People Getting Stretched to Limit. Credit Card Balances Soar.

[BigK]

I catch a lot of grief from friends/family because both of my kids still live at home. I don't like it, but I'm not going to throw them to the wolves to free up a bedroom either. A couple of generations ago it wasn't weird for multiple generations to live in the same house. The only difference is they had a choice back then. This economy is so messed up, a young couple with good jobs will still struggle to afford housing and food and cars.

 

[Garufa]

5 hours ago, Tom B said:

This is kinda what I meant.

Lets say a house is assessed at $50,000, and you pay $1000/yr in taxes

If the assessment goes up to $100,000, it doesnt mean you will pay $2000/yr

 

 

There really is more to it than that.

Assessment is a property assessor term used for taxing.  It differs, but is tied to appraisal value.

When properties are reassessed every “roughly” 4 years in TN by law, then the local property tax rate is to be adjusted so that it is revenue neutral.  That sounds great but some people’s taxes do go up, others maybe down.

Property assessors now are using recent sales values (the appraisal part) in valuation.

And to add…many in state guvment are trying to reduce that reassesment interval to something like 2 years…keep an eye on our wonderful republican supermajority, it’s going to cost us all.

[NoBanStan]

4 hours ago, monkeylizard said:

What's wrong with that? I did it. My brother did it. I suspect a lot of folks on here did it. It sucks for a season, but it's a means to an end. It made me appreciate having my own place later.

to clarify i meant "run down apartment" as in a slum

[monkeylizard]

Yup. Me too. FBI and Metro SWAT raided the building next door to my 1st crap-hole apartment for one of the FBI's Top-10 most wanted fugitives. Had another nutter in the complex storing gasoline in milk jugs and 2-liter bottles in his apartment for Y2K.

Having a lower rent (lousy apartment in a lousy location) and roommates kept costs low and allowed me to save up for better living later. It sucked, but it's what I could afford at the time.

Edited May 24 by monkeylizard

[AuEagle]

14 hours ago, Garufa said:

…keep an eye on our wonderful republican supermajority, it’s going to cost us all.

Thank God for our Republican Supermajority, has anyone seen the taxes in comm/dem run states. 

[btq96r]

I have a lot of sympathy for those who fall into credit card debt.  Our consumer culture does everything to encourage it, and now the "rewards" for doing so are practically a game within a game for those chasing status, points, cash back, and everything else that distracts them from bad decisions, big and small.  We even have research that shows a form of neurological impact from this.

I got into a pretty rough shape with debt in my early 20s, and literally paid the price.  Being a 21yr old with a $6k credit limit on a MasterCard, and going to Las Vegas after the 2023 Iraq deployment was fun, but I was paying it off almost until my next deployment, and not always on time.  I even took out a payday loan to afford a fun weekend and tickets to a concert.  But most of the time I was just spending on drinks, and stupid things I didn't need, or even remember.

To my shame still this day, a few years into my mismanagement of money, I missed the phone call from the mother of a friend of mine who died in Iraq.  I didn't take the call because I didn't recognize the number, and was being hounded by a credit card company, and one that went into collections.  That sobered me up.  I haven't carried a balance on a credit card, or had a payment on interest since I think 2010.  It was a painful road to get there complete with more missteps and lessons.  But those lessons stuck.  As much as I don't recommend it, the way it's shaped me were a benefit of sorts.

There is no doubt times are getting tough for far too many folks.  I fully believe the right path is to live within one's means, but I also think that life and those means are losing dignity because our consumer and vulture capitalism paradigms are spiraling out of control.  We should be having a national conversation about this, but of course we're not that country anymore.

The sad irony is, in a healthy market, if everyone lived within their means, our economy would crash like a Porsche hitting a tree that suddenly appears in the middle of the road.  It's both scary and ugly how much of our economic  returns are coming from people living paycheck to paycheck (and not saving much), or those living past their paycheck on credit.

Maybe we need that toxic shock to change things.  I hope not, but that's where my mind goes.

