1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Credit and interest is for the poor...

Discussion in 'BlackHat Lounge' started by royserpa, Mar 12, 2016.

  1. royserpa

    royserpa Jr. VIP Jr. VIP Premium Member

    Joined:
    Sep 28, 2011
    Messages:
    4,986
    Likes Received:
    3,744
    Gender:
    Male
    Occupation:
    Negative Options aka Rebills!
    Location:
    Exploiting Loopholes!
    Home Page:
    Without huge interests or credit, it would be very difficult for people to actually buy the expensive stuff.

    Credit is for the poor.

    With credit, you are buying a car at 2x-3x its retail price just for the "convenience" of "small" recurring payments.

    Let the discussion begin!
     
    • Thanks Thanks x 1
  2. jamie3000

    jamie3000 Supreme Member

    Joined:
    Jun 30, 2014
    Messages:
    1,413
    Likes Received:
    654
    Occupation:
    Finance coder looking for semi-retirement
    Location:
    uk
    I agree, I have friends that are typical consumers they buy everything on finance, their car, sofa, TV etc etc. They have a higher household income than me but save literally nothing each month!
     
    • Thanks Thanks x 5
  3. Bleght

    Bleght BANNED BANNED

    Joined:
    Feb 18, 2016
    Messages:
    548
    Likes Received:
    171
    It really depends what you are buying. If you take out a loan and invest in in something that has a higher ROI than the interest of the loan, it will make you richer not poorer and I'm sure many of us are doing exactly that (at least I am). But if you are buying consumer stuff I agree, the system keeps the poor poorer and the rich richer. Fot the more inert members of the public, leans help keep the status quo with consumers being happy that they have stuff they shouldn't really afford, so they can't afford it later in life either.
     
    • Thanks Thanks x 2
  4. loedown

    loedown Jr. VIP Jr. VIP

    Joined:
    Jun 29, 2009
    Messages:
    1,624
    Likes Received:
    509
    Home Page:

    I agree to an extent, but if you're offered 0-.5% interest why not keep your Liquid to invest. I can make more than I'd save buying that outright with that money in the market.

    obviously if you have poor credit this is a different scenario.
     
    • Thanks Thanks x 2
  5. towelfox

    towelfox Junior Member

    Joined:
    Jan 11, 2012
    Messages:
    175
    Likes Received:
    61
    Nah credit has its place. It's not what you borrow it's how you borrow.
     
    • Thanks Thanks x 2
  6. rob1977

    rob1977 Power Member

    Joined:
    Mar 25, 2013
    Messages:
    775
    Likes Received:
    676
    In my late teens early twenties I was a credit monster. If I wanted something I got a loan or a credit card and bought it. I was on an excellent salary but all of the monthly payments were eating the shit out of my income.

    I beat it by living like a pauper for twice the repayment period. (The repayment period to pay it off and the second period to save up) You would be amazed how people's behaviour changed towards me when I started living like a pauper. The gossiping etc. I didn't give a shit, I knew what the plan was.

    I now buy everything cash. I save up, if I want something, or I go without. The gossiping still goes on even though I bought a four bed detatched (which in the UK is not cheap) with no mortgage. I drive a six year old astra, wear unbranded clothes most of the time (I'm a handsome bugger so I don't need bling) and no fucks are given, because I don't buy into the need to advertise somebody else's brand at my expense. I am a tramp with no debt and love it.
     
    • Thanks Thanks x 12
  7. aBoss

    aBoss Regular Member

    Joined:
    Oct 30, 2013
    Messages:
    241
    Likes Received:
    35
    Well the USA economy is pretty bad right now so the interest rates are low and might even be negative soon
     
  8. Eternal1912

    Eternal1912 Power Member

    Joined:
    Dec 6, 2014
    Messages:
    621
    Likes Received:
    246
    Gender:
    Male
    Occupation:
    Freelance Writer
    Location:
    Bulgaria
    Everything depends on the money asked monthly and the money you are actually making. If you want to buy a new phone and you are making $1500 a month and the monthly payment is only $50, why not? But if you have to pay almost half of the salary, I prefer saving for it.
     
    • Thanks Thanks x 1
  9. royserpa

    royserpa Jr. VIP Jr. VIP Premium Member

    Joined:
    Sep 28, 2011
    Messages:
    4,986
    Likes Received:
    3,744
    Gender:
    Male
    Occupation:
    Negative Options aka Rebills!
    Location:
    Exploiting Loopholes!
    Home Page:
    That's the mentality of everyone who buys stuff on credit. "Low monthly payments - fuck it - ill buy it" lol.
     
    • Thanks Thanks x 2
  10. MonsterMag

    MonsterMag Power Member

    Joined:
    May 2, 2015
    Messages:
    608
    Likes Received:
    417
    Occupation:
    Self
    Location:
    My Journey Discussion
    Yupp...
    What I can't pay cash, I don't buy. Simple as that, never had problems like all these broke asses that come here whining because they get thrown out of their houses and have $30k in credit debt.
    I always feel like: "You enjoyed life more than you could afford, now undergo the punishment for being stupid and live as a broke ass under the bridge."
     
    • Thanks Thanks x 3
  11. laur.laurix

    laur.laurix Power Member

    Joined:
    May 8, 2013
    Messages:
    743
    Likes Received:
    281
    Occupation:
    Reverse Engineering Maniac
    Location:
    Mars
    I call it softcore slavery... In the past you had to feed and shelter ur slaves and work them to death to recover ur investments, now u only need to sell them the right illusions and they will enslave themselfs and work themselfs to death to repay ur investment.
     
