I make the beast with two backsing HATE banks.

[He Man]

Heres a kick in the nuts...
i forgot i set up monthly transfering from my savings to my checking...
guess what? the transfer WAS posted minutes AFTER it bounced...

banks suck.

[Popeye the Sailor]

On a different post issue...I hope it was just a bad example; but if someone has 1,000 in an account and is borrowing 10K to buy a Duc, they can't afford the Duc no matter what the lending rate is.

Sorry, l but I don't understand that one.

And I've bought a couple of really nice houses, several really nice bikes, boats and cars, paid for them WAY in advance of the payoff date and never put any money down on ANY of it.

And don't most banks have "bounce-less checking" if you have good credit and quality for the "program"? 

LA

Houses are a different matter-no one expects you to buy one cash, but IMO, the only thing one should take loans to get is 1) a house and 2) an education (in the opposite order).

Other than that, if you don't have the money in the bank to purchase what you want to purchase, then you can't afford it.

[ryandalling]

Other than that, if you don't have the money in the bank to purchase what you want to purchase, then you can't afford it.

I have purchased all my bikes in cash. I just can not see financing a toy. So, I agree with you on that one. However, to each their own. At some point, with the financing offers, you can actually make money by financing if your savings account gets a good APR and you hit some deferred payment / interest option.

[Popeye the Sailor]

I have purchased all my bikes in cash. I just can not see financing a toy. So, I agree with you on that one. However, to each their own. At some point, with the financing offers, you can actually make money by financing if your savings account gets a good APR and you hit some deferred payment / interest option.

I'd argue that's just smart money management over financing something you want just to get it sooner.

[R2]

Houses are a different matter-no one expects you to buy one cash, but IMO, the only thing one should take loans to get is 1) a house and 2) an education (in the opposite order).

I would add, 3) vehicle. I mean a main mode of transportation vehicle, not a second one.

I was a field market rep when my car went down. I didn't really have a choice but to buy another car. (It's a good thing sleep train wouldn't give me a $400 loan for a bed the week before.) I'm sure there are many people in the same situation where its either get a car or find a new job. You can get a car in one afternoon (providing you qualify for a loan). It can take weeks to find a new job and you risk taking a pay cut too. Meanwhile you still need to eat and pay rent/utilities. Maybe it's more about survival at that point.

As a side note, I would also imagine that it would be good for your credit score if you had consistent on time payments from a car loan, which may help you out when you want to buy a house . . . or a bed.

[Howie]

Financing a vehicle is fine, providing the rate is favorable (meaning the same or less than your money is making where it is) and you can pay the loan off any time. 

[Popeye the Sailor]

I would add, 3) vehicle. I mean a main mode of transportation vehicle, not a second one.

I was a field market rep when my car went down. I didn't really have a choice but to buy another car. (It's a good thing sleep train wouldn't give me a $400 loan for a bed the week before.) I'm sure there are many people in the same situation where its either get a car or find a new job.

Given the depreciation and cost of full insurance on a new car, I'd advocate financing something 3 years old or so over a new one. I don't think I've ever bought a new car.

[Drunken Monkey]

Haven't bounced a check in 20 years.

Never bought anything (other than my house) on credit.

Bought one new car back in '87, since then it's all been used.

Bought two new bikes and a scooter over the last 20 years. ('91 900ss, '01 Chromo and an '07 Vespa)

I live well within my means, despite two kids and a part time working wife. I've even saved up about a year's salary, just in case things "go south"

So... where's my bailout?

[DrDesmo]

I never understood the whining about overdraft fees or late fees on credit cards.

It's so easy to just live within your means, buy things you can actually pay for, and just use a credit card or charge card and pay it off every month.

If you can't do that, you're living above your means.

If you don't have a safety cushion, you're living above your means.

Period.  I had (at one point this year) 4 bikes.  I'm down to "just" the Honda because of all the uncertainty in the economy. 

Financial freedom is living beneath your means.

Adam