Article: Younger people falling into debt trouble, quickly

Devill said:
+1. I laugh at people that earn mor or less what I do but spend triple what I do on a car / cloths / whatever. These same people can not understand how I can still go for a beer at month end, or buy a steak dinner just before pay day.....
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Agree with you 100%. I'm 27 and debt free (ok I don't own property but that's a different matter) not because I earn a huge salary, I did internship for the last 3.5 years but managed my money properly and lived way within my means. I'm sure that I could easily get a loan for a GTI now but I couldn't care less about the "status" it brings me, rather stick to my little 1L Yaris. That way, you have money for a few beers a month end :D
 
RaptorSA said:
That's utter bull**** dude. I've never had issues getting loans before I even came close to having a credit history. Neither has anyone I know. As long as you prove you have income and you can list your expenses to prove you can cover the repayments you're in. Most don't even check that, especially Cellphone contracts.
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That's utter bull**** dude.
 
Funny that the GTI thing came up.
That's actually the first thing I thought about when reading this. I find that people who can actually afford a GTI without screwing themselves over tend to buy something else anyway.
 
RaptorSA said:
Funny that the GTI thing came up.
That's actually the first thing I thought about when reading this. I find that people who can actually afford a GTI without screwing themselves over tend to buy something else anyway.
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Yes, something more expensive ;)
 
RaptorSA said:
Funny that the GTI thing came up.
That's actually the first thing I thought about when reading this.
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Haha! Same here.
I've looked through the parking lot at work and see:
- 2 Honda Type R's
- 3 GTI's
- 2 Mazda 3 MPS

Then I look at the young people driving them and their positions and find out that they're admin staff who earn R15K to R20K per month (gross).
When I was their age I drove a 1970's VW Beetle.
 
Paul_S said:
Haha! Same here.
I've looked through the parking lot at work and see:
- 2 Honda Type R's
- 3 GTI's
- 2 Mazda 3 MPS

Then I look at the young people driving them and their positions and find out that they're admin staff who earn R15K to R20K per month (gross).
When I was their age I drove a 1970's VW Beetle.
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Wow! Admin staff with those cars and salaries, I want a job at your company! (Currently slaving away only the way to being a chartered accountant)
 
Paul_S said:
Haha! Same here.
I've looked through the parking lot at work and see:
- 2 Honda Type R's
- 3 GTI's
- 2 Mazda 3 MPS

Then I look at the young people driving them and their positions and find out that they're admin staff who earn R15K to R20K per month (gross).
When I was their age I drove a 1970's VW Beetle.
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Exactly.
And no doubt some people would want to attach either an education or racial spin on this but the fact is this mentality has no stereotype.
Had to dissuade a buddy of mine who earns less than I do (and I cringe at the fact that my car takes 9% of my gross salary per month) to not piss away R300K on a freakin' BMW 1 series.
And in his case (being smart, "educated" and all) you should hear the excuses the guy comes up with ("ooh, but it has a service plan etc. etc.")....riiight, blowing R150K more on a ridiculously long term interest infested car loan because your current -almost paid off- RX-8 *MIGHT* develop a R20+K engine fault in future.
Uuugh, the stupidity.
 
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Glad my dad always taught me that money didn't grow on trees, to save and plan, and not to waste......
 
Cube3 said:
Glad my dad always taught me that money didn't grow on trees, to save and plan, and not to waste......
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I tend to waste a lot of money but if there's one thing I hate it's living on credit.
I simply cannot wait for the day my car is paid off and my apartment is settled.
As for those people who like buying things like flat screens etc. on credit... eish!
 
Lupus said:
Yup 5 years ago, I could afford to go overseas for three weeks cause of the savings I had put away. This year I can barely afford to fix my car with the savings I generated.
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Two years ago I easily flew JHB - CPT to see my GF about twice a month..... now doing it once a month as everything (including plane tickets) are crazy expensive.

Macethy said:
Agree with you 100%. I'm 27 and debt free (ok I don't own property but that's a different matter) not because I earn a huge salary, I did internship for the last 3.5 years but managed my money properly and lived way within my means. I'm sure that I could easily get a loan for a GTI now but I couldn't care less about the "status" it brings me, rather stick to my little 1L Yaris. That way, you have money for a few beers a month end :D
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Haha, same. I am 27 and and drive a corsa utility 1.4.... I am happy with it and it has never let me down or cost me a lot to maintain. I also do not pay R1000 for a shirt / shorts. That is silly.
 
RaptorSA said:
Exactly.
.riiight, blowing R150K more on a ridiculously long term interest infested car loan because your current -almost paid off- RX-8 *MIGHT* develop a R20+K engine fault in future.
Uuugh, the stupidity.
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Cash flow... People need the discipline to take that potential car repayment and put it somewhere it earns interest and you can't touch it till you have a R20k+ engine fault...
 
Devill said:
+1.

Id did a few calculations and with the effect of time valued of money worked out that I would have had around 24% more cash in my pocket, after all necessities had been paid, as little as five years ago.
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Yup my personal rate of inflation for monthly running costs including food has been sitting around 18% the past 2 years. In effect I'm taking a 10 -12% pay cut each year this happens.
 
Paul_S said:
Haha! Same here.
I've looked through the parking lot at work and see:
- 2 Honda Type R's
- 3 GTI's
- 2 Mazda 3 MPS

Then I look at the young people driving them and their positions and find out that they're admin staff who earn R15K to R20K per month (gross).
When I was their age I drove a 1970's VW Beetle.
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Im not sure how I feel about this. At 20k, you can easily afford a GTI, but I guess then you lose the possibility of buying a house. So it's a personal choice really. I had the choice a year ago, house or car. I chose house...
 
Jladan said:
Yup my personal rate of inflation for monthly running costs including food has been sitting around 18% the past 2 years. In effect I'm taking a 10 -12% pay cut each year this happens.
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Haha, that's a cynical view:-)
 
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mkhan said:
Im not sure how I feel about this. At 20k, you can easily afford a GTI, but I guess then you lose the possibility of buying a house. So it's a personal choice really. I had the choice a year ago, house or car. I chose house...
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If you're living with your folks.
 
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