People are Still Hanging On

I agree.  There's problem all around.  I'm thinking of going to Portland.  WA real estate is still out of my price range and for what I could possibly get there vs here we could work on a single income instead of my wife working so she can take care of the baby.

Everyone who I knew in the 70's that relocated out of state found it VERY difficult to get jobs. People hired who they knew, and that's life. Watchout. You don't have a 'network' to where you move.

I feel you Debts..some of this is just plain sad.  This weekend I'm probably going to advise my best friend that she might be better allowing her home to foreclose than to continue struggling to pay on the *interest only* loan that she has.  Renting something similar would cost her 900-1000$ a month less.  She and her husband are not paying down principal and are probably 25% (60-70k) underwater right now.  The bank won't consider a refi into something amortizing because they're upside down.  I don't see any other way out for them.  They're bleeding their savings away....

bette... i had heard (a couple of years ago), 20k/household. but that might have included student loans...

Jesse Ventura said the other day that every child born in the usa right now owes $30K upon their first breathe.  I love watching him speak. I find truth and validity, not a polished politician, that is quite refreshing. Hard to believe I connect with any pro wrestler. lol

My sister in law just moved in with the mother in law with her hub and 4 kids.......we will continue to see people doubling up and consolidating just to keep a roof over their heads.   I hear the stories from my mom and some of the young women she works around.....it is very sad, esp for the ones that felt they needed to move further out to the burbs to afford a decent house for their family and now the commute is killing them because of gas prices.   The dominos will continue to fall for sure.

The avg debt is a high amount compared to the avg income.   Just a few years ago I was lamenting to the hub about getting rid of all our debt and he took the stance that America is in debt, it isn't a big deal, it is how it is--it was his way to rationalize how we spent money when we had it.....then the economy started to tank, we took a huge loss on the house and I read Dave Ramsey's book and now he has seen the light and the destructive nature of debt.  Thus far this year we have managed to pay off his car (2 years eary)  and three credit cards.....something we could have done in years past but we always managed to find other ways to spend the tax refund or his bonuses on: like improvements on the house which is where most of it went, and now we see how wasteful that was.   Renting is a great way to keep us from spending money on "a house" and getting us fiscally fit.     

Consumer debt is a real problem in this country.  I honestly hope that this site helps to get the word out concerning that issue through the sharing of experience, like 3Girls' post above.

The sad part of consumer debt right now is that people have few avenues with regards to controlling it unless they have the financial means and credit score to negotiate,  the banks are suffering right now and eager to offset the write downs on mortgages so they are hiking up interest rates and fees galore....so those that are pressed will be pushed further and futher into a hole, and there is no "out" anymore for that consumer debt and they can actual garnish your wages for that debt.  I think if more people understood that you can't just walk away from that type of debt cause essentially credit card debt is unsecured and they will do what they can to get it from you and it is set up to have you paying until you leave this earth.  

My days of having envy are so over.   I know that the big house isn't always worth it, the fancy car is a money drain as well, I wasted so much money in years past with things that I thought would bring me happiness but all they did was bring me headaches and drain my wallet......money doesn't buy happiness--sadly you can only truly learn this until you learn it yourself.  I am blessed my hub makes a good living, but I find myself constantly thinking about those who are being burned by the turn of events in the economy.   Sadly it will be the kids who suffer the most. 

And by the way....the new anniversary ring I got......it was really an exchange--got rid of jewelry I didn't like or wear and got something I would wear and love, it makes it all the more sweeter. 

Wow these stories are really sad.   3Girls as usual I agree with all your points.  Happy Anniversery!  My 9 year is today.  Can't believe it has been that long. 

Where I live the pain is just barely getting started.  I see a few houses in distress but most people are doing pretty well.   I can't help but think this is just the beginning and there is so much more to come.  I have decided to read books that teach not to worry so much about "things" and more about living in the present and appreciating what we have.  

I'm 30 years old, and where I grew up there is a heavy stigmata on anything but detached homes.  I only have 1 friend that owns, the rest rent.  I'm the unofficial money/finance/real estate guru for a pretty decent size group of urban professionals. 

Most of them have little to no savings and quite a bit of credit card debt.  All of them have been to a tropical island in the last 3-5 years, some of the multiple times.  Among 30-50 people I interact with on a semi regular basis, I'm easily the most financially secure, having owned previously, decent savings, job that pays 2x what some of them get paid, no debt.  I can't afford a detached home in my area, by a wide margin.

