Price of being an idiot?

[cwo_ghwebb]

Instapundit.com -

FTA: Reader John Mattaboni emails:

Speaking as a mortgage broker, I can assure you this is the case in the vast majority of instances. I spoke with a woman today who has a credit report that looks like a train wreck, including a bankruptcy fours years ago and numerous chargeoffs and collections since. Her gross income is less than $850 a week -- but she drives a car with a $700 payment.

She called me up because her adjustable rate mortgage payment is going up. When I told her that the only way she could qualify for a loan is to pay off the car with her mortgage, she threw a fit. Apparently me saving her $500 a month isn't good enough, she wanted to tap her ATM one last time for $30,000 to spend on "home improvements" rather than paying off the car. She then asked if anyone would really check to see if the money went into home upgrades.



And McVain wants to put Wall Street folks in jail for folks like this.

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[ImnoMensa]

So: Who is the idiot? This woman who lives beyond her means or the people who supply her with the money to do it?

Wall street should have told her years ago that she didnt qualify for that big home. They didnt, they created a way for her to get it.

Yes she is an idiot, but Wallstreet made their bed too.

Credit is killing America, and every day I see ads for people to get more of it.
Wallstreet wants people to avoid using Cash., Use the card. Use the card

Come the end of the month the light goes on. How did I spend this much?
Because you used the card and didnt keep track of how much you spent.

Just what they wanted you to do.

 

[Mateo]

Reagan said "You can have it all" What he said is true, but what is forgotten conveniently is that he also said"If you can pay for it".
One thing I always am reminded of is that first day of registration at college and how many credit card companies are there hauking their product...especially to youth who seldom have a real understanding what they are getting into. After all, momy and daddy have big pockets....right?
Unfortunately credit cards are a part of the system and the addiction. My wife and I are retirees, we try to live within our means and we pay our bills to the point of having little left over afterwards, but we pay our debts. We help supplement our income by the products we produce from our personal hobbies (I sell a lot on Ebay) (She sews and teaches ).
The trouble that we have gotten into is one of material envy...we have to have the best cars, eat the best of gourmet foods and drink gourmet coffee. We simply have to have the best according to what Madison Avenue decides for us what is the best. After all, the people that Hollywood and Wall Street nominate as idylls and symbols that should be emulated by us hoipolloi, use only the best. what a sham and a shame on us to fall into such claptrap.
Back in the 80's, I worked down on Maine Avenue for BCBS. I worked with a gal who prided herself on having a visa card and she always "elevated"herself at my expense, by saying"Oh he probably buys all his stuff at KMart",
You know, I can laugh nowadays...these things have a way of coming around.
I heard that she is in Va somewhere, having to foreclose on her million dollar home, no doubt brought on "credit". My wife and I have a modest home here, but we own the land and it was paid with when we sold our home in Wheaton and moved from the insanity. Who's the idiot now?
We don't drive the best cars, don't eat or drink gourmet, but we get by because we live within our means. A lesson learned.

 

[ylexot]

So: Who is the idiot? This woman who lives beyond her means or the people who supply her with the money to do it?

Loans/credit are about risk. If a company wants to assume the risk that the person will default on the loan, they are free to do so, but they have to deal with the consequences if it goes bad.

I fault both the companies and the individuals for the mortgage problems that are happening now. They both should have known two things. First, don't get an adjustable rate when rates are at historic lows...they will go up. Second, it's buy low/sell high, not buy high/sell low.