[monkeylizard]

Sorry you had to go through that. When I hit the $250 limit on my first card and couldn't pay it off in full, I knew then and there I had to clean that up and start making better choices. I sold my new truck to free up some cash flow and drove a car I really hated for a few years. I got that one paid off and kept making the payment to myself so I'd have money for the next one. Never used consumer debt again.

That was back when Kroger would have those cheap Totino's pizzas on sale sometimes 10/$10. I'd get 20 of them and that was dinner for most of the month. Totino's pizza and a Big K soda . . . livin' the dream!  

Edited May 25 by monkeylizard

[hipower]

5 hours ago, monkeylizard said:

Sorry you had to go through that. When I hit the $250 limit on my first card and couldn't pay it off in full, I knew then and there I had to clean that up and start making better choices. I sold my new truck to free up some cash flow and drove a car I really hated for a few years. I got that one paid off and kept making the payment to myself so I'd have money for the next one. Never used consumer debt again.

That was back when Kroger would have those cheap Totino's pizzas on sale sometimes 10/$10. I'd get 20 of them and that was dinner for most of the month. Totino's pizza and a Big K soda . . . livin' the dream!  

PBJ and water. Wife and I lived on that seemed like for years. Both had the car lust. Could pay for rent and cars. That was about it.

I've recently gotten back on to those PB&J Sammiches. I find them tasty, fast, but not as cheap as they were 40+ years ago. But at least we can afford the crunchy style now.

[Capbyrd]

On 5/23/2024 at 8:22 AM, NoBanStan said:

I, like numerous other parents, have a child that's just graduated. It scares the heck out of me that he can't afford to live anywhere around me. Single bedroom apartments are charging rent that's as high as my house payment. So unless he buckles down and makes well over 6 figures (impossible at his age), he's gonna be living with me or shacked up with 2-3 friends 'house poor' in some crummy apartment.

 

 

Not impossible.   Depends on how willing you are to work.    The Memphis Police Department Dispatchers currently make 71k a year and change with constant overtime opportunities.   Its not difficult to get to well past 100k.   And the city council just approved a 5% raise for them.  No college required.   Just a high school diploma or GED.  

There are jobs like that all over the place.  Just have to be willing to make those sacrifices.   Another example would be an OTR driver.  Gotta be 21 for over the road but you can get some forms of CDL at 18 in TN and then at 21 hit the road.   If you are willing to let him live with you while he's home, he could bank some serious money over the course of a few years and get started. 


Then, of course, there is the military option.   A job where you can have housing provided under certain circumstances. 


Options exist for people.  People aren't willing to give up the keeping up with the joneses lifestyle.   Hard times make strong men, but people are too scared of hard times to make those necessary changes. 




And look, I'm not immune to it.  I carry a good bit of credit card debt right now.  I made some recent life changes and have started to make serious progress to get myself out from under it.   If I can maintain my current trajectory, and avoid any major disasters, I'm looking to be free of the credit cards by this time next year. 

[NoBanStan]

5 hours ago, Capbyrd said:

 

 

Not impossible.   Depends on how willing you are to work.    The Memphis Police Department Dispatchers currently make 71k a year and change with constant overtime opportunities.   Its not difficult to get to well past 100k.   And the city council just approved a 5% raise for them.  No college required.   Just a high school diploma or GED.  

There are jobs like that all over the place.  Just have to be willing to make those sacrifices.   Another example would be an OTR driver.  Gotta be 21 for over the road but you can get some forms of CDL at 18 in TN and then at 21 hit the road.   If you are willing to let him live with you while he's home, he could bank some serious money over the course of a few years and get started. 


Then, of course, there is the military option.   A job where you can have housing provided under certain circumstances. 


Options exist for people.  People aren't willing to give up the keeping up with the joneses lifestyle.   Hard times make strong men, but people are too scared of hard times to make those necessary changes. 




And look, I'm not immune to it.  I carry a good bit of credit card debt right now.  I made some recent life changes and have started to make serious progress to get myself out from under it.   If I can maintain my current trajectory, and avoid any major disasters, I'm looking to be free of the credit cards by this time next year. 

