Do you owe money?

[simon43]

In other words, do you have financial debts, such as credit card loans, bank loans, loan shark loans and so on?

 

When I moved to Thailand about 22 years ago, I slowly 'lost' my UK credit cards for various reasons (long forgotten).  This means that for the past 20 years, I have had to live using only my income, ie - living completely within my means. It would be near impossible to borrow from a Thai bank, and borrowing from a Thai loan shark would be a crazy move! I never borrow from friends, or have the need to do so.

 

This inability to borrow money has been a very good thing.  I have learnt to live within my means and not 'waste' money on unnecessary consumer items. I owe no money to anyone. Any ongoing financial liabilities can be terminated without a 'fine'. (My rent car has no contract - I can hand it back without financial penalty etc - My rented property can be handed back at 3 month's notice)

 

How about you?  Do you rely on credit to survive? Or do you use credit/loans in a sensible manner and pay them off on-time?

[brianthainess]

I don't owe money to anyone and never have except for a mortgage that I paid off in the UK many years ago. If you can't live on what you earn or have, then how can you pay it off ?

[simon43]

7 minutes ago, brianthainess said:

...

If you can't live on what you earn or have, then how can you pay it off ?

Exactly!  But it seems many people don't realise this...

[scubascuba3]

Over here I'd be surprised if people have debt. I paid off my mortgage 1999, last time i had debt

[OneMoreFarang]

It's a good idea to live within our limits. But it's also nice to have credit cards for convenience.

In the moment I pay my bills right away and I don't owe money to anyone. But there were times in my life when the situation was different.

I think borrowing money is acceptable. But we should think about for what and think about if and how we can pay it back.

I.e. as an investment for (realistic) business it might make sense. But to finance a holiday on credit is a bad idea.

[OneMoreFarang]

Just now, simon43 said:

8 minutes ago, brianthainess said:

...

If you can't live on what you earn or have, then how can you pay it off ?

Exactly!  But it seems many people don't realise this...

 

People might learn something and soon they will have a better paying job.

Sometimes we need money to later make more money.

[brianthainess]

1 hour ago, OneMoreFarang said:

 

People might learn something and soon they will have a better paying job.

Sometimes we need money to later make more money.

Well wait until you DO have a better job, you 'Might' not get a better job.

[KhunLA]

I only borrowed money for things that appreciated.  Only bought 1 new truck (work) on loan, and the interest was less than inflation.  Had a bunch of CC & lines of credit, and used for investing or paid off before incurring interest.

 

Some carried the loan interest, short lived, till asset was sold.  Houses were paid off by tenants, and decades early.

 

Hindsight, spent way too much money dining out, but that was my only true vice.  Hookers might have been cheaper, but not as entertaining.

 

Aside from that, practical & thrifty, with one purpose....RETIRE EARLY 😁

Edited September 21 by KhunLA

[SAFETY FIRST]

2 hours ago, simon43 said:

Do you rely on credit to survive? 

I use my credit card everyday, I pay back the total amount due on due date, every month, I have been doing this for decades. 

 

I don't think the banks like me. 😂

 

[save the frogs]

No, I don't.

I only use a pre-paid credit card. I need to load it up in advance. 

But neither do I take many lavish vacations or drive a lavish car or live in a lavish home.

People are into status and most people would feel stupid being as frugal as I am. 

 

And after a while, the frugality can grow your money because you are generating interest on it in the bank.

 

And then later in life, when you have money growing interest, you can afford to be more lavish with your lifestyle.

 

This is economy 101 which we are not taught. Young people want it all - lavish holidays, fancy cars ... and then the math doesnt add up.

 

[Lacessit]

My father was a bank teller. He taught me to avoid debt like the plague.

 

I don't even have a credit rating. Or a credit card. Debit cards only.

 

The last time I owed any money was 50 years ago,

 

I pay any bills as soon as I get them. That way, I can forget about them.

 

I have no interest in impressing friends, relatives and neighbors with my possessions. I buy things for function, not appearances.

 

I have one luxury. Golf.

 

[ModdaPunk]

I agree with you 100%.

If you can afford it, don't buy it.

Very healthy indeed.

[gearbox]

I have 8 credit cards but they are always paid in full and I live well below my means. Having credit and debit cards could be quite useful if people use them wisely.

Edited September 21 by gearbox

[Mike Teavee]

17 minutes ago, Lacessit said:

My father was a bank teller. He taught me to avoid debt like the plague.

I worked for a Bank & you would be hauled into the managers office if your account went a penny overdrawn! Sadly that didn’t stop me from running up a year’s salary in debt on 2 credit cards (would pay 1 off every month & then use cash back from the other one to get through). 
 

Same bank sent me to Glasgow on a project where they were paying all expenses & at the end of it gave me a year’s salary as a bonus so both Cards payed off & direct debits set up so I never owed on them again.
 

Even managed to pay both car loans off on that one ( had a car stolen, got the insurance money, pi55ed it up the wall so ended up with 2 car loans) only debt I’ve had since then was my mortgage which I paid off in 4 years.
 

Edited September 21 by Mike Teavee

[Celsius]

I owe 1.4 million dollars on my condo 

[Captain Monday]

I don't know. To avoid early retirement COVID-19 forced me to secure a residence in the US

I had a choice Rent or Buy? I bought a very small condo.

So I have a mortgage with a major bank in USA

I am "locked in" to a I fixed mortgage interest rate that is a third of what is available now

 

Do I really owe money or am I profiting by not paying ever increasing monthly rent?

 

The property has appreciated and easy to sell, especially if rates come down

Location and amenities.

 

[MalcolmB]

I have no debt but have friends and family who I have borrowed from when necessary and have lent money to family and friends when they have needed it. 
Have knocked back requests for loans before if the payback plan didn’t stack up.

 

Lost once to someone who died. Had to seriously threaten two other times to get it repaid. Those two are no longer friends obviously.

[save the frogs]

Weddings are the scam of the century.

Some people send 20 thousand dollars on their wedding and start off their married life in debt. 

 

 

 

[bkk6060]

Seems ridiculous not to have credit cards.  I guess a person who has none probably does absolutely nothing. They are needed for travel, hotels, etc.  Just pay them off.

[JamesPhuket10]

How would the world run without credit?

 

I have £135,000 credit limit on my UK credit cards, I currently only owe £30,000 on them.

 

That money is on deposit in banks paying me 5.2%, it costs me 2% every two years to transfer the money to other cards at 0% over the two years, hence a profit, it is not a lot but it is like a little hobby.

 

I bought a car in Thailand using a 5-year loan at 1.5% interest fixed term, the cash I would have paid to buy it is also in a bank in the UK earning 5%.

 

I have taken many short-term loans when I was developing property to sell, the interest rate was 8%, and the profit when sold was 30%.

 

I agree it is totally stupid to buy loads of designer rubbish for example on a credit card, holidays, etc as that is just money down the drain.

 

But without credit, the world would not operate. 

 

Of course, borrowing for a house in the UK for example long term is a good and healthy way to make a huge profit.

 

Rent it out, use the rent as part of your pension and life is nice and easy here in Thailand. 

[OneMoreFarang]

42 minutes ago, Lacessit said:

I don't even have a credit rating. Or a credit card. Debit cards only.

There is nothing wrong with having a good credit rating and a credit card and using it.

We are all grown up and can use it responsible and pay for it.

Recently I bought two pairs of shoes, together about 7000B, on my credit card points. I like that. And it cost me nothing - apart from that the credit card company knows where I spent some money. 

[jas007]

I have a few credit cards that I use once in a while. Mainly for online purchases or at stores.  But I always keep my balances at or near zero.  So, I guess I don’t have any debt.  Why pay silly interest rates?  I think the typical credit card interest rate in the US is over 20%.  Lots of people find themselves trapped.

[JamesPhuket10]

17 minutes ago, bkk6060 said:

Seems ridiculous not to have credit cards.  I guess a person who has none probably does absolutely nothing. They are needed for travel, hotels, etc.  Just pay them off.

 

Plus if you buy something and it breaks even if you only paid for it partly on your credit card the credit card company has to guarantee it.

 

[OneMoreFarang]

Just now, JamesPhuket10 said:

I bought a car in Thailand using a 5-year loan at 1.5% interest fixed term

One motorcycle dealer in Thailand offered me 1.5% some time ago. I thought that sounds great. And then he said that is the monthly rate... 

[JamesPhuket10]

1 hour ago, SAFETY FIRST said:

I use my credit card everyday, I pay back the total amount due on due date, every month, I have been doing this for decades. 

 

I don't think the banks like me. 😂

 

 

They do as every time you buy something they get about 1.5% of your purchase from the seller.😁

[JamesPhuket10]

2 minutes ago, OneMoreFarang said:

One motorcycle dealer in Thailand offered me 1.5% some time ago. I thought that sounds great. And then he said that is the monthly rate... 

 

I was thinking, Great! as I read it until I saw the word "month". 😄

[JamesPhuket10]

1 hour ago, KhunLA said:

I only borrowed money for things that appreciated.  Only bought 1 new truck (work) on loan, and the interest was less than inflation.  Had a bunch of CC & lines of credit, and used for investing or paid off before incurring interest.

 

Some carried the loan interest, short lived, till asset was sold.  Houses were paid off by tenants, and decades early.

 

Hindsight, spent way too much money dining out, but that was my only true vice.  Hookers might have been cheaper, but not as entertaining.

 

Aside from that, practical & thrifty, with one purpose....RETIRE EARLY 😁

 

That all sounds sensible to me.

 

There was a very famous footballer from Ireland, he played for Manchester United,  called Geroge Best, he said. "I spent a lot of money on booze, birds, and fast cars. The rest I just squandered. 🤣

 

[novacova]

Only debt I ever had was real estate property and that was paid down and off well over 20 years ago. I was currently in any sort of financial debt now, I most certainly would not be living in th.

[Lacessit]

21 minutes ago, OneMoreFarang said:

There is nothing wrong with having a good credit rating and a credit card and using it.

We are all grown up and can use it responsible and pay for it.

Recently I bought two pairs of shoes, together about 7000B, on my credit card points. I like that. And it cost me nothing - apart from that the credit card company knows where I spent some money. 

We are not all grown up.

 

46% of Americans owe money on their credit cards. $1.14 trillion.

 

The average American is in debt to the tune of $104,000, including mortgages, student loans, cars etc.

 

If you think you got those card points free without someone paying for it, there's a bridge in Sydney Harbor I'd like to sell you.

 

I bet there are quite a few that would like to be in my financial position.

[connda]

Nope.