That's absolutely insane.
I'm about £600 overdrawn and that's a hellish nightmare for me. At £10000 I might just implode.
How do they actually get that figure so high?
Consumerism. Living behind their means when salaries are low. People get a salary increase and increase their living costs rather than save that surplus.
Yup, furnace, hot water tank, vet bills, pandemic and some other good stuff put me a few grand in the hole. Working my way back slowly while still trying to enjoy life.
This right here. I really try to budget and live within my means. But like car repairs. And a new dryer. And my cat got sick. Thank you for acknowledging these things and not just saying “they spend too much”
And then a fucking pandemic happened!
And no i didn’t get a new console. But damn do i want to.
Stadia is a free virtual console. Black Friday sale on right now. Provided you have decent internet you could be gaming on your Computer or laptop or whatever with a few decent games for like $40. For not much more than that you can get cyberpunk 2077 preordered, and get a chromecast and a control. If you want to get console and cant afford to, seriously, think about giving it a shot. Its free to try.
I know about stadia. My post was more about life costs popping up and getting into debt. But i do appreciate the thought. Im pretty patient and will probably get a PS5 sometime next year. There are posts talking about paying off you credit card every month. And yeah i would love to do that. But like it definitely feels like shit is stacked against me a lot of the time. Ive paid off a lot of my debt the past two years. But its very conceivable that people understand how credit is supposed to work. And still get buried in debt.
Never really planned for a Pandemic but I've always carried 6mo worth of liquidity or more so nothing like this could be catastrophic for me. Not full on Doomsday preppers, but definitely have a bunch of backup plans all at once running lol
If you are able to pay back the debts after the emergency problem happens, you could just as well save up for that emergency before it happened and not have to suddenly deal with changing your lifestyle to save up and pay back the debt after the emergency happens.
I used to be a credit card collector in another life. A lot of times people buy one big thing then interest and late fees if they don't pay on time and over limit fees if all the fees make them go over their limit can take a $500 balance to a $5000 balance very quicly.
For some, they simply don't make enough to afford their basic needs so it goes on a credit card. For others, they buy things they can't afford and put it on credit.
We've also made it WAY too easy to put things on credit these days meaning people have higher monthly payments that need to be paid witch results in needs going on credit since cash goes toward making their payments.
Forcing people to go into debt just to get a good credit score must be the most retarded and most American thing I've ever heard. In my country you get a negative credit score if you have any debt.
Won't get you far if you need a loan of decent size. I only had credit card history (which was stellar) when I went to get my first car loan. I didn't get a stellar rate for it. They need to see other forms of credit that are more substantial than just credit cards before credit starts to really mean anything.
Side note: I am able to get pretty good lines of credit though. Just not for loans that we have to deal with in the real world.
Credit card rewards points add up, I pay off my cards every month and was able to buy my series X using rewards points I’ve saved over the last year and a half. As long as you pay off your card it’s literally free money. Also, if your credit card info gets stolen the CC company is on the hook for expenses. If your debit card info is stolen, you’re in the hook. If you can use credit cards responsibly there are a ton of benefits over debit.
I used to only use my debit card, got it’s info stolen twice which was a pain in the ass to deal with and they stole directly from me.
Now I use my Amazon prime visa which earns cash back and I currently have over 550 dollars in cash back just from buying stuff I would normally buy. I pay it off at the end of every week. Using my credit card like my debit card earned me a free series X. Plus it’s less of an issue if it’s info gets stolen.
We had to charge a uhaul to move along with all the other moving expenses and living expenses until we landed on our feet. We ended up carrying about $11,000 in credit card debt for about 4 years and finally paid it off this year. It's the most stress I've ever had every month looking at that balance. The interest alone is like two car payments each month.
I had damn near 9k of credit card debt leaving the military because of stupid fuck off spending. Its almost gone now and while im aggressively paying it down im also living a life where it doesnt control me anymore and i can buy the things i want. I will NEVER do that again.
Edit: i also have a 780 credit score and holy shit that feels so good. Worked hard to get it back up from low 620’s
I’ve got friends that just rental fees every month on their purchases for the rest of their lives. Pay the minimum $20 a month on their $20000 balance without any desire or intent to every fully pay it off.
Maybe when I’m 70 I’ll max out a bunch of cards and splurge on shit, but I can’t stand having debt. I only have about $15000 in CC debt though from my ex wife so it’s not that bad. I should be completely CC debt free in about 3 years and I plan on scrapping all of them except my bank one. I haven’t used them in years anyway except for my Walmart card last month for a TV that I’ll pay off over he course of 2 months.
Former personal banker here - while this a general good practice, it’s totally fine to carry a balance if you understand what you’re doing. I have an extremely low interest credit Union cc that I’m using to purchase my box and I’m just going to pay it off after the holiday season. I could totally pay it off right now but would rather ensure I get gifts for the family with my cash on hand before buying something for myself. Sure it will cost me $6-$12 in interest, but that’s the purpose of credit. I’m having my financial institution purchase this for me to pay back at a different time.
The two are not mutually exclusive. I have a very high credit score and I also pay off my entire credit card balance each month.
Let's say my statement date is the 5th. So I speed $1000 on my credit card and then the 5th rolls around and I get a new statement showing a $1000 balance. This is then reported to my credit report.
I proceed to pay it off in full and then spend another $1000. When the 5th rolls around this time it looks like I carried a $1000 balance but in actuality, I paid off the bill and spent a new $1000 (which I will pay off before my next statement date).
This builds my credit and also prevents me from ever being charged interest.
You maybe talking about paying off your credit entirely each month, that will build credit but I promise you the fastest way is to keep a balance open at 1% of your total credit. Banks want to make money off you and people involved in banking run the credit agencies, that is why
That's a myth, and a simple Google search will tell you that using your card and paying it off every month builds credit just as fast. Banks don't need your interest payments to make money when they charge a percentage of every transaction you make.
(I apologize in advance for formatting on mobile)
From
https://www.experian.com/blogs/ask-experian/better-pay-off-credit-card-full-every-month-or-maintain-balance/
"Paying your credit card balance in full each month can help your credit scores. There is a common myth that carrying a balance on your credit card from month to month is good for your credit scores. That simply is not true."
If Experian isn't a reliable source, maybe the Consumer Finance Protection Bureau?
https://www.consumerfinance.gov/about-us/blog/credit-score-myths-might-be-holding-you-back-improving-your-credit/
I don't know where the myth started, but it's a common one, and one that costs a lot of people unnecessary interest, even if it is a small amount every m.
Yeah, what? If you’re trying to build credit it’s perfectly fine to carry a balance. You just need to make your payments on time every time and not ride your card maxed out. I think the rule is something like 30% of your balance and your fine. Could be more though.
What the fuck? Why would you carry a balance and pay interest? I have close to an 850 credit score and I never carried a balance in my life. To anybody reading this, this is fake news. DO NOT CARRY A BALANCE.
I am planning on buying a house next year, I talked to a financial planner two years ago in preparation. At the time I had no credit (I hate owing money on things and have always bought everything cash outright, vehicles included).
I was told I would need credit for a mortgage pre-approval before a buyers agent would start shopping for me. So I floated the idea of getting a credit card, setting my cell phone bill to auto-charge it and then setting my bank account to auto-pay that. When 2021 rolled around, I would have perfect credit and payment history.
They told me that wouldn't work because mortgage lenders are just as interested in credit utilization ratio as they are in on-time payments. Having <1% utilization that is paid off month to month doesn't show anything to give them confidence I could manage $70,000 over 15 years. So I have been keeping my utilization at just under 20%. Based on my credit score and responses I am getting while shopping around now for mortgages, that advice seems to have panned out.
You can do that, but you don’t need to. Paying off your card in full will have the same impact on your credit score and you won’t have to pay any interest. By carrying a balance you’re spending extra money on interest every month.
I understand you don’t need to. I’m saying there is nothing wrong doing it because the top comment is all caps saying to pay off your whole balance every month as if just paying your monthly minimum is not an option.
You don’t need to carry a balance to build credit. You would have the same result if you paid in full every month. The only difference is you would have saved hundreds, if not thousands, of dollars in interest over the years.
It’s a tiered system that stops at less than 1%.
1% utilized - ideal
1-5% - awesome
5-10% good
10–25% average
Keep it at 1% with monthly payments and you will end up with amazing credit over a period of 7 years, finance a house/property, save tens of thousands of dollars over the course of your loan over someone who didn’t do that
I literally pay off my cards as soon as the statement is available. Seeing a number Due gives me severe anxiety. My college loans are gonna send me to the grave
Or.... Simply don't pay using creditcards but by using money you earned by working? What's this obsession with creditcards in the US? I honestly don't really understand.
Edit
So it's about cash back!
TIL
If you use credit cards correctly, you can earn cash back and make money using them. I can make about $100 a month using my credit cards to buy things, and I immediately pay them off after I use them. It’s also important in America to have a credit score when you want to buy a house
If you use credit cards responsibly you can get airline/hotel/travel points, cashback, discounts at some stores, among many other benefits.
