/biz/ - Business & Finance

[Anonymous No.57230428]

What is the consequence of being in debt? I'm watching these youtubers like Dave Ramsey and Caleb Hammer constantly going on and on about how bad debt is and how their guests need to work and hustle and grind in order to pay off their debts.
And yet they look like normal, average people. I see people who are 100k or more in debt and they look totally fine. Living, able to buy stuff clearly. And yet these hosts act like they're in this dire situation when I'm just not seeing it. On the outside they look totally fine despite their high debt.
What are the actual real world consequences of being in that kind of debt?

[Anonymous No.57230468]

>What are the actual real world consequences of being in that kind of debt?
Have fun getting sued, your wages getting garnished, and your credit dropping to such depths no adult takes you seriously

Companies want you to be in debt, forever making minimum payments - companies don't want you to ignore the debt completely

[Anonymous No.57230482]

>>57230468
What if you just don't give a shit about making minimum payments and continue to do so? Paying enough to get them off your case but not giving the full amount?

[Anonymous No.57230506]

>>57230482
>Paying enough to get them off your case but not giving the full amount?

That's the minimum payment
And that's exactly what they want you to do
So that you'll be paying them forever

College kids in America fall for this trap every single year like lambs led to the slaughter

[Anonymous No.57230543]

>>57230506
my minimum payments for my student loans are 75 dollars per month. There is a difference between consumer debt and taking on debt to further yourself.

[Anonymous No.57230556]

>>57230506
Maybe it's just me but I don't give a shit about that. I'm willing to take on interest if it means being given more time to pay something off.

[Anonymous No.57230570]

>>57230543
How big was your loan?
That matters a lot.

>>57230556
And that, my friend, is how they get you
It is the illusion of having more time to pay something off, putting it on layaway, just making small payments every month - while they rape the rest of the loan with grossly high interest rates

You'll be paying that minimum literally forever while your total debt continues to grow

[Anonymous No.57230576]

>>57230428
I think the main downsides for an ordinary person are:
>The deeper in debt you are, the more you're hurt by a drop in income. In other words, the more fragile your financial situation is.
>The interest you pay on debt is a drag on your investment returns. So, for example, you might need to work longer before you can retire (if you can ever retire).
Debt has other consequences related to tax optimization and monetizing assets, but those are only relevant to rich people.

[Anonymous No.57230577]

>>57230556
I also forgot to say that minimum payments can increase; they are not stagnant.

[Anonymous No.57230581]

>>57230576
I could only see myself going in serious debt if I lost my job or something. That circles back to when I mentioned I'd rather take the hit on interest if it means getting more time.

[Anonymous No.57230587]

>>57230570
29,500. Tuition itself was roughly 15k but my school kept giving me 5k each semester during the pandemic. It's at 4.5% fixed standardized.

Once your student loans reach the 15 year mark with regular payments. They are automatically applied for forgiveness. At 12,800 after 10 years the same affect applies.

So effectively just making the bare minimum it comes out to only 13,000 over the course of 20 years.

[Anonymous No.57230594]

>>57230587
15 years*

[Anonymous No.57230597]

>>57230428
debt is cost of living. if you burden yourself with debt servicing, your cost of living increases. the best strategy for success in this economic environment is to achieve a low cost of living.

[Anonymous No.57230604]

>>57230428
Literally nothing, anyone who says otherwise is a clueless low test retard. If you max out all your debt all that happens is it obliterates your credit, so if you do it don't expect to get any sort of loan or a job that requires a credit check. Eventually they'll sell off your debt and you'll get phone calls every so often. Eventually they'll get desperate and beg you for a payment plan. If you don't gaf debtmaxxing is viable but if you're going to do it you might want to book a one way ticket somewhere and not come back, otherwise you'll need to pay like 5k to credit repair and wait a few years. But realistically if you don't care about the consequences and have good credit there's literally no other way to amass personal capital as fast as this.

[Anonymous No.57230605]

>>57230587
>29,500
yeah, that's nothing haha.
You're below the average

Keep doing that if it works out for you, but 20 years is a very long time to be trusting these companies

[Anonymous No.57230611]

>>57230604
>Literally nothing, anyone who says otherwise is a clueless low test retard.

Lmao
Please don't listen to this guy
This is the quickest way to ruin your life

Unless you have parents that take care of your food and shelter

[Anonymous No.57230636]

>>57230604
>>57230611
if you max out your debt at 18 make the minimum payments then stop making payments. The Sam Hyde grift works because before the age of 26 MOST young adults use their credit for things such as car debt or vacation spots.

Just don't pay them back or ever and I mean EVER pick up the phone or make your presence very known. I have a Discover Credit Card from 2019 that I never paid off and I was still able to get an unsecured card from Capital One. Even after owing Discover 3k in debt they never successfully went after me. They sold their debt to a collections agency and wrote it off on their taxes. Credit ultimately does not matter as long as you have the capital for a 50% down payment on a car or last month's rent when applying for an apartment.

