Figures provided by FICO Inc. show that 25.5 percent of consumers — nearly 43.4 million people — now have a credit score of 599 or below, marking them as poor risks for lenders. It's unlikely they will be able to get credit cards, auto loans or mortgages under the tighter lending standards banks now use.The unemployment rate is only around 10%, so this isn't just people out of work. And there are situations where people have emergencies that get them under water. But I look around at all the people driving new cars and trucks, talking on i-Phones, buying daily lattes, and I'm sure you can add to the list.
People seem to forget the advice that David Copperfield got from Mr. Micawber.
"My other piece of advice, Copperfield," said Mr Micawber, "you know. Annual income twenty pounds, annual expenditure nineteen nineteen six, results happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. . . "***Of course, Mr. Micawber knew this well because he was just out of debtors' prison.
There are lots of ways to get by for much less. As Micawber's advice suggests, it's not just poor people who are in debt, but people at all levels spending more than they take in.
To help such people, I would note that there is a fair amount of free entertainment in Anchorage these days.
At the University of Alaska Anchorage's Summer 2010 Author Readings various authors from Alaska and beyond are giving readings from their work. It goes on for another week. Details are in the link above. The parking at the University for summer evenings is free. But walk or bike if you can and save on your gas bill. Here are the speakers for the rest of the event.
An evening with Red Hen Press (Los Angeles)Careful, the rooms and times change.
Alaskan poet Peggy Shumaker and Kate Gale, founder, Red Hen Press
Thursday, July 15, 8 p.m
UAA Fine Arts, room 150
MFA Students open-mic reading
Friday, July 16, 9-11 p.m.
UAA Gorsuch Commons, room 106
Special event: "Things I Didn't Know I Loved"
Saturday, July 17, 8 p.m.
UAA Rasmuson Hall, room 101
Nancy Lord and Valerie Miner
Sunday, July 18, 8 p.m.
UAA Fine Arts, room 150
Anne Caston, Rich Chiappone and Sherry Simpson
Monday, July 19, 8 p.m.
UAA Fine Arts, room 150
Jo-Ann Mapson, Derick Burleson and David Stevenson
Tuesday, July 20, 8 p.m.
UAA Fine Arts, room 150
And Sunday I saw the World Cup final game free at the Bear Tooth.
The Anchorage Press is also free and has long lists of events going on in town and how much they all cost.
I imagine that students these days who face impossible college bills and graduate with $20,000 or more debt might simply give up on trying to save. Many of them grew up without having to scrimp to get by and never learned how.
Doughroller has 75 tips for saving money.
*** From Wikipedia, before the British went to the decimal system in 1971:
the pound was divided into 20 shillings and each shilling into 12 pence, making 240 pence to the pound.
I just don't understand why people spend so much either.
ReplyDeleteHave you checked out the average individual credit card debt? wow
I was reprimanded once for purchasing everything in cash, by a financial advisor no less. This was before he knew my main source of income comes from commerical fishing. My house, car, motorcycle and college tuition was paid in cash, by the age of 24. He was really in my face. Weird.
24 years later, everything is still paid for in cash. Same house, the car and motorcycle are still running and used. But I now have a credit card.
My wedding was paid for in cash!
All my neibors are huge consumers. Newest car, freezer, phone, fence, kid toys, ... Always the latest greatest. Along with massive credit card debt.
It has only been the past couple years, that I have not been the butt end of their jokes. Love for my classic motorcycle, forever running SAAB and minimal
lifestyle is now expressed. Kinda nice.
Now I joke about how I paid for the birth of my sons with cash.
My father and mother paid me money for every good grade on college. I had to produce the report card and they paid on a sliding scale. A grade "A" was worth $200 ! Such a move taught me so much. I learned after a few semesters to save the money till the next semester to use for purchasing books.
I enjoy cold hard cash. My sweetie is quite apt at coupons and finding deals. With the onset of the Internet doing such has been eaiser for him. He really enjoys it. You have to, to be good at it.
This is America: the time of watching tv worths more than clipping a coupon or getting a better deal.
ReplyDeleteI would have to agree. Our society is so centered on consuming ... in so many ways. My house has FIVE light bulbs above each bathroom vanity! I just unscrew them all but one ... and shut off lights not in use ..that have been replaced with compact fluorescents. My Chugach Electric bills have gone down by two thirds! I have not filled up my (old!) car's gas tank since the end of May ... I bike everywhere for all my errands and shopping. No Lattes, no TV. I find this lifestyle much more fun than hopping into my car to make silly purchases here and there. Granted, my neighbors probably think I am a bit odd ... but do I really care? NO!
ReplyDeleteMy children do have a tough time saying no to things that everybody else has. As teenagers, they have grown up during a VERY affluent period and they do not really understand the value or point of saving when they see so much abundance around them. I hope they will learn eventally that a light footprint is a good thing.
Jessica