My son will be ok. He's resourceful and my doors are open until he makes his own way.  With luck, he'll do his 4 years in college and pull probably 60-70k immediately afterwards. I think if he applies himself, he can make that happen. I've hired guys out of college several years back making that range.

Good luck on the debit. Just make sure you stick to it. The green monster will inevitably show up and make you want something you shouldn't be buying.

[tnhawk]

On 5/14/2024 at 9:36 PM, AuEagle said:

Credit cards are fine when used responsibly, just like firearms. 

Use them irresponsibly, disaster can follow. 

 The higher credit card balances are being fed by the high inflation.

 

Credit cards and guns are tools.  Both require proper use or the results aren't good.

[tnhawk]

On 5/24/2024 at 10:00 AM, AuEagle said:

Thank God for our Republican Supermajority, has anyone seen the taxes in comm/dem run states. 

Build Back Broke!

[gregintenn]

27 minutes ago, tnhawk said:

Credit cards and guns are tools.  Both require proper use or the results aren't good.

Well stated and bears repeating.

[BigK]

10 hours ago, hipower said:

PBJ and water. Wife and I lived on that seemed like for years. Both had the car lust. Could pay for rent and cars. That was about it.

I've recently gotten back on to those PB&J Sammiches. I find them tasty, fast, but not as cheap as they were 40+ years ago. But at least we can afford the crunchy style now.

I've found the older I get, the simpler my taste gets. I never outgrew PB&J, but recently I find myself wanting the simplicity of pot pies, frozen salisbury steak, and ramen noodles.

[hipower]

1 minute ago, BigK said:

I've found the older I get, the simpler my taste gets. I never outgrew PB&J, but recently I find myself wanting the simplicity of pot pies, frozen salisbury steak, and ramen noodles.

2 cases of Ramen, a dozen or so salisbury dinners, and 40-50 cans of BBQ Vienna Sausage(I splurged on those). Plus several boxes of unsalted Salteens. I think I'm set for a couple of weeks. lol.

[BigK]

8 minutes ago, hipower said:

2 cases of Ramen, a dozen or so salisbury dinners, and 40-50 cans of BBQ Vienna Sausage(I splurged on those). Plus several boxes of unsalted Salteens. I think I'm set for a couple of weeks. lol.

I like the way you think! I forgot about vienna sausages...they're going on my next grocery list.

[monkeylizard]

I went to an IKEA years ago down in Atlanta. I'd heard about their amazing Swedish meatballs in their little cafeteria thing so I had to try some. They taste exactly like Swanson's TV dinner Salisbury steak out of the old aluminum trays.

Too bad they didn't have any scorched mashed potatoes and the little cherry cobbler thing to go with them.

Edited May 25 by monkeylizard

[deerslayer]

4 hours ago, NoBanStan said:

My son will be ok. He's resourceful and my doors are open until he makes his own way.  With luck, he'll do his 4 years in college and pull probably 60-70k immediately afterwards. I think if he applies himself, he can make that happen. I've hired guys out of college several years back making that range.

A co-worker and I discussed this the other day.  His son just finished an Engineering degree at MS State.  He told him he should come back home and live with them for a couple years and save up a mountain of money before heading out on his own.  In this economy and inflation, such a move could alter his financial health for the rest of his life.  We both agreed that we don't understand the "when they turn 18 they are out on the street" mentality.  

[ArmyBrat61]

43 minutes ago, monkeylizard said:

Too bad they didn't have any scorched mashed potatoes and the little cherry cobbler thing to go with them.

I did not need to remember that, or taste it again.  

[peejman]

On 5/23/2024 at 5:40 PM, monkeylizard said:

What's wrong with that? I did it. My brother did it. I suspect a lot of folks on here did it. It sucks for a season, but it's a means to an end. It made me appreciate having my own place later.

My wife and I did the same thing before we got married...  crappy apartments, sketchy roommates, cheap cars, Ramen, and hamburger helper.   We were both super happy when we got our own apartment after we got married. Our first big purchase was a washer and dryer. So nice to not have to go to the laundromat. 

