Every time I hear someone yapping about leverage it makes me sick. Sure, you have a lot of leverage when you buy a house. What everyone seems to forget is that leverage is a two way street. When you buy a 200k home and it drops 10%, you now are $20,000 in debt for the house you "own".
And what's with all the people with crabby landlords? I've rented for 12 years and have yet to have the ruthless dictator landlords mentioned above.
I recently had a very expensive repair to make to the used car I bought and I thought - man, I wish I had an extended warranty. Thank you for this article, I will reference the next time I am in a car buying situation.
I would hardly call what was included in the article as "bragging" I wanted it to be more of a 'warning.' If someone had taught me properly about the credit trap, perhaps I would have done things differently, but I needed to feed my family. How many people are going through the same thing in this country right now? If I inspired just one person to rethink their credit card usage than it was all worth it.
In response to DC I would like to add what was not included in the profile, which is that what was settled out was the 19 - 29% interest charges that we had accrued after paying our minimum monthly payments for several years.
Our creditors all received the actual amounts we had 'borrowed' plus several thousand in interest charges that we made over the years of trying to keep our heads above water. It's never a good thing to use your credit card for groceries, a lesson we learned a bit too late and a mistake that won't be repeated. We could have filed bankruptcy and that would have wiped the debt clean, but instead opted to pay the debtors what they considered an acceptable payment that was well over what was extended to us.
I dread tax time. Not because we usually end up paying (actually, we usually get at least a little refund) ... but it's such a hassle going through all that paperwork, trying to figure out the "right" answers to questions, etc.
I anxiously await all my tax documents after the new year. Once I've got them I enjoy taking them to my tax guy and talking with him about everything that went on over the year. I also enjoy the check that comes after it's all filed!
For the most part, I think my taxes are pretty simple enough to where I can do it myself thank goodness. However, sometimes when it comes to certain deductions that you can claim it can get a bit tricky, too. Here's an article that can definitely help those who many be uncertain as well about legal tax deductions: http://www.gobankingrates.com/tax/tempting-but-illegal-tax-deductions/
I'm a CPA, so tax time is my time to shine! I love seeing clients and helping them get their returns completed. It's also when I work six days a week so I can relax and work 4 days a week the rest of the year ;-)
I look forward to tax time being over...each year I'm trying to get closer to $0 for my tax return, so my return on taxes shouldn't really hurt or help my financial situation too much.
Actually, doing taxes is like a good workout at a gym. I don't enjoy the act, but feel great afterwards.
I don't mind and always like to see if I have had enough money deducted through out the year since my husband has a small business.
I use the Free H&R software for federal returns and then enter the info on the free Virginia state tax site.
As a corporate tax accountant I look forward to the sense of accomplishment I get from completing our return. Unlike a lot of the other posts I hate to give the government a free loan all year so my goal is to get a close to zero as possible. If not zero then I would rather owe a bit in April.
Interesting review. I have heard of this phenomenon happening in real estate, but I think it may be too simplistic of an understanding of a free market economy.
In a free market, where competition is free to set prices based on the market, prices fall. Electronics are a good example. A flat screen TV, which would once cost $2,000, now costs about $700. In contrast, in the areas of society where government in involved, either through regulation or subsidies, prices have gone up. Real Estate is a good example. Previous administrations through HUD and other agencies, artificially stimulated the market by offering housing to people who couldn't afford it. In other words, when the government comes in an either gives free money to people through subsidies, or forces prices down through regulation, you short circuit the market.
I may be speculating, but it seems to me that this book points to more, not less, government involvement. We've seen societies try to make life more equal for everyone, but the means of doing so require being unfair to some in the process. Taxation is a form of taking, and then giving to others. Fairness, in contrast, is keeping what you make.
While this book may make for a case of distribution as a solution, I caution against this narrowed view of economics, that any macro or microeconomics course would easily dispel as flawed.
Hey Douche Bag (and this goes for the rest of you "Suck it up" preachers)...how dare you generalize others in a situation that was not entirely under thier control. There are many reasons why these folks have gotten into thier situations. I was a signing agent at the time of the bubble and I have seen, in great detail, the promises that were made by these mortgage lenders. It wasn't all about people trying to live the "high life" or trying to purchase a home they couldn't afford. I did refi's. Many of these people were trying to consolidate debt and were promised that all their worries would go away if they just signed on the dotted line. Although I explained the paper to them, there loan officers made furture promises to them. "Oh, don't worry about the rate, we can get that lowered in 2 years after you improve your credit." So lenders we giving money not based on income and credit score, but on the current value of thier home. People would get an initial low rate, but after two years the rate would adjust. That deal also came with a two year pre-pay.
There are others, though, that could and still can afford thier house. I am one of those. What is bothering many is not about affording the mortgage, it's seeing that if they bought thier same house now, they could reduce thier mortgage by 1/3. My house in 10 years probably wont reach the same value it had 3 years ago. So while I'm making my payments and have excellent credit with my lender, all I could hope for is to break even one day. Whiel others who are now purchasing thier homes, in the same time frame it take me to break even they would have tripled thier equity. SO...for people like me, the decision is....do I want to spend all this money and interest just to break even in another decade or more...OR just walk away, take the hit for two years, and then buy another home and start earning positive equity? As an investment...that may be the wisest decision.