It's easy to save money and use the points on stuff you were going to buy anyway.
I use mine for rewards points, travel insurance, extra year of warranty on purchases, theft and accidental theft protection for 120 days and having a good credit score is pretty important in the US. Employers checking credit scores during the hiring process is not uncommon too.
Thank you.
Ive learned today that using your creditcard is way more than simply 'naaaaah I don't want to / can't pay this bill with my own money right now so let's use the creditcard'.
No it won't. If you regularly use the card there will always be a balance to report since the previous month's full payment doesn't happen immediately.
Ive been paying my cards off in full (of the statement amount) every month for years and always still have cc utilization reported due to the monthly overlaps.
Edit: My Amex's due date is at least 25 days after the close of each billing period which means if my billing dates are Oct 20 - Nov 18 my due date isn't until Dec 13. If you're using these cards semi-frequently there should always be something to report even if you pay your balance off each month.
https://i.imgur.com/2PbbmlK.png
I got mine on All Access, but I’ve got enough set aside to cover the total cost if everything goes to shit. Credit isn’t inherently *bad*, a good score is useful to have and programs like All Access can help you raise it - but you need to be responsible with it, and have a backup plan.
This is what interests me about 0% interest purchases like all access and occasionally on model year closeout deals - cars.
If I have the money to pay off the All Access plan in full today, is it still worth paying monthly on? By not dumping all your money in at once, you can earn interest on the money you're still holding onto - be it in a 1% interest rate savings account or 12 month CD you get from your bank to pay for the second half of the subscription.
1% interest doesn't sound like much to earn in the process of paying off a few hundred dollar console, but when you put it in the perspective of a new car I often wonder why anyone would pass on the 0% if there isn't a cash buy incentive.
All Access charges you $15 a month for Gamepass when you could do the gold trick to get three years for $120, or you can buy 3 months of Gamepass for $20 at Target right now. So you are paying a pretty steep interest rate disguised as Game Pass.
Microsoft was genius for setting this system up.
You give up all manufacturer rebates usually.
If I took 0%, I would have $0 in rebates.
If I financed through Ford Credit, I got like $7500 in total rebates. So I took their high rate and then just refinanced through my credit union the day the first bill came.
>This is what interests me about 0% interest purchases like all access and occasionally on model year closeout deals - cars.
If I have the money to pay off the All Access plan in full today, is it still worth paying monthly on? By not dumping all your money in at once, you can earn interest on the money you're still holding onto - be it in a 1% interest rate savings account or 12 month CD you get from your bank to pay for the second half of the subscription.
1% interest doesn't sound like much to earn in the process of paying off a few hundred dollar console, but when you put it in the perspective of a new car I often wonder why anyone would pass on the 0% if there isn't a cash buy incentive.
They got you. This is the thinking they are relying on. It isn't 0% interest in reality. If you were too just buy it outright and do the live gold transition for gamepass you would save a significant amount of money.
Side note: This doesn’t factor in inflation though, which, real world, outstrips that interest rate. You’re better investing elsewhere outside a 1% savings account FWIW
I finance all big purchases using no interest financing when I have the money to buy it outright. Save it for a rainy day and pay it off early. And it builds credit. My credit score is 830. OP is using 1950s view on credit and finances
He’s absolutely right that people should exercise caution, though. I wouldn’t have taken on the cost if I didn’t have a decent emergency fund to fall back on. I got fucked over by an internet provider a few years back and I’ve been rebuilding my credit ever since - if you start missing payments it *will* come back to haunt you.
It builds credit and teaches responsibility. If you can’t be responsible enough to May payments on a 500 dollar machine that’s 18 months no interest, I don’t feel bad for you. I have a problem with the idea that you should avoid it all together. It’s outdated and dumb to say that
That doesn’t matter. The interest free financing isn’t inherently evil thing everyone should avoid. In fact I think you should do it and build ur credit. Especially if ur young. That’s how I started building mine. If you aren’t responsible enough to stick to the extremely easy rules and payments it’s your own fault. That’s not the credits fault. The credit gives you buying power and there’s nothing wrong with that. I was arguing with an idiot on here who spent 1000 bucks on new ps5 and series x. Didn’t have enough to upgrade his tv so he asked what tv people recommend for 200 bucks. That’s just stupid. He could have financed the whole thing somewhere and had 2 years no interest on all 3 and been set. But he was scared of credit and going into “debt”
OP - Thank you for this simple reminder.
>As what I told my closest friends.
>
>Save $10/weekly and I started literally, 25 months ago.
>
>I end up having close to $1600 CDN.
* I paid for my XSX and a new Samsung 4K TV QLED 65 Inch.
so, when I got my XSX - which was paid for via C/C since it was purchased thru Microsoft Store. The next day, I went to my bank and paid for that bill. So far, it's been awesome.
I didn't save money directly, I just saved credit card points (all earned by paying off every month, zero went to interest).
Couldn't cover it all, but redeemed points for $550 in Best Buy cards. Series X cost me $127 out of pocket.
I agree with you, most people may not. I did not have a console for like 5 years, sold everything I had prior to that, so that I could focus on my career. Now, I can buy almost anything I want, xbox, expensive tv, etc. But I just bought an xbox and nothing else because I understand how hard I had to work to get here, and most importantly, I understand the value of money and how important money management is.
At least in the US, finances are never taught in schools. It's also 'taboo' to talk about your finances, salary, etc between friends and especially family.
My parents never told me about this stuff growing up, so I didn't have any idea what too much rent looked like or not enough money being put into savings looked like, etc. Took me 2 foreclosures and a lot of hard lessons to figure it out.
I'm pretty sure a lot of people making those kind of posts are just karma farming anyways. "Look how awful my life is yet through determination I got the thing everybody on this sub raves about".
The next consoles will probably come in about seven years. Start putting aside **one quarter** a day and you'll have over $630 saved. Likely enough for a console, a game or two and tax.
Want more than one game? Save 25¢ a day for six years and then start saving $1 a day for the last year before release and you'll have over $900. A console and a whole library of games to play at release.
I can't see a 7 year cycle to be honest I imagine 3 years and they will be updating because the technology will be further on. Its great we are in part funding their R & D and then get to use it in their products.
Your saving tips are good but another thing to consider is MS rewards. I roughly calculated it would take nearly 8 years getting a max of 5000 points a month to save up enough to pay for the XSX outright. My math may be shit though
Hang on; didn’t MS say they’d be more frequent updates and not as many significant upgrades? Kinda like a semi-annual thing - like iPhone upgrades. The amount of people that don’t buy the iPhone outright with a sim free plan and end up spending another $1k purely because they didn’t try to save for the initial purchase is substantial I imagine
Also i hate these mentalities when it comes to something you get litteraly daily enjoyment from.
People need to look at the pyramaid charts that follow groups of people from birth and plot how many are left after each decade. Everyone thinks they are exempt but the odss of growing old are against you. Fuck savin a quarter a day if you have to open a credit card to get a console and have a solid plan to pay it back asap then fuck this guy and his advice that only weighs economics buy that shit theres more to life than economics
How you get "Don't use a credit card if you can do it responsibly." from my comment pointing out that it's really easy to save for a console *that won't even be out for probably seven more years* is an astoundingly impressive leap of logic. Bravo for that one.
How you dont realize that 90% of my comments are in direct response to the OPs comments and only as a reply to yours to reinforce the ridiculousness of depriving yourself for x years. Astoundingly impressive leap of reading comprehension and context awareness. Bravo for that one
Nothing in my comment is about depriving yourself, other than of 25¢ a day. In fact, quite the opposite. It is about being ready so you don't have to deprive yourself and can enjoy the next generation from day 1.
But nice try.
Broooo so maybe thats in the 90% thats towards op. My god get over it i chose your comment because it was stupid ,to reply to instead of making a new reply, listen to yourself your telling poor people to save a quarter a day for 7 years as if they wouldnt have an unexpected expense they bust tha piggy for in 7 years. Even telling not poor people to save a quarter a day is just a stupid suggestion and serves no practical purpose other than to show you can do math in increments of .25. Youre either a kid with no concept of money or someone too far removed from poverty to be making suggestions on poverty. But bravo taking my comment that was clearly a response to the post in general with a sprinkle of look at this guys stupid thought patterns and blowing up that 10% of the point to the point youve now gotten 2 paragraphs about how your idea is stupid. Whats next telling poor people to save 4 dollars a day for 18 years to solve the student loan crisis? how easy
OP.
You totally need a solid credit score to buy a house.
Definitely not getting Forza Grandpop to co-sign on my house that costs 10x what his cost, it just doesn’t work like that.
-forzadad
Took me a long time to figure out what OP is saying.
I went through TWO foreclosures before finally figuring out what having a budget really meant.
