Um, almost all dealerships are advertising 0% right now... Just bought a 2011 Escalade with 0% last week, but after my trades that came out to only a $10k loan.
do you have any debt?
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Um, almost all dealerships are advertising 0% right now... Just bought a 2011 Escalade with 0% last week, but after my trades that came out to only a $10k loan.
I've got around 20k left in HECS debt (basically student loan) but that's fixed for inflation only, so I just let it get slowly paid off by my taxes each year, I've also got around 10k in monthly expenses on my credit card (which I just pay off at the end of the month).
Debt isn't bad as long as your responsible, if you have no self control then debt isn't for you. For example it makes no sense for me to pay for HECS debt at the moment, it's going up by between 2-3% per year in interest, in Australia I can put that in a cash savings account and get 6% per annum.
The saving account is government guaranteed, so the only way I could lose the money is if Australia defaulted (very unlikely) and even if they did default my HECS debt is through them as well. I'd be crazy to pay that debt back, unless I have no self control and spend the $20k I have aside for that purpose.
As long as interest earned > risk + interest paid not taking on debt is the illogical thing to do.
Debt isn't bad as long as your responsible, if you have no self control then debt isn't for you. For example it makes no sense for me to pay for HECS debt at the moment, it's going up by between 2-3% per year in interest, in Australia I can put that in a cash savings account and get 6% per annum.
The saving account is government guaranteed, so the only way I could lose the money is if Australia defaulted (very unlikely) and even if they did default my HECS debt is through them as well. I'd be crazy to pay that debt back, unless I have no self control and spend the $20k I have aside for that purpose.
As long as interest earned > risk + interest paid not taking on debt is the illogical thing to do.
I have over 30000 Dollars in Debt which I amazed when I was running a biz. Since becoming an Internet marketing PRO, I am making enough money to live my life. Well Looking for some damn good opportunity to make some money.
What's the rate of inflation in Oz? I assume you'll look at gov't figures, which I personally wouldn't trust, but not paying your loan to earn 1% per annum (assuming a 2~3% inflation rate) isn't very good.
If inflation is higher than 4% (real inflation, not gov't figures) then you're actually earning a negative rate of return when you add debt and inflation.
Corrected this for you:
Dear Sir,
I have over 300000 Rupees in Debt which I amazed when I was running a 7-11. Since making social bookmarks on DigitalPoint, I am making enough money to buy lots of Slurpees and curry. Well Looking for some damn good opportunity to have sex with another goat.
Have good day sir,
Apu Rajmathwandinabiabibibiu
It's a government loan, so looking at the RBA should give the correct interest %, which is currently at 3.5% - last year I was charged under 3% on my HECS loan from memory.
You can get a variable rate at the moment from ING which is 6.1%, or you can go for a 1 year fixed at 5.6%.
20,000 * (0.061 - 0.035) = $520
OR
20,000 * (0.056 - 0.035) = $420
Is it a lot of money? No, not really. I can definitely understand why people would prefer to carry no debt at all, but there is also plenty of upsides to carrying some -smart- debt.
I also get the added flexibility of having that $20,000 available right now which could be used if I needed it for my business or there other Australian government schemes that I could put the money into that'd make sense if I wasn't already maxing those out (for example, we have a first home owners account. You can add $5,000 per year and the government will match it with an 18% contribution. Or I could add $1,000 per year into my pension account and the government will match that up to 150% depending on your income).
Not sure what you mean by this: 'If inflation is higher than 4% (real inflation, not gov't figures) then you're actually earning a negative rate of return when you add debt and inflation'?
I have some student loans that I am going to have to pay off after I graduate this summer.
One idea I keep having that seems easy for getting out of student loan debt (since it won't go away in bankruptcy):
-Get a couple credit credits with high balance limits (assuming this is an option)
-Use the high balance limits to pay off student loans
-Declare bankruptcy after a couple months
Result: A previously unforgivable debt is cleared.
