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kissekatt posted:My understanding from reading the debt collector thread is that this is basically true. If the debt cannot be legally be collected or reported it basically ceases exist. Not all debt - student loans, mortgages, active credit cards you've made minimum payments on, right? If it's such a certainty why do we all push BFC thread-starters to work out payment plans for their debt? Credit score is a fine reason, but if you're happy where you live/what you drive, 7 years isn't such a bad tradeoff for being in the clear without having to put effort into anything.
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Feb 17, 2014 04:56
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Tony Montana posted:For a thread about people that have hosed up their lives, dropping out of learning something useful or progressing in any sort of career to piss away a few years of your 20s as a nanny isn't the hottest idea. If you had a loving clue what you were talking about, you'd know that working as an au pair in a foreign country is in most cases reserved for STUDENTS and most commonly they are language students. You dumb poo poo.
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Feb 17, 2014 05:09
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drat Bananas posted:Not all debt - student loans, mortgages, active credit cards you've made minimum payments on, right? If it's such a certainty why do we all push BFC thread-starters to work out payment plans for their debt? Credit score is a fine reason, but if you're happy where you live/what you drive, 7 years isn't such a bad tradeoff for being in the clear without having to put effort into anything. I'm not American though, I read that thread for fun, so I may very well be wrong on the details.
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Feb 17, 2014 05:14
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Tony Montana posted:For a thread about people that have hosed up their lives, dropping out of learning something useful or progressing in any sort of career to piss away a few years of your 20s as a nanny isn't the hottest idea. I'd just like to go to another country for a year or so and earn a small income to supplement passive income and work to actually connect with people who are not backpackers. After awhile maybe I'd return and resume my career. I won't work in some 40-something-hating STEM field so I don't think there's really any cost beyond years lost adding to my net worth.
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Feb 17, 2014 05:17
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drat Bananas posted:Not all debt - student loans, mortgages, active credit cards you've made minimum payments on, right? If it's such a certainty why do we all push BFC thread-starters to work out payment plans for their debt? Credit score is a fine reason, but if you're happy where you live/what you drive, 7 years isn't such a bad tradeoff for being in the clear without having to put effort into anything. The law is mostly for consumer protection against predatory debt collection practices. It's basically saying that they can't sit on a debt for 15 years and then sell it to another collection agency or decide to start harassing the people again/sue them. They have a legal window and they can either pursue it or not. It really doesn't make sense for student loans or a mortgage since those wouldn't be likely to go through a debt collector. Lender's don't send student loans to collection agencies because there is no way for the borrower to discharge them, so they are fairly safe to hold onto. For a collateralized loan, they would just repossess the asset. The key is that you can't acknowledge the debt for the seven years (or whatever the time frame is that they can no longer attempt to collect from you--it varies state to state). If you call or write them about the debt, the time period starts over. If you send even a one cent payment, the time period starts over. A trick some collection agencies will use if they are nearing the legal time limit is to ask you to make a payment, no matter how small, as a show of good faith. And then that restarts the clock for them to try and collect in earnest again for however many years. [edit: I was talking about federal student loans above, which are almost impossible to discharge. I think private student loans may have a statute of limitations.] RogueLemming fucked around with this message at 05:33 on Feb 17, 2014 |
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Feb 17, 2014 05:30
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kissekatt posted:Mortgages are secured loans, and like all secured loans the security will be at risk (I have no idea how it works in states where you basically can't be evicted). You're right about student loans though, and I believe that it's 7 years since the last payment. I am American but I've never had non-student debt so I'm just kinda learning via what I read in BFC. The debt collector thread never interested me before, but now I might add it to my reading list. It all seems very strange to me, but maybe after more booklearnin it'll make sense/seem more fair.
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Feb 17, 2014 05:31
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NancyPants posted:If you had a loving clue what you were talking about, you'd know that working as an au pair in a foreign country is in most cases reserved for STUDENTS and most commonly they are language students. You dumb poo poo. As a fellow dumb poo poo, thanks for the information, and gently caress you for being an rear end. I hope this is the reaction you were looking for.
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Feb 17, 2014 05:49
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tuyop posted:I'd just like to go to another country for a year or so and earn a small income to supplement passive income and work to actually connect with people who are not backpackers. After awhile maybe I'd return and resume my career. I won't work in some 40-something-hating STEM field so I don't think there's really any cost beyond years lost adding to my net worth. If you've got a BA, you can teach English in Asia (probably involves significantly less poop). I'm finishing up on the JET Programme in Japan now, which pays 3.6 million yen/year tax free* (~US$47k when I started, ~36k now). Most people have a pretty good amount of free time to pursue whatever, a friend of mine finished his Master's in TESOL while working here. *US taxes, I believe the people on the newer contracts have to pay local inhabitant's tax, which works out to something like half a monthly paycheck.