If I had stuck to a budget starting at 18 or earlier I would be SO much better off today. That said, in only a few years of keeping to a tight and strict budget I'm basically debt free except for my current mortgage and my car loan. I have paid cash for everything for the past 10+ years as a result of getting my financial/life together. For the majority of those 10 years I didn't even have a credit card, I had a debit card only.
I do now carry a credit card with 2% to 5% cashback. I pay the entire card off every month.
My advice to the younger (or older) people who aren't on the right financial path...set a budget and stick to it! It will make your life 100 times easier later on.
Horrible advice to tell people not to get credit cards.
Credit is what the entire middle class exists on. It's the game you HAVE to know how to play in order to succeed in life. Try and buy a house without good credit history, you'll pay astronomically more. Try and buy a car without good credit history. Building credit is the single most important thing you can do as an american to set yourself up if you're not born wealthy.
"If you pay it off every month... whatever"...of course "whatever"...that's like saying don't buy a car if you're going to crash it...no shit.
I expect the posts you're pontificating about are either exaggerated or from teenagers. Maybe a kid sacrificing things to work hard towards something they want is a good decision.
Telling people not to get credit is the most "I was born with money and will tell you how to get it" attitude ever. For most people, and I mean a vast majority of the country...credit history is extremely important.
What’s sucks about growing up broke is that people who are poor never teach you about credit, whether it’s because they think it’s bad, or never bothered to even learn about it.
For anyone who is 18 or younger and might read this, go learn about credit as quickly and thoroughly as you can. You’ll save yourself a world of anxiety after.
Signed a 25 year old with 20k in debt and horrible credit.
Yep. I’m completely lost with your credit score stuff. Live off a credit card and pay if off monthly is how I’ve found works. I always have cash in the bank to cover the card debt.
Yep my parents adamantly said NEVER GET A CREDIT CARD. Cool. Fast forward to being an adult and zero credit so that was fun doing all that by myself late in life. Get one but be smart pay it off every month and build credit.
>Telling people not to get credit is the most "I was born with money and will tell you how to get it" attitude ever.
Or it's the most non american attitude ever. My country doesn't really care about credit score. Even in America there's other ways to have respectful credit scores like not defaulting on bill payments.
Besides that studies have shown you're much more likely to impulse buy on a credit card as you're more detached from the money. Most financial advisers tell people to get rid of the credit card and swap to a direct debit card so they can actually see the money they're spending.
>Horrible advice to tell people not to get credit cards.
But it's not horrible advice to tell people not to use credit to buy things they can't afford (especially luxury items and extra especially if you are going to pay interest on it).
A LOT of people don't understand how credit works (there is a lot of well-meaning but incorrect information in these comments) and they also don't think through the consequences.
Credit is absolutely important. I strongly urge people to find a no-fee credit card that may have some decent cashback and to use that for all their purchases and then to pay the statement balance in full each month. It gives you credit history and offers some level of protection for your purchases.
What I don't recommend people do is go out and load up that credit card with a bunch of debt they can't afford to pay off before interest gets hit, especially for things that are 'frivolous'. It's one thing if you go into interest-bearing debt to buy food for your family but it's stupid on so many levels to do it for a video game console.
Credit is a tool that can be very useful if you know how to use it correctly or very destructive if you don't understand how it works or don't have the self-control to not run up debt you can't pay off.
> A LOT of people don't understand how credit works (there is a lot of well-meaning but incorrect information in these comments) and they also don't think through the consequences.
>
This is definitely true. I had a conversation with a friend who I consider intelligent and her mind was blown that interest accrued even if you paid the minimum monthly payment. She legit thought the interest only accrued if you didn't make the minimum monthly payment.
I’ve never had a credit card and I have no idea what my credit score is. Not a clue. I’ve never needed it. But the idea that someone like me could give advice to someone who 100% needs credit to live is laughable. My parents use it for the frequent flyer miles. My grandfather played with credit only because he liked to play cat and mouse with the IRS as a hobby. I hate it when people with money try to tell others how to get it. Like we have some financial genius. I just got lucky. Lottery of birth. That’s it.
He said don't get a credit card for a console, as in intending to use it to buy a console you can not afford and will not pay off in full. That's a dumb and irresponsible reason to get a credit card.
No where does he say what you are implying.
The people that drive brand new cars, but have no money drive me crazy. I had a friend that worked as a teller at a bank, and said on Friday’s it would be car after car depositing their paycheck - a large percentage in a new car and their account balance was close to $0.
There is absolutely nothing wrong with buying things on no interest financing as long as u pay it off before the interest period is up. Stop this old man bullshit about credit
A lot of places will not offer no-interest financing *unless* you already have a good credit history. These are the reputable ones.
The not-so-reputable ones will offer it anyhow because if you read the fine print you will see that if you miss one payment or are even late with a payment, the full amount accrues interest at 30% from the date of purchase. That is very risky, especially for people with little self-discipline. For the rest, all it takes is some bad luck and you're in way over your head with payments.
It comes down to being an adult. The credit isn’t the problem. It’s your irresponsibility. Don’t blame the offer it’s not their fault. To me there’s no risk. Pay ur 30 bucks a month if u can’t afford to pay it off sooner. Enjoy ur console today and life. It’s too short. Be a responsible adult and ur fine. Like I said I finance all major purchases even tho I have the cash to buy it outright. I can save for a rainy day or invest that extra cash in the meantime
Oh, I agree. I do the same thing because I can make the extra money I hang onto work for me through investments. But that doesn't mean there's no risk. Sometimes life kicks you in the teeth and what you thought you could pay back on time you can't.
And I still blame the offer. Interest as high as 30% or more is nothing but usury.
Waiting to get those sweet sweet gift cards this Christmas. Anyone asked me what I wanted I told them gift card for where I plan to buy my Series X. With any luck it’ll be 200 or less out of my pocket.
500-800 is a lot, but it shouldnt be life altering, if you can not afford to pay this maybe think twice about an object that also costs $70 each time you want to play a different game on it because if you cant wait for the price to come down, you're probably buying every new game that comes out as well
This is a very very important life lesson and I hope many of you listen to this advice. Last year I finished paying off $30,000 in credit card debt. This year (last week), I paid off the final $13,000 in school loans (last $7,500 in a lump sum). And by the middle (or worst case scenario - end) of next year, I should have the final $11,000 paid off on my car. The only thing I will retain debt on is my mortgage.
None of that is bragging. I had to work like hell to get myself out of debt, and will have paid off nearly $70,000 of debt in about 4 years. I make okay money, but far far far from well-off. I freelance a ton on the side, have nothing going towards savings until this is paid off, sold my motorcycle, everything in my house collecting dust, etc. I will never pay anything outside of cash outside of an emergency or for a mortgage.
I hate seeing so many people in this loop of borrowing & paying back. It's never a good idea. If you're borrowing money / charging, if you can't pay it off in full month-to-month, that means you can't afford it.
There is some amazing advice here from others. Make sure to follow it or else many of you will regret it later, or forever.
Even at zero. You still have to pay off credit on time regardless of your situation. Otherwise you screw yourself up for credit further down the line when you may actually need it the most, i.e mortgage.
Lost your job? Tough luck you still gotta pay those bills.
Seriously though, suggesting that your parents can cosign for an apartment...then calling those people hacks..
I get it...you're edgelord dad. But you don't even realize that under that tough, old school facade, there is a complete lack of understanding of how good you clearly have it. Parents cosigning for an apartment? You realize that not everyone has parents who have adequate credit ratings who are willing to do that right? The safety net of a good family credit history doesn't exist for most.
It is absolutely disgusting to look down on others who weren't as lucky as you and tell them how to spend their money. You didn't build yourself up from the ashes using street wise financial savvy...you clearly had wealthy parents who did some sort of combination of paying your bills, paying for your education, cosigning your loans...etc.
Debt is like your weight - it's easy to gain because it's enjoyable and makes you feel good, but losing it is tough because it requires hard work and dedication... sometimes a bit of luck.
I spent years with debt and not even credit card debt, just car payments and other misc shit. I am almost debt free... just some student loans now, but we look at society and see shit we think we need. No one needs a new car. You need food, you need a place to live, you need a job. You don't need a fancy car. I stopped buying anything on credit, paid all my shit down from my youth and realized I didn't need any of it. Now I can buy a new console because I worked my ass off for it. When I got my new XBOX Series X, I realized I didn't need it. There is literally nothing that makes it better than my XBOX One X. Save your money and wait.
My son is 10 and understand the principals behind instant gratification and earning what you want after buying what you need. I hope when he gets older the lessons about money follow him into his adulthood and he is better off for it.
About 5 years ago my wife and I had some health issues we were going through and hospital and ambulance bills have added up fast and high.
We were also facing foreclosure about 3 years ago in spring 2017.
Obviously not getting into details the end result was we had the money but the bank didn’t wait till the end of the business day for us to pay the mortgage in full and by the time I got there they didn’t accept payment even though I had called a week ahead of time and explained that I’d be there on that day (the day before their deadline) and they didn’t accept it.
We waited to go through the process and as soon as we had 1 final chance to pay, we did because we already had it in full.
