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jarjarbinksfan621 posted:Today I learned that my parents who make like 50k a yr combined and have zero savings and horrible credit bought a brand new CRV. 28k car that they can't afford, and they're going to end up paying 36k for it. Makes me sad and kind of guilty that I wasn't around to talk them out of their horribad decision. GWM: I called my dad last night and asked a bunch of nosy questions and discovered the following: -He's making roughly the same as a federal GS-15 (135k+) -He's been taking his bonuses from work and saving them in his retirement fund -They bought their small, reasonable 1-level house 4 miles from his work 5 years ago and have a 30-yr fixed mortgage that they refi'd to get a lower interest rate. Then they took the "savings" and have been paying that in as extra every month on the mortgage. Expected to be paid off in 6-7 years from today, with the option to drop the amount of payment in an emergency. -He has a pension from an employer 20 years ago. The company is still in business. He said "the amount depends on how old I am when I retire" -They have 400k+ in retirement accounts, he's trying to get these up to 750k - 1m, though he doesn't think it'll happen I was delighted to hear that my parents will almost certainly not require financial assistance upon retirement. He has good health insurance and now that I think of it, his current company has a pension plan as well. So yeah, they should be pretty set. They have two newer cars (though I think one is paid off) and they're the type to run them till they die. I feel very fortunate to have such responsible parents (who've also had reasonable luck in jobs and medical stuff as well).
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Oct 29, 2015 16:13
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| # ? May 14, 2024 09:19 |
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jarjarbinksfan621 posted:Today I learned that my parents who make like 50k a yr combined and have zero savings and horrible credit bought a brand new CRV. 28k car that they can't afford, and they're going to end up paying 36k for it. Makes me sad and kind of guilty that I wasn't around to talk them out of their horribad decision. Congratulations, my friend, you're going to get to learn how to pay for a Boomer retirement on top of living your own life.
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Oct 29, 2015 16:20
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Top Bunk Wanker posted:Congratulations, my friend, you're going to get to learn how to pay for a Boomer retirement on top of living your own life. I think you missed the part where a good portion of that is a pension. His dad's already retired. It's not a great situation, but better than a lot, sadly.
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Oct 29, 2015 16:31
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Uncle Enzo posted:GWM: Thanks
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Oct 29, 2015 16:49
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Uncle Enzo posted:GWM: Cool story, should probably be in the GWM thread.
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Oct 29, 2015 17:06
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God drat, can we please ban self-posts/self-humblebrags. Nobody gives a gently caress. Post train wrecks.Art Student posted:I'm just gonna put it out there, I have $186,207.12 in unsubsidized student loans at a fixed interest rate of 8% quote:Ha no. I'm not even going to mention what my fancy degree is in cause everyone will tell me how stupid it was to get. quote:Haha what did you spend that much money on then!? quote:Art school man, art loving school. My favorite thing about this is half way through his budget I'm like "Oh, you're doing OK, 2K a month left over is workabl- OH YEAH YOUR PAYMENT" FlerpNerpin fucked around with this message at 17:23 on Oct 29, 2015 |
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Oct 29, 2015 17:18
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That's bad, but it's not horrifically bad. That person is well-employed (doesn't ~$4000 in monthly take-home pay mean a salary around $65-70k?) and is still managing to sock away reasonable savings. A 9 year pay-off schedule for nearly $200k in debt isn't that bad. Not to say it wasn't a stupid decision in the first place, but it's nice to see that as long as they stay employed they've got a reasonable path out.
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Oct 29, 2015 17:29
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Uncle Enzo posted:GWM: No one cares
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Oct 29, 2015 17:34
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 "Your choice"
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Oct 29, 2015 17:38
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Uncle Enzo posted:GWM: My dad's retirement savings can beat up your dad's retirement savings 
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Oct 29, 2015 18:05
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jarjarbinksfan621 posted:Today I learned that my parents who make like 50k a yr combined and have zero savings and horrible credit bought a brand new CRV. 28k car that they can't afford, and they're going to end up paying 36k for it. Makes me sad and kind of guilty that I wasn't around to talk them out of their horribad decision. Hey, that's my parents too! Except it was a Rav4
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Oct 29, 2015 18:14
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LLCoolJD posted:
God drat, that's one of the most egregious rent-to-own examples I've seen. I mean, I've known they're all bad but seeing it just spelled out like that, yikes.
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Oct 29, 2015 18:15
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How does that place justify selling it to you for over $900 if you want to just buy it straight up? I refuse to believe this place is real.
