Can ANY debt be good, preparedness wise? Some, and short term only, but it is another tool in the box if it must be used. Now, I’ve been yet another indistinguishable voice in the multitudes telling you to get out of debt. If you are out of debt you are free. If you are out of debt you can actually survive unemployment. If you are out of debt you have actual spending cash to buy preps with. If you are in debt, and they change the law-which they can and do, at their pleasure-you could see the return of debtors prisons. I’m sure Homey don’t want that!
And not only have I agreed that you really need to get out of debt, along with all others dispensing advice like it’s a Pez candy, I go one step further and tell you all debt means exactly just that. No. Friggin. Debt. That means no mortgage and no car. When I worked and was in debt ( child support-but still a pernicious debt that if not paid immediately and with the proper attitude will result in butt humping bubbas in prison ), I couldn’t get much past three months of wages saved. Once I was completely out of debt it was easy to save a year ( and now that I don’t work a day job, living on almost nothing, that same amount is three years wages saved ).
Why am I so worried about saving money? It replaced credit cards for emergencies. And what does a emergency fund on a credit card get you? More debt. By saving the money instead, you get a savings account AND an emergency fund. See how fun and easy being completely out of debt can be? And with no debt, so nothing bad on my record, I get a debit card so I’m attached to the financial grid ( not that this is hard anymore, with pre-paid cards, but I don’t get jacked with fees ). I have a near religious zeal about having zero debt. Now, that said, you ain’t me and I wouldn’t wanna be you, mostly because I already was. No repeats, please!
You might be in so much debt that you can never get out. Giving the throwaway advice to Get Out Of Debt might be pertinent only if you lived on another planet and so I might as well have said something as equally silly as “have a year of food”. Okay, I’m kinda kidding. But, seriously, the average Joe will be in debt until they die and even Social Security, assuming it is still paying out, will go to the bankers ( which, need I remind you they created money out of nothing, thin air, and you yourself paid for that with the Inflation Tax ) with barely enough for apartment rent and cat food diners left over.
But just as the US Government will never pay back all its debt, neither will you. The system will crash and burn before that happens. Granted, the devil is in the details and you can’t COUNT on that die-off forced debt jubilee. You are still going to be harassed by the bankers deputies ( with a badge ) and be forced into homelessness PRIOR to the system crash. Anyone buying a quarter million dollar retreat on credit, assuming the North Korean missiles will hit Washington DC and instantly wipe out their debt is delusional ( might I venture a guess this fantasy of debt forgiveness is largely responsible for the “scare” of NORK’s under every bed? ).
Being in debt will end badly for you. That, I trust, is understood. Getting in debt to prep is ONLY to be used as a last resort, and only if you can play that game intelligently. Which means several things. Only spend what you can afford in new payments, but also leave no paper trail for when you become unemployed and cannot make payments any more. And assume the worst of people as you do this. And last, for goodness sake, don’t go Full Retard on this as if it was anything other than the least worst choice.
Okay, what that means is you use this poor tool wisely. I don’t expect to ever have to work with an industrial meat slicer, but if I do I’m taking my sweet ass time with it. I don’t care if the corporate CEO is standing there watching, pink slip in hand-slow wins the race. I don’t care if it’s summer and the only thing a young hottie is wearing is a bikini top and she promises me oral pleasure if I set a speed record slicing her ham order. Screw all that! I’m not losing the tip of a finger, and I’m treating that bitch like it’s a Stephen King possessed demon machine. You had better look at indebtedness the same way or you will rue the day.
You had better be able to make the payments on any new debt you accrue. Would it really be the best idea to take the new five grand credit card and buy gold Kugerrands with it? NO! But if you bought a chunk of junk land, three years worth of food and an SKS with several thousand rounds for the same amount, that would be a much better use of the banks credit. You can more easily become unemployed and have a legal squat ( remember, don’t give Johnny Law an excuse to screw with you-they will, as soon as their pensions are on the line ) and be prepared for the crash. The gold won’t help as much. But can you pay the vig on your loan shark amount, in the first place?
What would that be? $100? $150 a month? Actually, isn’t that just a cell phone payment plan or a cable bill? Yep, I know, both are under contracts and you are screwed. But I’m thinking if you can spend an extra five grand on a credit card, you have serious income. Surely you can cut that amount from your budget. No? Okay, no matter. This is about MORE debt. Just be sure you can cover the payments on the new debt. Perhaps by using more credit cards to pay off the higher interest ones? I don’t know if that is still a thing, or if banks are still being the New Normal tight fisted with credit. I have little interest in following these things.
Tomorrow, we cover covering your ass with no paper trail, planning on getting grief over THAT, and doing all this prepping on credit as cheaply as possible to minimize your exposure.
END ( today's related link http://amzn.to/2lIfxWb )
* By the by, all my writing is copyrighted. For the obtuse out there
Keep in mind the method that you used to get out of credit card debt.ReplyDelete
Sometimes , I wish that I had taken that route before CONgress and Bush changed the rules. Alas , I got rid of ours the hard way...by working extra and selling off assets.
