Quote:
Originally Posted by crockett
That is not forced on anyone, that is their choice. If people continue to buy houses and things which they can't afford then there will continue to be a problem.
You can choose to live with in your means and have money set aside for bad times or you can live pay check to pay check working as a slave to pay for shit you can't afford.
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When I bought my house I qualified for a much larger loan. I bought a five bedroom house for the three of us, and that was plenty. It was one of five model homes here. I surely wasn't living paycheck to paycheck; I was tucking away money into savings every month - and not small amounts either. When I was unemployed and the recession hit, I was fucked. My saving grace was the money we had put into savings.
On the other hand, I did have friends here in town who continued to re-fiance their house through the boom. Every time their house went up in value, they took more money out. they didn't make much money, maybe $75k combined. Yet he had a really nice brand new truck, a boat, a motorcycle, a jeep, jet skis, and ATVs. When the recession his he lost his job. They tried to sell everything, but during the recession no one was interested in paying a decent price for someone's used toys. They eventually lost their house.