why it sucks being 17 with a credit card...

[EmptinesOf Youth]

http://www.rondomusic.net/photos/electric/al2500csbp905a.jpg

http://www.rondomusic.bigstep.com/ElectricGuitars/al2500csbp901.jpg

 

its a Agile - AL-2500 CSB P90...$220 with shipping...

[LIMiT]

It's no walk in the park being 27 and having one either!

 

 

NICE AXE!

[James-Italy]

Great looking guitar at an incredible price!

 

___advice from an old fart mode on___

Get a pair of scissors and cut up the Credit Card now or use it only for emergencies. Guitars are not emergencies Buy now pay later always sounds great NOW, not later when the bills need to be paid. The guitar will still be there in 3 months, 6 months, 2 years, whatever it takes to raise the cash to buy it outright. You'll appreciate it more if you've had to wait for it than if you are struggling to pay down debt that you made to get it later. If you start digging a hole now at 17 you'll find it hard to ever get out.

___advice from an old fart mode off___

[zeronyne]

I will second the motion to ditch the card.

 

IF you have self-dscipline, only use the card if you actually have the cash in hand so you can pay it off completely every month. This will help your credit rating.

 

But to pay 9-18% interest on 250 bucks? Just save up the money. Another month or two isn't going to kill you.

[BiC]

Don't necessarily "ditch" the card. Why??? Because you need to begin to build your credit rating. A credit card can be a good thing, as long as you pay it off in full each month. Plus, it is the very first step in building a good credit rating which will allow for lower interest rates on car loans, consumer loans, and mortgages.

If you do not have any credit rating built, you will be charged the highest interest rates possible.

 

Never ever allow a balance to accrue interest charges. Your goal is to make the bank pay for your use of their credit card, not yourself.

 

Always be on the look out for a lower interest credit card. Finally, never get a credit card that has an annual fee. That may be difficult for someone at your age. But when you can, switch to a fee free card.

 

Remember, your goal is to build your credit rating and pay the card off in full each and every month. As long as you do this, you will not find yourself in $25,000 credit card debt once you are out of college.

 

God Bless

[picker]

IF you didn't buy the guitar with your card, I applaud your self-control. If you did, SUCKERRRRR!

 

The "credit card for emergencies thing" is a trap. I know it becaue I did it, and wound up in bankruptcy court anyway. The interest rate is the same if you use it to buy a guitar or a blood transfusion. The only safe way to have and use a credit card is not to use it for anything you can't pay off before the end of the month you buy it in, emergency of not.

 

As I was told in my youth many long decades ago, save your pennies and don't buy things you don't need, and eventually you will be able to pay cash for what you want, and you can get a better deal with cash that credit any day.

[Outrider]

I'm tellin' ya...if you can't pay it off at the end of the month, don't put it on the card. Save up cash for stuff like guitars. Stuff extra $20's under your mattress until you have enough!

 

I learned that thru years of clawing my way out of debt, not getting the things I wanted because I spent the money long ago on things I don't remember. Now I hoard every cash dollar I make doing gigs to support my guitar/motorcycle habits.

 

I understand the allure, though. The LP is sweeeeeeeet! Hurts, don't it?

[Funk Jazz]

if you don't have the money in the bank, you can't afford it.

 

remember, that's not YOUR money on the card.

 

save up and buy it, $220 is not a lot of money, definitely not worth being in debt over.

 

sweet axe

[Guitar Geezer]

Ditto what the other guys said

BTW I have been saving out of my Beer money since October for that exact guitar.

BTW(2) DennyF has one and loves it

[ActorJ]

Like it or not, credit is important in this world. Ripping of the credit card won't do you any favours, there are so MANY things yoiu can't do without a credit card, all of them can be considered descrimination, but ragardless, booking a hotel room is impossible without a card. renting a car. making purchases over the internet.

 

I actually think it's a good think to have the card now. I am 19. I have $2500 in credit card debt. I don't have al that debt because I was irresponsible, mind you, I have it because I used to work contracts, and my industry dried up almost completely several months ago. I was forced to live of my cards until I found a new job. Job market being bad where I live it tooks a looong time.

