"Maxed out"

[MaryMary]

""Maxed Out," a documentary that opens nationwide next week, examines the dark side of America's love affair with debt."

http://finance.yahoo.com/expert/arti...neyhappy/25516

"Unfortunately, Scurlock never directly addresses the personal-accountability aspect of debt in his film. I was hoping he would ask at least a few hard questions about the consumption choices that lead people into the red.

A lot of people we talked to said, ‘Gee looking back at the level of debt, there should be a Mercedes or a Ferrari in my driveway, but I have nothing to show for it,'" Scurlock says. "Most Americans are very optimistic. They think things will always get better from here, they'll make more money, they won't have any emergencies."

I read with interest comments to this article representing POV from various standpoint. IMO, many people still miss the responsibility part, blaming all banks and financial institutiuons for own mistakes.

[tylianna]

I have no debt... My husband has a car loan. I have NOTHING, no CC no loans, nothing.. Because of our lack of credit, we can't get a house! So, we are told to get a couple of credit cards to build up our credit. ???

[niftyneon99]

tylianna, that is good sound advice. Get a card or two, use them monthly (always pay them off fully each month -and don't max them out) and soon you will see your credit history begin and your score should be good (except for the length of your history, which will be a negative)

[kmmmom]

I have heard that if you go to a lender that does unconventional underwriting, you can get a home loan. That way you don't have to go in to debt to show a credit history. ( This is all a theory to me though since debt is my middle name.)

[MaryMary]

Credit is a tool and before using it people have to know how to and what are the concequences of not complying with terms.
either extremes, maxing it out or not having credit at all, are hurtful.

[MaryMary]

I have heard that if you go to a lender that does unconventional underwriting, you can get a home loan. That way you don't have to go in to debt to show a credit history. ( This is all a theory to me though since debt is my middle name.)

Unconventional underwriting will get you your loan, but not at the best rates.
No one has to go into debt to show credit history: get the card and pay it monthly in full, it wouldn't cost you a penny more then paying cash. All it required from the users side is to have a discipline to use your credit wisely.

[BzyBee]

YGPM tylianna...of course you can get a loan. Sounds like the lenders you have talked to only do automated underwriting....you need it manually underwritten. And you can get the best rates....you may need to pay some additional origination fees upfront. If you want a reference for a lender JLMK.

[MaryMary]

YGPM tylianna...of course you can get a loan. Sounds like the lenders you have talked to only do automated underwriting....you need it manually underwritten. And you can get the best rates....you may need to pay some additional origination fees upfront. If you want a reference for a lender JLMK.

You either pay upfront or they'd roll it into your loan as a higher rate. They also can pile it on the top of your borrowed amount. It cost you more one way or another then if you'd have a credit.

The sooner you'd get unsecured credit card and start making monthly purchases the sooner your credit history will start. Since no good offers might be available to you, ask someone with good credit to co-sign the application.

[BzyBee DH]

You either pay upfront or they'd roll it into your loan as a higher rate. They also can pile it on the top of your borrowed amount. It cost you more one way or another then if you'd have a credit. .

We're talking a couple of hundred dollars here.

Since no good offers might be available to you, ask someone with good credit to co-sign the application.

NO!

[BzyBee DH]

Quotes that I found interesting -

"Other than my mortgage, which is fixed for 30 years at a low interest rate, I don't do debt. No revolving credit card debt, no auto loans, no home equity borrowing. Would I like to bust out the back of my home and create a designer kitchen and family room? You bet. Am I going to sacrifice my children's college savings or retirement goals on the altar of my extreme makeover? No way. "

and

"Here's the other irony: Credit card companies market their products by claiming they offer you a world of choices -- take that dream vacation, buy the 60-inch television. But by steering completely clear of credit card debt and saving on a regular basis over time, I found myself with much richer options -- choices about how I would balance work with family, health, and friendship. That satisfaction is more enduring than anything I could have purchased with plastic."