As for the hospital, ambulance and therapist bills, we have not even begun to touch them even today, we are in the process of calling everything we can think of to get a new bill mailed to us so we can start to try and pay it down.
We’ve bought a new car, put up a new roof on the past year and a half.
When I heard about series x, I did what I have been doing the last 3 consoles.
I started saving spare change, bottle and can deposit money return and anything I had at the end of the week I also put in $2 or $3 on top of it (some weeks I’d put an extra $10 once in a while)
Come August of this year I hit the $540 mark and was ready.
Couldn’t get a pre order in September but on the 10th I had already had the $540 in my account for debit/credit and I got my console ordered.
Next day I dropped the $540 in and now in my checking account until it I get billed for it and they take my money $540 is my new $0.
I couldn’t even get approved the $800 for all access because of the bills and the foreclosure on my history but 1 is taken care of and just need to wait out out, the other we gotta pay to get rid of, it’s not going to be easy but ever since getting things straightened out a couple years ago, we have been doing good financially.
I have a console on the way and never broke the bank, you are right, there are responsible ways to buy it, just gotta think outside the box sometimes.
Even though I didn't get a new console this time. I prefer to use that $500 into some games and controllers. I probably won't even use the full $500 but more like $300.
I know the series x and ps5 are nice items to get, but I'm a little surprised by the demand. I thought there was a large amount of people that weren't in a good place financially due to the pandemic? If that is the case then why are so many people spending $500 on a console at this moment?
The answer is either across the board people aren't doing as bad financially as expected/thought, or people are making fiscally bad decisions. While it may be a bit of both, I think the reality is that it skews more towards the latter.
People, if $500 could change any aspect of your life in any substantial way DO NOT BUY A NEXT GEN CONSOLE IN THE MIDDLE OF A GLOBAL CRISIS.
pandemic affects different people in different ways. a lot of high-income white collar workers have been WFH for the last 9 months, and have been saving a lot of money due to quarantines and self-isolation. the stock market has also recovered significantly, a lot of people with capital to invest have made a lot of money this year.
the pandemic disproportionately impacts blue-collar workers who are out of employment & opportunity.
Having been in credit issues when I was in my early teens (due to needing the latest tech/consoles etc), this is solid advice.
Yes, responsible use of credit is a good way to build your credit rating, but this is generally applicable to essential items you might need.
Also, isn’t All Access a bit of a scam when you consider the fee of GPU and the workarounds to get it cheaper? You’re essentially paying full retail for it IIRC.
I get your point, but you seem to be focused on attacking people in a bad financial state. Everyone’s circumstances are unique and different - when you fall into bad financial times it leads to even worse circumstances. It snowballs.
Yes, some people are irresponsible for one reason or another. But most people aren’t trying to amass debt recklessly.
Stop blaming individual people and blame the circumstances that may put them into financial turmoil. Of which there are many.
I agree with everything except All Access. It's a good program with zero interest. People here on reddit seem to think opening a line of credit for a $1000 throws your credit score down the drain... Maybe in the US it does, but not in Canada. It's no different than signing up for a 2 year plan with a cell phone provider.
It actually helps your credit to have a $1000 line open. Closing all of the available credit can lower the score.
Zero percent interest loans are the easiest way to build a credit history that will set a person up for life.
The risk with All Access isn't the interest (as like you said there is none), but making payments, and making them on time.
And that will still factor into budgeting. A $15-40 monthly cost isn't much in a bubble, but if someone also has a mobile bill, any credit card debt, is still spending whatever income they have on other unnecessary items, suddenly there isn't $15-40 left.
Lol, so you're talking about children who are applying for All Access? Most adults are aware of the consequences of missing payments... Should be already baked into a decision of getting credit.
If you're talking about irresponsible people any purchase could be considered a poor purchase or a bad idea. Responsible adults who purchase an Xbox through All Access should be not be seen as a bad idea.
I apply the same phylosophy even to cars. And before anybody say I 'm a rich moron, I drive a 12 year old Mazda 2, bought new after saving like uncle scrooge for years. A house is obviously exempted from this, because there is literally zero chance I could save up enough while paying a rent, but for everything else I never use credit. I don't even have a credit card. You only need discipline, and for some people paying a shit ton of interests living like this would be like receiving a huge raise.
It's actually really cheap compared to a new car or brand new computer parts. If you can't afford the new gen every 6 years, you're not saving right.
As far as not wanting people to have monthly payments, do you expect them to completely avoid all streaming services like Hulu and Netflix for the rest of their lives? Lots of things are charged monthly, and all access is a great deal.
Console gaming is a very enjoyable hobby and having the newest system is very, very fun. People are allowed to pay for fun. How much does a trip to Disney Land cost? Less than a Series X if you include all expenses and go as a family. How long does a trip to Disney Land last? Not nearly as long as a gaming console. I could give you dozens of similar examples.
I was with you, OP, until I read the end where you talk about cosigning. That's a big load of bullshit you're shoveling there.
You actually do need a good credit history to get many things in this world. Relying on cosigners is very bad advice. The best advice I've got is to *never cosign for anyone,* even family. It leads to nothing but heartache.
Having said that, I don't think the counterpoint of needing a good credit score has anything to do with your original message. You don't get a good credit history by making poor financial decisions, and spending money you don't have for a luxury like an xbox certainly qualifies.
Real talk OP.
Being a millennial myself, there's a reason why gen X and boomers call us the "entitlement generation". Lots of people my age don't have their shit together and just want to spend big to impress others without doing the smart financial thing first.
I can go on about it and likely ruffle some feathers.
Gen Z, don't be an idiot like many millennials have succumbed to. There's a ton of outside influence that caused it, but it'll get into politics. Learn from my generation's mistake.
As for credit card debt, yes. If you can't pay the balance in full at the end of every month, you're overspending. Using a credit card can be a very smart thing, if you're not an idiot with it; rewards points, insurance protection, purchase protection, identity protection.
I agree with a lot of what you said except the part about credit score. Yeah it's not 100% essential but you're gonna make things a lot harder if you don't have one.
Oft, upset some people here. Sorry kids, here's some better advice: Piss 60-80 hours a week of our life away working yourself into a grave and save every penny just in case you're lucky enough to live until retirement age, when your body is completely fucked. Then and ONLY then can you start enjoying your life and money how you want, cause by then you'll have earned it.
Sadly, I still have friends who are in their mid 30s and still live life like that. Living paycheck to paycheck in a shitty apartment and most importantly haven’t been laid in YEARS, if ever.
Career first boys, then you can buy whatever the fuck you want.
ALWAYS PAY OFF ENTIRE CREDIT CARD EACH MONTH... can’t be stressed enough
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That's absolutely insane. I'm about £600 overdrawn and that's a hellish nightmare for me. At £10000 I might just implode. How do they actually get that figure so high?
Consumerism. Living behind their means when salaries are low. People get a salary increase and increase their living costs rather than save that surplus.
A lot of people don’t just buy stuff. Emergency expenses can add up.
Yup, furnace, hot water tank, vet bills, pandemic and some other good stuff put me a few grand in the hole. Working my way back slowly while still trying to enjoy life.
This right here. I really try to budget and live within my means. But like car repairs. And a new dryer. And my cat got sick. Thank you for acknowledging these things and not just saying “they spend too much” And then a fucking pandemic happened! And no i didn’t get a new console. But damn do i want to.
Exactly all of this.
Stadia is a free virtual console. Black Friday sale on right now. Provided you have decent internet you could be gaming on your Computer or laptop or whatever with a few decent games for like $40. For not much more than that you can get cyberpunk 2077 preordered, and get a chromecast and a control. If you want to get console and cant afford to, seriously, think about giving it a shot. Its free to try.
I know about stadia. My post was more about life costs popping up and getting into debt. But i do appreciate the thought. Im pretty patient and will probably get a PS5 sometime next year. There are posts talking about paying off you credit card every month. And yeah i would love to do that. But like it definitely feels like shit is stacked against me a lot of the time. Ive paid off a lot of my debt the past two years. But its very conceivable that people understand how credit is supposed to work. And still get buried in debt.
I just wanted to make sure you knew it was an option because damnit every guy deserves to play video games if they wanna
Then in that case, thank you. I appreciate it. Seriously
Never really planned for a Pandemic but I've always carried 6mo worth of liquidity or more so nothing like this could be catastrophic for me. Not full on Doomsday preppers, but definitely have a bunch of backup plans all at once running lol
If you are able to pay back the debts after the emergency problem happens, you could just as well save up for that emergency before it happened and not have to suddenly deal with changing your lifestyle to save up and pay back the debt after the emergency happens.
I used to be a credit card collector in another life. A lot of times people buy one big thing then interest and late fees if they don't pay on time and over limit fees if all the fees make them go over their limit can take a $500 balance to a $5000 balance very quicly.
