Give a Kid some financial advice.....

[tiznow]

i agree 100%

my point is hyperinflation = gold and equity markets (zimbabwe's stock market a beast) to the moon and debt burden is meaningless

if you really believed in hyperinflation you would suggest buying gold and maxing out 401k....

and that is a very deflationary mindset you have regarding debt and being free of debt and not owing somebody something :howdy:

i think more americans are slowly starting to come around as far as taking a more deflationary mindset like yourself and as well as me as far as debt is concerned

as this question shows you with all the economic doom and gloom floating around

 

[pubguy]

actually if shit really hits the fan as far as your personal situation

credit cards are the easiest type of debt to get away from

student loans on the other hand are hard to get away from

but assuming your economic situation doesn't get really fucked up where you are defaulting on debt than yeah i agree go with CC first as chances are those are the highest rates you got going currently

Surely you don't plan your economic future based on which debts. you can get away from/with?

 

[tiznow]

well i don't just saying many people got stuck in alot of debt and now the economy is imploding

and my comments were more directed towards if you are in a very extreme debt situation whose job may be at risk in the near future or lost their job recently like many people

this particular person posting the question seems fine.....

i have zero debt personally

 

[pubguy]

I figured as much. Just having some fun.

 

[skoda]

Start with paying off CC in full and cut them up. Don't TRY! Get rid of balances on CC and just keep one. Start with the smallest balances. Follow the plan and in 1 year which seems like a long time they'll be gone. Call Credit Card companies and ask for a payoff on the principle. How much will they settle for? GL

 

[koidog]

Start with paying off CC in full and cut them up. Don't TRY! Get rid of balances on CC and just keep one. Start with the smallest balances. Follow the plan and in 1 year which seems like a long time they'll be gone. Call Credit Card companies and ask for a payoff on the principle. How much will they settle for? GL

No, better is to have discipline and use Credit Cards that give you the best deals. Pay EVERY bill by CC, that floats your money one month plus earns you reward points.

Key is to pay them off every single month..no exceptions.

 

[tiznow]

actually CCs a scam

they charge businesses a fee for processing the transactions so businesses in turn have to charge higher prices

so in the end even if you prudent u really not gaining much from the rewards

although regardless if you pay cash or swipe you still paying the same price since everybody else is gonna continue to swipe

that said i do swipe to keep my credit history good and keep a credit line going so if i ever need loan for something like a house, or car or whatever i at least have some credit history

also i try to pay cash at mom and pop shops and swipe at bigger corporate entities as much as possible

 

[koidog]

actually CCs a scam

they charge businesses a fee for processing the transactions so businesses in turn have to charge higher prices

so in the end even if you prudent u really not gaining much from the rewards

that said i do that to keep my credit history good and keep a credit line going so if i ever need loan for something like a house, or car or whatever i at least have some credit history

Unless a business gives a Cash discount..who cares what the CC charges the business? And you might want to look in to some of those rewards.

And again...the float factor is pretty huge. Unless there is an aformentioned Cash discount, it is very smart to pay with CC.

 

[tiznow]

y i added to my response due to the fact that it will remain the same regardless its either you go along with the herd and get your rewards or you be rebel outta the sake of making a point in your own mind

i take the between road

pay cash at mom and pop businesses and swipe at the big boy retailers

not making the small businesses eat the transation fees and letting the big boys like walmart eat um

that said my point basically is

that CCs make us pay more for goods as well as causes businesses to charge more and/or eat processing fees

maybe that's the price all we pay for convenience of not having to pay with cash i guess?

so MA and V can make money with every swipe and employ people

who knows

 

[tiznow]

Unless a business gives a Cash discount..who cares what the CC charges the business? And you might want to look in to some of those rewards.

And again...the float factor is pretty huge. Unless there is an aformentioned Cash discount, it is very smart to pay with CC.

also a mom and pop gas station is a good example of why you should maybe care......

if you pay by CC for your gas outside and don't ever buy anything inside the store most of the time they losing money on you their margins on gas are almost nil and most of the time are lost in the processing fees and most gas stations make money on the stuff you buy inside the gas station.....

only one really gaining from it is mastercard or visa, and your bank if you hold carry a balance your CC

anyway getting way off topic

 

[DarrylParsons]

i agree 100%

my point is hyperinflation = gold and equity markets (zimbabwe's stock market a beast) to the moon and debt burden is meaningless

if you really believed in hyperinflation you would suggest buying gold and maxing out 401k....

and that is a very deflationary mindset you have regarding debt and being free of debt and not owing somebody something :howdy:

i think more americans are slowly starting to come around as far as taking a more deflationary mindset like yourself and as well as me as far as debt is concerned

as this question shows you with all the economic doom and gloom floating around

Good try at pointing out inconsistencies but there are a couple of factors you are not considering...

Regarding my advice to a young person with a negative net worth, I am taking into consideration the long career he has ahead of him and the ordering of priorities given the long stream of future income. Reduce risk and maximize freedom first, then build some capital with hard work, then invest it according to how you think the markets will go, keeping the risk at a tolerable level. Basically I'm saying he's not in a position yet to worry about whether there will be inflation or deflation. He's got to get out of debt before he has the luxury of thinking about that stuff.

Naturally no one is 100% sure of what will happen, otherwise we could be billionaires pretty quickly.

As for my own stuff, you know I own a lot of precious metals so that's consistent with inflationary expectations. I also play the futures markets which technically involves being in debt because I'm buying and selling on margin. In my own mind I don't consider it debt, just betting with money I actually have. If you can place big wagers on stuff you think is going to happen, then the stuff you wager on is a greater reflection of your market outlook than your decision to have a positive bankroll while making those wagers.