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| Sintra, Portugal |
Canada is very different than Portugal in that way. Although Canada seemed to ride out the financial crisis much better than many countries (including the USA) due to strict banking and mortgage laws we still saw issues as no one had any money to buy our goods and services around the world and we had less International investors in real estate so our housing markets saw decreases of 10-20%.
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| Entertainment on Lisbon, Portugal Metro |
People here are still digging deep holes of debt for themselves as people use credit cards for everything, me included. I happen to pay off my credit card EVERY SINGLE WEEK as only use it for points. We get 4-6 free airline tickets this way so it is worth it to me. I really don't know how people carry credit card balances, mortgage payments and car payments. Unfortunately, that is the way for the majority, not the minority. We have no debt, no house debt, no car debt, no credit card debt. We worked very hard to get there but we are staying there. We have one major bill per month outside of regular monthly expenses and that is child support and as one graduates from highschool and another from college this month we are down to only one kid starting in September. That kid is considering coming to live with us (16 year old with typical "can't stand my Parent" crisis, I think it will pass) so for now we are in a bit of limbo.
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| Sintra, Portugal |
I found it very interesting how finances work in other parts of the world. Portugal seems to be a country made of the very rich and everyone else who is eeking out a living as best they can. Canada could learn a thing or two about using cash again as in this digital age, our society no longer uses cash on a regular basis and as a result debt rates have sky-rocketed. Many have forgotten that if you don't have it in your pocket or your bank account, you shouldn't be spending it.
I clear my credit card every month as well even if it is really hard sometimes.
ReplyDeleteI used to earn at least 20 to 30% more that my present job and unfortunatly I really spent like a crazed maniac in those days-When I lost my job I realized the error of my ways and paid off most debts and started saving
You learned the error - most people still don't get it. Good for you!
DeleteCredit card is cleared every month..but we do use credit...we are replacing our window and roof this year.
ReplyDeleteJane x
We use credit too. Pretty hard to hand over thousands for big purchases. Cheers!
DeleteHOW have I missed out on your trip??? Thank goodness I can go back and see your posts!
ReplyDeleteYes, we live debt free and I am so grateful.I think the secret is to live within your means. That's an obsolete thought these days.....
I wish more people understood what it means to not have the monkey of debt on your back. So right!
DeleteThat photo of the accordion player with his little dog holding the change cup is priceless. Maybe I can figure out some way for out little Zoey puppy to make us some money. She attracts a lot of attention down at the pier because she's so darn cute. ;-)
ReplyDeleteHe was so cute, that is why the picture is a bit blurred as I was trying to snap a shot quickly. We did make a little donation. He was a rather good accordion player too!
DeleteI think we'd all be better off going back to a cash society. Those that are too tempted to put something on credit(that they can't pay off and end up paying interest on)would no longer have that temptation.
ReplyDeleteWhile credit cards are darn convenient(especially when traveling)they are a danger to our human nature to want to pamper ourselves, even when we can't afford it.
Of course, doing away with credit cards would also kill internet buying, but that might not be such a bad thing. lolz
We do use our ccs a lot for online purchases, primarily for our business. Now that we live in a more rural area we find we have to order more that way as don't have access to a lot of goods otherwise. You are right though, without ccs there would be no online business.
DeleteI really like the idea of only using cash. My adult son lives that way. He got a no-fee credit card, simply to build his credit. When he went to buy a car, with cash (actually wrote a check), he discovered he had zero credit,even though he had more than enough to pay cash for his car. (He'll want credit when he goes to buy his first house in a couple of years.)
ReplyDeleteSo, he got a credit card to build some credit worthiness. But he only charges one or two items on his credit every couple of months, only enough to keep the account active. His thinking is that if he doesn't want to part with his cash, then the purchase isn't really worth it to him.
My husband and I are getting just close enough to retirement that we don't dare incur any debt at this point. We paid off our house 5 years ago, and have never bought cars on credit or carried a balance from one to the next on our credit cards. My husband had a student loan when we first married. It was hard, but we managed to pay it off in 2 years. We vowed then and there, to never take on debt, with exception to 1 home mortgage, for the remainder of our marriage.
And now, with two daughters in university, the entire family is coming together to prevent them from incurring student loans. Getting through university without student loans will give them more freedom of choice in their careers, when they graduate. Debt owns a person. All ones choices have to be seen within the context of owing money to another person or institution.
We are trying to do the same for our kids, a certain amount of money was set aside for their education and they really have to try and live within it without incurring those loans. Life is tough enough without having to pay for your education for many many years.
DeleteI've never had a credit card, I know its hideously old fashioned but I was brought up to save for what I wanted and if the cash wasn't there I couldn't have it. Its cash only in this house and our travel is paid for by debit card when we have enough money in the bank. x
ReplyDeleteWow, never had credit! One of the very few. You know how to stretch your pennies living a very fine life indeed so it just goes to show that you don't need credit to have a nice life.
DeleteWe have quite a few credit cards but none have a balance and I too, pay them off every week. If you have self-control, you can really make out.
ReplyDeleteOur only bill is the house payment, someday it will be paid off. But it seems like it will take forever.
It is all about self control. I messed up when I was young and it took a long time to dig myself out of it, but once out I stayed that way. A hard lesson to teach young people though.
DeleteInteresting post... I agree that Canada should use "cash" more and credit less, but thankfully we're not as bad as other countries this way. I myself use cash. Never credit. So when I buy something, I own it. Not Visa or Mastercard. ;)
ReplyDeleteI agree, it is nice to look around and not owe anything on your possessions. If you owe money for things someone else "own's" you until you pay it off.
DeleteI could pay cash for everything but I like my PC points too much to give up my credit card. I've earned another $90 worth of groceries over that past couple of months by paying for most purchases with my PC mastercard, then going home and paying the bill in full after each use. It just makes sense! But its good to know that not ALL countries operate mostly by debit/credit cards. I too am debt-free except for a small mortgage I carry on my PEI house which will be paid off when I sell my condo. Hope it all works out with you taking on a step-child. I would find that hard at this point in my life.
ReplyDeleteI have been through the "living with the Step-kid" situation with all the boys. They all seem to hate a parent at one time or another. It passes. I have known them for 12 years now so we are used to each other but it is never easy. If you play the credit card games right you can really clean up on points.
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