How much can a normal person go into debt by?
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Hi Kealie… the potential amount of debt for any person, normal or not, can exceed his or her personal and/or business debts to the point that it affects any cosigners or investors along the way. There are so many possible debts for a “normal” person limited usually only by their credit scores… mortgage debt, student debt, IRS tax debts, vehicle debt, consumer /personal loans and / or credit card debt, lawsuit debt, child support debt and I’m sure that I’m missing a few other types of debt in addition to fees, penalties, legal costs and interests as applicable. These are, subject to each person’s income, assets and liabilities “normal” for each person but each person is subject to being hit with one of more of the dreaded “D’s” that will turn the person’s life upside down… Divorce, Disability, Downsizing (job loss), Death (spouse/parent/child) compounded by that Debt load.
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I have 2 store credit cards that have 0 balances for a year but keep popping up on my credit score with late payments if I cancel these cards will they stop showing up on my credit reports and should I cancel them?
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Sorry, I’m new…shouldnt be a reply…
15 years into my 2 ND marriage, my debt is still a mess because of my first husband’s. We couldn’t even get a checking acct without a cosigner! I no longer actually get bills for the debt, but I could never even try. We live pay to pay, we’re doing okay with about $5000 saved. I have received a few high interest cards, but I know where it would lead. The thing is we’ve never gone on vacation together. Would it be stupid to get one of those cards to enjoy a week vacation?
People won’t have debt if they know how to budget their monthly income and expenses. If you have a credit card then it will be nice to pay on time. Also, know what you need instead of you just want.
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First step is for anyone in debt is to realize that debt free life is possible and is a much better way to live. You have to hate debt and save up from your monthly budget to afford things that you cannot otherwise afford. Yes that vacation has to wait, the new car will never be possible in recent future, and credit cards (with 25% interest) is not going to help you afford those. Don’t maintain or open new store cards.
Be realistic and for 3 months, do a budget (write down every expense however small), and you will see where the money goes. Then tighten your spending to below what you earn, and you will see the ray of light (money to be saved).
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Robin A Neumann posted:
I have 2 store credit cards that have 0 balances for a year but keep popping up on my credit score with late payments if I cancel these cards will they stop showing up on my credit reports and should I cancel them?
Don’t cancel them because it will affect your credit score negatively. Having a store credit card on your credit report doesn’t seem to be a bad thing except you got debts.
It’s never wise to go any further into debt than you KNOW you can repay, and quickly. The principles that we have come to use are Biblical principles. If we have to go into debt and we have a credit card, we will not use it unless we do NOT have the cash immediately handy in our bank account, or in our emergency account. We had to buy tires a month or so ago from a national chain whose card we carry. We didn’t want to use the card, but we had to replace all four, got return credit on decent tires exchanged, got a $50 rebate and also got credit on one tire that was fair. The other tire was getting pretty bad. Because we had the opportunity to get the tires and to have six months to pay the charges back without interest, which we can do, we used the card. The second payment is on its way in, and we still have five months left. Believe it or not, it also improved our credit score. Cash is always best unless the terms are good enough. I hope this helps.