Quite honestly, the only reason most people DONT walk from thier house is the social stigma and pressure from the banks, govt, and media uses to make people feel worthless or irresponsible for walking. Nobody wants to feel like less of a person with a foreclosure on thier record. AND THE BANKS KNOW THAT! And they have and will continue to play on our self worth to satisfy thier bottom line. You real estate agents? Well, Im sure there are a FEW that mean well, but proceed cautiously to thier help. Remember, their "help" cost you money and puts cash in thier pockets...so thier advise is biased.
I'm not going to walk. Perhaps the banks have gotten to me, but as an investment decision..it is a poor one. Perhaps renting out the two available rooms I have is the best solution.
I will say this...It's those of us who havn't walked from our homes that are helping the prices from dropping even further. New home buyers get a tax credit. Where is the tax credit for us who are sticking it out?
I got a little side tracked. My point is that you can take your arrogant attitude and ignorant opinions on taking responsibility and shove them up your ass. Everyone's situation is different. Not everyone is looking to bail on thier responsibility. The real question is: is it really thier responsibility?
I do get a good refund, which is nice. I add it to my emergency & gift funds for the year. I know I could keep some of that money by paying less tax through the year, but I prefer to get the refund in 1 chunk.
I don't enjoy the work of actually doing the taxes, which is more complicated since I've had a son in college. I use TurboTax, which makes it relatively easy, but it's not fun!
Thanks for the introduction to the book. Looking forward to the read. I just finished reading Simple Prosperity by David Wann. Sounds very similar. Highly recommended if you're looking for something similar.
I am a student, so my lifetime learning credit refund gives me an extra $2,000 in the bank. Next year (2010) will be good too. Starting in 2011, I don't think I will like it any more.
Every time I hear someone yapping about leverage it makes me sick. Sure, you have a lot of leverage when you buy a house. What everyone seems to forget is that leverage is a two way street. When you buy a 200k home and it drops 10%, you now are $20,000 in debt for the house you "own".
And what's with all the people with crabby landlords? I've rented for 12 years and have yet to have the ruthless dictator landlords mentioned above.
Thanks for linking to my list of 50 personal finance bloggers to watch in 2010. Hopefully people will find some new blogs to read!
I am looking to sell my hair. 10-12 inches of natural red hair long beautiful and healthy. email me if u are interested
Love it! Tax time is the only time it is good to be poor.
I recently had a very expensive repair to make to the used car I bought and I thought - man, I wish I had an extended warranty. Thank you for this article, I will reference the next time I am in a car buying situation.
I would hardly call what was included in the article as "bragging" I wanted it to be more of a 'warning.' If someone had taught me properly about the credit trap, perhaps I would have done things differently, but I needed to feed my family. How many people are going through the same thing in this country right now? If I inspired just one person to rethink their credit card usage than it was all worth it.
In response to DC I would like to add what was not included in the profile, which is that what was settled out was the 19 - 29% interest charges that we had accrued after paying our minimum monthly payments for several years.
Our creditors all received the actual amounts we had 'borrowed' plus several thousand in interest charges that we made over the years of trying to keep our heads above water. It's never a good thing to use your credit card for groceries, a lesson we learned a bit too late and a mistake that won't be repeated. We could have filed bankruptcy and that would have wiped the debt clean, but instead opted to pay the debtors what they considered an acceptable payment that was well over what was extended to us.
I do enjoy doing my taxes, they are easy now with online software. I do however hate state taxes!
I dread tax time. Not because we usually end up paying (actually, we usually get at least a little refund) ... but it's such a hassle going through all that paperwork, trying to figure out the "right" answers to questions, etc.
I anxiously await all my tax documents after the new year. Once I've got them I enjoy taking them to my tax guy and talking with him about everything that went on over the year. I also enjoy the check that comes after it's all filed!
For the most part, I think my taxes are pretty simple enough to where I can do it myself thank goodness. However, sometimes when it comes to certain deductions that you can claim it can get a bit tricky, too. Here's an article that can definitely help those who many be uncertain as well about legal tax deductions: http://www.gobankingrates.com/tax/tempting-but-illegal-tax-deductions/
I hate tax time. We owe way more than we can pay and think there has to be something wrong.
I'm a CPA, so tax time is my time to shine! I love seeing clients and helping them get their returns completed. It's also when I work six days a week so I can relax and work 4 days a week the rest of the year ;-)
Great...now I can't type. Please update my email address from "bigac" to "bigmac" in my prior email. Thanks!
Oddly enough, I do look forward to tax time. We're hoping the adjustments we made make for a smaller refund this year.
I look forward to tax time being over...each year I'm trying to get closer to $0 for my tax return, so my return on taxes shouldn't really hurt or help my financial situation too much.