So yeah, some suffering through less than ideal life makes one appreciate it more when you can finally get decent stuff.  It's about not keeping up with the Jones's and keeping your eye on the prize. 

That said, life is much more expensive now. I have a 16 yr old and we're in the process of figuring out a car for him. I recall my sister getting a $2000 car when she turned 16 in 1988.  $2000 then is $5000 now. What you get today for $5000 is much worse than what my sister got back then. 

Along the same lines, if we were moving now, we wouldn't be able to afford the house we've lived in for 15 years. Housing costs are outrageous. 

[peejman]

Double tap

Edited May 25 by peejman

[gregintenn]

6 hours ago, BigK said:

I've found the older I get, the simpler my taste gets. I never outgrew PB&J, but recently I find myself wanting the simplicity of pot pies, frozen salisbury steak, and ramen noodles.

We’re a bit different, but still the same. Canned garden veggies with canned deer meat make up a lot of our diet. We haven’t been able to find a restaurant that can compete.

[Capbyrd]

11 hours ago, NoBanStan said:

Good luck on the debit. Just make sure you stick to it. The green monster will inevitably show up and make you want something you shouldn't be buying.

 

The issue is things like trees falling and taking out my neighbor's truck, driveway and tearing up my sewer.   Last year I spent about 20 grand recovering from that (and getting rid of the rest of the trees so I didn't have to deal with it again) and that's after insurance covered what they would.  Everytime I make some progress disaster strikes.  But that's getting better and I did something that hurt to get through it last year but i sold some guns.   I'm working on getting rid of the debt before I start replacing them. 

Increasing my income three fold certainly helped. 

Edited May 26 by Capbyrd

[monkeylizard]

21 hours ago, peejman said:

That said, life is much more expensive now. I have a 16 yr old and we're in the process of figuring out a car for him. I recall my sister getting a $2000 car when she turned 16 in 1988.  $2000 then is $5000 now. What you get today for $5000 is much worse than what my sister got back then.

Yeah, and a 16 year old in 1988 made what, $3.25? maybe $4/hour? Today Wal-Mart starts at $17.50/hour and Target starts at $15-24/hour. . . plus benefits. Most customer service call-center jobs start at $20+/hour and they're nearly all full-time work from home these days so opportunities to live in a lower-cost area and still have a good paying job are out there.

The Internet has made the entire world available for incoming knowledge and outgoing sales. There are literally free college-level courses available 24x7. There are YouTube videos demonstrating step-by-step nearly anything a person could ever want to know how to do: changing a light bulb, how to start a business, knitting, welding, carpentry, plumbing, auto repair, how to build an airplane, photography and editing, computer coding, musical instruments, and anything else we can think of.

There are so many opportunities for side hustles, and not just DoorDash/Uber, but getting a skill and making better than entry-level money doing it like coding, teaching English online, or hustling with sales. I've read somewhere that the first person to make a million dollars on eBay did it reselling golf clubs. He'd hit thrift stores, yard sales and estate sales looking for good ones and resell them on eBay. That's hustling every day to find inventory, post listings, and get shipments out. I know the first UK eBay millionaire started by selling protein supplements and mobile phone accessories from his parent's garden shed. Now he's the largest eBay seller in the UK and 6th in the world.

It's not easy, but more than any other time in human history, it's possible. If I had to start over, I thank the good Lord I'd get to do it today and not in the days of classroom learning and paper book libraries, mail order catalogs, print ads, and cold telephone calls.

Edited May 26 by monkeylizard

[peejman]

On 5/25/2024 at 9:50 PM, monkeylizard said:

Yeah, and a 16 year old in 1988 made what, $3.25? maybe $4/hour? Today Wal-Mart starts at $17.50/hour and Target starts at $15-24/hour. . . plus benefits. Most customer service call-center jobs start at $20+/hour and they're nearly all full-time work from home these days so opportunities to live in a lower-cost area and still have a good paying job are out there.

That sounds about right. My high school job paid $5.25/hr and gas was $0.79/gal.  Gas has gone up 4x so pay should be about $21/hr to match. Minimum wage was never meant to be career, but that's a different thread.