My unofficial observation is that my generation is completely and totally unprepared for financial responsibility.  The few that own are in tiny condo's that will be hard to sell with 95-100% loans, or had their parents cash out a huge down payment.  Its bad now...but as my generation hits the prime buying age (I believe its 34-35) its going to be even worse.

".....we will continue to see people doubling up and consolidating just to keep a roof over their heads."

Very very true.  That's why both housing and rental prices will decrease.  People are battening down.  They don't care how much space they have, they're in survivalist mode.  Heck, one of the reasons I'm renting a 3br house is in case I needed the extra cash per month in which case I could rent them out.

If you think there are too many houses now, just wait til everybody starts consolidating even more.

PC... so true. I fully expect my children and grandchildren to be living with us. I doubt things will blow over until at least my oldest (14) makes me a grandmother and stays living with us! lol

A friend of mine has a small 3 bdr condo... Her daughter moved back in with fiance in tow, and now she's going to be a grandmother. They will then have 3 generations living under one roof.

Did you know the X generation was the longest time in recorded history to live with their parents?

A friend of mine has a small 3 bdr condo... Her daughter moved back in with fiance in tow, and now she's going to be a grandmother. They will then have 3 generations living under one roof.

This sounds like the living conditions in 3rd world countries.  In those countries there are much closer family relationships between the generations.  Maybe it is a good thing that Americans are living closer and building those relationships.  That is the positive side to all this. 

Pcmodem: I see the same thing in the circles I am in, I am also amazed at how many people do not contribute to a retirement fund of any kind!! In fact, there was an article about a CA couple who were both REAs and their downfall and eventual foreclosure of their home and what amazed me is how much they earned and what their net income was......my income wasn't far from theirs and my take home pay was way less, people seem to feel that paying for the now is more important than health insurance or savings of any kind.   At the minimum if all heck broke loose we would cash out the retirement fund and could be 100% debt free and still have cash to live on for 6 months, even with penalities......but there would have to be something worse for me to go there.   You can't tell me that the guy living up the street can really afford that Range Rover that is $75K....the magician is about to loose all his tricks. 

I mentioned this in another thread, but my mother is planning on living with us when she retires so that she can maintain a closer relationship with the kids and the same lifestyle she is used to.  My Aunt & Uncle are likely to live with us for a few months in the summer and spend the rest in Miami in a condo they will inherit when my Uncle's mother passes away (she is 97).   Now my brother is feeling the need to be closer to family now that he is divorced with 2 kids.....thinks his wife will give him custody since she isn't really the mothering type......we have considered finding a property that has a seperate guest house/basement to house us all.....that could potentially be 4 families consolidated.....and there isn't a financial reason really for it, we are just starting to see that the seperation is hard on families and how it would be so wonderful for our kids to come home from school and have this wealth of wisdom and love surrounding them. 

3Girls, its interesting that once you are out of the envy/debt/materialism cycle it is so easy to see what is going on with others comsumption choices (e.g. the range rover).  While you are in it though, nothing anyone can say will convince you that you are making bad choices.  

The guy with the range rover I am sure feels completely justified, and thinks that others with range rovers are genuinely rich, not debt serfs.

But once you are on the outside, you can totally see what is going on.

These are all people that need help and don't know where to go or what to do.

What your saying in short is ...

They didnt save, they didnt live below their means, and now they are asking

other who for years  who did save and lived below their means for to help pay someone elses debt!

That is what I see in your statement... I say NO! I will not pay for someone elses mistakes...

So be it! 

So true, he drives around like he is some hot shot and everyone must envy him.....if he only knew that when we see him my hub and I just chuckle and think of what a stupid arse he really looks like to us.....but for every person who looks at it like I do there is that person who wants it and will do whatever it takes to have it.     Your so right about not seeing the wart on the end of your nose though......when I first got rid of the $50K SUV and the $700 per month payment, I felt a little downgraded, though I never admitted it to anyone, even though I pushed to get rid of it, it was weird at first, I even remember thinking about what others would think and how I felt different driving the van again......it was short lived thankfully!  

I haven't asked anyone to bail me out or pay my debt......I shouldn't be asked by anyone including my gov't to ask me to do that for others.