are you lbym?

Discussion in 'Credit Talk' started by marci, Jun 14, 2001.

  1. marci

    marci Well-Known Member

    Hi all,

    Here's a philosophical question for you. I am on my way out of "sub-prime" credit and am now able to begin negotiating with my issuers on *my* terms, and I've started looking at ways to lower my debt for the long term.

    In doing this, I ran across the living below your means (LBYM) and consumer/credit boards on Motley Fools (no, this is not a plug for them) and have been amazed at the difference in empahsis there and that here on Creditnet. Even the consumer/credit board there is more LBYM minded - and the focus is on getting credit card accounts closed, limits lowered and ultimately completely credit free. On the other hand, Creditnet folk (including myself) live for higher FICO scores, "better" credit cards, higher limits, etc... and we rarely discuss whether credit cards are good for us in general. I DO understand that these two boards are in place for distinct reasons; it's just interesting how the frugal group there almost never talks the way we do about raising limits and we almost never talk about cutting all cards up for good.

    Not that I agree with all the advice given on the MF consumer/credit board, but I sure do like the spirit in which it is given. Since charging cards recklessly got me into sub-prime trouble in the first place, I was jsut wondering (since we don't really talk about it here) if others on this board are inclined to get off the credit card wagon (i.e. carrying balances) for good.

    Are you trying to lbym?
  2. Linda

    Linda Well-Known Member

    I don't want charge cards but am getting them in order to qualify (some day) for a mortgage. Otherwise I'd just as soon just save up and pay cash, which I have been doing for the past 2 years. The thing is lenders kinda require a credit history and FICO (or similiar) score before they'll lend you money.
  3. Donna

    Donna Well-Known Member

    Regrettably, I use creditcards more than I'm comfortable with. The truth is I don't mind using them to improve my score but I'm not always in a position to pay the balances, in full, at the end of the month.

    It seems like something always comes up. For example, last month, our youngest cat was in a fight and we ended up spending close to $550 at the vet. The month prior to that, we purchased a plane ticket for my husband to fly to Florida on a business trip. Fortunately, he'll be reinbursed but we're still waiting for the check to be issued.

    Yes, we do have a couple savings accounts but I don't like to raid those too often, if at all. So we will get our debt down but it's going to take a while. After that, I will begin in earnest to pay the cards off each month. I really hate owing money! And, admittedly, I'm guilty of using my creditcards too much. hehehehe Those little plastic things sure are convenient!

  4. bailey

    bailey Well-Known Member

    Well I have been a regular on MF for quite some time and yes they have VERY different views than this board, but if you use both boards you can learn alot of information.

    I too am not comfortable being in any debt, nor having the ability to become in debt with high credit lines. I got my scores high enough to buy my home a few months back and since then I am really not concerned about my credit that much, my lines are decent and rates are good.

    Yes MF main objective is to become debt free and they offer helpful tips for a better financial future, this board seems to focus on higher scores and higher limits. There also a HUGE difference in credit repair, but I will leave that one alone..............

    All and all both boards can be very imformative.
  5. curiouser

    curiouser Well-Known Member

    I do "live below my means." I also have a substantial amount of available credit in the form of credit cards and a couple of LOCs.

    As far as living below my means, I'm lucky. I have a well-paying job with benefits and minimal expenses. And I haven't experienced any life traumas that would jeopardize either of those factor. I also realize that that could change any moment. (I drive the LA freeways. I'm 70 mph and 3 feet from a catastrophic event every day that I commute to work.) So while today I am able to save a substantial portion of my income, tomorrow that may not be the case.

    As far as getting rid of all credit cards, as some suggest, in my opinion it's not a good move. Anyone who has ever tried to rent a car without a major credit card knows how difficult it is to live in the US without one. It can be done, but there is a lot of hassle associated with it. As I've said before, I do volunteer work with victims of domestic abuse. Those with no credit or bad credit have fewer options or routes of escape than those women who have decent credit. It's one of the reasons I started assisting these women with credit repair.

    I use my credit cards everyday. I am, in the eyes of the credit industry, the most reprehensible of consumers, the dreaded "convenience user." I pay my bills in full each month 95% of the time. The other 5% I extend payment over a couple of statements.

    I don't overspend, but I have the credit if I need it in emergencies. It is completely possible to live below your means without eschewing credit alltogether. It's a matter of knowing your style.
  6. godaddyo

    godaddyo Well-Known Member

    The Motley Fool is great for advice on freeing up money, especially for investment puposes. I would imagine that it is somewhere in the Motley Fool Mission Statement, Help thy peasants free up gold pieces for future well being of the "Fool". On the other hand it seems that creditnets purpose and mission is a little different. Help consumers repair and get the credit that they deserve, would be a Readers Digest version...:) Both great causes, different objectives...
  7. greyfox

    greyfox Well-Known Member

    I am a senior citizen, left a dead-beat husband in 1997, and had absolutely no credit record at all. I am on a limited income, and in order to carry auto insurance, rent a low-income apartment, travel 1000 miles to see my aged mother, rent a car while there, I need a credit rating, and available credit. I have built up to platinum status now, and it feels good.

    I don't have that much in balances, but actively use my credit so as to have it when I need it.

    Those little pieces of plastic represent accomplishment and freedom to me. :)
  8. Nave

    Nave Well-Known Member

    living below your means (LBYM)

    Whew I thought it was a new designation for classifieds:
    Lesbian Bi Young Male...thank god my minds in the gutter but not correct. :)

  9. creditwork

    creditwork Well-Known Member

  10. amaineman

    amaineman Well-Known Member

    That is my goal, currently still paying large sums for past sins. I am always looking at creative ways to cut expenses. In the fall I will try increasing income with a second job and use it to pay down debt.

    The group at Motely Fool does have the right idea, finding the funds is the trick.
  11. Shantel

    Shantel Well-Known Member

    I've visited MF often and they have good ideas, yes. Like DaddyO said, their purpose and Creditnet's purpose aren't even CLOSE. Use Creditnet to build credit, MF to build wealth and savings via investing. At least that's what I use it for.

    To think you can live in America without credit is ridiculous and you DEFINATELY need to get your head out of that hole.

    The key is managing both your income and your credit effectively to increase BOTH. It's possible.

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