Re: Buy Gold Coins as Bullion Gold Coins Gain Favor

Dan wrote:
strabo wrote:
sylvan butler wrote:
On Sat, 10 Mar 2007 19:08:35 GMT, Sue <sebrady@xxxxxxxxxxx> wrote:
On Sat, 10 Mar 2007 10:05:54 -0700, Winston Smith
<bogus@xxxxxxxxxxxxxx> wrote:
Credit is a trap. My advice to people is, use it as a tool if you
must, but always, always have a practical and fast end game to get rid
of it - before you start to use it.

That's right. It is a trap, but it is also a tool and you CAN use it.

It's amazing to stand in line and see four people ahead of me use
plastic for a $5 purchase, often it's a line at a lunch shop.
Amazing.
Amazing indeed. I don't get that.

I don't get the judgmental attitude, especially coming from someone who
has credit card debt. I've never had credit card debt. It would take a
major catastrophe before I'd have credit card debt. Even as a married
college student I lived in a dump and drove a 10 year old car and had
money in the bank, just in case. Yet YOU see the people using plastic,
and you judge them to have some kind of problem, because YOU have had a
problem. The alternative is simple preparedness. Be prepared!

The card you would see me using in a lunch line gives me back 1.5% cash.
I use it for nearly everything, and pay it in full every month so I
don't pay interest. (And note, I still drive a 10 year old vehicle...
Or a 20 year old... The wife does have a 3 year old van to haul kids.)

Wouldn't you rather have compound interest working for you than against?



"Interest never sleeps nor sickens nor dies; it never goes to the
hospital; it works on Sundays and holidays; it never takes a vacation;
it never visits or travels; it takes no pleasure; it is never laid off
work nor discharged from employment; it never works on reduced hours;
.... Once in debt, interest is your companion every minute of the day and
night; you cannot shun it or slip away from it; you cannot dismiss it;
it yields neither to entreaties, demands, or orders, and whenever you
get in its way or cross its course or fail to meet its demands, it
crushes you." J. Reuben Clark, Jr. (April 1938)

Make debt work for you. Don't work for it.


I think Mr. Clark was telling Americans about the danger of incurring
interest bearing debt in general. Had he known that 70 years hence
the average non-collateralized debt of the typical American would be
about $12,000 in addition to a home mortgage and car loans, he likely
would have used stronger language.

If everyone were to begin avoiding paying interest on installment loans
as you do, the credit card as it is now constituted, would disappear.
The credit card industry only makes a profit when a debt is not
paid off and interest is paid. Your 'free' credit extension is
subsidized at the expense of others.

Well, partly true. Card companies charge customers (merchants) for the privilege of the transactions, and charge you for the use of money, but the grace period is not paid directly by you.

However you describe it, the buyer is advanced bucks. And, if you always
pay off within the 30 day period you cannot achieve a high credit
rating.


Note that DEBIT CARD usage is charged to the merchant at a higher rate, and by agreement the merchants are not allowed to refuse them, which is why most of the selling on TV is to consumers to use debit cards for items they would pay off anyway...


The debit card is simply an electronic check which allows the
instant completion of transactions.



Americans are enslaved to the debt money system. Between debt and
tax registers for real estate and rolling stock, Americans actually own
very little. Perhaps even less than did Americans during the Great
Depression.

I've been net positive for 95% of my adult life, except for a brief period when I bought my first house. Not to say I didn't use credit for specific things, just that, except that brief period, I always had money "in the bank" more than the credit instruments, always earning [long term] more than the rate of credit (knock on wood). By the time Bush came around, even he couldn't change that for me personally, but he sure made/makes it difficult for the newly-minted adults.


I know someone who bought houses directly from owners who agreed to make
simple interest, short term balloon loans. There was cash up front, five
or ten years of fixed payments followed by a cash pay-off. The property
was collateral. They received cash up front, a guaranteed pay period,
and cash at the end. This allowed them to adjust their tax consequences
and investments for influxes of cash while having a secure pay out
period. He got instant equity, privacy and a very comfortable interest
rate.

By overlapping purchases, the profit from the sale of one home
was used to finance the purchase of others. Eventually he wound
up with several 'free' properties. All of this was without the aid
of banks.


NOTE: I do not discount the luck I have had over time, which has been considerable, not limited to being born with pale skin...

If you had darker skin you could get special grants and participate in
numerous urban housing and renewal projects that are not available to
'pale skins'.


Dan


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