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Feb 17, 2014 09:55
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The key to this "no payment for 7 years" thing is "if they don't sue you." If the amount is worth suing over, they'll probably file suit sometime in year 6, and then they'll have a judgment which doesn't go away quite as easily.
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Feb 17, 2014 11:06
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BossRighteous posted:As a fellow dumb poo poo, thanks for the information, and gently caress you for being an rear end. I hope this is the reaction you were looking for. To not know a fact is not to be a dumb poo poo. To be inflammatory for no reason and not funny about it is how to be a dumb poo poo. Carry on. A woman I work with is always complaining to me about her infantile boyfriend so I hear a lot in general about their whole relationship. Highlights include him spending $800 on...something...gaming-related for himself right around her birthday. I know it was not a computer, a Magic deck, or war hams, but what it was remains a mystery. Another item involves the house for which she pays the mortgage but is not on the title, and the $200k in student loan debt for her pharmacy degree-in-progress which he is somehow co-signed on. That's pretty high but not horrific for the degree, but I found out the figure of the debt when she was removed from the program due to grades. Most of the rest is run of the mill relationship drama. He very clearly doesn't want to be in the relationship by the way he acts, but has no incentive to leave probably because she continues to fund his games even beyond the extravagant money he spends himself and she continues to buy him fairly expensive gifts on the regular. Have I mentioned they are not married but have commingled roughly ALL their assets? They aren't even engaged in the loosest sense of the word. You know the kind I'm talking about, where they love each other so much but they just haven't set a date yet xoxo. He has not even asked, he will not ask, and he will not attend her OB appointments with her (yes it is his).
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Feb 17, 2014 11:20
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I thought medical debt as well as student loans could not be discharged through bankruptcy/seven years, only credit cards, mortgage, car notes, etc.
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Feb 17, 2014 11:27
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fork bomb posted:I thought medical debt as well as student loans could not be discharged through bankruptcy/seven years, only credit cards, mortgage, car notes, etc. Medical debt is the leading cause for BK in the US.
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Feb 17, 2014 11:30
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tuyop posted:I'd just like to go to another country for a year or so and earn a small income to supplement passive income and work to actually connect with people who are not backpackers. After awhile maybe I'd return and resume my career. I won't work in some 40-something-hating STEM field so I don't think there's really any cost beyond years lost adding to my net worth. Yeah, kinda like sharing a house with someone in a new country not because you need to split the rent but it's a good way to have access to local people and not be alone. It'd be a holiday though, well that's how I see it anyway compared to actually working, so if I'm not holiday anyway then I don't really want to have to bother with kids.
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Feb 17, 2014 12:18
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drat Bananas posted:Not all debt - student loans, mortgages, active credit cards you've made minimum payments on, right? If it's such a certainty why do we all push BFC thread-starters to work out payment plans for their debt? Credit score is a fine reason, but if you're happy where you live/what you drive, 7 years isn't such a bad tradeoff for being in the clear without having to put effort into anything. 7 years is a long time. The restrictions put on you as a bankrupt are huge. 7 years is long enough (plenty long enough) for you to drop out of your career and never be able to get back in. 7 years is long enough to skill up in a completely different profession and get into it, rather than trying to reset the counter and then where are you? For someone in their 20s we're talking about a third or closer to half of their entire life. Doing it in your 30s is terrible, that's your peak earning time. 40s? Man, if you're starting again at 50 that's awfully sad.
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Feb 17, 2014 12:51
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Tony Montana posted:7 years is a long time. The restrictions put on you as a bankrupt are huge. 7 years is long enough (plenty long enough) for you to drop out of your career and never be able to get back in. 7 years is long enough to skill up in a completely different profession and get into it, rather than trying to reset the counter and then where are you? Well I wasn't talking about bankruptcy, I know that can gently caress things up, I was talking about the 7 years after you did Dumb Credit Thing and are waiting for it to fall off the report, because I thought that's what we were talking about in the first place. I'm kinda tired of talking around this tangent, so if anyone quotes me please carry on without me. I'll probably be back later with more stories. My other internet hangouts are full of generally dumb people to post about.
