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Northwest Voices | Crunchtime for real debt | Seattle Times Newspaper
Crunchtime for real debt
Posted by Letters editor
Reichert: 'Do your job'

Debt is money. Without debt, nobody could buy a home and most of us could not buy a car - two of the largest purchases made by individuals.

My personal debt for these types of loans equals about four times my annual earnings, and has for more than 35 years of my adult life. There need not be any concern about our nation carrying debt of equivalent or smaller proportions ["Mad scramble for debt deal," page one, July 28].

A balanced-budget amendment would eliminate the possibility of planning for the national defense, for infrastructure, for emergency relief and for a host of other governmental functions we depend on.

Congressman Dave Reichert incurred our national debt on behalf of the American people, and now he is obliged to raise the funds to pay for it. It's not like the president is asking him to spend money he did not approve - for two wars, for tax cuts, for a Medicare drug benefit and for Social Security and Medicare/Medicaid.

We gave Reichert the power to incur the debt and to spend the money. He needs to do his job.

- Greg Priestley, Renton
 

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The guy carries 4 time earnings on car/house!?!? No wonder he has no problem with the enormous national debt.
When I was younger and bought my house/car, I'd do a stretch and go 2.5x earnings total. Now, I won't exceed 1x earnings.
 

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Discussion Starter · #3 ·
Maybe the guy should be told that we're already 4x past our government's income. Tax revenue is expected to be $2.3 trillion and our debt is officially $14 trillion.
 

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If that guy pays 40% of his income toward interest payments (like the US govt does), he'll be in bankruptcy soon -- then guess who picks up his bills. :mad: Of course, the US govt is gonna bankruppt us, our kids, and our grandkids if we don't stop this crap right now.

I'd bet a hundred bucks he's a demmocrap.
 

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performing monkey
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guess that's why I'm considered 'poor'; I have the ONE thing worse than Bad Credit... NO Credit :eek: due to paying cash and utilizing owner financing &/or amortization deals.
 

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When I was younger and bought my house/car, I'd do a stretch and go 2.5x earnings total. Now, I won't exceed 1x earnings.
Ditto here. At the time I bought my house 2.5 X gross pay was the absolute most the banks would lend and most wanted it closer to 2 X gross. I researched the heck out of mortgages and the types and figured out all my expenses and determined what I felt I could afford and refused to go over that.

Over the years we've gotten it down to well under 1 X and in a few years more will have it down to none.

Unfortunately that guy's letter is probably how most people think, and probably where they are at in finances too.
 

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Aesops Ant (not Aunt)
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I agree, for the most part, with everything above. Still, I own two homes with a total debt on those homes at near 4x my yearly earnings. Their actual current market value would be about 3x-3.5x yearly earnings... to me, THAT is my problem -- not the debt per se. A couple years ago those two homes were worth probably 5.5x-6x and appreciating at a good clip. I am currently able to make payments on both only because one was (just went vacant)rented out for 142% (or close to that) of my payments on it.
 

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Northwest Voices | Crunchtime for real debt | Seattle Times Newspaper
Crunchtime for real debt
Posted by Letters editor
Reichert: 'Do your job'

Debt is money. Without debt, nobody could buy a home and most of us could not buy a car - two of the largest purchases made by individuals.

My personal debt for these types of loans equals about four times my annual earnings, and has for more than 35 years of my adult life. There need not be any concern about our nation carrying debt of equivalent or smaller proportions ["Mad scramble for debt deal," page one, July 28].

A balanced-budget amendment would eliminate the possibility of planning for the national defense, for infrastructure, for emergency relief and for a host of other governmental functions we depend on.

Congressman Dave Reichert incurred our national debt on behalf of the American people, and now he is obliged to raise the funds to pay for it. It's not like the president is asking him to spend money he did not approve - for two wars, for tax cuts, for a Medicare drug benefit and for Social Security and Medicare/Medicaid.

We gave Reichert the power to incur the debt and to spend the money. He needs to do his job.

- Greg Priestley, Renton
Am I missing something here?? When you can't even pay the interest on that debt, and are borrowing to just pay interest on that debt, which in my day was called 'check kiting', then WE don't need to increase that credit card for our nation!!!
 

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Seeking The Truth
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LOL,we keep giving money to these crooks who have already 'lost'TWO TRILLION DOLLARS! How do you lose two trillion bucks?
They put most of the middle class in the poor house,made billionaires multi-billionaires ,put radicals in college and new homes and business's with what was left of the peopels revenue and now they want to put this nation into more dept? Bring in the rest of the third world and their large families while they tell us to suck it up and learn to live like the rest of the world.I see none mention the trillions it cost to keep up or totally support the poor and their offspring,most of which have never paid into anything for generations.Its SSI this and Medicare that,yet we paid all our lives sometimes 1000s a month jus in taxes alone!Like your auto or home insurence your forced to pay,same with our 'retirement'insurence by law we had to pay,now that too is given to those who never paid into it.
Well I thought our ancesters took us all out of that kind of living arrangement.
Ask the masers to take a damn cut in their pay and pay for their own damn healthcare [that by the way they will keep and forgo obamacare.]
 