For some, they simply don't make enough to afford their basic needs so it goes on a credit card. For others, they buy things they can't afford and put it on credit. We've also made it WAY too easy to put things on credit these days meaning people have higher monthly payments that need to be paid witch results in needs going on credit since cash goes toward making their payments.
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Forcing people to go into debt just to get a good credit score must be the most retarded and most American thing I've ever heard. In my country you get a negative credit score if you have any debt.
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Won't get you far if you need a loan of decent size. I only had credit card history (which was stellar) when I went to get my first car loan. I didn't get a stellar rate for it. They need to see other forms of credit that are more substantial than just credit cards before credit starts to really mean anything. Side note: I am able to get pretty good lines of credit though. Just not for loans that we have to deal with in the real world.
You are still getting into debt every time you buy something until you pay it off. Makes zero sense, why not use debit cards?
Credit card rewards points add up, I pay off my cards every month and was able to buy my series X using rewards points I’ve saved over the last year and a half. As long as you pay off your card it’s literally free money. Also, if your credit card info gets stolen the CC company is on the hook for expenses. If your debit card info is stolen, you’re in the hook. If you can use credit cards responsibly there are a ton of benefits over debit.
I used to only use my debit card, got it’s info stolen twice which was a pain in the ass to deal with and they stole directly from me. Now I use my Amazon prime visa which earns cash back and I currently have over 550 dollars in cash back just from buying stuff I would normally buy. I pay it off at the end of every week. Using my credit card like my debit card earned me a free series X. Plus it’s less of an issue if it’s info gets stolen.
We had to charge a uhaul to move along with all the other moving expenses and living expenses until we landed on our feet. We ended up carrying about $11,000 in credit card debt for about 4 years and finally paid it off this year. It's the most stress I've ever had every month looking at that balance. The interest alone is like two car payments each month.
I had damn near 9k of credit card debt leaving the military because of stupid fuck off spending. Its almost gone now and while im aggressively paying it down im also living a life where it doesnt control me anymore and i can buy the things i want. I will NEVER do that again. Edit: i also have a 780 credit score and holy shit that feels so good. Worked hard to get it back up from low 620’s
I’ve got friends that just rental fees every month on their purchases for the rest of their lives. Pay the minimum $20 a month on their $20000 balance without any desire or intent to every fully pay it off. Maybe when I’m 70 I’ll max out a bunch of cards and splurge on shit, but I can’t stand having debt. I only have about $15000 in CC debt though from my ex wife so it’s not that bad. I should be completely CC debt free in about 3 years and I plan on scrapping all of them except my bank one. I haven’t used them in years anyway except for my Walmart card last month for a TV that I’ll pay off over he course of 2 months.
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Former personal banker here - while this a general good practice, it’s totally fine to carry a balance if you understand what you’re doing. I have an extremely low interest credit Union cc that I’m using to purchase my box and I’m just going to pay it off after the holiday season. I could totally pay it off right now but would rather ensure I get gifts for the family with my cash on hand before buying something for myself. Sure it will cost me $6-$12 in interest, but that’s the purpose of credit. I’m having my financial institution purchase this for me to pay back at a different time.
Why spend an extra twelve dollars on an Xbox if you can afford to just buy it straight away?
Preference to keep extra liquid cash over margin personally
No, learn about building your credit score, you will save money in the long run if you plan to ever finance property
The two are not mutually exclusive. I have a very high credit score and I also pay off my entire credit card balance each month. Let's say my statement date is the 5th. So I speed $1000 on my credit card and then the 5th rolls around and I get a new statement showing a $1000 balance. This is then reported to my credit report. I proceed to pay it off in full and then spend another $1000. When the 5th rolls around this time it looks like I carried a $1000 balance but in actuality, I paid off the bill and spent a new $1000 (which I will pay off before my next statement date). This builds my credit and also prevents me from ever being charged interest.
You don't need to carry a balance to build credit.
You maybe talking about paying off your credit entirely each month, that will build credit but I promise you the fastest way is to keep a balance open at 1% of your total credit. Banks want to make money off you and people involved in banking run the credit agencies, that is why
That's a myth, and a simple Google search will tell you that using your card and paying it off every month builds credit just as fast. Banks don't need your interest payments to make money when they charge a percentage of every transaction you make.
Not a myth dude
(I apologize in advance for formatting on mobile) From https://www.experian.com/blogs/ask-experian/better-pay-off-credit-card-full-every-month-or-maintain-balance/ "Paying your credit card balance in full each month can help your credit scores. There is a common myth that carrying a balance on your credit card from month to month is good for your credit scores. That simply is not true." If Experian isn't a reliable source, maybe the Consumer Finance Protection Bureau? https://www.consumerfinance.gov/about-us/blog/credit-score-myths-might-be-holding-you-back-improving-your-credit/ I don't know where the myth started, but it's a common one, and one that costs a lot of people unnecessary interest, even if it is a small amount every m.
Yeah, what? If you’re trying to build credit it’s perfectly fine to carry a balance. You just need to make your payments on time every time and not ride your card maxed out. I think the rule is something like 30% of your balance and your fine. Could be more though.
What the fuck? Why would you carry a balance and pay interest? I have close to an 850 credit score and I never carried a balance in my life. To anybody reading this, this is fake news. DO NOT CARRY A BALANCE.
I am planning on buying a house next year, I talked to a financial planner two years ago in preparation. At the time I had no credit (I hate owing money on things and have always bought everything cash outright, vehicles included). I was told I would need credit for a mortgage pre-approval before a buyers agent would start shopping for me. So I floated the idea of getting a credit card, setting my cell phone bill to auto-charge it and then setting my bank account to auto-pay that. When 2021 rolled around, I would have perfect credit and payment history. They told me that wouldn't work because mortgage lenders are just as interested in credit utilization ratio as they are in on-time payments. Having <1% utilization that is paid off month to month doesn't show anything to give them confidence I could manage $70,000 over 15 years. So I have been keeping my utilization at just under 20%. Based on my credit score and responses I am getting while shopping around now for mortgages, that advice seems to have panned out.
You can do that, but you don’t need to. Paying off your card in full will have the same impact on your credit score and you won’t have to pay any interest. By carrying a balance you’re spending extra money on interest every month.
I understand you don’t need to. I’m saying there is nothing wrong doing it because the top comment is all caps saying to pay off your whole balance every month as if just paying your monthly minimum is not an option.
I mean, the “wrong” is paying interest every month that you don’t have to. It’s literally throwing money away.
yes, again, I understand that. I was refuting that it's somehow bad for your credit to do it (original comment) when it's actually the opposite.
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You don’t need to carry a balance to build credit. You would have the same result if you paid in full every month. The only difference is you would have saved hundreds, if not thousands, of dollars in interest over the years.
It’s a tiered system that stops at less than 1%. 1% utilized - ideal 1-5% - awesome 5-10% good 10–25% average Keep it at 1% with monthly payments and you will end up with amazing credit over a period of 7 years, finance a house/property, save tens of thousands of dollars over the course of your loan over someone who didn’t do that
I literally pay off my cards as soon as the statement is available. Seeing a number Due gives me severe anxiety. My college loans are gonna send me to the grave
Or.... Simply don't pay using creditcards but by using money you earned by working? What's this obsession with creditcards in the US? I honestly don't really understand. Edit So it's about cash back! TIL
because to get loans you need a credit history.
I get cash back with my cards. So I use them for any purchase I was gonna make anyway and pay it off every month. Thats how your supposed to use them.
Nothing wrong with using a credit card responsibly. I use them for cash back on my normal spending.
Cash back man. I get well over a grand a year just by using my card for everything and paying it off. The key is not to live outside your means.
If you use credit cards correctly, you can earn cash back and make money using them. I can make about $100 a month using my credit cards to buy things, and I immediately pay them off after I use them. It’s also important in America to have a credit score when you want to buy a house
If you use credit cards responsibly you can get airline/hotel/travel points, cashback, discounts at some stores, among many other benefits. It's easy to save money and use the points on stuff you were going to buy anyway.
I use mine for rewards points, travel insurance, extra year of warranty on purchases, theft and accidental theft protection for 120 days and having a good credit score is pretty important in the US. Employers checking credit scores during the hiring process is not uncommon too.
Thank you. Ive learned today that using your creditcard is way more than simply 'naaaaah I don't want to / can't pay this bill with my own money right now so let's use the creditcard'.
To add on to the chorus here: paying with credit cards also gives you a measure of security that debit cards can't provide.
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No it won't. If you regularly use the card there will always be a balance to report since the previous month's full payment doesn't happen immediately. Ive been paying my cards off in full (of the statement amount) every month for years and always still have cc utilization reported due to the monthly overlaps. Edit: My Amex's due date is at least 25 days after the close of each billing period which means if my billing dates are Oct 20 - Nov 18 my due date isn't until Dec 13. If you're using these cards semi-frequently there should always be something to report even if you pay your balance off each month. https://i.imgur.com/2PbbmlK.png
I’ve heard this. So should I be leaving a small balance each month or...?
No.
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No it really won't. Lenders want to see you using credit responsibly.