Am I being too creative with this assumed loophole, or could it legitimately work? I'm not interested in doing this, but it wouldn't seem like a bad option for a few people I know...
One idea I keep having that seems easy for getting out of student loan debt (since it won't go away in bankruptcy):
-Get a couple credit credits with high balance limits (assuming this is an option)
-Use the high balance limits to pay off student loans
-Declare bankruptcy after a couple months
Result: A previously unforgivable debt is cleared.
Am I being too creative with this assumed loophole, or could it legitimately work? I'm not interested in doing this, but it wouldn't seem like a bad option for a few people I know...
Can't declare bankruptcy after just a couple of months. There's a certain amount of time you have to have a debt before you can have it discharged.
During George W. Bush's Administration, the BK laws in the US were changed to avoid the abuses people were carrying out to game the system (maxxing out credit cards and getting cars and shit just before declaring BK).
Instead of credit cards, use a home equity loan - cheaper money in most cases... subordinate financing CAN be discharged in a BK.
With an average house costing $500k here, it's extremely unlikely to be able to buy a home without a massive amount of debt.
I have over 23k worth of unsecured alledged bank 'debts' which I'm not paying. Credit rating gone down pants. Used the 'debts' to get gold and silver, which have now tripled in value. Using wife's credit card now. After 6 years, credit history cleared. Get myself credit cards and don't pay wife's cc. Repeat and rinse.
Actually, it's 7.5 years realistically. Well, 7 years after the latest update from the credit collection agency, then it gets expunged from your credit report.
And the debt doesn't disappear. Just the entry on your credit report does. If they find you, and want their money, they can still get a judgement against you regardless of how long it's been.
6 years start from the date of default filed. After 6 years they are not legally allowed to chase you for the debt.
They dare try to get a judgement against me, they won't even dare 'invite' me to court.
I think Robert Kiyosaki ran his mouth about this alot..
Heroh Prease? Dorah? You love department stores?
Agreed... I deal with these deadbeats daily, lol. It's a fact that more than 90% of consumers come within 10% of the allowed credit limit in the first 30 days of activating the credit card. Credit cards give consumers a false illusion of having money, that simply does not exist. Hopefully people never smarten up, otherwise I just might be out of business...
You can't. Debt is a necessity, it's just a question on if you can control it or not. Read above on how the vast majority max out revolving credit limits. There is something called a credit batting average; it's important to stay at around 15-25% of the allowed credit limit. This shows the creditors your not skuuuurd, and that your responsible to not max it out. Also, NEVER close the accounts when and if you decide to pay them out. It reduces your "worth"
Dude, are you serious? This post of yours is just fucking... retarded. You capitalize OWN, yet if you finance everything, you don't own shit. The banks hold your pink slips. You also pay more due to compound interest (compared to that of paying with cash)... Dumbass. "SMART" people utilize cash to buy shit, not credit.
Actually I am serious, and it's far from retarded. What do you OWN outright? So far, thanks to low interest loans (debt) I now own 4 rental homes outright. Which generated positive cash flow even when I was paying the mortgage payments. I took the positive cash flow and used it to pay down the mortgages. I used money I didn't have, to make money I wouldn't have, to pay off things that make me more money. How is that stupid? I now outright own 4 houses and since they are paid for now they generate somewhere in the range of $4k/mo ... or $48k/yr. Which is about equivalent to what I paid in interest for all 4. I now have cash to buy more property but I'm not going to pay with my money. I'll mortgage it again. Money is too cheap right now to be spending your own.
It's called your credit utilization ratio and the range is 10-30%, anything over 30% hurts your credit score and anything under 10% is usually seen as neutral (because if you're carrying a balance under 10% there's no profit to be made).
Money is an illusion. Lenders are criminal.
[ame=http://www.youtube.com/watch?v=vVkFb26u9g8]Money As Debt (1 of 5) - YouTube[/ame]
[ame=http://www.youtube.com/watch?v=vVkFb26u9g8]Money As Debt (1 of 5) - YouTube[/ame]