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Feb 17, 2014 14:25
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echopapa posted:The key to this "no payment for 7 years" thing is "if they don't sue you." If the amount is worth suing over, they'll probably file suit sometime in year 6, and then they'll have a judgment which doesn't go away quite as easily. 7 years is just the length it's on your credit report. It varies by state when they can sue you: http://www.bankrate.com/finance/credit-cards/state-statutes-of-limitations-for-old-debts-1.aspx
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Feb 17, 2014 14:50
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More reddit fun. http://www.reddit.com/r/personalfinance/comments/1y3c38/midtwenties_married_coupleare_we_failing/ Combined income 30k a year. Probably might increase to 40k. One kid on medicare already. Want another kid. Almost no retirement. Oh and I decided to look at her post history. She may already be pregnant again. http://www.reddit.com/r/BabyBumps/comments/1y2e2a/help_pregnant_again/
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Feb 17, 2014 18:31
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The only good thing out of that situation is the couple has no debt except for the mortgage payment. That could all change though, especially if the husband ends up pursuing a PhD in literary criticism...
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Feb 17, 2014 21:52
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I love reddit's Personal Finance forum. It's a goldmine, all the time. If you want to get a good laugh check out the Legal Advice subreddit too.
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Feb 17, 2014 21:56
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Jesus. I don't understand why it's so common for seemingly intelligent, educated people fail to anticipate how expensive children are.
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Feb 18, 2014 17:26
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CatsOnTheInternet posted:Jesus. I don't understand why it's so common for seemingly intelligent, educated people fail to anticipate how expensive children are. They come out free! In fact, you save money on pills and condoms!
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Feb 18, 2014 17:27
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Kids is one of those things where you're actively encouraged to disregard logic and analysis and Just Do It (tm) if you want to. Many parents will tell you there is never a right time financially, if you're waiting to come to some disposable income or asset figure that will enable you to do these planned things for your kid you never get there. You'll also routinely hear that it is the most rewarding and fulfilling thing a person can do, so that's a lot of the reasoning behind the self sacrifice. You'll often hear 'my life became about them, it wasn't about me anymore' which is a totally reasonable and common sentiment in our societies about parenthood. Whatever you believe about that isn't the point so much, often finding the right person will flip your ideas on their head.. it's that kids are often far more an emotional choice than a logical one and it's a bit like buying your house because you liked colour of the grass in the front yard. Except it's not grass, it's little people that can give you the love and support and respect and connection all humans need to live and live happily.
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Feb 18, 2014 17:41
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Tony Montana posted:You'll also routinely hear that it is the most rewarding and fulfilling thing a person can do, so that's a lot of the reasoning behind the self sacrifice. You'll often hear 'my life became about them, it wasn't about me anymore' which is a totally reasonable and common sentiment in our societies about parenthood. See, this I can understand: It doesn't make sense to have kids to enhance my current lifestyle, but when I'm ready to adopt a lifestyle that's less "selfish" and perhaps more... I don't know - soulful? Then we'll know it's time. That said, even as a non-parent, I look at parents who just dive right in without getting their ducks in a row, and can't help but judge their parenting. What about college? The option of private school? Their wedding? These are all things which require financial planning. Don't you wish for your kids to want for nothing?
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Feb 18, 2014 17:47
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You can see having kids as being selfish. Your own little people to raise and instruct in the way you see the world, your own personal (and for many years untouchable) stash of love and affection that is directed at and your partner alone, the unbridled joy of there being someone that is going to experience all things you know are good in life for the first time, with you alongside to relive that joy with them. Once you've got enough computers and holidays and cars and your own place, you're kinda done. Kids are the next adventure, the next thing that enriches your life even moreso than theirs. edit: imagining explaining to my little girl to listen carefully throughout A New Hope because there is beautiful music the whole time now trumps the latest BMW or chalet in the Alps. Tony Montana fucked around with this message at 18:12 on Feb 18, 2014 |
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Feb 18, 2014 18:09
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I think it's confusing to hear people talk about having kids as something they'd never done if they'd waited until they felt they were financially secure because the idea is poorly expressed. There's a difference between having to adjust your lifestyle to account for children versus just being poor. It seems like people don't understand that distinction sometimes.
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Feb 18, 2014 19:52
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We actually live in a social democracy so denying poor people the right to have children is a terrible thing to espouse and makes you a terrible person.
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Feb 18, 2014 20:02
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NancyPants posted:I think it's confusing to hear people talk about having kids as something they'd never done if they'd waited until they felt they were financially secure because the idea is poorly expressed. There's a difference between having to adjust your lifestyle to account for children versus just being poor. It seems like people don't understand that distinction sometimes. Some people simply consider not being able to blow out and buy the latest everything as being poor. Yes, I sometimes think about how much easier some things would be if "we had only waited" but I certainly wouldn't call it regret. In ways other than financially it's improved our life immeasurably. Edit: how many times can I put the word "consider" in a post. drat.