 

The good news is that with discipline I can have that paid off within 6 months, on acount of the fact that I have a 4.9% interest rate on one of the cards. the bad news is that is still doesn't feel good to carry debt on your shoulders.

 

The proper way to use a credit card is as a conveience tool. Using a credit card is the safest way to pay for anything, because in the event of a dispute, you can usually have any charge cancelled and the card issuer will investigate on your behalf. If you can have the will power to only spend on you card what you could afford to spend in cash anyway, you'll be fine.

[BiC]

Originally posted by ActorJ:

Like it or not, credit is important in this world. Ripping of the credit card won't do you any favours, there are so MANY things yoiu can't do without a credit card, all of them can be considered descrimination, but ragardless, booking a hotel room is impossible without a card. renting a car. making purchases over the internet.

 

I actually think it's a good think to have the card now. I am 19. I have $2500 in credit card debt. I don't have al that debt because I was irresponsible, mind you, I have it because I used to work contracts, and my industry dried up almost completely several months ago. I was forced to live of my cards until I found a new job. Job market being bad where I live it tooks a looong time.

 

The good news is that with discipline I can have that paid off within 6 months, on acount of the fact that I have a 4.9% interest rate on one of the cards. the bad news is that is still doesn't feel good to carry debt on your shoulders.

 

The proper way to use a credit card is as a conveience tool. Using a credit card is the safest way to pay for anything, because in the event of a dispute, you can usually have any charge cancelled and the card issuer will investigate on your behalf. If you can have the will power to only spend on you card what you could afford to spend in cash anyway, you'll be fine.

Another good rule of thumb that all personal finance books touch on is having an on hand cash reserve of at least 6 months income in case of extreme emergencies- finding yourself out of a job. If you do have 6 months of income saved, you will not find yourself running up any credit cards, paying hundreds of dollars in interest in the end, as you find a new job.

 

Always a great rule to live by, and one my Wife & I are currently working toward.

 

Peace

[Sean Eldon]

save the credit card if you ever plan on touring. only way to survive.

[BillWelcome Home Studios]

Why it sucks being 50 with a credit card....

 

I just dropped $10k on a 42 inch plasma screen, a surround processor, and a DVD/CD/etc etc player.

 

Last month it was a complete Dunlavy surround system (SC IIIs and SC1s and an SC1AV, for those who care) and a Velodyne sub.

 

Now I have to pay for it.

 

The toys only get more expensive.

 

Bill

[BiC]

Originally posted by bpark@prorec.com:

Why it sucks being 50 with a credit card....

 

I just dropped $10k on a 42 inch plasma screen, a surround processor, and a DVD/CD/etc etc player.

 

Last month it was a complete Dunlavy surround system (SC IIIs and SC1s and an SC1AV, for those who care) and a Velodyne sub.

 

Now I have to pay for it.

 

The toys only get more expensive.

 

Bill

Let that be lesson for everyone!

[BiC]

For those who are interested, give me:

 

- Your credit card balance

 

- Your minimum payment

 

- Your interest rate

 

I will then tell you how long it will take you to pay it off if you make the minimum payment. I will also tell you how much interest you will pay in the end.

 

God Bless

[fantasticsound]

Fallacy #1

 

Originally posted by BiC:

Don't necessarily "ditch" the card. Why??? Because you need to begin to build your credit rating. A credit card can be a good thing, as long as you pay it off in full each month. Plus, it is the very first step in building a good credit rating which will allow for lower interest rates on car loans, consumer loans, and mortgages.

If you do not have any credit rating built, you will be charged the highest interest rates possible.

So long as you pay your rent, utilities, and other bills your credit rating will be fine. Credit definitely discriminates against people younger than 25, so you have plenty of time to pay your own way to build a credit rating that will be judged on your payment record.

