for the rest. If all goes well, I will only have $5,500 to pay off after graduation.


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YowlingCat
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19 May 2008, 2:54 pm

Then the loan is in your parent's name entirely, (unless you co-signed?). In which case it does nothing for your credit score.



Tim_Tex
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19 May 2008, 2:55 pm

YowlingCat wrote:
Then the loan is in your parent's name entirely, (unless you co-signed?). In which case it does nothing for your credit score.


No, it's in mine.


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YowlingCat
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19 May 2008, 2:59 pm

Oh, I misread. Great that it's in your name! If things get tight, and you're having trouble making payments, be sure to make use of deferments and forebearances, rather than be late. Of course, you're still in school, so you won't have to worry about that until you're out.



Tim_Tex
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19 May 2008, 3:05 pm

YowlingCat wrote:
Oh, I misread. Great that it's in your name! If things get tight, and you're having trouble making payments, be sure to make use of deferments and forebearances, rather than be late. Of course, you're still in school, so you won't have to worry about that until you're out.


Yep, that's the plan.


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rushfanatic
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19 May 2008, 3:12 pm

I count myself as rich in love, not in money, as far as being a mother goes.. I always had to scout for the least expensive things, buying only what we could afford for the week, and we forever lived paycheck to paycheck, I would not know what to do should I ever get rich. I remember my dearest friend at the time, who I had been friends with since age 10, called me cheap for buying second-hand clothes for our little girls years ago. She used her credit cards to purchase mall brand clothes for her children that would be outgrown within months, but she always felt she had to make them look good. Well, our girls looked very pretty in whatever I bought them, even if they were second hand.. She ended up bankrupt, never owning a home, being divorced, and living with her mother and 3 children all together. We live in the same home we've had for 23 years, our credit score is excellent, our credit card balance is less than 600.00, we do not use it except for dire emergencies...Being frugal, being tight will get you through the hard times, it is not always fun, but it is important to live the simple ways as well..makes me appreciate what we do have..Please hold your head up high, be proud of who you are, dear.I am proud of you!Peace, Krista~~~~ What I am trying to say is to not try to be like the Jones', do not feel you have to buy things to be approved of by others or to meet their level..I know plenty of high-end home owners who sit down to an empty , cold house with a frozen dinner on their tv tray...It is not always rosy , alot of it is a sheer facade to look impressive to others..The girls who had all the clothes were spoiled by their parents, shame on them! They probably became gold-diggers, and used men to give them things..quite shallow, but quite true.



Last edited by rushfanatic on 19 May 2008, 4:16 pm, edited 3 times in total.

sgrannel
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19 May 2008, 3:13 pm

You are not your job.
You are not how much money you have in the bank.
You are not the car you drive.
You are not the contents of your wallet.
You're not your f*****g khakis.
You are the all-singing, all-dancing c**p of the world.


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MissConstrue
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19 May 2008, 3:37 pm

I can definitely relate since I can't afford anymore school. Earning a income for minimum wage is hard to live on.


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YowlingCat
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19 May 2008, 3:40 pm

MissIntelligent - Just a note, and I know that peer pressure is different in school, BUT - it might interest you to know that my friends and I all love Goodwill shopping (we're talking PhDs, etc.). If we need something really fancy, ($40?) then it's eBay. Great Armani, etc., the real thing, but used 8O.



EvilKimEvil
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19 May 2008, 4:31 pm

YowlingCat wrote:
Your classmates probably can't afford their goodies, either:
Quote:
The average American household is looking at almost $9,000 in credit card debt. However, the average debt among those who have at least one card is over $9000. Since 1990 the average credit debt has tripled in size.

Credit Card Debt in the US


8O No wonder other people have more stuff than me! Well, I'd rather shop at Good Will and have no debt and a good credit score than shop at the mall and owe over $9,000!!



YowlingCat
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19 May 2008, 4:40 pm

MissConstrue wrote:
I can definitely relate since I can't afford anymore school. Earning a income for minimum wage is hard to live on.

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megarat
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19 May 2008, 5:41 pm

Not to be a complete downer, but over 1 billion people on the planet live on less than US$1.08 per day, and approximate half of the people on this planet live on less than US$2.16 per day.

(Granted, the majority of these people are subsistence farmers, but even so, it's not an enviable position to be in.)

"Poor" is extremely relative, and it's easy to lose perspective. Therein lies the road to madness.

Personally, I believe that by being less tied to materialism, you emerge as more of a genuine person.



YowlingCat
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19 May 2008, 5:53 pm

There are Americans who live on a few bucks a day or less. They're called "homeless."



MissConstrue
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19 May 2008, 6:41 pm

If only I had credit cards and crap.


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jawbrodt
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19 May 2008, 9:51 pm

Yeah, it sucks. I grew up poor, and am poor now. I have no income. I still own my house, but it needs a roof which I cannot afford. Almost all of my utilities have been shut-off. Luckily, I sold my atv today. Now I can get caught up, and have some money to live on for awhile. I think I am going to apply for disability. I just hope I can survive, financially, until I get approved. Hmm......


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