Do you ever wonder how some people are able to buy some of the things they buy with normal or below normal incomes?

CHOPTALK · Jun 6, 2011

I was talking to a car salesman friend of mine yesterday who told me he regularly sells 40K SUV's to people who make less then 35K a year.

How in the hell!

I see people all the time who make very average income with a 250K house, and 2 car payments of at least $400 each.

How do people live like this?

It must be miserable to have your whole paycheck spent the day you get it with no disposable income.

But these very people will go out to eat 4 or 5 times a week spending $30 or $40 per head, in there 40K SUV, and going home to there 250K house making 50K a year.

Then its on to the 5K vacation.

I cant comprehend it.

BestPlay2day · Jun 6, 2011

Probably have every credit card maxed out and are close to filing bankrupcy. Also, not putting any money away for retirement. Lots of people think they need to keep up with the Jones' and have everything like people who are rich.

wolfie_cr · Jun 6, 2011

One of the (many) things I found interesting or downright bizarre about the US.....is how you guys can file for bankruptcy and keep your HOUSE , to me bankrupt means that you absolutely cant pay crap , having a house that you could sell or give me as partial payment.........doesn't sound to me like bankrupt.

Agree with bestplay2day about not saving for retirement, for as much as I absolutely hate nanny states..............its obvious that for a lot of people, if they werent forced to save something (think Social Security) they would just get to 70 years old with absolutely nothing

Besides think about this , they don't see it as a 40k debt, they see it as a lease or something where they just pay 300 or 400 dollars per month, even if they end up 4 years late owning nothing and just go into another lease.

CHOPTALK · Jun 6, 2011

Its not about the toys, its about the freedom.
This my way of thinking.

Betallsports · Jun 6, 2011

Umm, they could be making money illegally ??

Gambling

selling Drugs ? Stealing ?

Willie99 · Jun 6, 2011

leasing? keeps the monthly payment way down

home equity lines of credit

old money

or, their car is their only asset

wolfie_cr · Jun 6, 2011

CHOPTALK said:
Its not about the toys, its about the freedom.
This my way of thinking.

They have freedom, freedom to have all the toys they (think they) want

mr21 · Jun 6, 2011

I see this all the time but the giveaway is $8K rims on the vehicle also to show everyone how "rich" they are. Don't forget it also costs $100 to fill up these SUVs

My guess:

- they are on public assistance but also work for cash (under the table) and/or commit crimes

- have 4 families living in a single family house

5teamparlay · Jun 6, 2011

Mommy and Daddy help one way or another...

celticGreen+ · Jun 6, 2011

5teamparlay said:
Mommy and Daddy help one way or another...

i think this is much more common than we may think

bigtendominator · Jun 6, 2011

Chop,

I actually wonder this all the time. When I lived in LA, used to try and figure out, how are these people paying for their homes, these urban assault vehicles they drive around in.

Amazes me all the time.

buddyboy · Jun 6, 2011

I read a report recently that claims the majority of Americans could not raise $2000 cash within 30 days to pay an unexpected bill.

that is pretty scary.

Relentless · Jun 6, 2011

i'd have way more money to spend if I wasn't planning on living past 60. Most of these people are not saving anything and dont compute the fact that they will need to live for a long time without any income coming in if they plan on retiring.

Lately, I'm getting pretty annoyed at this people too because with all their spending they drive up the prices on a lot of things.

gynecologist · Jun 6, 2011

Good question.. People living beyond their means and wanting to have a nice car to show off...

DollarDay · Jun 6, 2011

How do people live like this?

Simple - they get their toys and don't pay for them.

If you ever have a chance take a look at the major bank's charge-off's.

IIRC the last number I saw was that Citibank charged-off $6 BILLION just in credit cards alone .... not to mention installment loans (auto, etc), Demand Deposit Account (DDA - checking accts overdraft), etc.

My agency is now considered a "mid-size" agency. Since I opened my company back in 2005 I've had over $5 BILLION dollars placed for collections. The most recent full year number I had was in 2010 where I had just shy of $2 BILLION placed. By the end of the 2011 year I expect to cross that $2 BILLION mark.

The amount of bad debt generated is beyond insane when you look at it.

FaderWilliams · Jun 6, 2011

they pay cash for things. mostly waiting for large purchases until they can afford instead of borrowing money.

RenoChazz · Jun 6, 2011

Fader Williams said:
they pay cash for things. mostly waiting for large purchases until they can afford instead of borrowing money.

Yep thats how I do it I save, I don't make much but I have almost zero debt

artiesliver · Jun 6, 2011

baccy said:
How do people live like this?

Simple - they get their toys and don't pay for them.

If you ever have a chance take a look at the major bank's charge-off's.

IIRC the last number I saw was that Citibank charged-off $6 BILLION just in credit cards alone .... not to mention installment loans (auto, etc), Demand Deposit Account (DDA - checking accts overdraft), etc.

My agency is now considered a "mid-size" agency. Since I opened my company back in 2005 I've had over $5 BILLION dollars placed for collections. The most recent full year number I had was in 2010 where I had just shy of $2 BILLION placed. By the end of the 2011 year I expect to cross that $2 BILLION mark.

The amount of bad debt generated is beyond insane when you look at it.

This is the primary means for their spending....not paying.

Occasionally, someone may have a settlement or inheritance, but in the latter case, they likely aren't spending it on $8K rims.

Also, I would guess a lot of people earn money "under the table."

Do you ever wonder how some people are able to buy some of the things they buy with normal or below normal incomes?

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