Just take out the largest loan you can at 18 and ride out the 7 year period. I have tons of medical debt and credit card debt and the worst they have done is just send me solicitation letters every few months.

[Anonymous No.57230647]

>>57230636
I still have 3 years left before I hit that 7 year mark. Stay strong kings and game the system.

[Anonymous No.57230652]

>>57230428
Because it’s not comfy at all having thousands of dollars in minimum payments every month.

Yeah no shit a $25 min payment isn’t that bad, but if we are talking CC debt your minimum payment is going to rapidly balloon as the interest and additional spending increases the balance.

If you get to having 6 figures in debt you will be forced to pay thousands a month. If you don’t pay, you won’t be able to qualify for a house loan, apartment, any other loan like for a car, they garnish your wages and seize assets, etc. Even banks can deny you an account if you have shit credit.

It also counts against your net worth, you make a 15% gain in a year but your debt exploded by another 30%…. Well you’re poorer than before.

If you have assets like stocks, vehicles, real estate they can seize that if you are behind on your payments.

Basically if you have a lot of debt you will be forced to either a) have a very stressful shit life of wage slaving 24/7 just to make your payments, or b) literally own nothing so they have nothing to take from you. You would have to live a very unconventional life then. Maybe fleeing to a 3rd world shithole would work too. But basically, your life fucking sucks.

[Anonymous No.57230673]

>Just take out the largest loan you can at 18 and ride out the 7 year period.
>7 years
the shit i hear on biz sometimes

7 years isn't exactly a walk in the park
Just don't be retarded and you'll never have to do dumb shit like this, it's that simple

[Anonymous No.57230692]

>>57230673
during that 7 year time period all you have been doing is jerking off and playing world of warcraft. What do you think you're going to JAIL? Do you think that they're going to take some fat faggot on 4chan to court over 3 thousand dollars? NO, they WONT. You're not worth their time and they'll be glad to take you back after that time.

You think they're gonna take some college kid to court for anything less than 5k? What are they going to do? Garnish his WOW tokens and his tips at pizza hut? No, theyre gonna play the long game rather than spend the money to take you to court.

And after that time period, they'll want you back so hard because that's how the world works. Debt is written off and the tax payer suffers.

[Anonymous No.57230694]

As long as I make +20% in gains every year I'll keep holding onto my debt.

[Anonymous No.57230717]

>>57230692
You can't fucking do anything by yourself for 7 years lmao
7 fucking years is not a minor inconvenience

Holy shit im laughing so hard

[Anonymous No.57230737]

>>57230717
Are you that broke you can’t afford a 50% down payment on a modest car or last month’s rent when applying for an apartment? You actually sound like someone who still lives with their parents and still believes what they were told as a kid. Remember subprime mortgages? Yes, the bank will work with you if you have collateral you babbling fat faggot

[Anonymous No.57230749]

>>57230737
Bro my parents were gone before 18
People can't just be fucked for 7 years
They don't have the privilege

>Yeah just tank the entirety of your adult credibility for 7 years
lmao

[Anonymous No.57230753]

>>57230717
thats me the past 10 years. should have debtmaxxed

[Anonymous No.57230763]

>>57230749
>zoomer thinks being 26 his life is over at that point

Might as well roll up your sleeves and find a Mike Rowe job while you’re at it. They have pooper scooper positions for you.

[Anonymous No.57230766]

>>57230753
No one will give you a loan big enough to not be fucked for 7 years if your life is already fucked

Get yourself together and stop trying to find an easy way

[Anonymous No.57230776]

>>57230766
Sweaty with dead parents

[Anonymous No.57230786]

>>57230776
>Just fuck your life for 7 years

[Anonymous No.57230789]

>>57230766
Most people under the age of 25 shouldn’t be thinking about owning a home or a luxury vehicle. Their credit score is of no use to them. That’s a luxury YOU can’t afford and are preaching that hundreds of thousands in debt is better than ruining 5k worth of credit at 18

[Anonymous No.57230819]

>>57230577
That's a good point. I guess I wanted to circle back to an earlier point I made: the people that come on these finance shows who are in debt...they seem totally fine. They're getting charged interest, sure, but they're not like freaking out about it like the hosts of the show are.

[Anonymous No.57231340]

>>57230763
im 26 with a few grand of debt and bad credit and it certainly feels like it. I know its not but walking the fine line of stability at fucking 26 y.o does not feel good

[Anonymous No.57231352]

>>57230819
Dave Ramsey lost everything because he made some bad retail investments on credit, there's a good reason he personally is traumatized by it. Meanwhile people like Ben Mallah do 100% of their investing into real estate on credit. He doesn't use cash for anything and is also a jew so has like a 75% buff for understanding how to abuse the banking system.

[Anonymous No.57231405]

>>57230428

> I'm watching youtubers

Aaaaaand I'm gone.