 

Fallacy #2

 

Originally posted by ActorJ:

Like it or not, credit is important in this world. Ripping of the credit card won't do you any favours, there are so MANY things yoiu can't do without a credit card, all of them can be considered descrimination, but ragardless, booking a hotel room is impossible without a card. renting a car. making purchases over the internet.

Depending on the bank, your debit card, which looks exactly like a credit card, can be used as a credit card even though it still only pulls money from your checking account. That way, it can be used to book hotel rooms, buy airline tickets, and rent cars with no problem.

 

I have some differences of opinion with Nashville financial guru, Dave Ramsey, but you can't argue with the man's credentials. He made millions. Lost it all to credit and living too large. Then pulled himself (and his family) out of it by staying away from credit entirely. Now he's a multi-millionaire again.

 

His advice? Tear up the cards. Use the debit/credit card, check or cash.

 

The only exception Dave allows in his financial world is for house purchases. And he wants people to wait until they have 20% as a down payment. And that should be the only reason you need a credit rating at all.

 

I can tell you I've seen both sides of this and I'm currently digging my way out of a mountain of debt because I strayed from this path. I was out of work for months. (Decided to reduce our day care by watching Lilly vs. taking a job that would barely have covered her expense AND kept me from taking more lucrative, potentially career-beneficial jobs.) We've had some big, unexpected expenses. Unfortunately, we didn't adjust and now I'm paying for it.

 

I only wish I could go back a few years to when we paid off everything. Our only expenses were rent and utilities. Keeping one credit card open was the biggest mistake I've ever made.

[BiC]

Originally posted by fantasticsound:

Fallacy #1

 

Originally posted by BiC:

[qb]Don't necessarily "ditch" the card. Why??? Because you need to begin to build your credit rating. A credit card can be a good thing, as long as you pay it off in full each month. Plus, it is the very first step in building a good credit rating which will allow for lower interest rates on car loans, consumer loans, and mortgages.

If you do not have any credit rating built, you will be charged the highest interest rates possible.

 

So long as you pay your rent, utilities, and other bills your credit rating will be fine. Credit definitely discriminates against people younger than 25, so you have plenty of time to pay your own way to build a credit rating that will be judged on your payment record.

________________________

 

Yes, this is all true. But as in his case, being 17 years old, and probably still at home with his parents, he will have no "real" bills to help build up his credit rating.

 

This is why I advised on keeping the card.

 

Peace

[Mudcat]

Originally posted by fantasticsound:

...I only wish I could go back a few years to when we paid off everything. Our only expenses were rent and utilities. Keeping one credit card open was the biggest mistake I've ever made.

Dave Ramsey

 

Neil,

I am right where you are on this. My family is in a similar situation. We weened ourselves off credit cards at one time and now we can't get back off them.

 

Here's the thing about Dave Ramsey's approach to finance. If you don't start applying it until you are "old" (IE. 25 or older) it is VERY difficult to adapt to and stick with. If you start out while you are "younger" (IE. 17 like our friend, Fred Bear) it should be VERY EASY to stick with.

 

Fred Bear - Check out Dave Ramsey's website. If you do what he says you will never have a problem with debt and in all likelyhood will be able to retire early, even if you become a professional musician.

 

People will think you are weird for not financing anything, but you will get the last laugh when you are able to pay cash for a nice car or a house in a few years. Don't get stuck with the bad financial habits everyone else has just because it's the way everyone else does things.

 

OK - I will step down from the soap box now.

[BiC]

While we are on finances, who here has an IRA, especially a Roth?

 

If you do not, it would be a very smart move for you to get into one ASAP. The sooner you begin, the more $$$ you will have at retirement.

 

For instance, I am 35, and probably looking at around $450,000 from my Roth by the time I retire. If I would have begun my IRA when I was 18, I would have over $1,000,000. That magic of compounding interest.

 

Also, by the time I am at retirement age, that $450,000 will probably be worth what $200,000 is worth today when you factor in inflation.

 

So... GET THE IRA!

[Blue Strat]

Originally posted by BiC:

So... GET THE IRA!

