Re:The Surprising Ease of Plain Text Accounting
by infinite8s on Tuesday July 19, 2016 @09:47AM
(#12121697)
You are forgetting about the easy access to credit. Most people not only live at their means but way over it because of credit card debt. I can't find the link but there was a survey recently where over 50% of respondents said they'd be hard pressed to come up with $500 for an emergency.
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Re:The Surprising Ease of Plain Text Accounting
by nommm-nommm on Tuesday July 19, 2016 @12:10PM
(#12122552)
The thing about credit too - it can by manipulated to make someone feel like they can afford something when they really can't. If you stretch a car loan out for 8-10 years and only look at $200/month it looks like you can afford it, you don't think "I will be in car debt for the rest of my life." Repeat this a few times because each time it also appears affordable. Now you have no savings and are living paycheck to paycheck and can't get out of the debt cycle. You have some unexpected expense (furnace goes) and suddenly you are in massive financial trouble. This can sneak up on you if you aren't careful.