In the first story Sarah – 25 Flight Attendant, is now living at home trying to pay off her $80,000 debt that she built up over 7 years. It all started when she was 18 and started getting all the offers banks send out for credit cards. She was a trainee accountant so you’d think she had some kind of knowledge or sense with money and especially credit. After a year she had to get a consolidation loan after buying a house with her bf so at least the credit debt was cleared but then there was the house. When they split up and sold the house it cleared her newest debt additions but dew to single behaviour they soon built up again. She does was most people do and hence why Australia is a nation ridden with debt. Gets another credit card/loan to cover up another. So she isn’t really paying off anything.
And although in the pic her wardrobe looks amazing and I am spotting one or two designer bags in there, is it really worth it? I mean look at the times we are finding ourselves in. House prices have sky rocketed and people in my generation are really gonna struggle to ever own their own home. So now Sarah has what would be a great house deposit in debt and at 25, while she is still young – her debt has dictated her life until its all paid off and then what? Its been proved in studies and research – we are spending more than we earn. I live pay to pay – no credit to worry about, while its tough and I am tired of being broke and having to get rid of my bag/shoe addiction, its like I’ve had some grown up reasoning that its really not worth it!
Pretty much everyone I know has a credit card. One friend doesn’t know how I lived on my own for so long with out one. Not even an “emergency one”. When there are so many available, and with a shopping habit as bad as mine those bits of plastic and looking for appealing and while some come in cute colours very ugly. The only debt I want is that of a mortgage. And from having my meeting with my olds financial lady person already at my age of 20 struggling from pay to pay often doing shopping for cat food and things she needs only – I can borrow up to $200,000. while I am planning to buy my unit soon, thankfully I have my payrise and while its still gonna be hard that’s for the future 2-5 year future. I am not ready for that kind of debt. I am not willing to look at a 4 x 2 house now priced at half a million dollars as I know that is asking for trouble. Visa Debit Cards are also v.handy for when you do need to do things online or over the phone. Use your own money not credit.
This is taken from the article, “Experts say that Generation Y who have grown up with credit and have never known a recession, have high consumer expectations. Meaning we spend more, buy more and worry less about the financial consequences than our parents do”. Common sense, some money sense and not getting a credit card is something people in my generation and the ones to come are something that needs to be thought about otherwise by the time you come to retirement, it will be the age formerly known as retirement age as we’ll all be working till the day we die. If this is what its slowly turning into for us, what about our kids – and grandkids??
But that’s progress. That’s life. We all want more – and getting it is a world we’ve become accustomed to.
In other news I just got abit of a bonus in my pay due to back pay I was owed. I should save it, use only what I must but since I am part of the “Me aka Generation Y” I don’t see the harm in buying a new purse or a nice pair of shoes….. See we don’t learn do we?
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