Buying something which you cannot aford.

**CVT** · July 27th, 2013 01:33 PM

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

**uls** · July 27th, 2013 01:35 PM

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]** · July 27th, 2013 01:36 PM

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

**CVT** · July 27th, 2013 01:37 PM

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

**[archie]** · July 27th, 2013 01:39 PM

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

**uls** · July 27th, 2013 01:44 PM

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** · July 27th, 2013 01:56 PM

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

**foresterx** · July 27th, 2013 02:02 PM

Originally Posted by CVT

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** · July 27th, 2013 02:02 PM

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** · July 27th, 2013 02:04 PM

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.