Debt Poll 😬 | Imamother

amother

↑ OP ↓

Today at 12:41 am

amother Mocha wrote:

I don't know how to respond to this poll. We never put more than 2k on cc. We pay all our ccs in full every month. My dh's company uses our personal ccs to make large purchases. They are pretty good about paying it on time and we get the cc points. At any given time they can have as much as 40k on my dh cc. For me it's a little nerve wracking because at the end of the day the debt is in dh name. Dh trusts his employer but you never know. We are doing well bh and can afford to cover the debt in case it does happen but hopefully we won't have to. I always remind dh not to lend people money he cannot afford to lose.

I would call that comfortable! When I said CC debt I meant keeping a balance and not paying in full each month.

amother

↑ OP

Today at 12:44 am

amother Amber wrote:

Here’s the kosher money study - https://mcusercontent.com/0c1c....._.pdf

Ty! Quoting from there
Debt is a significant and growing issue, especially as families age. Two-thirds
of respondents reported having debt, with over half carrying more than $20k
in debt. Among individuals and families over 40, 48% had over $20k in debt,
and over 40% of those families do not pay off their credit card balances in
full each month. Unlike early debt from student loans, most of the debt
pressure comes from credit cards and car loans, which account for 60% of
debt issues. Larger debts are particularly difficult to escape, indicating a
need for greater education, outreach, and support through gemachs and
other financial assistance programs.

I want to see now how those numbers compare to what we just got

amother

Oatmeal ↓

Today at 8:12 am

amother Orange wrote:

Your family is doing a really nice mitzvah. Essentially all the money you are making on the stocks is being donated to you by your family members who lent you money interest free to then have you turn around and invest and make money off it.

Yes! I am currently pulling money from IRA while I work to get our income up. We had stocks but those are long gone. It really wouldn't occur to me to borrow from family unless the only other option was credit card debt with 30% interest. Interest free debt is fine (many cards have a long intro period where it is interest free)

amother

Smokey

Today at 8:21 am

The correct answer for me would be:
No, we're frugal.
I was raised by my parents on the idea that having debts is mortally shameful and dangerous and must be avoided at all costs. So that's what I do.

We are B"H doing okay financially, in Israel, and I'm the main income earner. Maybe some people think we are nebbachs because our house, furniture and cars are old and/or not very impressive. I have no material things to show off with What

But as a rule, I don't spend money we don't have and shoot down any plans dh comes up with if they go in that direction.

amother

↑ Bergamot

Today at 8:24 am

amother Smokey wrote:

But as a rule, I don't spend money we don't have and shoot down any plans dh comes up with if they go in that direction.

I find it interesting when people say “don’t spend money you don’t have” as the solution. Fact is, there are certain things you need to spend on: housing, tuition, food. And sometimes that adds up to more than income. Then what?

amother

Jasmine

Today at 8:25 am

amother Smokey wrote:

But as a rule, I don't spend money we don't have and shoot down any plans dh comes up with if they go in that direction.

We’re also frugal, and still in lots of debt. Frum life is very very expensive
Sorry but being frugal doesn’t stop debt.

amother

Taupe

Today at 8:43 am

amother Mocha wrote:

I don’t mean to be rude, but are you absolutely crazy?! If it’s in your husband’s name and I don’t pay back I don’t know how much recourse you would have. I always say we don’t lend money to anybody even family that we can’t afford to lose. And you’re talking about insane amount of money. For a few credit card points? We have Too many people money and haven’t been paid. Why doesn’t his boss have his own personal credit card? Somethings just not adding up and I hate to say it, but there’s a very very very strong chance that you could lose all of this. If you could afford to lose it, then I guess it’s OK if you don’t care but really very very very dangerous to me. Especially if it’s a personal credit card and not even a business credit card that’s tied to the business. He could pay you back many months and then not pay you back! I can’t imagine we are very, very very wealthy and I would not pay the position or I would want to lose $40,000.

amother

↑ Oatmeal

Today at 9:24 am

amother Bergamot wrote:

Right, like do these people homeschool? If their child desperately needs specialized therapy, do they go with the one that's covered because "no debt"? Everything I spend is for my kids' sakes so they grow up to be fully functioning adults. I have no "material things" to show for any of it, and I don't want "material things" either. I want to be at peace with myself knowing that I gave my kids all they needed to be healthy human beings.

amother

↑ Chambray

Today at 9:27 am

amother Oatmeal wrote:

This. All my debt is because of therapy, tuition, medical, dental...

All my furniture is second hand or from Wal Mart. I have no jewelry. The only investment I make is in my kids.

amother

Firebrick

Today at 10:28 am

We had debt building up on our CCs and knew as our family grew it would just keep growing. So we worked like crazy to pay it off and then closed every CC. Still paying off an $1000 PayPal balance though with crazy interest... Can't wait to be done with that too.

We have had to take out loans from Gemachim multiple times. Once had to borrow money from an employer. Plus are always in middle of multiple payment plans with vendors kind enough to do that -the one who checked our Tefillin / Mezuzahs, the guy who fixed our heater, the Frum clothing store.... obviously only if they are okay with it. Some need the money up front. And either way it's a terrible feeling owing money...

We also are on multiple payment plans for medical expenses. So we are paying hundreds a month for all these payment plans, similar to if we had to pay back 1 CC monthly.
But CCs seemed like a black hole we couldn't get out of, with the interest growing and growing...

amother

↑ Mocha

Today at 10:50 am

amother Taupe wrote:

This is exactly why I wrote that I don't know how to respond to this poll. While yes, we are technically doing well and have no debt, if chv this person left us hanging we would be responsible for up to 40k. There are other reasons why he started lending him the money initially. He didn't do it for the cc points. There is a lot more to the story obviously.

amother

Marigold ↓

Today at 10:57 am

amother Oatmeal wrote:

she said they live in israel. it might be different there.

amother

↑ Marigold

Today at 10:58 am

amother Mocha wrote:

I'm sure theres more to the story but pease dont do it. its really very risky.

to answer question. we had a big repair and did a finance plan because it was zero interest but we could pay it off.

amother

Quince

Today at 11:01 am

I’m not sure I understand the question properly. I recently bought a house and we went into it responsibly, but my dh developed depression and my job fell apart so we are earning less than we thought we would.

We owe money to one private individual and a stomach turning amount of cc debt. It’s all because of the mortgage so I didn’t know how to answer.

Even so, I 100% saw miracles

amother

Snow

Today at 11:05 am

Didn't know how to answer.
We have My student loan for graduate school, been paying it off each month slowly. Needed it to be able to work.

But no other debt. Mostly because of severe cut backs and not buying stuff, school discount, family help, and tomchei Shabbos. Husband lost job with health insurance for family so we really don't make enough to live but it is too much for food stamps etc.

We buy target level clothing for the boys. My toddler is wearing Walmart. Daughter has Shein. No shabbos shoes for toddler, name brand clothing, $200 winter coats or any other "necessities" people think we need.

Just our basic expenses would be more than my income.

amother

↑ Ghostwhite

Today at 11:17 am

amother Orange wrote:

Yes. I wouldn't say "turn around and invest" bec the money was invested prior. It's not like I borrowed money to invest even if essentially I'm still making money off the investments but yes we would otherwise have to sell the stocks for living expenses and this allows us to keep the savings. BH I'm grateful for the setup!