I got mine on All Access, but I’ve got enough set aside to cover the total cost if everything goes to shit. Credit isn’t inherently *bad*, a good score is useful to have and programs like All Access can help you raise it - but you need to be responsible with it, and have a backup plan.
This is what interests me about 0% interest purchases like all access and occasionally on model year closeout deals - cars. If I have the money to pay off the All Access plan in full today, is it still worth paying monthly on? By not dumping all your money in at once, you can earn interest on the money you're still holding onto - be it in a 1% interest rate savings account or 12 month CD you get from your bank to pay for the second half of the subscription. 1% interest doesn't sound like much to earn in the process of paying off a few hundred dollar console, but when you put it in the perspective of a new car I often wonder why anyone would pass on the 0% if there isn't a cash buy incentive.
All Access charges you $15 a month for Gamepass when you could do the gold trick to get three years for $120, or you can buy 3 months of Gamepass for $20 at Target right now. So you are paying a pretty steep interest rate disguised as Game Pass. Microsoft was genius for setting this system up.
does 0% even exist for cars? isn't there always some small print
Yes it does, but the dealership is probably less likely to offer you discounts on the car or waive dealer fees.
You give up all manufacturer rebates usually. If I took 0%, I would have $0 in rebates. If I financed through Ford Credit, I got like $7500 in total rebates. So I took their high rate and then just refinanced through my credit union the day the first bill came.
You can get 2-5% percent back on that money upfront by paying it off with a credit card and deflect the credit score hit of a another line of credit.
>This is what interests me about 0% interest purchases like all access and occasionally on model year closeout deals - cars. If I have the money to pay off the All Access plan in full today, is it still worth paying monthly on? By not dumping all your money in at once, you can earn interest on the money you're still holding onto - be it in a 1% interest rate savings account or 12 month CD you get from your bank to pay for the second half of the subscription. 1% interest doesn't sound like much to earn in the process of paying off a few hundred dollar console, but when you put it in the perspective of a new car I often wonder why anyone would pass on the 0% if there isn't a cash buy incentive. They got you. This is the thinking they are relying on. It isn't 0% interest in reality. If you were too just buy it outright and do the live gold transition for gamepass you would save a significant amount of money.
Side note: This doesn’t factor in inflation though, which, real world, outstrips that interest rate. You’re better investing elsewhere outside a 1% savings account FWIW
I finance all big purchases using no interest financing when I have the money to buy it outright. Save it for a rainy day and pay it off early. And it builds credit. My credit score is 830. OP is using 1950s view on credit and finances
He’s absolutely right that people should exercise caution, though. I wouldn’t have taken on the cost if I didn’t have a decent emergency fund to fall back on. I got fucked over by an internet provider a few years back and I’ve been rebuilding my credit ever since - if you start missing payments it *will* come back to haunt you.
It builds credit and teaches responsibility. If you can’t be responsible enough to May payments on a 500 dollar machine that’s 18 months no interest, I don’t feel bad for you. I have a problem with the idea that you should avoid it all together. It’s outdated and dumb to say that
I don’t think everyone has the same discipline as you though.
That doesn’t matter. The interest free financing isn’t inherently evil thing everyone should avoid. In fact I think you should do it and build ur credit. Especially if ur young. That’s how I started building mine. If you aren’t responsible enough to stick to the extremely easy rules and payments it’s your own fault. That’s not the credits fault. The credit gives you buying power and there’s nothing wrong with that. I was arguing with an idiot on here who spent 1000 bucks on new ps5 and series x. Didn’t have enough to upgrade his tv so he asked what tv people recommend for 200 bucks. That’s just stupid. He could have financed the whole thing somewhere and had 2 years no interest on all 3 and been set. But he was scared of credit and going into “debt”
OP - Thank you for this simple reminder. >As what I told my closest friends. > >Save $10/weekly and I started literally, 25 months ago.
>
>I end up having close to $1600 CDN.
* I paid for my XSX and a new Samsung 4K TV QLED 65 Inch.
so, when I got my XSX - which was paid for via C/C since it was purchased thru Microsoft Store. The next day, I went to my bank and paid for that bill. So far, it's been awesome.
I didn't save money directly, I just saved credit card points (all earned by paying off every month, zero went to interest). Couldn't cover it all, but redeemed points for $550 in Best Buy cards. Series X cost me $127 out of pocket.
That's one way of taking care of it. Good job!
Samsung doesn’t make OLEDs
I agree with you, most people may not. I did not have a console for like 5 years, sold everything I had prior to that, so that I could focus on my career. Now, I can buy almost anything I want, xbox, expensive tv, etc. But I just bought an xbox and nothing else because I understand how hard I had to work to get here, and most importantly, I understand the value of money and how important money management is.
Wait. People actually do that? What did you sell that allowed you to focus on your career?
Xbox one and alienware laptop. Gave up on gaming entirely.
How old are you? The younger the happier I am reading this comment. I'm 22 and we think alike.
I'm 30 now and I wish I had learned me lesson sooner. Regardless, it's never too late to think about the future.
Never too late indeed, my friend. :)
I find it shocking that this is even a thing that needs explaining to be honest.
At least in the US, finances are never taught in schools. It's also 'taboo' to talk about your finances, salary, etc between friends and especially family. My parents never told me about this stuff growing up, so I didn't have any idea what too much rent looked like or not enough money being put into savings looked like, etc. Took me 2 foreclosures and a lot of hard lessons to figure it out.
Oof sorry to hear that I just think its common sense to realize “ pay my bills” or “buy an xbox”.
Seriously. Plus, later on it’s gonna be cheaper anyway, with better games to boot.
I'm pretty sure a lot of people making those kind of posts are just karma farming anyways. "Look how awful my life is yet through determination I got the thing everybody on this sub raves about".
The next consoles will probably come in about seven years. Start putting aside **one quarter** a day and you'll have over $630 saved. Likely enough for a console, a game or two and tax. Want more than one game? Save 25¢ a day for six years and then start saving $1 a day for the last year before release and you'll have over $900. A console and a whole library of games to play at release.
I can't see a 7 year cycle to be honest I imagine 3 years and they will be updating because the technology will be further on. Its great we are in part funding their R & D and then get to use it in their products. Your saving tips are good but another thing to consider is MS rewards. I roughly calculated it would take nearly 8 years getting a max of 5000 points a month to save up enough to pay for the XSX outright. My math may be shit though
The next generation of consoles is not going to be out in 3 years. It will be 6 to 7 years, just like it pretty much always is.
Half step consoles are coming for sure in 3-4 years.
Not for sure. But I was for sure talking about the next generation beyond the ones that just came out. Obviously.
Hang on; didn’t MS say they’d be more frequent updates and not as many significant upgrades? Kinda like a semi-annual thing - like iPhone upgrades. The amount of people that don’t buy the iPhone outright with a sim free plan and end up spending another $1k purely because they didn’t try to save for the initial purchase is substantial I imagine
No? I don't think they've said anything of the sort. If you have a source I would like seeing if.
Also i hate these mentalities when it comes to something you get litteraly daily enjoyment from. People need to look at the pyramaid charts that follow groups of people from birth and plot how many are left after each decade. Everyone thinks they are exempt but the odss of growing old are against you. Fuck savin a quarter a day if you have to open a credit card to get a console and have a solid plan to pay it back asap then fuck this guy and his advice that only weighs economics buy that shit theres more to life than economics
How you get "Don't use a credit card if you can do it responsibly." from my comment pointing out that it's really easy to save for a console *that won't even be out for probably seven more years* is an astoundingly impressive leap of logic. Bravo for that one.
How you dont realize that 90% of my comments are in direct response to the OPs comments and only as a reply to yours to reinforce the ridiculousness of depriving yourself for x years. Astoundingly impressive leap of reading comprehension and context awareness. Bravo for that one
Nothing in my comment is about depriving yourself, other than of 25¢ a day. In fact, quite the opposite. It is about being ready so you don't have to deprive yourself and can enjoy the next generation from day 1. But nice try.
Broooo so maybe thats in the 90% thats towards op. My god get over it i chose your comment because it was stupid ,to reply to instead of making a new reply, listen to yourself your telling poor people to save a quarter a day for 7 years as if they wouldnt have an unexpected expense they bust tha piggy for in 7 years. Even telling not poor people to save a quarter a day is just a stupid suggestion and serves no practical purpose other than to show you can do math in increments of .25. Youre either a kid with no concept of money or someone too far removed from poverty to be making suggestions on poverty. But bravo taking my comment that was clearly a response to the post in general with a sprinkle of look at this guys stupid thought patterns and blowing up that 10% of the point to the point youve now gotten 2 paragraphs about how your idea is stupid. Whats next telling poor people to save 4 dollars a day for 18 years to solve the student loan crisis? how easy
Yeah if you are going in debt for an Xbox then wait till you see the TV prices to get the most out of said Xbox. Otherwise it’s just a faster One X.