What does the Irish Republican Army have to do with personal finance?

 

I've got an IRA. I started that when I was in high-school.

[BillWelcome Home Studios]

Also, having it and using it are 2 different things.

 

I've been in business for a long time, and I have personal cards, business cards, cards all over the place. Most never get used. I keep a pretty good handle on the debt and I use cards for convenience. I seldom carry that much of a balance, though due to certain circumstances right now I am carrying a larger balance than usual. Still, it is nothing that threatens my security. (and indeed, I felt confident enough about the situation to drop $10k this month on toys.)

 

And that is the big issue. Remember that having credit is not equivalent to having the cash. Having credit is having the ability to owe that much cash. Don't owe more than you can afford to pay.

 

It never hurts to buy a small purchase... maybe a couple of hundred dollars,... and to pay it off. Maybe do one of these a year. This looks good on a credit report.

 

Bill

[fantasticsound]

Originally posted by BiC:

...Yes, this is all true. But as in his case, being 17 years old, and probably still at home with his parents, he will have no "real" bills to help build up his credit rating.

 

This is why I advised on keeping the card.

 

Peace

But unless he's buying a house, he won't need credit.

 

BTW - Mudcat, we really need to get together and talk! Where are you watching fireworks this weekend? Are you planning to hit downtown if the weather turns out to be nice? (Not expected, but... this is Nashville! It's anybody's guess. )

[BiC]

Originally posted by bluestrat:

Originally posted by BiC:

So... GET THE IRA!

What does the Irish Republican Army have to do with personal finance?

 

I've got an IRA. I started that when I was in high-school.

That's great! Is it a Roth?

 

I hope you are able to contribute fully each year, currently $3,000- for age 49 and below.

 

Future contribution limits:

 

The year 2005-2007: $4,000

 

2008: $5,000

 

Then indexed annually in $500 increments for inflation in years 2009+.

 

Peace

[BiC]

Originally posted by fantasticsound:

Originally posted by BiC:

[qb]...Yes, this is all true. But as in his case, being 17 years old, and probably still at home with his parents, he will have no "real" bills to help build up his credit rating.

 

This is why I advised on keeping the card.

 

Peace

But unless he's buying a house, he won't need credit.

 

____________________

 

C'mon now! It's too PREPARE him for when he gets out of the house.

[Mudcat]

Neil - I'm going to the in-laws in the boot-heel of Missouri. A whole lot of flat-land to blow things up in celebration of the 4th.

 

And yes, we do need to get together. - Mudcat

[fantasticsound]

Originally posted by Mudcat:

Neil - I'm going to the in-laws in the boot-heel of Missouri. A whole lot of flat-land to blow things up in celebration of the 4th.

 

And yes, we do need to get together. - Mudcat

Doh! Have a great time blowing up Misery... er, Missouri! I know a lot of folks that would appreciate your Missouri-destruction set.

 

Call me when you get back... or tommorow if you haven't left yet. Gary Musick Company, 259-2400.

[EmptinesOf Youth]

hahahaha....damn i got here tonight and saw 25 replies thinkin it was all about my soon to be guitar...but it wasnt. Im sorry to have wasted your time, i put "credit card" in the title but really its a debit card...so i have the money and already paid for it...my cousin is in debt about $1000 and he doesnt have a good job, i dont think ill ever get a credit card but thanks for the help!

[Dave da Dude]

think DEBIT CARD

 

It looks like a credit card. It works like a credit card. Etc.

 

We have had just as many (more?) problems as everyone else here. We now use the Debit Card almost exclusively.

 

BTW, many (most?) guitar shops will work a layaway for you.

 

Dave's Two Cents

[EmptinesOf Youth]

was that for me?

[Dave da Dude]

Yeah. Or for anyone else who can use my hard earned wisdom

 

BTW, are you the one with the Ibanez SZ520QM? Do you STILL like it best? Where can I find one? I've looked everywhere around here (except Charlotte).

 

Dave