Actually, doing taxes is like a good workout at a gym. I don't enjoy the act, but feel great afterwards.
I'm a fan of tax time. My return is usually modest since I review my withholding once a year but its nice to get back what I'm owed.
I don't mind and always like to see if I have had enough money deducted through out the year since my husband has a small business.
I use the Free H&R software for federal returns and then enter the info on the free Virginia state tax site.
As a corporate tax accountant I look forward to the sense of accomplishment I get from completing our return. Unlike a lot of the other posts I hate to give the government a free loan all year so my goal is to get a close to zero as possible. If not zero then I would rather owe a bit in April.
Interesting review. I have heard of this phenomenon happening in real estate, but I think it may be too simplistic of an understanding of a free market economy.
In a free market, where competition is free to set prices based on the market, prices fall. Electronics are a good example. A flat screen TV, which would once cost $2,000, now costs about $700. In contrast, in the areas of society where government in involved, either through regulation or subsidies, prices have gone up. Real Estate is a good example. Previous administrations through HUD and other agencies, artificially stimulated the market by offering housing to people who couldn't afford it. In other words, when the government comes in an either gives free money to people through subsidies, or forces prices down through regulation, you short circuit the market.
I may be speculating, but it seems to me that this book points to more, not less, government involvement. We've seen societies try to make life more equal for everyone, but the means of doing so require being unfair to some in the process. Taxation is a form of taking, and then giving to others. Fairness, in contrast, is keeping what you make.
While this book may make for a case of distribution as a solution, I caution against this narrowed view of economics, that any macro or microeconomics course would easily dispel as flawed.
Hey Douche Bag (and this goes for the rest of you "Suck it up" preachers)...how dare you generalize others in a situation that was not entirely under thier control. There are many reasons why these folks have gotten into thier situations. I was a signing agent at the time of the bubble and I have seen, in great detail, the promises that were made by these mortgage lenders. It wasn't all about people trying to live the "high life" or trying to purchase a home they couldn't afford. I did refi's. Many of these people were trying to consolidate debt and were promised that all their worries would go away if they just signed on the dotted line. Although I explained the paper to them, there loan officers made furture promises to them. "Oh, don't worry about the rate, we can get that lowered in 2 years after you improve your credit." So lenders we giving money not based on income and credit score, but on the current value of thier home. People would get an initial low rate, but after two years the rate would adjust. That deal also came with a two year pre-pay.
There are others, though, that could and still can afford thier house. I am one of those. What is bothering many is not about affording the mortgage, it's seeing that if they bought thier same house now, they could reduce thier mortgage by 1/3. My house in 10 years probably wont reach the same value it had 3 years ago. So while I'm making my payments and have excellent credit with my lender, all I could hope for is to break even one day. Whiel others who are now purchasing thier homes, in the same time frame it take me to break even they would have tripled thier equity. SO...for people like me, the decision is....do I want to spend all this money and interest just to break even in another decade or more...OR just walk away, take the hit for two years, and then buy another home and start earning positive equity? As an investment...that may be the wisest decision.
Quite honestly, the only reason most people DONT walk from thier house is the social stigma and pressure from the banks, govt, and media uses to make people feel worthless or irresponsible for walking. Nobody wants to feel like less of a person with a foreclosure on thier record. AND THE BANKS KNOW THAT! And they have and will continue to play on our self worth to satisfy thier bottom line. You real estate agents? Well, Im sure there are a FEW that mean well, but proceed cautiously to thier help. Remember, their "help" cost you money and puts cash in thier pockets...so thier advise is biased.
I'm not going to walk. Perhaps the banks have gotten to me, but as an investment decision..it is a poor one. Perhaps renting out the two available rooms I have is the best solution.
I will say this...It's those of us who havn't walked from our homes that are helping the prices from dropping even further. New home buyers get a tax credit. Where is the tax credit for us who are sticking it out?
I got a little side tracked. My point is that you can take your arrogant attitude and ignorant opinions on taking responsibility and shove them up your ass. Everyone's situation is different. Not everyone is looking to bail on thier responsibility. The real question is: is it really thier responsibility?
I do look forward to getting my tax refund every year, but hate the idea that I gave the government an interest free loan for the year
I look forward to it - and I don't!
I do get a good refund, which is nice. I add it to my emergency & gift funds for the year. I know I could keep some of that money by paying less tax through the year, but I prefer to get the refund in 1 chunk.
I don't enjoy the work of actually doing the taxes, which is more complicated since I've had a son in college. I use TurboTax, which makes it relatively easy, but it's not fun!
Thanks for the introduction to the book. Looking forward to the read. I just finished reading Simple Prosperity by David Wann. Sounds very similar. Highly recommended if you're looking for something similar.
I am a student, so my lifetime learning credit refund gives me an extra $2,000 in the bank. Next year (2010) will be good too. Starting in 2011, I don't think I will like it any more.
The price of a warranty at an auto dealer is negotiable! Always make a counter offer to the price quoted.