[desultorypawn]

looking forward to the replies on this.

[Pretorian]

you should. Just sell your visible assets before you do that.

[SILENTTODD]

I would stay debt free.

[Carlhole]

$this->bbcode_second_pass_quote('baha', 'I')'ve been wanting solar panels but it's hard for me to come off that kind of money while unemployed. I estimate about $5-6000 would provide enough power to go off-grid.

If I don't plan to use credit for anything anyway why should I care about my credit rating? Why shouldn't I just withdraw my money, stuff it in the mattress, buy the solar panels with my credit card, default on the credit card and declare bankruptcy?

[alokin]

I am against taking credits, it reduces your freedom, but some things don't go without and in the US the interests are low.

We have in Australia grants for solar panels and there are communities which buy solar panels together and get them cheaper, forgot the name. Maybe you have the same in your region and if not it's easy to set up.

[MrBill]

baha, my reply is not refering to you specifically

The sooner the common man defaults on his debts the sooner we will return to a cash society where only those with money will be able to borrow money, and where you will need money to make money. Cash will be king and we will return to The Golden Rule. So go ahead and stick it to the man. It was a mistake in the first place to assume the common man could handle credit responsibly.

[pup55]

$this->bbcode_second_pass_quote('', 'b')uy the solar panels with my credit card, default on the credit card and declare bankruptcy?

[MrBill]

I remember in the small town where I grew up the merchants used to keep bounced cheques under the glass on the countertop, so all the customers could see who's cheques were good and who's weren't. Name and shame. Of course, no one has any shame anymore, so quite obviously they have no honor either. So it is back to the only way we can act around such people. Trust is good. Control is better.

[ReverseEngineer]

4 years is a mighty long time to be unemployed and still free of debt. That in itself is an amazing accomplishment.

I would not start charging the cards until you are 99% sure that the bank holding the card itself will go bankrupt. You are playing a game of Chicken here, if you do it too soon, you could end up with the system still working well enough to divest you of what you actually own to pay off the debts you incur. Wait too long, the credit line will be shut off, and the products you might buy with the credit won't be available to buy.

Wait until the last minute you think it is going cataclysmic. Then head out and charge it all to the MAX, as fast as possible. Then burn the cards, call up the Credit Card company and say they were Stolen, you know nothing about those purchases. At that point, if they even have staff to follow up on any of this it would be a miracle.

Meanwhile, until the catclysm is immenent, play it close to the vest and stay out of debt as long as you can.

Reverse Engineer

[kpeavey]

15 years ago I was in a bad situation and filed bankruptcy. Just before I filed, I took the credit cards, went on a shopping spree. Clothes, tools, appliances, a heck of a night on the town.

Cash in the bank is all well and good as long as the banks are open and functioning. Cash under the mattress sure can be handy. How much do you lose in interest taking some of that money and moving it from the bank to the bed? Maybe you are getting 5% return on a savings or checking account. After taxes, you are looking at more like 3%, and thats if you are doing well. It's chump change.

At this point I think the investment is not worth the risk. I keep enough money in the bank to keep the account open and allow me to cash a check if need be.

[Leanan]

Don't do it.

If you don't pay, they can put a lien on your house and/or take your bank accounts. They can also garnish your wages, should you resume working.

You have more to lose than to gain.

[pup55]

For those who wish to bring the system to its knees, a possible alternative might be to do what we do at our house.....

We charge up literally everything (I use very little cash) and then pay it all off at the end of the month. Typically, the balance is on the order of a couple of thousand, by the time the family charges everything up. You pay it off, there is no interest, no fees, etc. This is apparently not uncommon, and about 30% of the cardholders do this.

So we have use of this money interest-free, thus allowing us to exploit the credit card company for something on the order of $500 per year (given some modest interest assumptions). Plus, we have the type of credit cards that give frequent flyer miles, giving us an occasional free trip on the struggling airlines. Undoubtedly there are some system and transaction costs that are buried in the pricing for what I buy, but that is probably minor and supported mostly by the Americans who are dutifully running up their balances and taking care of the rest of us.

So, who is sticking it to whom?

Apparently, the card companies hate this so much that some of these people have instituted fees for those who pay off their cards every month.


Link

Apparently the average CC balance in the US is $6800, but according to other sources, 40% of the cardholders have less than $1000 balance, which means that the remaining consumers are supporting the whole structure.

[MrBill]

Up, down, I will not frown ‘cuz credit is fraught.
While economy grows quick, pay high and job safe,
My investments propagate, while I sit and wait.
The top is when guys like me fright take,
Top to bottom worth waiting for its own sake.
Those in debt lose what they thought bought,
Their creditors chase them around the block.
Many without any savings skimp by ad hoc,
Those fire sale prices are knocked down a lot.
Buy low, sell high, love life and see it is a crock.

[Concerned]

$this->bbcode_second_pass_quote('MrBill', '[')i]baha, my reply is not refering to you specifically

The sooner the common man defaults on his debts the sooner we will return to a cash society where only those with money will be able to borrow money, and where you will need money to make money. Cash will be king and we will return to The Golden Rule. So go ahead and stick it to the man. It was a mistake in the first place to assume the common man could handle credit responsibly.

[MrBill]

Unlike all your brilliant insights, Concerned? HAHA!

[Ferretlover]

$this->bbcode_second_pass_quote('baha', 'I')f I don't plan to use credit for anything anyway why should I care about my credit rating?

[Tyler_JC]

Get a job and pay for the solar panels in cash if you don't want to get into debt.

Or get a job and qualify for a low interest HELOC.

But I don't see how you can support yourself and pay your bills without a regular income.