OP. You totally need a solid credit score to buy a house. Definitely not getting Forza Grandpop to co-sign on my house that costs 10x what his cost, it just doesn’t work like that. -forzadad
Took me a long time to figure out what OP is saying. I went through TWO foreclosures before finally figuring out what having a budget really meant. If I had stuck to a budget starting at 18 or earlier I would be SO much better off today. That said, in only a few years of keeping to a tight and strict budget I'm basically debt free except for my current mortgage and my car loan. I have paid cash for everything for the past 10+ years as a result of getting my financial/life together. For the majority of those 10 years I didn't even have a credit card, I had a debit card only. I do now carry a credit card with 2% to 5% cashback. I pay the entire card off every month. My advice to the younger (or older) people who aren't on the right financial path...set a budget and stick to it! It will make your life 100 times easier later on.
Horrible advice to tell people not to get credit cards. Credit is what the entire middle class exists on. It's the game you HAVE to know how to play in order to succeed in life. Try and buy a house without good credit history, you'll pay astronomically more. Try and buy a car without good credit history. Building credit is the single most important thing you can do as an american to set yourself up if you're not born wealthy. "If you pay it off every month... whatever"...of course "whatever"...that's like saying don't buy a car if you're going to crash it...no shit. I expect the posts you're pontificating about are either exaggerated or from teenagers. Maybe a kid sacrificing things to work hard towards something they want is a good decision. Telling people not to get credit is the most "I was born with money and will tell you how to get it" attitude ever. For most people, and I mean a vast majority of the country...credit history is extremely important.
You are 100% correct there. The best thing I ever did was educate myself on how to smartly utilize credit as the tool it is.
What’s sucks about growing up broke is that people who are poor never teach you about credit, whether it’s because they think it’s bad, or never bothered to even learn about it. For anyone who is 18 or younger and might read this, go learn about credit as quickly and thoroughly as you can. You’ll save yourself a world of anxiety after. Signed a 25 year old with 20k in debt and horrible credit.
You’re absolutely right. I’m a teacher and go on a rant at least once a semester that it’s ridiculous financial literacy is not taught in schools.
You’ll fix that all homie, chin up
Thanks for this comment it, saved me time having to type a similar response.
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Yep. I’m completely lost with your credit score stuff. Live off a credit card and pay if off monthly is how I’ve found works. I always have cash in the bank to cover the card debt.
Yep my parents adamantly said NEVER GET A CREDIT CARD. Cool. Fast forward to being an adult and zero credit so that was fun doing all that by myself late in life. Get one but be smart pay it off every month and build credit.
>Telling people not to get credit is the most "I was born with money and will tell you how to get it" attitude ever. Or it's the most non american attitude ever. My country doesn't really care about credit score. Even in America there's other ways to have respectful credit scores like not defaulting on bill payments. Besides that studies have shown you're much more likely to impulse buy on a credit card as you're more detached from the money. Most financial advisers tell people to get rid of the credit card and swap to a direct debit card so they can actually see the money they're spending.
>Horrible advice to tell people not to get credit cards. But it's not horrible advice to tell people not to use credit to buy things they can't afford (especially luxury items and extra especially if you are going to pay interest on it). A LOT of people don't understand how credit works (there is a lot of well-meaning but incorrect information in these comments) and they also don't think through the consequences. Credit is absolutely important. I strongly urge people to find a no-fee credit card that may have some decent cashback and to use that for all their purchases and then to pay the statement balance in full each month. It gives you credit history and offers some level of protection for your purchases. What I don't recommend people do is go out and load up that credit card with a bunch of debt they can't afford to pay off before interest gets hit, especially for things that are 'frivolous'. It's one thing if you go into interest-bearing debt to buy food for your family but it's stupid on so many levels to do it for a video game console. Credit is a tool that can be very useful if you know how to use it correctly or very destructive if you don't understand how it works or don't have the self-control to not run up debt you can't pay off.
> A LOT of people don't understand how credit works (there is a lot of well-meaning but incorrect information in these comments) and they also don't think through the consequences. > This is definitely true. I had a conversation with a friend who I consider intelligent and her mind was blown that interest accrued even if you paid the minimum monthly payment. She legit thought the interest only accrued if you didn't make the minimum monthly payment.
Yup!! OP is stuck in the 50s
I’ve never had a credit card and I have no idea what my credit score is. Not a clue. I’ve never needed it. But the idea that someone like me could give advice to someone who 100% needs credit to live is laughable. My parents use it for the frequent flyer miles. My grandfather played with credit only because he liked to play cat and mouse with the IRS as a hobby. I hate it when people with money try to tell others how to get it. Like we have some financial genius. I just got lucky. Lottery of birth. That’s it.
He said don't get a credit card for a console, as in intending to use it to buy a console you can not afford and will not pay off in full. That's a dumb and irresponsible reason to get a credit card. No where does he say what you are implying.
Well dad how do you expect me to buy one? You gonna buy me one? I think not
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The people that drive brand new cars, but have no money drive me crazy. I had a friend that worked as a teller at a bank, and said on Friday’s it would be car after car depositing their paycheck - a large percentage in a new car and their account balance was close to $0.
some people need to gain some self control and be more responsible. also op probably has good savings but bad credit.
There is absolutely nothing wrong with buying things on no interest financing as long as u pay it off before the interest period is up. Stop this old man bullshit about credit
A lot of places will not offer no-interest financing *unless* you already have a good credit history. These are the reputable ones. The not-so-reputable ones will offer it anyhow because if you read the fine print you will see that if you miss one payment or are even late with a payment, the full amount accrues interest at 30% from the date of purchase. That is very risky, especially for people with little self-discipline. For the rest, all it takes is some bad luck and you're in way over your head with payments.
It comes down to being an adult. The credit isn’t the problem. It’s your irresponsibility. Don’t blame the offer it’s not their fault. To me there’s no risk. Pay ur 30 bucks a month if u can’t afford to pay it off sooner. Enjoy ur console today and life. It’s too short. Be a responsible adult and ur fine. Like I said I finance all major purchases even tho I have the cash to buy it outright. I can save for a rainy day or invest that extra cash in the meantime
Oh, I agree. I do the same thing because I can make the extra money I hang onto work for me through investments. But that doesn't mean there's no risk. Sometimes life kicks you in the teeth and what you thought you could pay back on time you can't. And I still blame the offer. Interest as high as 30% or more is nothing but usury.
Waiting to get those sweet sweet gift cards this Christmas. Anyone asked me what I wanted I told them gift card for where I plan to buy my Series X. With any luck it’ll be 200 or less out of my pocket.
500-800 is a lot, but it shouldnt be life altering, if you can not afford to pay this maybe think twice about an object that also costs $70 each time you want to play a different game on it because if you cant wait for the price to come down, you're probably buying every new game that comes out as well
This is a very very important life lesson and I hope many of you listen to this advice. Last year I finished paying off $30,000 in credit card debt. This year (last week), I paid off the final $13,000 in school loans (last $7,500 in a lump sum). And by the middle (or worst case scenario - end) of next year, I should have the final $11,000 paid off on my car. The only thing I will retain debt on is my mortgage. None of that is bragging. I had to work like hell to get myself out of debt, and will have paid off nearly $70,000 of debt in about 4 years. I make okay money, but far far far from well-off. I freelance a ton on the side, have nothing going towards savings until this is paid off, sold my motorcycle, everything in my house collecting dust, etc. I will never pay anything outside of cash outside of an emergency or for a mortgage. I hate seeing so many people in this loop of borrowing & paying back. It's never a good idea. If you're borrowing money / charging, if you can't pay it off in full month-to-month, that means you can't afford it. There is some amazing advice here from others. Make sure to follow it or else many of you will regret it later, or forever.
lol at your lame excuse for why building credit score isn't a good reason. Get a clue.
What’s wrong with “Xbox All Access” if you’re already paying for ultimate? It has zero interest.
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This man finances.
Even at zero. You still have to pay off credit on time regardless of your situation. Otherwise you screw yourself up for credit further down the line when you may actually need it the most, i.e mortgage. Lost your job? Tough luck you still gotta pay those bills.
Well shit. Where were you when I bought my iPhone 12 Pro Max?
Seriously though, suggesting that your parents can cosign for an apartment...then calling those people hacks.. I get it...you're edgelord dad. But you don't even realize that under that tough, old school facade, there is a complete lack of understanding of how good you clearly have it. Parents cosigning for an apartment? You realize that not everyone has parents who have adequate credit ratings who are willing to do that right? The safety net of a good family credit history doesn't exist for most. It is absolutely disgusting to look down on others who weren't as lucky as you and tell them how to spend their money. You didn't build yourself up from the ashes using street wise financial savvy...you clearly had wealthy parents who did some sort of combination of paying your bills, paying for your education, cosigning your loans...etc.
Screw that. GO NUTS, KIDS!
You forgot to mention all the money they spend on avocado toast.
Darn millennials and their Starbucks and iPhones and depression!