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Feb 18, 2014 20:08
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Spiteski posted:Some people simply consider not being able to blow out and buy the latest everything as being poor. I think a lot of people feel their children are more than worth the financial sacrifice and I should hope so, or we'd die out as a species. I don't even want children and I still understand and agree that having children is far more than running the numbers. It's just that sometimes it seems folks hear "if we'd waited to feel like we could afford it, we never would have" and think "I make minimum wage and have no prospects to earn more money, this is a good time to have three children." They don't seem to grasp that "I can't go out of the country on vacation" or "I can't drop $50 a week on coffee" is not the poverty in which they live. It's not that I think poor people SHOULDN'T. In fact, I'd be glad to pay more taxes if it meant better welfare in my area, and I daily work with a population that is at least 80% and possibly 90% Medicaid. It's just that lots of families would be better off if they didn't equate an income level of "guess I can't go blow $x00 dollars on <random thing I want> but I'm otherwise secure" with "do I pay the car note or the electricity this month". Just because you can't have every little expense planned and budgeted for with children doesn't mean you throw it all to the wind.
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Feb 18, 2014 20:37
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NancyPants posted:I think a lot of people feel their children are more than worth the financial sacrifice and I should hope so, or we'd die out as a species. I don't even want children and I still understand and agree that having children is far more than running the numbers. It's just that sometimes it seems folks hear "if we'd waited to feel like we could afford it, we never would have" and think "I make minimum wage and have no prospects to earn more money, this is a good time to have three children." They don't seem to grasp that "I can't go out of the country on vacation" or "I can't drop $50 a week on coffee" is not the poverty in which they live. I agree with you, I was more pointing out that people without kids often look at parents and consider them to be poor, usually based off of the latter idea you said, that if they can afford latest an greatest they are poor. And by their reasoning kids are the catalyst for that level of "poverty". I myself find when I look at people that I know to be struggling financially to the point of asking for loans from friends and family on a weekly basis, feeling a little judgemental when their Facebook announces their 3rd 4th and 8th(yes totally serious) kid. They must have made it this far already somehow, but drat.
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Feb 18, 2014 20:56
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http://www.reddit.com/r/personalfinance/comments/1y9dff/i_just_keep_messing_up_i_got_out_of_a_big_hole/?sort=confidencequote:$14,900 balance on my LOC, $4500 balance on my credit card, $3k saved in RRSP. Goddamn.
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Feb 18, 2014 21:02
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Saros posted:http://www.reddit.com/r/personalfinance/comments/1y9dff/i_just_keep_messing_up_i_got_out_of_a_big_hole/?sort=confidence If he spent 25K in the last three months, I think his party/play money might be a tad over 55% of his income 
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Feb 18, 2014 21:10
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Yeah but he's gonna make 500k off his company's IPO, it's all good guys!
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Feb 18, 2014 21:11
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Don't want to break up the discussion above, but I have a story to share. There's a guy I work with, early 20's like myself but he has another year of seniority with the company on me. I'm a couple levels above him in terms of experience and compensation but we pretty much fit the same profile. Call him Q Q pulls in around 45k a year (~3k a month after taxes) in the Midwest and lives with his parents rent-free, has no debt, and generally would be able to lead a comfortable existence with plenty of money to do whatever he wants. He doesn't drink, doesn't eat out, doesn't travel, no big hobbies or habits at all. He and I are coffee buddies and he's always telling me about his financial situation and how he handles his money, so I have a pretty good look into how he spends his money. This guy is nearly always broke, and always complains about having no money the day or two after he gets a paycheck. Thing is that this person utterly cannot handle his finances. He puts nothing into his 401k despite the company offering 8% matching, and he has no savings to speak of. His car is paid off and aside from his bi-monthly fender bender is in decent shape. See, the thing that Q does is go out and blow his cash on what are basically toys. He's a couple of years out of college and works in corporate finance, but his spending habits are like those of a teenager. Last week Q bought each of his four siblings iPad minis, despite the fact that he bought 2 of them high-performance laptops back in December. Beginning of the month he bought himself a $1200 accordian, despite not knowing how to play. Each Monday I hear about him purchasing some new ridiculous gadget or making an extravagant purchase for his neighbors/friends. The spending is not compulsive, so I don't think he gets a pass from that. From what he says it just seems like he does it to be flashy. His family grew up poor in a lower middle class area of town, but his descriptions of his parents seem like they make solid financial decision and taught him better. Where we work it's pretty easy to work towards a 5-10% promotion (especially in his case as a junior-level employee), but Q has decided that rather than putting the extra effort into his primary job, that it would be better to get a second job in the evening and weekend making an additional $8.50/hr. This is probably veering close to E/N stuff but as someone with a mortgage, student loans and other poo poo to deal with, it's just so immensely frustrating to deal with hearing Q complain about how he has no money when he's such a loving idiot about it.