It would be impossible for me to do this now days.
I fear we are not far from debtors prisons once again. I'm certain that if the Shrub could have gotten away with it back then, they would have done so.
Who knows the future trend. With the Golden Golem of Greatness being so familiar with bankruptcy. Given his tendency to preach what they, the working poor like to hear...then do the exact opposite.
Why do you think I say that Baby Jesus love me above all others? How else could I have timed my bankruptcy so well? Not even one year prior to the law changing. Timed the move up here to Elko? A mere three months prior to the financial meltdown. All you bastards don't have that love. The best you can do is listen to me. Since I'm always right. Just not about the timing. That, I have divine intervention on. I could give other examples but I hear the envy would lead to hate to unsubscribing.Delete
Good post. Yeah, it’s as you say, it’s a twofold approach. You need to eliminate debt, but without a savings to fall back on, you could find yourself in trouble in an emergency. That dude whose link that I recently shared with you (Tom Leykis) recommended having at least a 6 month FU fund.ReplyDelete
I filed chapter 7 back in 2011, and had considered it for a while before finally doing it, because I didn’t feel right about it. Yes, I get that the banksters are a bunch of greedy asshats, but I still felt like it was theft. But if I didn’t do it, there was no way that my dramatically reduced hours job (that I finally got laid off from) would ever allow me to be debt free. But of course, student loan debt stays with you, so consider carefully the value of a college degree before committing to it. In my case, my student loans were already paid off prior to the bankruptcy.
If you wish to go to college, then I would recommend that you pay as you go. Certain occupations, such as engineering, or the sciences will require a degree. But if all that you care about is an education, you can get that for free these days, and pick up a good paying trade skill for income instead. Not too far from where I live, some dude got his door kicked in, and was held for hours by some federal agency (I forgot which one). The reason was that his now estranged wife was delinquent on her student loan payments.
It is good to feel moral qualms about doing something considered wrong. Always trying to do right is how we should all live, every day. The Golden Rule. Yet, remember, inflation alone is a tax on your money the bankers get the benefits of. The money and debt was conjured out of glittery unicorn farts. The money you borrowed was NOT from grandma's savings. It was from fractional reserve fiat money created by the banks. Debt will keep you from trying to survive the banker induced economic collapse. It isn't just a question of asswhore thieving bastards but about a thief loaning you counterfeit money and demanding gold in repayment. Putting all that aside, it is an anti-survival instrument to play by their rules. On the last sentence, yes, scary as crap stuff. But the local deputies are far more likely to arrest you for vagrancy or non-payment of debt or failure to show for debtors prison. It is playing the odds-who is more likely to mess with you.Delete
Keep in mind, I’m always right about general trends but specifics and timing is NOT my forte.
No, No and NO!
One example....you were WAYYYYYYY wrong on 22lr!
Checked Walmart about a week ago and it is going for LESS than four cents a round. (500 rd. brick)
And yes...I am going to say: "Told you so!" AGAIN!
Silver and gold are past their peak production, globally. Iron ore is becoming much more expensive to extract. Copper has peaked. We started extracting our ores from diffuse sources back in the 90's, using dirt cheap oil. We didn't do this because oil was so cheap, we did it because the best sources were running out. We had to move to less desirable ground to mine ( just since the turn of the century gold extraction energy use doubled ). This is akin to deep well drilling in the Gulf of Mexico. It costs a lot to get and it runs out quick enough because the source was not as plentiful as our other historical mining spots ( s. African gold is pretty much played out ). I might have been early in my predictions of ore shortages-but it will happen and not too long from now. Ammo shortages and prices were supply and demand, but they never act ALONE. Energy price and ore supply are factors. This time around, customer demand decline from the poor economy has brought rimfire price down. Procure as much as possible.Delete
Don'be skeert. Think of debt as a tactical or strategic weapon. Use judiciously or spray it about. Use plastic credit card tactically to order ammo, gear, etc. From Sportsman's guide. Pay off balance in a few months. Use plastic to get your truck tires (necessary), pay off in a few months. Buy land, or dirt poor real estate on mortgage, (strategically) pay off in 5 years or less. Unless you had bumper crops come in and every one else crashed, one may need some credit to lube the system. Even Mr. Lee's mercantile in the day used credit-advances to move merchandise. Even with sky-net watching, a debit card in your pocket allows you to take advantage of the YAK testicles on sale at bubba's meat market for freezing up for winter or canning up for when you were recovering from being shot in your leg and can't get about a while except to poop in the outhouse. O.P.M. is using "other peoples money" to get what ya need in the short term. Just be realistic and pay your debts without being an ass bag about it.ReplyDelete
Credit CAN be a tool, and mustn't be discounted if that is the only available one, but I certainly do not share your cavilier attitude about it.Delete
never thought of sing a credit card to buy land. sounds iffy unless you are as sure as possible about income stream.ReplyDelete
Read part 2Delete