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Oct 29, 2015 18:26
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Nail Rat posted:How does that place justify selling it to you for over $900 if you want to just buy it straight up? I refuse to believe this place is real. The profit to selling to one person who doesn't know any better (at the type of place that attracts this customer) is higher than selling at MSRP to 2 dozen people?
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Oct 29, 2015 18:30
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The best part (for them,) is that most customers will pay for 1/3 to 1/2 the months, then stop paying, os they repo it and get to start the cycle again with the same drat unit.
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Oct 29, 2015 18:31
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Nail Rat posted:How does that place justify selling it to you for over $900 if you want to just buy it straight up? I refuse to believe this place is real. I presume when the person stops payment they immediately put him on the hook for the "purchase" price and send him to collections for $989 while they try to repossess his consumer electronics.
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Oct 29, 2015 18:32
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If purchase price was $300 how could they charge $100 a month for 12 months?
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Oct 29, 2015 18:39
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LLCoolJD posted:
 AAAAAAAAAAAAaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
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Oct 29, 2015 18:39
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Not a Children posted:That's bad, but it's not horrifically bad. That person is well-employed (doesn't ~$4000 in monthly take-home pay mean a salary around $65-70k?) and is still managing to sock away reasonable savings. A 9 year pay-off schedule for nearly $200k in debt isn't that bad. Not to say it wasn't a stupid decision in the first place, but it's nice to see that as long as they stay employed they've got a reasonable path out. Yeah, it should be about 70k. But if they're freelance I doubt taxes are being taken out of the paycheck so hopefully they've factored that in. Or that's what the savings budget is for.
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Oct 29, 2015 19:17
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r0ck0 posted:If purchase price was $300 how could they charge $100 a month for 12 months? The flyer that came to my house yesterday was $25/week for a year!! How manageable!
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Oct 29, 2015 19:45
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Cicero posted:EVERYDAY LOW PRICE: $989 Or save the same money, buy it from a place that isn't trying to shaft you and own it in 5 months. I'm pretty sure rent to own is a large part of the reason most economies in the west are doing badly. In New Zealand 28% of the economy is finance and banks are making good money off of 19% personal loans, credit cards, etc. I'm sure finance for bills and consumer purchases must be a significant amount as well. Although Fiji has the most abusive rent to own schemes. You don't need to read the whole report just items 4, 5 and 7. They make $60m per year on $35m worth of goods and manage $57m in credit earning them $25m per year. Along with charging interest on the principal already repaid even though that is illegal. http://consumersfiji.org/upload/Publications/CCF%20HP%20report%20lt%2004%20(3).pdf
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Oct 29, 2015 20:05
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Devian666 posted:I'm pretty sure rent to own is a large part of the reason most economies in the west are doing badly. It's not like everyone goes to these places. They're like lottery tickets: they just target the small segment of the population that's cripplingly innumerate.
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Oct 29, 2015 20:15
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Mr Newsman posted:The flyer that came to my house yesterday was $25/week for a year!! How manageable! Can you actually just rent it for a week or two? Like, I don't want to own a PS4 but maybe I want to play the newest Sony exclusive. Can I just get it for the week, rent that game elsewhere and return the PS4 to Aaron's once I've beaten it? That would seem to be a GWM decision (though I am sure they do their best to convince you not to do that). I'm sure I've heard of people doing that with big TVs for the Super Bowl, but maybe they ruining their credit somehow? Also, Rent to Own is good with money if you find yourself inside the plot of the book/movie Brewster's Millions.
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Oct 29, 2015 20:17
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Makes me sad that a lot of kids are probably getting PS4s for Christmas that were purchased at Aaron's and they'll be repossessed by like February or something.
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Oct 29, 2015 20:19
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illcendiary posted:Makes me sad that a lot of kids are probably getting PS4s for Christmas that were purchased at Aaron's and they'll be repossessed by like February or something. and now the thread depressed me
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Oct 29, 2015 20:20
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How are they gonna repossess something you keep in your house?
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Oct 29, 2015 20:22
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Jeffrey of YOSPOS posted:How are they gonna repossess something you keep in your house? well they don't really rent much of anything you don't keep in your house. they literally just harass you until you give it up.
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Oct 29, 2015 20:22
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Jeffrey of YOSPOS posted:How are they gonna repossess something you keep in your house? Interesting you should ask... http://www.somethingawful.com/comedy-goldmine/stories-from-renttoown/
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Oct 29, 2015 20:23
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I wonder what you need to do in order to rent to own something. A fake ID? I guess you probably need a social security number. Let's steal from rent-to-own places and give away the products as a goon civil disobedience project.Antifreeze Head posted:Interesting you should ask... http://www.somethingawful.com/comedy-goldmine/stories-from-renttoown/
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Oct 29, 2015 20:24
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A $90k poetry degree is my new go-to argument against free college educations.
