Buying something which you cannot aford.

[CVT]

Sadly, I agree with you bro clanker and bro uls that the Filipinos are going in that direction.....

[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)

[[archie]]

As much as possible hindi ako umuutang for anything. kung kaya bilin and gusto ko, bayad cash.

[CVT]

Sa totoo lang , mabuhay mga Ilocano!!!!!!

[[archie]]

the graphs clearly show why ang dami pumapatol sa low down payment sa car loan... gutom after six months to one year.

[uls]

those are US charts

we see what lead to the Great Recession --- too much debt

-------

the Phil. economy is now in a sweet spot

banks are happy lending

people are borrowing like crazy buying cars and condos and gadgets and travelling

but this party aint gonna last forever

[CVT]

Banks here have better control though on their lending.... but one big pit could shake the institution

[foresterx]

Bro forester, I am sincerely happy that you are doing well in the US. I have not lived there, but I was there the longest for 4 months on company sponsored trips and trainings. And I have been there a couple of dozen times mostly in northern CA and the northwest area again mostly on company sponsored travels..

In my various interactions with Filipinos and Caucasians, that is what they are telling me. That they live their lives on their paychecks. however their only advantage is that they can have second jobs with good pay to augment their family income...

Credit is easy there, and it is human nature to borrow as much as possible to sustain the life style they like....

I believe bro uls has some profound data presented above...

i don't live in the states anymore since i like it better in the philippines, but i still go back to the states from time to time for vacation.

like i said its kind of unfair to say that the americans are the number one when it comes to buying something they can't afford just because of those statistics. credit card is the main tool in the states right now, so number of debts and users will be a lot higher compared to other countries. their number of issued credit cards are almost twice more compared to the next country that has the most credit cards. so those statistics will mean nothing and be useless since the number of issued cards are so much more compared to other countries. what you should look at is the way they use it, the americans use their credit cards mostly on small purchases while other countries use their credit card on big purchases. goes to show you that they're not the people using credit cards to buy something they can't afford.

anyway btt in the philippines i mostly notice this from call center agents. i know there's a lot of hate in this forum to call center agents because of their SC status. but it's the truth, i don't get why they have to have the latest gadgets, branded clothes/bags/watches even thought their making only what 20-30k a month. unlike in other companies most of the mid level employees don't even buy expensive gadgets or think about buying them.

[12vdc]

Good if you have other forms of income or biz, but still I buy what is necessary and things i can afford. I can buy any totl things thou but i dont since i dont need it.

Im drooling to buy a 15ha island..maybe i should consider it as a necessary investment. lol

Re CC: I use credit card for convenience and pay everything online thru bank. Im not sure kung may kinikita sakin ang credit card, kahit annual fee waived lage.

[yebo]

I lived in the US for 3 years. Halos lahat ng pinoy na na-meet ko ang unang advice sa akin nung bago pa ako dun e "establish ka ng credit history kasi dito wala ka kung wala kang credit". Kahit daw utangin ko yung sinusweldo ko (credit card linked to bank account, so kahit may cash ka utangin mo para may history ng credit). Kaya lahat sila pag dating ng sweldo ubos din agad kasi pambayad lang ng mortgage, car loan saka credit card. Di pa nila kinikita na-gastos na.

[CVT]

I lived in the US for 3 years. Halos lahat ng pinoy na na-meet ko ang unang advice sa akin nung bago pa ako dun e "establish ka ng credit history kasi dito wala ka kung wala kang credit". Kahit daw utangin ko yung sinusweldo ko (credit card linked to bank account, so kahit may cash ka utangin mo para may history ng credit). Kaya lahat sila pag dating ng sweldo ubos din agad kasi pambayad lang ng mortgage, car loan saka credit card. Di pa nila kinikita na-gastos na.

Worse, such becomes a vicious cycle that they can't get out from.

A few people who I know borrow money to pay for their debt from another person.. Some people are bound to be left unpaid or partially paid.....

[jick.cejoco]

any where in a modern world you can not rent a car without a credit card. they prefer card. the cars are returned at drop parking lots at the airports and any damage is charge to your credit card. if it was paid in cash basis, there would be no more rent-a-car businesses


each member of the u.s. military is issued one, the money authorized is deposited into the account electronically. these are the monies used for lodging, billeting, hotels, rent a car, food, transportation and spending money or per diem which varies from assignment to assignment. anything that is not authorized will not be honored by the branch of service finance and comes with disciplinary action

[EQAddict]

Is the topic of the thread 'buying something you cant afford to pay for in full in cash' OR ' buying something you cant afford the monthly payments for ' ? Big difference...


Sent from my iPad using Tapatalk HD

[uls]

buying something thru installment coz you can't buy it in cash...

but you can't even make the monthly payments screams YOU REALLY CAN"T AFFORD IT

[renzo_d10]

i don't have a credit card so i pay in cash

i put in the bank whatever i can save then just spend what's left on things that i need/want

i make it to the point to never spend my reserve money on the bank

i just live within the money i left for use

hirap pag may cc. swipe lang ng swipe then pagdating ng bills, sakit ulo

same with monthly car installments

first few weeks masaya... then the bills start to pile up

amort., insurance., gas., maintenance etc

nevermind

[jick.cejoco]

the old adage:
don't bite off more than you could chew

[ame=http://www.youtube.com/watch?v=GCrz3qzgH40]I Bit Off More Than I Could Chew - YouTube[/ame]

[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

[[archie]]

I have a friend that works for the loans department. selling point nila lagi is kapag nagiipon ka for a car or house parang never makakabili dahil sa inflation. Every year taas price Lalo ng car so mahihirapan is Juan Dela Cruz. kunin mo na Oto ngayon pay for 5 years sayo na. parang nagtutulungan lang daw sila ng bank.

Para sakin parang Mali eh. hehe... commute ka na lang kung hindi kaya. well that's just how I see it.