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Treasured Social Butterfly
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Re: Some facts that many boomers/retirees are unaware of....

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Message 41 of 89

@GailL1 wrote:

@Laurie42010 

 

Sorry, this makes absolutely NO SENSE to me.

 

How would a person/family that has not a penny to spare or save, who might need funds for something, have ANY funds to even pay back loan regardless of the interest rate ????? 

If they borrow money for some sort of "need", they possibly might be able to put together a few bucks each month to pay the interest and a minicule amount on the principal but that is a lot less than paying back the lions share of the principal in some reasonable amount of time. Most likely they never get to the lion share of the principal and it becomes SELF-perpetuating.

 

Some of them become dependent on this source of funding and it just gets bigger and bigger until they cannot dig themselves out.

 

FORBES 03.26.2019 - 50% Of Americans Have Maxed Out Credit Cards

 

When higher interest rates are charged, it opens up a more lenient eligibility criteria for borrowning because lenders can take greater risk.  The opposite is also true - when there is a limit on the amount of interest rate that can be charged - it is accompanied by tighter standards of lending.

 

So which way would you, Bernie, AOC, Warren and others prefer for it to come down???

 

What is needed is more individual education on managing ones money - The basics don't change - If your educated financial plan isn't working - you either need to cut expenses or bring in more money.  You see, that is the harder way but one that works for the person/family benefit. 

 

Credit should be used ONLY in instances where the all the money borrow can be paid back in a relatively short period of time - a plan helps on how, how long this will take with full knowledge of how much this will cost in interest - already shown on the statement as legislated.

 

 

 

 


Where does US Debt fit into your rules about Credit?

 

Should Trump just get to keep wasting all our Money on deploying the US Military all over the USA & the World for nothing more than Politics?

 

Should Trump & the GOP be given a pass for the Trillions in unfunded Tax Breaks for only a handful of Americans?

 

What about the next US Debt Ceiling Increase?

 

Beware of Preachers

 

 

( " China if You're Listening - Get Trumps Tax Returns " )

" )
" - Anonymous

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Valued Social Butterfly
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Re: Some facts that many boomers/retirees are unaware of....

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Message 42 of 89

@Laurie42010 wrote:

Gail, no disrespect because I understand there is always two sides of the issues.  My point, I guess, is what a disgraceful situation the past years of economic policies have been put into place that has lead us to this point.  When you don't have a dime left and an emergency comes up (major vehicle repair to get to work, large medical bills, student debt loans at a large portion of income), people then are forced to have to find a way. Perhaps many never have been put into that situation (you should feel honored because many are) and just do not understand the issue.  There is no reason why the government is allowing the corrupt financing/banking industry to be charging these outrageous interest rates.  They put these people in a vicious never ending circle of trying to stay afloat.


 

 

 

Yes, the government regulates the interest rates. However, the interest rates are based on the probability of repayment - and, of course the need for the lending institution to make a profit. I know that is a dirty word to some. But think about it - without the incentive of "profit" why would not be in business hence - nowhere to get the loan.

 

Another way of looking at it - if you have no reserve funds odds are good that you will, at some point in time, find such loans necessary. Two ways of dealing with that reality - hope for the best or do something about it. In my early days before I had grown in my chosen profession upon occasion I saw the reality - we need more money. One time I went door to door selling waterless cookware. Another time I got a Fuller Brush route. then there was the time I took on a part time job with a travel agency - owned by 2 lawyers and I did process serving for them.

 

Bottom line - you need it, go get it.

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Re: Some facts that many boomers/retirees are unaware of....

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Message 43 of 89

Some people can't see past their own noses or neighborhoods. 

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Re: Some facts that many boomers/retirees are unaware of....

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Message 44 of 89

One thing that many ‘boomers’ or seniors seem to have forgotten is that when they were getting their college education it was mainly supported by the government. 

 

So many talk about how good the 1950s were but forget that the government was much more involved in our lives, taxes were much higher and people had much more opportunity than now.

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Re: Some facts that many boomers/retirees are unaware of....

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Message 45 of 89
We all do.
Sir Granny Tracy
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Re: Some facts that many boomers/retirees are unaware of....

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Message 46 of 89

When the recession hits, and it will, those who live on credit will once again lose their homes and their cars and whatever else they have not paid off. It's a heart breaking reality and the saddest thing is that we have experienced this before, in the not so distant past. Unfortunately with the cost of everything rising, including interest rates, many find themselves unable to keep up.

History does repeat itself.

Sir Granny Tracy
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Re: Some facts that many boomers/retirees are unaware of....

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Message 47 of 89

     What boomers also fail to admit is that they / we are doing quite well, thanks to our birth age.    Those in the generation after us and beyond are the ones that are the big losers.  

 

      

PRO-LIFE is Affordable Healthcare for ALL .
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Re: Some facts that many boomers/retirees are unaware of....

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Message 48 of 89
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Re: Some facts that many boomers/retirees are unaware of....

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Message 49 of 89

@GailL1 wrote:

@Laurie42010 wrote:


You mentioned above here....."free money"....hmm, 'cause now I'm confused.  So, you are for the government and/or grants that are really "other peoples money"????


Scholarships - my kid applied for any and all she could find and qualify for - remember one that she got for, of all things, Basketball Cheerleading - $ 500.  Don't remember any grants but that was 20 years ago.  We did pay a for her 4-year degree- she went out of state - residency applied after 1st year and she paid for her Masters.    To get her Masters, she worked retail and as a bartender and waitress - but never at Hooter.  Woman Wink  She was gonna major in music/dance but changed to marketing/ minor finance in Sophmore year - GOOD DECISION - she now makes a great income and even works from home - travelling for business a few days a year.

 

I give a donation every year to a Scholarship fund for nursing at a local University - but that came about from the care the nurses gave to my brother when he was terminally ill in 1990.  Many people do this - they pool their contribution into an endowment, it gets earnings and then once a year several students get some money.  We never deplete the fund by giving out all the money so that it can stay somewhat self-perpetuating - but it all helps out.


I don't like to be the bearer of some new facts, but today's college education expense is a lifetime altering crisis, many young peoples lives are altered because they have the tremendous stress of putting the college debt before actually participating in the human life cycle of marriage, families. Bernie Sander's stance has always been "tuition-free public college and he introduced the College for All Act in 2017". This policy would eliminate tuition and fees at four-year public colleges and universities for those families who make up to $125,000. This actually "enables" those who typically fall into the lower sector of economic scale to earn a college degree and actually have the tools to start life out with a better opportunity to grow on. To be good citizens, imo, we need to give a helping hand to enable people in the low income sector to grow up and out of that status.

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Re: Some facts that many boomers/retirees are unaware of....

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Message 50 of 89

@Fishslayer777 wrote:
Two things.
Government cannot dictate responsible fiscal behavior since they can't do it themselves.
Working with people who are destitute (poor and those in debt) my experience is, without a financial mentor nothing changes since they do not understand priorities.


So, I ask not out of mockery, but concern, what is your answer to this growing sector of the public? Do we just ignore the situation? Shame them into what? Don't take into consideration that many are born into the whole poverty/low income society and have little if no opportunities? Don't you think that just not addressing their issues that will just help aid the whole cycle of crime, because we are all humans and will indeed do what we have to just to eat, house and clothe ourselves?! So, what happens when they can't pay for the necessities and have to start not paying the bills....who actually ends up paying for this financial crisis in the end?

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