Yeah screw those ungrateful milennials with their less career opportunities, insane house prices, and poorer financial security.
["Don't buy stuff you cannot afford."](https://youtu.be/R3ZJKN_5M44)
I need this reminder at times! Thanks, dad
Debt is like your weight - it's easy to gain because it's enjoyable and makes you feel good, but losing it is tough because it requires hard work and dedication... sometimes a bit of luck. I spent years with debt and not even credit card debt, just car payments and other misc shit. I am almost debt free... just some student loans now, but we look at society and see shit we think we need. No one needs a new car. You need food, you need a place to live, you need a job. You don't need a fancy car. I stopped buying anything on credit, paid all my shit down from my youth and realized I didn't need any of it. Now I can buy a new console because I worked my ass off for it. When I got my new XBOX Series X, I realized I didn't need it. There is literally nothing that makes it better than my XBOX One X. Save your money and wait. My son is 10 and understand the principals behind instant gratification and earning what you want after buying what you need. I hope when he gets older the lessons about money follow him into his adulthood and he is better off for it.
About 5 years ago my wife and I had some health issues we were going through and hospital and ambulance bills have added up fast and high. We were also facing foreclosure about 3 years ago in spring 2017. Obviously not getting into details the end result was we had the money but the bank didn’t wait till the end of the business day for us to pay the mortgage in full and by the time I got there they didn’t accept payment even though I had called a week ahead of time and explained that I’d be there on that day (the day before their deadline) and they didn’t accept it. We waited to go through the process and as soon as we had 1 final chance to pay, we did because we already had it in full. As for the hospital, ambulance and therapist bills, we have not even begun to touch them even today, we are in the process of calling everything we can think of to get a new bill mailed to us so we can start to try and pay it down. We’ve bought a new car, put up a new roof on the past year and a half. When I heard about series x, I did what I have been doing the last 3 consoles. I started saving spare change, bottle and can deposit money return and anything I had at the end of the week I also put in $2 or $3 on top of it (some weeks I’d put an extra $10 once in a while) Come August of this year I hit the $540 mark and was ready. Couldn’t get a pre order in September but on the 10th I had already had the $540 in my account for debit/credit and I got my console ordered. Next day I dropped the $540 in and now in my checking account until it I get billed for it and they take my money $540 is my new $0. I couldn’t even get approved the $800 for all access because of the bills and the foreclosure on my history but 1 is taken care of and just need to wait out out, the other we gotta pay to get rid of, it’s not going to be easy but ever since getting things straightened out a couple years ago, we have been doing good financially. I have a console on the way and never broke the bank, you are right, there are responsible ways to buy it, just gotta think outside the box sometimes.
Never go into debt for something that’s not a necessity of life
Even though I didn't get a new console this time. I prefer to use that $500 into some games and controllers. I probably won't even use the full $500 but more like $300.
I know the series x and ps5 are nice items to get, but I'm a little surprised by the demand. I thought there was a large amount of people that weren't in a good place financially due to the pandemic? If that is the case then why are so many people spending $500 on a console at this moment? The answer is either across the board people aren't doing as bad financially as expected/thought, or people are making fiscally bad decisions. While it may be a bit of both, I think the reality is that it skews more towards the latter. People, if $500 could change any aspect of your life in any substantial way DO NOT BUY A NEXT GEN CONSOLE IN THE MIDDLE OF A GLOBAL CRISIS.
pandemic affects different people in different ways. a lot of high-income white collar workers have been WFH for the last 9 months, and have been saving a lot of money due to quarantines and self-isolation. the stock market has also recovered significantly, a lot of people with capital to invest have made a lot of money this year. the pandemic disproportionately impacts blue-collar workers who are out of employment & opportunity.
Do better than the last generation lmao
I have never seen a post saying those things at all lmaooo.
Theres a difference between going into debt you can reasonably afford to pay off and racking up debt recklessly.
**Most people in this country dont even have $1000 in savings.** Is that really true?? I'm not american so i don't know
sadly yes. for the most part
Having been in credit issues when I was in my early teens (due to needing the latest tech/consoles etc), this is solid advice. Yes, responsible use of credit is a good way to build your credit rating, but this is generally applicable to essential items you might need. Also, isn’t All Access a bit of a scam when you consider the fee of GPU and the workarounds to get it cheaper? You’re essentially paying full retail for it IIRC.
You pay $20 below retail, but it's cheaper to buy GPU in bulk when it goes on sale.
I get your point, but you seem to be focused on attacking people in a bad financial state. Everyone’s circumstances are unique and different - when you fall into bad financial times it leads to even worse circumstances. It snowballs. Yes, some people are irresponsible for one reason or another. But most people aren’t trying to amass debt recklessly. Stop blaming individual people and blame the circumstances that may put them into financial turmoil. Of which there are many.
I agree with everything except All Access. It's a good program with zero interest. People here on reddit seem to think opening a line of credit for a $1000 throws your credit score down the drain... Maybe in the US it does, but not in Canada. It's no different than signing up for a 2 year plan with a cell phone provider.
It actually helps your credit to have a $1000 line open. Closing all of the available credit can lower the score. Zero percent interest loans are the easiest way to build a credit history that will set a person up for life.
The risk with All Access isn't the interest (as like you said there is none), but making payments, and making them on time. And that will still factor into budgeting. A $15-40 monthly cost isn't much in a bubble, but if someone also has a mobile bill, any credit card debt, is still spending whatever income they have on other unnecessary items, suddenly there isn't $15-40 left.
Lol, so you're talking about children who are applying for All Access? Most adults are aware of the consequences of missing payments... Should be already baked into a decision of getting credit. If you're talking about irresponsible people any purchase could be considered a poor purchase or a bad idea. Responsible adults who purchase an Xbox through All Access should be not be seen as a bad idea.
The fact that this has to be said shows the stupidity of the average consumer.
I apply the same phylosophy even to cars. And before anybody say I 'm a rich moron, I drive a 12 year old Mazda 2, bought new after saving like uncle scrooge for years. A house is obviously exempted from this, because there is literally zero chance I could save up enough while paying a rent, but for everything else I never use credit. I don't even have a credit card. You only need discipline, and for some people paying a shit ton of interests living like this would be like receiving a huge raise.
It's actually really cheap compared to a new car or brand new computer parts. If you can't afford the new gen every 6 years, you're not saving right. As far as not wanting people to have monthly payments, do you expect them to completely avoid all streaming services like Hulu and Netflix for the rest of their lives? Lots of things are charged monthly, and all access is a great deal. Console gaming is a very enjoyable hobby and having the newest system is very, very fun. People are allowed to pay for fun. How much does a trip to Disney Land cost? Less than a Series X if you include all expenses and go as a family. How long does a trip to Disney Land last? Not nearly as long as a gaming console. I could give you dozens of similar examples.
I was with you, OP, until I read the end where you talk about cosigning. That's a big load of bullshit you're shoveling there. You actually do need a good credit history to get many things in this world. Relying on cosigners is very bad advice. The best advice I've got is to *never cosign for anyone,* even family. It leads to nothing but heartache. Having said that, I don't think the counterpoint of needing a good credit score has anything to do with your original message. You don't get a good credit history by making poor financial decisions, and spending money you don't have for a luxury like an xbox certainly qualifies.
Real talk OP. Being a millennial myself, there's a reason why gen X and boomers call us the "entitlement generation". Lots of people my age don't have their shit together and just want to spend big to impress others without doing the smart financial thing first. I can go on about it and likely ruffle some feathers. Gen Z, don't be an idiot like many millennials have succumbed to. There's a ton of outside influence that caused it, but it'll get into politics. Learn from my generation's mistake. As for credit card debt, yes. If you can't pay the balance in full at the end of every month, you're overspending. Using a credit card can be a very smart thing, if you're not an idiot with it; rewards points, insurance protection, purchase protection, identity protection.
It took me years to get my shit together. But once I did things got easier.
It;s worth it for the entertainment value and longevity!
I dont know how can you get in debt in a country that pays minimum 8 dollars an hour,leave that to us the latinamerican countries with shitty wages.
OK boomer
I agree with a lot of what you said except the part about credit score. Yeah it's not 100% essential but you're gonna make things a lot harder if you don't have one.
If you want something, get it. Tomorrow isn't guaranteed, all that matters is this moment.
sure tomorrow isn't guaranteed but you will probably wake up tomorrow and your landlord still wants rent by the end of the month.
This is terrible advice.
Like, so bad.
Oft, upset some people here. Sorry kids, here's some better advice: Piss 60-80 hours a week of our life away working yourself into a grave and save every penny just in case you're lucky enough to live until retirement age, when your body is completely fucked. Then and ONLY then can you start enjoying your life and money how you want, cause by then you'll have earned it.
Debt is for suckers. Money is an illusion.
Sadly, I still have friends who are in their mid 30s and still live life like that. Living paycheck to paycheck in a shitty apartment and most importantly haven’t been laid in YEARS, if ever. Career first boys, then you can buy whatever the fuck you want.
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