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we own our home. we own our car. we have piece of land with an old house on it. we owe 10,000 on our truck. the rent from the house pays the truck. basically everything I have is mine. :2thumb: no one can come a take it. we worked hard and went without to do this. I made our clothes. DH made our furniture. we fixed for ourselves the thing that broke. i don't mean to brag but it can be done. right now dh is not working due to a heart attack. and wont be able to go back for another two or three months. we are living off what we saved. and now we pray a lot. we will make no matter what. we have been poor and without before it won't hurt us to do it again. we spend only what we make (minus savings). perhaps I need to run the budget!!!!:wave:
 

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we need to giving to other countries and take care of our own people. we have people that are starving. why send it Africa. we have people that need meds, use our taxes to pay for their meds not send the meds overseas. charity states at home. sometimes even for those who we don't feel need it. i would rather give my taxes (if i must pay them) to my fellow Americans before any foreigners.
 

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While I would agree that without debt most could not own a car or house...
DEBT IS NOT MONEY.
Debt is debt. A negative. A liabilty. Not money.
If you put down 20k on a 100k house, you are 80k in the hole, discounting interest. How is that money?
I will repeat what I said here:
The PTB have done everything they can to blur the concept of money that we are becoming blind to it.

Debt is money? Really?
But this just shows that congress is an extension of the people. Because debt is money, why shouldnt everyone be in debt?
So the oligarchs can own everything when noone can pay it back.
 

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Seeking The Truth
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we own our home. we own our car. we have piece of land with an old house on it. we owe 10,000 on our truck. the rent from the house pays the truck. basically everything I have is mine. :2thumb: no one can come a take it. we worked hard and went without to do this. I made our clothes. DH made our furniture. we fixed for ourselves the thing that broke. i don't mean to brag but it can be done. right now dh is not working due to a heart attack. and wont be able to go back for another two or three months. we are living off what we saved. and now we pray a lot. we will make no matter what. we have been poor and without before it won't hurt us to do it again. we spend only what we make (minus savings). perhaps I need to run the budget!!!!:wave:
The gov owns all our property,try not payng them taxes and see.We'r all one tax default away from the street.
We did the same thing,worked,saved and lived very very conservative.Finally built a small 3 room cracker house with attic,they said it was a bedroom.Our well water is warm in summer because they want $400 extra tax if we cover it with tarp or tin.
 

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The wanderer
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Well, and the person quoted in the original post has been paying on a mortgage for over 35 years? Hopefully not the same house with the original mortgage. Something's wrong if it is!

Notice when the news stories report on "what won't get paid and what will" and in what order if we pass the deadline, it's always about Social Security, entitlements (welfare/food stamps) and the soldiers' pay. How come it isn't "well, we'll stop sending millions--nay, BILLIONS overseas to help other countries" for a while, and help our own!!!
 

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Seeking The Truth
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Well, and the person quoted in the original post has been paying on a mortgage for over 35 years? Hopefully not the same house with the original mortgage. Something's wrong if it is!

Notice when the news stories report on "what won't get paid and what will" and in what order if we pass the deadline, it's always about Social Security, entitlements (welfare/food stamps) and the soldiers' pay. How come it isn't "well, we'll stop sending millions--nay, BILLIONS overseas to help other countries" for a while, and help our own!!!
Took the terrorist off the watch list and put veterans on it , along with christian gun clingers.
I had one of those so caled peacenic stick their anti-war head in my car windon when my sn was in iraq,I rolled it up on the fool, of course he moved his head. I was giving the officers hell about those shots they were about to give him,of course he got mad about me calling his commanding officer,but they did'nt give him the smallpox shot,so it worked,too bad he got the amtrax crap though,could'nt stop those.
They don't care about our troops,they just hate America.I'm anti war too but because I do care,not because I love the UN or fems,libs and other nuts.
 

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While I would agree that without debt most could not own a car or house...
DEBT IS NOT MONEY.
It is perfectly feasible to buy a car without debt, it may not be a new car, but a car nonetheless. It hurts more to save & pay cash upfront & the amount of money your willing to shell out paying cash isn't as sexy as the one you just have to sign for. It can be done.

Debt is a snowball. When you buy a car with debt, you pay more for it which leaves you less money to save to buy a house. When you buy a house on credit, you end up paying at least twice as much for it because of the interest, which is money that could've been used to purchase other things or even invest.:dunno:
 

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The OP has it backwards - MONEY is DEBT!! Has been since the beginning of fiat money. But it is NOT a good thing. We as a nation should have a balanced budget - no huge interest payments to China or anyone else. Debt is leverage - and the Third World has us in a headlock.

I have no mortgage - bought my little slice of Suburban Heck with cash, via getting a piece of my 'inheritance' early. I do pay Dad back each month - gentleman's agreement, nothing on paper and the deed in MY name. I get it all back when he passes on.
My only large 'debt' is my van, hopefully to be paid off in two years. I do have one credit card, with a small limit and I pay it off each month. I find there are times when a CC is very helpful, even necessary - but like any tool, it must be used carefully.
 

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It is perfectly feasible to buy a car without debt, it may not be a new car, but a car nonetheless. It hurts more to save & pay cash upfront & the amount of money your willing to shell out paying cash isn't as sexy as the one you just have to sign for.
You nailed it.

For most, writing the $20K check is hard to do. Signing a piece of paper that says you'll promise to pay $400 a month for 5 years is easy.
 
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