Buying something which you cannot aford.

[uls]

banks tightened credit during the crisis

credit contraction f*cked the US economy





the Great Deleveraging

consumers paid down debt

start borrowing again

[uls]

how Americans live




soon that chart will apply to pinoys

[uls]

recipe for disaster

spending outpaces income


too much borrowing too little saving


debt vs. income




(keep in mind 2007/08 is the turning point. that was peak debt. then the crash)

[Ry_Tower]

how Americans live




soon that chart will apply to pinoys

Keeping up with joneses kasi yan. Dami na rin ganyan dito sa amin, bibili nanag car pero utang. Sabi ko sa wife ko tignan mo after three years. Yun nga, dami na "for sale" na tsikot. Sad to say hindi nga nila sinsama kasi fuel and maintenance costs when making the decision to buy. Another this na comonly binibili kahit hirap bayara, smartphone. hehe

Unang 2-3 years ko working sagad-sagad din talaga, pinagbigyan ko lang sarili ko. Kaya looking back to those times, nako-kontrol ko na sarili ko ngayon. Sabi ko tama na yung pagwawaldas noon. Ipon naman ngayon.

Sa CC, discipline na lag nang tao yan. Kung wala ka niyan or tingin mo hindi ka pa ready, eh 'di huwag muna. If you think you have the capacity to control your urgse, why not. It is indeed very convenient.

[A121]

I don't think it's becoming SC or something. Ang nature kasi ng tao is to have something now than later. Dyan papasok ang interest rates. Banks are willing to lend you money now. Most people are willing to pay the additional cost to have something now than later. Interest rates are so low right now dito sa Pinas. So everyone would rather get a loan and spend the money as opposed to saving it. Magkano ba time deposit ngayon? Less than 1% per year ata. Kung bumili ka ng bonds, masyado matagal bago naman makuha.

[uls]

i gets borrowing to invest

but borrowing to spend on end-user consumption is sooo wrong

[yebo]

interest rates on savings deposits are now down to 0.75%. inflation rate for the month of june 2013 is 2.8%. so you actually lose money if you put in in the bank. real estate loans now down to 5.25% 1 year fixed and 6.5% 3 years fixed.

i think the thread should be more about buying luxury items or unnecessary items that one "wants" but does not "need".

[A121]

i gets borrowing to invest

but borrowing to spend on end-user consumption is sooo wrong

hahaha. true. pero that's how most humans act. and, if one is starting a new business here, medyo mahirap. gotta pass through bureaucracy sa registration. mahirap din umutang sa local banks. so ayun na lang, bili na lang ng mga gadgets para may pupuntahan ang pera. :jazzybass:

bukod din sa pag-identify ng needs and wants, dapat magkaroon ng goal setting. if you want a new car and make the monthly payments, find a better paying job.

[joemarski]

Ewan ko ba kung bakit may mga taong nakakatulog ng mahimbing na may ini- isip na utang
o mga dapat bayaran. Marami akong mga kasamahan sa trabaho na ganyan.

Lagi kong inu- una ang mga "basic needs", 'yung mga bagay na kailangan talagang bilhin.
There's always a time to buy those "not so important things". Mapag- iipunan naman 'yan.
Saka ka na bumili kung sigurado ka ng di kakalam sikmura mo.

May mga tao pa ngang umu- utang lang para pambayad ng utang. $-2-PIDS!!! :mad: