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Wow...

January 6th, 2008 at 05:59 am

I know my husband and I are in awful financial shape, and we're trying our hardest to get ourselves out before it's too late. Although we've made little progress, we've made progress nonetheless. Heck, even stopping using credit cards under any circumstance for the past few months in and of itself is progress.

So a certain family member and I were talking. He lives across the country in CA and is the only person other than my husband who knows the extent of our cash troubles. So I was telling him about all the steps we've taken and how in even a year there's going to be a dent in what we owe. So this person proceeds to tell me how him and his wife are going on a Mexican cruise this year. They moved to CA like two years ago, own a $250,000 condo and a beautiful $550,000 house, one truck with a truck payment. Now, that's a LOT of financed stuff, and being I know they moved out there with basically no cash, I'm willing to bet it was all no money down on the house, the truck, the condo.

So he tells me how much they have in consumer debt. Approximately $95,000 for credit cards, furniture, electronics, whatever. I ask how the hell they manage to pay ALL these bills this month and buy more (like a timeshare they bought this year.) He launches into this big spiel about how they do it. Get a 0% credit card, buy stuff, when the 0% runs out, transfer. So although they're paying little or no interest, he says it's as good as cash, even with running up the other cards again. (I'm not without fault on the 0% interest trap, but not $95,000 worth. Plus I know better now.) I wasn't trying to be snotty, but I asked "What if one of you loses your job?" I don't remember his answer. I really was shocked. I know they're putting said cruise on a credit card. Why not go to the timeshare instead??? I asked if they were even trying to be debt free and he said no, it's FINE. GAH! They want to have a baby in the next year, how is that going to happen???? I also just assume they have some wacky ARM on the condo and house, as neither of them have extraordinary jobs. They do well, but not THAT well. Oh, and said family member is 27 and the wife is about 31-ish. Being that this family member is pretty close to me, I feel awful for their future. I cannot believe they're not even remotely concerned. Not a care in the world!!

I tried to tell him about some of the stuff we were doing and the books I've been reading and this website and he wanted no part of it. What about the future? I cannot imagine having roughly $850,000 in debt (and not even being CONCERNED!). Tthey do have two roommates, btw, to help foot the cost of the house, but still....

So yeah. I have visited them in CA and was instantly jealous of the flat-screen tv, the fancy kitchen, the marble countertops, the walk-in closets, the master bedroom with fancy-schmancy tub, the attention to detail in the molding and woodwork, the nice artwork, the electronics, state-of-the-art washer and dryer, the pool, the two porches, the hot tub, two new cars in the driveway, and of course every time they say they're taking another great vacation.... who wouldn't love all that? But now I'm looking at our dinky apartment in the double that we own, our cheap tv, cheap entertainment center, naked walls, cheap couch, second-hand dining room table and teeny kitchen with not enough counter space.... and I think, hmm, maybe it's not that bad!! At least I know that when the time comes for us to have our dream house, we'll be able to afford it being that we did decide to buy this small double now.

I shudder to think of the price they will wind up paying in the end so that they can live it up now.

4 Responses to “Wow...”

  1. denisentexas Says:
    1199622650

    I have family members who live on credit. Before I realized that's what they were doing, I was somewhat envious of the houses, new cars, jewelry, TVs, trips, etc. No more, though. We don't have much money at all and we have a small amount of debt compared to most people. But we have peace. Well, for the most part we do. And that's most important to us. I think what you're talking about is more of that instant gratification in action.

  2. Broken Arrow Says:
    1199626422

    Wow is right.

    It's hard not to envy the Joneses, but this one is a large, ticking time bomb. For their sake, I hope they are able to get out from this OK.

  3. Ima saver Says:
    1199633810

    Wow, that is shocking. I started small and now have a big beautiful house worth at least a half million and it is completely paid for. I hope they don't fall on their faces, but I bet they will.

  4. mom-sense Says:
    1199634854


    you've stopped using the credit card that indicates a change in attitude - that is the starting point of consistent change, IMO. We've got a similar relative with tons of debt (all to look good and personify an image of lawyerliness - a $12K engagement ring on credit - a $6k furntiure loan for a new bedroom set - and a brand new dog that will cost $200 a month for dog walkers - and a used Lexus) This one also jokes about taking a 3rd mortgage and waiting for wealthy relatives to die. My DH makes roughly the same as the lawyer - we have debt that we are getting rid of and did not accumulate for namebrand clothing, jewelry or furniture. I am a SAHM to lots of kids and we watch every dime. We support our church and feed and clothe our children. Good for you for your start!

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