Median Family Income

[Nitehawk013]

I think the more telling number whenit comes to how well a family is doing finacially is not incmoe, but rather the families debt/income ratio. I don't know very many peopel at all who have legitimate income problems. I know a multitude however that can't make ends meet because they ran up debt problems.

[KWSS1976]

Well see whos shoulders should it fall on I mean when you apply for credit for something they look at you debt/income ratio so what happens when they approve you cause your debt/income ratio was good but your still not able to make ends meet.

[ILG]

Originally Posted by KWSS1976

Well see whos shoulders should it fall on I mean when you apply for credit for something they look at you debt/income ratio so what happens when they approve you cause your debt/income ratio was good but your still not able to make ends meet.

Are you saying you are not responsible for your decisions?

[Nitehawk013]

I'm a big fan of personal responsibility. You dig your own holes, you should climb your own way out.

Our society has grown more and more weak towards making people pay for their own stupidity and it has created an environment of laziness and feelinglike the Fed should just bail out everyone. Everyone expects someone else to pay for them when they get buried in debt.

You get a mortgage, you are responsible to pay your mortgage. If you can't...you lose your house. It's no ones fault but your own. No one held a gun to ones head and demanded they sign the papers to take on the loan. No one demanded you buy a couple new vehicles. No one demanded you get multiple credit cards and run them up to max. No one demanded you buy lots of "toys" on credit or "rent-to-own". We make our own choices, and even if they are dumb and get us in lots of trouble, we will never learn our lesson if someone else bails us out.

[KWSS1976]

No not saying that but if you cannot afford it the people you are trying to borrow from should see that and not approve you.

[missourimary]

Of course, you should know you can't afford something and refrain from attempting to purchase it, too, rather than letting someone else decide your budget for you...

However, sometimes people get so far in the hole they can't get out on their own. Many times surprise bills take a person down. (Many people who I've known to file bankruptcy were deeply in debt for medical expenses, for instance.)

I think both businesses and individuals need to be more responsible both for their borrowing and lending.

[missourimary]

I ran into something odd with two major purchases. The first was a mortgage. I asked the bank if they would lend me x amount. They said yes. I refused to let them tell me my limit. So my realtor called them and got the limit anyway, then pushed me to buy the biggest house I could afford. I never went back to that realtor. But I have to admit, it was quite an ego burst to find out how very much they would have leant me.

The second was another large purchase. I told the loan company to push the loan thorugh before I lost my job. And they did. I almost went under as a result. Both me and the loan company should have known better.

[Nitehawk013]

I see no reason to put the blame on the mortgage companies or banks. You are the one and I am the one responsible for our decisions. If we bit eoff more than we can chew....we are the ones who should have to choke on it.

[missourimary]

Originally Posted by Nitehawk013

I see no reason to put the blame on the mortgage companies or banks. You are the one and I am the one responsible for our decisions. If we bit eoff more than we can chew....we are the ones who should have to choke on it.

Yes, but some mortgage companies failed to explain mortgages to people. They said their loan would be, say $600/mo. And the buyer said that was fine, because their rent was almost that. So they get their first statement, and discover the loan of $600 is really $850-the $600 is before PMI, taxes, and insurance! They also forgot to calculate in some other minor expenses... they would be responsible for the $900 plumber bill when the water heater went out, and the $750 for electrical repairs when the tree fell on their power line during an ice storm, for instance... Ask, and you should be told these things. Fail to ask, accept the initial word from the bank, and you will end up with major trouble. If you are going to place full responsibility on the individuals, then every individual should be required to spend an hour with a financial advisor (from an outside agency) before signing a mortgage or making any other major purchase.

Think about it. We have people in the US that believe everything they read in The National Enquirer or that comes through on their e-mail. They fall for Nigerian scams and give information to toner-phoners. How can we expect them to check the specifics of a loan, when a bank or realtor said thus-and-so?

[Hoovie]

Net worth numbers rarely speak much of ones income, but most always speaks of ones planning, frugality and management skills. (unless big money is inherited)

Income only speaks of potential.