Drowning in debt, he needs a life raft - guy spends $2000 more per month than ea

[Texacon]

Liberal_in_LA  (811 posts)
Sun Jan-27-08 04:13 PM
Original message

Drowning in debt, he needs a life raft - guy spends $2000 more per month than earns
   
Edited on Sun Jan-27-08 04:15 PM by Liberal_in_LA
http://www.latimes.com/business/la-fi-makeover27jan27,0...

Nathan Drake, who owes $54,000, spends nearly $2,000 more than he earns each month. An advisor urges drastic changes.

By Kelly Barron, Special to The Times
January 27, 2008

**SNIP***

Starting over -- and buying a truck and a sparkling wedding ring for his new wife -- put Drake further in the hole.

He dug it even deeper, splurging as a newlywed to show his Canadian wife, Jodi, 23, around Southern California. He and Jodi dined out on $100 seafood dinners, took trips to Las Vegas and, on weekends, went out to dinner and a movie.

All of it added up. Drake carries $29,000 in debt on six credit cards. He owes an additional $16,000 at his bank. And he has borrowed $9,000 from his 401(k) retirement plan, which is worth $14,000 and was his only unencumbered asset.

Each month, he spends nearly $2,000 more than he earns. Any financial mishap and he's further in the hole. Recently, Jodi needed a root canal, forcing him to put $900 more on plastic.

***snip***

He pays about $6,800 a year in loan, insurance and gas bills for his Chevy Silverado truck. Drake said he needs the gas guzzler so he can tow a motorboat to vacations along the Colorado River. He paid $2,300 for a one-third interest in the boat; his buddies own the rest.

"People who are $54,000 in debt don't go on vacation," Barlow countered. "The whole picture here is one of denial."

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x2774283

Yo, DUmmies .... these ARE the people you are trying so desperately to help!  Why so much venom in the thread?!   

KC

[Wretched Excess]

damn that bush economy . . . .   oh, wait.  he's canadian . . . and stupid.

[Chris_]

I read this and was appalled.

Even stupider is his wife -- she married a stupid loser and, seeing the hole, decided it was a good idea to dig it deeper.

I made a pretty good living and my wedding reception was at a Howard Johnson's and our honeymoon was a modest week long trip to Orlando, with the room my sister's timeshare as a wedding gift.  No hundred dollar dinners, no lobster (until later when I could pay cash).

For the last 20 years I have carried a zero balance on my few credit cards.  I own my cars free and clear. I am 3 years away from owning my condo.  My retirement is in good order and I have 6 months income in cash.

All because I know what a dollar is worth. And I *hate* debt.

When I read this, I just almost scream. 

[DixieBelle]

I'm hoping that most of the DUmmies caught the irony in the article and realize that this guy dug his own grave.

[VelvetElvis]

I'm hoping that most of the DUmmies caught the irony in the article and realize that this guy dug his own grave.

Too bad he's Canadian.  Otherwise the Dem's could run him for Congress.  He'd fit right in!

[Wretched Excess]

I was just thinking that little princess john edwards is probably racking her brain trying to figure out how to work him into his next concession speech.

[jukin]

I'm hoping that most of the DUmmies caught the irony in the article and realize that this guy dug his own grave.

I'm sure it is some evil conservative that didn't take care of the ass that is really at fault.

[Lauri]

I was reading some thread over there earlier and one of the posters was commenting that he was thinking about walking away from his house cause he kept borrowing the equity to pay down other stuff.

then he said this: "the credit card companies know how much i make, yet they keep sending me more of them. and i dont understand why they charge so much, then jack up the rate if you miss one payment"

out poured more stories of others who thought walking away from a mortgage was not an immoral thing to do - it was just deserts for those greedy bastards forcing them to go out and use credit.

i read those threads and thank God my dad taught me about credit and not to buy things i couldnt pay for. we had crappy lives in our 20s and early 30s but now we are having a great time and not worried about this 'recession' if there even is one.

mostly because, i cannot for the life of me consider spending time worrying about debt - when i dont have to.

[Chris_]

I was reading some thread over there earlier and one of the posters was commenting that he was thinking about walking away from his house cause he kept borrowing the equity to pay down other stuff.

then he said this: "the credit card companies know how much i make, yet they keep sending me more of them. and i dont understand why they charge so much, then jack up the rate if you miss one payment"

out poured more stories of others who thought walking away from a mortgage was not an immoral thing to do - it was just deserts for those greedy bastards forcing them to go out and use credit.

i read those threads and thank God my dad taught me about credit and not to buy things i couldnt pay for. we had crappy lives in our 20s and early 30s but now we are having a great time and not worried about this 'recession' if there even is one.

mostly because, i cannot for the life of me consider spending time worrying about debt - when i dont have to.

You sorta need to see Steve Martin here....

"I want money and you LEND IT TO ME????  You Bastards!!  And I suppose after I sign a contract that I will pay it back, you WANT ME TO PAY IT BACK??? What kind of animals are you????"

[Lauri]

I was reading some thread over there earlier and one of the posters was commenting that he was thinking about walking away from his house cause he kept borrowing the equity to pay down other stuff.

then he said this: "the credit card companies know how much i make, yet they keep sending me more of them. and i dont understand why they charge so much, then jack up the rate if you miss one payment"

out poured more stories of others who thought walking away from a mortgage was not an immoral thing to do - it was just deserts for those greedy bastards forcing them to go out and use credit.

i read those threads and thank God my dad taught me about credit and not to buy things i couldnt pay for. we had crappy lives in our 20s and early 30s but now we are having a great time and not worried about this 'recession' if there even is one.

mostly because, i cannot for the life of me consider spending time worrying about debt - when i dont have to.

You sorta need to see Steve Martin here....

"I want money and you LEND IT TO ME????  You Bastards!!  And I suppose after I sign a contract that I will pay it back, you WANT ME TO PAY IT BACK??? What kind of animals are you????"

its just incredulous that these are actually adults making these statements over there.

my 22 year old has had some bumps, but she's 22 and in college. and yet... she still has more on the ball than those clowns.

she knows she cant have credit cards - they are just too tempting.

she knows we dont use credit cards and she's seen us go without for many years so that our later years could be more comfortable. we didnt buy our first house til we were in our mid 30s and had a down payment. we've shared all of that with her so that she will understand you dont just go to a bank and get a loan with nothing.

it just always comes back to the bottom line differences in conservatives and liberals; we believe we own our lives, liberals believe someone else does.