    • Thanks Thanks x 4
  12. Aatrox

    Aatrox Supreme Member

    Joined:
    Feb 27, 2014
    Messages:
    1,432
    Likes Received:
    1,064
    Once I started making money, real money, I decided that I'm not gonna take a loan from the bank. I'm gonna save up and buy with cold hard cash. I bought my card with cash and next on the list is the house. I already have like 20% or more in a short period and I plan to work more, to make more so I can buy it sooner. But you gotta understand, a big chunk of people are unable to do this. They need loans so they can live. I understand people taking loans, but I know I'm going to avoid as much as I can and try to never take one.

    My neighbour ended up paying DOUBLE what he got due to currency changes. Fucking Switzerland man.

    Also, fun fucking fact - cars here are CHEAPER if you buy it with a loan haha. I bought mine with cash and hardly got any discount, but if you buy with help of a bank, you get a decent discount due the fact that car dealers have contracts with banks so they split the rates. It's a win/win situation for both of them.
     
    • Thanks Thanks x 1
  13. illuminateme

    illuminateme Junior Member

    Joined:
    Feb 24, 2016
    Messages:
    112
    Likes Received:
    34
    Guys, read up on (or a summary of) Rich Dad Poor Dad and find out HOW to use the rules of credit to make you money, just like HOW we learn the rules of IM / SEO to profit. Credit is awesome if you know how to use it for profit, rich people all use OPM Other People's Money to invest and profit.
     
    • Thanks Thanks x 2
  14. rob1977

    rob1977 Power Member

    Joined:
    Mar 25, 2013
    Messages:
    775
    Likes Received:
    676
    an interesting marketing slant on debt.

    im convinced the whole Kanye west debacle was thought out something like this.

    thick rap artist makes it big, banks think hmm, easy pickings lets loan him more and more.

    he makes a killing each year but it goes straight to the bank in repayments. he has to sook in more sheep, so Kanye behaves like Kanye (great marketing), and dicks fire money at him hand over fist. the bank takes not just a piece of the pie but the whole pie.

    when I see the amount of celebs who go bankrupt sometimes multiple times and yet they still manage to get a bankroll.

    industry needs them to keep marketing goods to the sheeple, who pay for the repayments. celebs are owned by the banks because of their own financial illiteracy and when we buy their crap, we are just paying the banks.

    I wonder how many status symbols are living like this.

    the cycle can not go on for ever and 2008 was just the pretremour.

    the bank lends you money to buy kanyes shit, the charge interest.

    Kanye needs to live a particular way so that people think, wow I need a bit of that so I can be awesome. so they lend him the money to do it.

    so they charge interest at both ends.

    I don't know if I made my point I have a four year old yapping shit in my ears.
     
  15. 1morenoob

    1morenoob BANNED BANNED

    Joined:
    Nov 17, 2014
    Messages:
    412
    Likes Received:
    193
    car on credit for 2-3x the retail price? Never seen that happen.

    Depends what it is, mortgages are obviously good credit compared to renting. Phone contracts often good value too.

    Lots of big companies run in debt also.

    If you're getting a 'pay day loan' then obviously its not good
     
  16. IamNRE

    IamNRE Jr. VIP Jr. VIP Premium Member

    Joined:
    Aug 18, 2010
    Messages:
    4,823
    Likes Received:
    7,201
    Occupation:
    Helping Small Businesses Get More Calls
    Home Page:
    Don't be stupid. Everyone uses credit. Even the wealthy/rich.

    The difference is the rich use credit (i.e other people's money/debt/loans) to buy assets i.e things that will bring them a return on their investment/the money they borrow.

    Where as the poor and middle classes use it to buy shit they can't afford.
     
    • Thanks Thanks x 17
  17. foxlobo31

    foxlobo31 Registered Member

    Joined:
    May 23, 2011
    Messages:
    64
    Likes Received:
    13
    Occupation:
    IM
    Location:
    Philippines
    Good Debt, Bad Debt. Rich Dad Poor Dad all over again.
     
  18. beaglejuice

    beaglejuice Power Member

    Joined:
    Mar 12, 2009
    Messages:
    597
    Likes Received:
    424
    @op define "poor"
     
  19. Ste Fishkin

    Ste Fishkin BANNED BANNED

    Joined:
    May 14, 2011
    Messages:
    2,058
    Likes Received:
    8,214
    Except for my flat I have no credit and don't plan on using it ever again if it can be helped.

    Credit is for those that live beyond their means. It's a very foolish way to live and it just makes you a slave to your possessions.

    I have a friend who is a HGV wagon driver, he can't be on more than £18,000 a year but has just gone and got himself a £19,000 Harley-Davidson and a brand new 2016 Jeep in the last year... those repayments must take half of his income every month and at the end of it what will he have to show for it... fuck all.
     
    • Thanks Thanks x 4
  20. whiteblackseo

    whiteblackseo Jr. VIP Jr. VIP

    Joined:
    Apr 11, 2015
    Messages:
    2,614
    Likes Received:
    959
    Home Page:
    Currently I'm a student and I just make my cash through Paypal and send it to my bank through a transfer. I usually buy my shit through debit.