Why Don't People Manage Debt Better?

Re:Why Don't People Manage Debt Better? by yummyfajitas on Friday February 19, 2016 @10:43AM (#11134086)

Probably "year" is the wrong time period, but lots of people have very volatile income. A consultant can easily have 10x variance in income from month to month. A musician or actor might have 0 gigs one month and 5 gigs the next.

Shortening the time period just lowers the financing costs.

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Re:Why Don't People Manage Debt Better? by carlob on Friday February 19, 2016 @11:29AM (#11134454)

True, but still how many broke musicians and actors should be considering this month's zero income a fluctuation and get into credit card debt and how many should just be more conservative with their spending?

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Re:Why Don't People Manage Debt Better? by yummyfajitas on Friday February 19, 2016 @02:49PM (#11136074)

If you look at my example, the person with peak income of $10 spent a bit under $5.5/month. Both time periods were "fluctuations" from his average income of $5.5.

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Re:Why Don't People Manage Debt Better? by carlob on Friday February 19, 2016 @07:47PM (#11137986)

Yeah but the first one was 1 the second was 10, not the other way around. After one month at 1 how do you know you're going to average out at 5.5?

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