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Oct 29, 2015 20:55
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Comrade Flynn posted:A $90k poetry degree is my new go-to argument against free college educations. You can't put a price on dreams.
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Oct 29, 2015 21:03
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In our post-scarcity, globalized society, we need to create new challenges for ourselves. Poetry majors are the real pioneers now
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Oct 29, 2015 21:13
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Jeffrey of YOSPOS posted:How are they gonna repossess something you keep in your house? http://law.lis.virginia.gov/vacode/title18.2/chapter5/section18.2-118/ Here in Viginia it can be brought as a criminal case if certain requirements are satisfied. Not really repossession, but it gives the delinquent renter incentive to pay up or return the property.
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Oct 29, 2015 21:20
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Not a Children posted:That's bad, but it's not horrifically bad. That person is well-employed (doesn't ~$4000 in monthly take-home pay mean a salary around $65-70k?) and is still managing to sock away reasonable savings. A 9 year pay-off schedule for nearly $200k in debt isn't that bad. Not to say it wasn't a stupid decision in the first place, but it's nice to see that as long as they stay employed they've got a reasonable path out. No, living hand to mouth for 9 years while making minimum payments on your student loans of >50% of your take home pay, while earning significantly above the median household income of the United States as an educated professional, is loving horrible. There's no truer meaning of debt slavery other than literal indentured servitude. He should refinance his loans though, he could almost certainly get a rate of less than 5% unless his credit sucks.
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Oct 29, 2015 23:49
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Comrade Flynn posted:A $90k poetry degree is my new go-to argument against free college educations.  He probably has loans from undergrad though. And now he wants to go back to school for his teaching credential. 
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Oct 29, 2015 23:57
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I have an art degree. I work in IT and sell my paintings and prints on the side. Very bad with money.
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Oct 30, 2015 00:05
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Nail Rat posted:How does that place justify selling it to you for over $900 if you want to just buy it straight up? I refuse to believe this place is real. Yeah, it's ridiculous, but no one going to rent a center is going to buy a ps4 straight up at that price. I bet people pay like half of it off and lump sum the rest over MSRP sometimes though. I have a friend who actually makes decent money who screwed around with that place for the convenience factor after he moved. He ended up paying like double the MSRP for a coffee and some end tables. He also had a PS3, but he returned it because he owed well over MSRP when he was thinking about lump summing it. Probably did for the tables too, it was just a lower amount so it wasn't as obvious. The way I see it, the only non-predatory transactions at those places are when a guy rents an extra couch and tv for a super bowl party etc. That's probably only like 5%-10% of their business.
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Oct 30, 2015 01:01
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Comrade Flynn posted:A $90k poetry degree is my new go-to argument against free college educations. Doing a bit of not really any research, in my Glorious People's Kingdom of Socialist Denmark, you can't actually do a poetry degree, you can do one in litterature science, but not poetry. Also, Art's Degrees are only from the Royal Arts Academy, and that one's really loving hard to get into. 90k US$ Poetry Degrees are actually the argument against paid-college educations, as they seem to be aimed towards attracting morons into loaning themselves into serfdom. Also, that Litterature Science thing? I ran into a lady with a Masters in that, while working the phones doing surveys, she lost her job during the Crisis, as a Communications something at a company, now all her degree could get her, was doing phone surveys. And for a story about bad with money, just to get back on track: My sister got a credit-card when she turned eighteen many years ago, just like I did, my parents where away to visit my dad's family in Scotland, and while they where gone, she managed to spend 30.000 DKK , around 4500 US$, in that one week, on drinks and whatever going out partying. She bought rounds for her "friends", she has never been able to say no to them, and I mean "friends" in that "Friends while the good times last" and nothing else. Great start to your adult life kid, mind you, this was before the Crisis, so the bank didn't even blink or stop her from doing this. Good times.
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Oct 30, 2015 04:32
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Spiffness posted:My favorite thing about this is half way through his budget I'm like "Oh, you're doing OK, 2K a month left over is workabl- OH YEAH YOUR PAYMENT" My favorite thing is right off the bat his math is actually wrong, because it works out to $2091, which is not ~$2200. Why are you budgeting for Hulu at $8 if you're going to round up >$100 for no apparent reason? Second, oh yeah, I didn't budget for food. So sure, when you don't add up the expenses correctly and you also don't account for food, you can arrive at a number that is still close, but not actually enough, for paying off your student loans.
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Oct 30, 2015 06:07
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Marijuana Nihilist posted:No one cares More BWM stories please!
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Oct 30, 2015 06:07
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