Comments on: You Owe What You Owe

By: Dave Ozment

Dave Ozment — Mon, 01 Feb 2010 11:12:57 +0000

Yeah, rolling one bad loan into another is an unsustainable model. This plan never ends well because cars simply do not appreciate. You’ll always end up paying the balances at higher rates and still never own a car. It’s a losing approach. Searching for deals from individual sellers and paying cash on the otherhand works and over time will allow you to move up in car. It’s a model that can sustain you through the remainer of your car buying days.

Thanks for sharing.
Dave

By: cori

cori — Sun, 31 Jan 2010 09:51:47 +0000

he dealer will roll the old loan into the new loan amount. If you have realized that you cannot afford your current car payment, this can add a lot of stress to the situation.cheap women clothing

By: Dave Ozment

Dave Ozment — Wed, 20 Jan 2010 02:48:39 +0000

Hey Karen, I love the ‘rant back’. It is true that we pay for the mis deeds of others. Be it shop lifting or credit defaults, the costs are shouldered by those who play by the rules. It can be very frustrating and I agree with your position.

Thanks for sharing!
Dave

By: Karen604

Karen604 — Tue, 19 Jan 2010 17:53:01 +0000

I have to agree with you. Nothing drives me more nuts than those who seek advice to avoid their obligations. It matters n not to me if it is settling with their credit cards or someone seeking to file bankruptcy. Do these folks not know that I have to PAY THEIR BILLS! It comes in the form of increased bank chargers and decreased interest rates, the costs of the goods in the stores (the credit card companies charge the stores for use,) and the devaluation of MY home when you get foreclosed on. Just to name a few examples.

In our family we have 2 cars each over 10 years old. We have lived in the same house for 16 years and it has the same flooring and drapes that we bought it with. We eat at home most meals and brown bagging is a way of life for us. Our clothing is bought bargain shopping. We garden and we do not take expensive vacations.

It irritates me to pay for someone who is irresponsible in their lifestyle. I don’t like paying for their new cars, clothes and fancy trips. However we live in a more Socialist Society than we want to admit to, only it is not government imposed so much as by our Business Society.
Karen604´s last blog ..Whole Foods

By: Dave Ozment

Dave Ozment — Sat, 16 Jan 2010 04:08:44 +0000

Hmm, that’s an interesting take but personally I’m not buying it. The ‘mechanism’ he’s referring to is simply the default provision in the contract – you don’t pay, the bank can take over the property. That’s simply the property standing good for the loan. Interesting that he advertises it 2 ways – to allow underwater loan holders to walk away AND the bank collects any equity in the home. Hmm, those parts don’t fit.

His second arguement is somehow that personal accountability is some myth promoted by the banking industry. Yikes, I’d hate to be this guys neighbor. If I sign my name to a document in good faith then I feel a personal obligation to stand by my name for the sake of my good name, not some alledged bankers myth.

It might be interesting to hear the interview and I’ll see if I can find it on itunes, but I find the idea a farce at best.

But hey, I appreciate you sharing!
Dave

By: Funny about Money

Funny about Money — Sat, 16 Jan 2010 02:05:59 +0000

Just yesterday NPR’s Talk of the Nation had a piece on the ethics of walking away from underwater mortgages. One of their experts, an economist at the University of Arizona, pointed out a) that a mortgage contract includes a mechanism exactly for that purpose: the borrower can walk away and in doing so turns over the house and whatever equity he has in it to the lender; and b) only homeowners carry some sort of “moral” onus for walking away from a bad financial deal. Banks and other corporations routinely default on loans that turn out to be bad deals for them. The gist of this guy’s argument was that a home loan is no less a business transaction than any other business loan, and that no moral issue is involved. The idea that homeowners have a moral obligation to stick with a bad business deal (while corporations do not) is, he suggested, a myth promoted by the banking industry itself, by the government, and by the media.

Whether you agree or not, his point of view is something to think about.
Funny about Money´s last blog ..Nope… Money unhappens

By: Dave Ozment

Dave Ozment — Fri, 18 Dec 2009 23:59:34 +0000

Funny how that happens… you’ll be thinking something and then see that you’re not alone in those thoughts. Typically Ramsey is good about specifing that the settlements happen if there’s no money or if the credit card debt is being reprioritized to help prevent a foreclosure and never simply because it isn’t convenient… in fact I’ve heard him rail against that approach. That’s why I mostly gave him a pass, but it still struck me wrong.

Hey, I’m glad I’m not alone in thinking that way.

Thanks for reading and commenting.

Dave

By: Leah

Leah — Fri, 18 Dec 2009 22:05:32 +0000

It’s interesting that you bring this up, I have been listening to the Dave Ramsey show live the last two weeks and I have heard him make that suggestion more than once. And each time I had a similiar reaction (bristle). I agree on the personal accountability….