A Society Of Debt

in LeoFinance •  2 months ago 


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I often think about stupid things when I am out and about driving the car. One of them is the cars around you as the majority of people never own them. Amongst my friends there isn't one who has fully owned their car over the last 20 years.

Most cars that you buy are paid off over 60 months and normally are traded in for another before that cycle ends. Many are on finance schemes that they never reach the end and are always after something newer and better. The car I have now is not something I would choose normally as that was the point when I bought it. The model I have has had 3 hijackings over the last 2 years countrywide so no one really wants it. The car I really wanted was number 2 on the hijacking list and would be more trouble than it was worth.

I honestly don't care what other people drive or for that matter what I drive as long as I have paid it off. 11 years ago I decided that I was not going to fall into the debt trap and change how I buy my vehicles. When you buy a car from a dealership you pay a premium price and lose 30 percent of the value once you are registered as the first owner and drive it out the front door.

For me the obvious choice was to buy a bank repossession from the auction paying half the book value yet still having the service plans intact. Many dealerships buy these cars anyway and stick a hefty margin on top moving them on to suckers who don't mind paying.

The car I had purchased was a Nissan Pathfinder with a 4l engine and the only downside was it was a fuel guzzler. I went for the big car for family safety reasons and the resale value once I had paid it off over 36 months. Purchasing correctly enabled me to sell it for roughly the same amount I had paid for it so in theory the car never cost me anything except a ton of fuel. We were even shot at once and it came through with flying colors when we were driving through an unsavory part of town. One bullet hit the tailgate after bouncing off the tow bar.

I have tried to move away from anything with credit as it is not yours until you have paid it off. This has paid off especially now with the uncertainty of the economy and not knowing when the next pay check is coming. Store cards were cut up once I realised the pair of jeans you just bought now cost nearly double paying them off.

I can recall when I bought the houses we have now the lady at the bank asked us for out monthly expenses and was a little shocked that we had no other bills besides the normal food, water and lights. Yes we have insurance policies and a few other things but no outstanding debt.

It is not surprising that many live from month to month as they have already spent this months salary on things they have but don't own fully. Credit with the banks has gone up 400 percent since the lock down periods and a society that is debt ridden is not a healthy society. The majority of families are getting deeper and deeper into financial trouble until they have nothing. This is something that cannot end happily as the standard of living cannot be raised to sustain the lending that is happening and something has to break.

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That's great @cryptoandcoffee, I have a truck that I paid off years ago, then I got a 4 wheel drive from a friend that was selling it way too cheap. I'm always getting people wanting to buy one of them but I like them both. No payments for me!

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That is the only way to make it work. People worry too much about the latest and greatest and have more money than sense. if you know where to look you can find things for half the price. No payments is great and suppose more left over for stacking as you call it.

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Rolling expenses to keep up with the Jones what a waste!

Selling is an art form with very qualified people drawing you in. Cars, insurance, health care, every time you take out a policy, by signing on the dotted line, you firmly place your neck in a noose.

Most of our vehicles owned over the last 40 years have been driven between 10 to 16 years of service, even living in coastal conditions putting up with rust. Drive them the longer the better, keep away from swanky new when the old will do!

Insurance companies are deeply entrenched finding loop holes to avoid payment on claims, health is no long medical aid but insurance and they are skinning us alive!

Lol. So true about medical aid as 10 years ago it was still decent and now already in March I am hitting the thresh hold and paying for everything. Sometimes I think what is the point as you are paying anyway. When you use the goldfish and the bowl mentality things just become too expensive and unrealistic as the goldfish leave the ones left have to cover everything.

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Car insurance you have to use their towing company, their repair company in any event today (to my mind that smacks of underhanded dealing already), more often than not workmanship is tardy!

Medical Insurance check you over for possible problems with compulsory checkup's, are they looking for a way out of covering future inherent problems you may have.

Short term insurance on home, etc., hail, rain damage, pandemic, or anything untoward suddenly erupts into "An Act Of God".... Well then I suppose we must go and watch the movie "The Man Who Sued God", something to smile about...

It is almost impossible to live debt free but it is possible. I got into a debt crisis early this year after multiple loans. Though it did help but the psychological impact of owing is something I honestly hate. Luckily for me I was able to settle most of what I owe. I only have one debt to service currently and it ends this month and then I am free. I can live within my means and have no body trouble me.

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A good lesson to learn and you are still young. So many people right now are in financial shit street and they will not recover from this. Many rely on salary increases every year to cover their debts and many will be lucky to keep their jobs let alone expect an increase. I expect by Easter time we will see many families in dire straits.