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Feb 18, 2014 21:23
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cowofwar posted:We actually live in a social democracy so denying poor people the right to have children is a terrible thing to espouse and makes you a terrible person. I'm also going to state that if you knowingly and willingly have planned children you can't afford then that makes you a selfish, inconsiderate, terrible person.
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Feb 18, 2014 21:33
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I don't think most people understand how difficult it is to have a kid. They just think it's a normal progression. Honestly while I understood kids were expensive, I didn't understand the real gravity of having kids until I was ~23 or so. Maybe a year out of college and having to deal with some of my own bills.
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Feb 18, 2014 21:41
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handbanana125 posted:Last week Q bought each of his four siblings iPad minis, despite the fact that he bought 2 of them high-performance laptops back in December. Beginning of the month he bought himself a $1200 accordian, despite not knowing how to play. Each Monday I hear about him purchasing some new ridiculous gadget or making an extravagant purchase for his neighbors/friends. I wish I had a friend like this guy. How do I meet people like this?
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Feb 18, 2014 21:53
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handbanana125 posted:a kid with his first real job yeah, but early 20s, mate. You're finally making a real wage and you go nuts for a while. poo poo, I was nearly 30 and still buying a ridiculous wheel and pedal set because I liked racing games and an electric keyboard because I always wanted to play, etc, etc. I agree that being financially prudent is wise and the older you get the less it's a good idea and becomes mandatory good sense, but if you're like 23 and just finished college and got a job and buying a ton of poo poo while you still don't have any serious expenses.. I don't see a problem. That's what you go to college for and deal with the corporate poo poo, you get to live like a king for a while until you get under so much responsibility that you have to dial it back. I even suggest that's a good thing to do, you've got the rest of your life to be paying bills. edit: if he was racking up credit card debt or had student loans at some stupid interest rate just ticking over and becoming bigger daily and wasn't paying those off first, then yeah that's dumb
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Feb 18, 2014 22:00
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Strong Sauce posted:I don't think most people understand how difficult it is to have a kid. They just think it's a normal progression. Honestly while I understood kids were expensive, I didn't understand the real gravity of having kids until I was ~23 or so. Maybe a year out of college and having to deal with some of my own bills. Honestly, if you have a normal at-home birth, the kids don't get sick, and you put them to work in the fields when they hit 8 or so... Kids more or less pay for themselves.
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Feb 18, 2014 22:12
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Had a babby myself a couple days ago. From talking to others it sounds like my wife and I put more thought into it than most because we waited until we were ready. Even budgeted for it and looked at the opportunity cost of her not working before figuring we could make it work. I'm really lucky that my wife has a similar mindset even though we never really talked about it beforehand, or even realized it when we started dating just over a decade ago  It was pretty annoying be asked by every relative WHEN WILL YOU HAVE KIDS :byodude: , but probably not as annoying as it would be supporting a kid I didn't want and couldn't afford.Back on the bad-with-money train...I know someone who declared bankruptcy in his home country because of spending habits despite having a well paying job with full benefits. That's all well and vanilla, but the icing was that after being given an olive branch of an out-of-country position for a few years and a de facto blank financial slate, he dug himself into the same hole because 'whoo, I beat the system'. He'd buy a nice boat or trailer on sale then realize he doesn't have a truck to pull it, so he'd buy one of those too! While supporting a wife and four or five kids on a single paycheck! Maybe he's hoping country B doesn't catch up with him once me moves back to country A, but it's all very  e. fruition posted:I'm also going to state that if you knowingly and willingly have planned children you can't afford then that makes you a selfish, inconsiderate, terrible person. It's almost a shame that the poor financial decisions the majority makes subsidizes the minority of good ones as banks and marketers bet on the average. Almost. Guest2553 fucked around with this message at 23:01 on Feb 18, 2014 |
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Feb 18, 2014 22:17
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Saros posted:http://www.reddit.com/r/personalfinance/comments/1y9dff/i_just_keep_messing_up_i_got_out_of_a_big_hole/?sort=confidence This is the old Slow Motion on steroids, but Slow Motion has amended his ways...
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Feb 18, 2014 22:21
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