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That is so great to be debt-free, Congrats and keep up the good work, next you can be the lender!

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I was thinking today as well on many of my locals that drive expensive cars that they don really own.

I guess that's part of the modern slavery as well. The Pathfinder is a great car and with a 4L V8...

You kind of need to.have your own gas station though.

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Weird that people never own them and trade them in always having debt. If you revved the vehicle the fuel needle used to move and taught me to drive with a delicate foot. The way the fuel prices are here it was just not a car you could just drive and enjoy it as it emptied the wallet every other day.

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Why haven't you bought the 2.5 diesel version?

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I actually went to buy the 3l diesel version 2 years ago and was outbid by a dealer. I had a set budget and stuck to it and wish I hadn't as I saw it on the dealership website for double the price the week after the auction. The car only had around 10 thousand miles on the clock and was an absolute bargain.

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That is pretty awesome. I have never owned a brand new vehicle personally. My wife has, but pretty much every car I have ever owned I bought used or it has been handed down to me. There was one car that my uncle and I bought wrecked and we fixed it up together. That one was way cheap. My wife and I went through the same thing when we bought our first home together. The lady at the lending office couldn't believe our debt to income ratio. I had never really paid much attention to it.

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The debt to income ratio is important and why you can lead the lifestyle you have now being able to do the little extras others can't. I know people who have multiple credit cars and they just roll the debt around but the debt still remains and unless they come into some money they are on a road to disaster. It is no wonder you see these people winning the lottery and 5 years later are boke. the same will most likely happy with the masses on crypto as they will benefit once or twice and not afford to get back in as they will spend it. I think the crypto crash we had recently burned many who shouldn't have invested as they couldn't afford it in the first place.

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Yes, you are probably right. I am hoping that if I do make some money off of crypto I can spend it wisely. I'd like to pay down some of the debt that we do have to eliminate that all together. My biggest goal is to be able to pay for my next car with cash. I have always had to take out a loan for vehicles and even though I always pay them off a year or two early, it would be cool to not have to pay them off at all.

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i also have the mindset that i don't wanna get into dept. It feels weird to be in someone's else dept. The reason is that i don't know what ups and down may i have in life and if have a down i don't want to have to worry about by car dept...

I prefer to move with trains, busses even by foot that "own" a car with dept.

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If you are fortunate enough to be able to get away without a car you are lucky I think. Public transport is not great here and without a car you are screwed. Shopping you can do online these days so that isn't an issue either as I know about carrying packets of groceries over a long distance and not exactly fun. Very few people think like you are and some will be forced down this route now as they will lose most of their possessions at some point.

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I live very lean, I don't give a fuck what anyone says if you die you can't take the shit with you lol. I'm not here to enrich other people by enslaving myself. I value free time and getting to do whatever I want, so it may seem weird to most, I still rock the same old shoes but I've got cash for just about any emergency which i feel is worth more to me than a new car or some other fancy shit

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Emergency or rainy day money is definitely worth having. That is why I haven't replaced my car or my clothes for ages. Next car will most likely be purchased in Europe any way along with the clothes. Have a way out and will take it once business is solid here.

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I'm with you on that, I first need to see how we all come out of this next recession before I decide where I start putting down roots. People with cash and assets are all going to be looking for the best deal in terms of lifestyle over the next few years as different countries recover differently

I still rock the same old shoes but I've got cash for just about any emergency

I like that, they my old comfy shoes and I don't mind being seen in them!
I'm just like you, shit happens and I got it covered!

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Yeah you never know whats going to happen good or bad, you may have an emergency you need to pay for or you may find a fantastic investment opportunity and if you don't have cash you shit out of luck.

For me the obvious choice was to buy a bank repossession from the auction paying half the book value yet still having the service plans intact. Many dealerships buy these cars anyway and stick a hefty margin on top moving them on to suckers who don't mind paying.

Why didn't I think of that three years ago?

Maybe next time. Maybe a decade from now when I'm probably going to buy a car again, a bank repo Tesla would fit the bill. Electrics are expensive up front but low maintenance and unlikely to have serious, show-stopping faults, particularly as the manufacturers improve quality going forward. Thus buying one would probably be the best possible deal.

I would agree with you on the thinking behind this. Tesla also has the updates that you just plug in so most likely even if it was an older model it wouldn't be a problem. Most bank repos are newer than you think and they never get what they are owed back so think of a second hand car in auto trader or the equivalent and divide by 2 then add the taxes and you will be close to the correct auction price. Finding the right auction not flooded with dealers is the tough part but there will be some around.

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