October 12

In 1994, the we went on our first vacation and we videoed the entire thing.   The chips were so small, that we just couldn’t help videoing them.

At one point at the beginning of the video I make a comment something like “Gas is $1.20 a gallon.   This is getting ridiculous!”

And the chips never fail to tease me about this whenever we pass a gas station.

Gas was $2.80 yesterday and it excited me.   How sad that $2.80 a gallon of gas is exciting, but it is.   You see even though falling gas prices are hurting the global economy and the national economy, it is really helping my personal economy.   That is why it is exciting me.

A friend of mine found a wonderful interesting, common sense, article with no hype about the economy and the stock market. If you’d like to read it, you can find it here.

I was having an interesting discussion with someone and she asked “What would happen in our society if there was no credit for any purchases other than for a mortgage,  all purchases regardless of amount had to be cash only?   You could use a debit card or check, but no credit whatsoever.”

So I am asking you the same question.   Also, not only  what would happen to society, but  what would happen to your family personally.   How would no credit, not having a credit card, not even being able to secure a loan for a car…how would that affect you personally?

Friendly warning.   Keep this discussion polite.   This isn’t a political debate.   I WILL delete any post that isn’t polite.

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Just an average wife, mother, and homeschooling woman

25 thoughts on “October 12”

  1. We would have to walk everywhere, because we could not afford to pay cash for a car. I think we could manage everything else. We would be living with a little less I am sure. I too was excited about the gas prices. I remember when we were small,on Sunday after church, Grandpa M. would fill up mthe car with gas and we would go riding in the country all afternoon.Gas was 29 cents a gallon. We would stop at the little store in Lawenceville and get a loaf of bread, a pound of balogna and cheese, and that was our lunch. Those were the days!!! Remember Willie?

  2. We were excited to see gas @ $3.29 yesterday. N.C. taxes are at least 20-40 cents higher per gallon than most states. We have very far left representation in this state.Our governor cancelled the purchase of a 9+million dollar state jet only after being harrassed by the media right after announcing a 3% cut across the board for officials. If you want to pay higher taxes & also pay taxes on almost everything, move to N.C. We even have a 2% tax on groceries that have always been non taxable in the Buckeye state.

  3. I remember Cindy. Don’t forget the bananas:)Mom would get to go along with it.

    As for not being able to use credit…it wouldn’t make a difference except in the car. Since we live in a parsonage, we don’t have to buy a house. When we retire I guess it would just have to rent!

  4. I think most people wouldn’t be able to afford a vehicle – our family included. Our family beyond that would be pretty ok without credit. We do have a credit card, but we don’t use it to replace available cash in the bank.

    My hubby likes to joke about the “credit crisis” when he reads the mail everyday. See, we still get at least one credit card offer a day. 😀

  5. We would be just fine 🙂 No credit or debt here other than our mortgage. We pay cash for everything. If you don’t have the money, you shouldn’t be buying it 🙂

    The only thing I would miss is the convenience of ordering online. I do need credit cards for that but I always pay it off in full. I suppose I could use a debit card though.

  6. I don’t really think it would affect us at all because we pay for everything with cash. All of our cars are paid off. We bought them outright we didn’t get a loan for them. And we don’t have credit cards. Not one. Just a bank card, to get money out of the bank. We don’t even use the checks for anything that I know of. So, it really wouldn’t do anything to us. lol. We would still be living the same.

  7. As for our family we no longer use credit cards anyway and we have saved up and paid cash for the last 3 cars we bought. It was hard, but we were slaves to credit cards and car payments for so long that we just can’t do that anymore. The Lord has been good to us. He has given us exactly what and how much we needed.

    Also, Dave Ramsey rocks! Without his words of encouragement we would have never been able to do any of that.

  8. Wow, to see that your gas is that low is great. I live in NC and the lowest in our area is 3.64. Sadly, that makes me very excited because it has been close to 4 dollars a gallow for a long time. I take my children to and from school and had made 5 dollars a gallon the cut-off mark that they would have to ride the bus. As for no credit cards, my family doesn’t use those. We learned a valuable lesson in college when everyone who can sign their name can get a credit card…problem is, we didn’t have real jobs to pay for them. When we finally paid those cards off I couldn’t have told you what I bought with them and probably didn’t even own what I thought I had to have.

  9. Wow, $2.80? I’m jealous! I’m out here in Los Angeles and our lowest price lately was $3.45 and I did a jig of joy! =P

    We try our best not to do things on credit that we can’t pay off on that month’s bill to build up our credit score. Right now, our only debt is student loans which we have regular monthly payments for, and our car loan, which is very small. If we didn’t have a car to use, we’d be forced to bike, which actually would be much better for our waistlines come to think! It would also preclude us from buying more than we could easily carry on a bike, instead of loading up the trunk of our car. Hmmm.

  10. We don’t buy much on credit but we live in an area where people live WAY, WAY, WAY beyond their means. There were lots of “interest only” loans given out and what that means is the people are basically renting their home, only making equity as the real estate value rises. They never pay principal.

    The Farmer has three degrees – acccounting, finance and entrepreneurialship. He can talk about the subject you linked to for hours on end. The article is correct. It’s only money on paper and in your mind. You have to be in it for the long run. Panic is the worst thing that can happen and the current media frenzy will not help things in the long run. We are old enough to have seen some situations that rival this and we all took a deep breath, readjusted our lives and our ways and got through it.

    The bottom line is we got here because people made some terrible decisions and that includes a few of our friends. They made bad business decisions compounded by terrible decisions taking on outrageous mortgages. They lost their home and they will be the first to tell you it was their own fault. Just because the bank is willing to offer you $500,000 (can you imagine?) doesn’t mean you should take it. Common sense will tell you that.

    Shame on the banks also for not being responsible lenders.

    Suzanne, the Farmer’s Wife

  11. Except for our mortgage, this is exactly how we lived for five years. We now have a car loan but even that is something we strive to pay off early.

    If we didn’t have the money, we did without. We bought cheap cars and paid cash. It’s our goal to be as debt free as possible. NO credit cards!

  12. Our cc most often it is at zero. We only use it for things that come up unexpectedly or to purchase online. If we were to lose it we’d just get along without it and save up for what we needed or barter a skill or something. I think we have only had it for 2 years anyway – so it wouldn’t be missed much.

  13. I can’t get over how cheap your petrol (gas) is in America. Here in England we pay approximately £5 a gallon – I think that relates to about 8 – 9 dollars. The trouble is it is mostly tax, our government is so greedy, taking taxes in any way it can from the motorist, not only in petrol, but we have to pay a Road Tax every year, decided on how big an engine your car has. When buying a new car it is loaded with taxes.

    With regard to the credit question – we have paid off the mortgage on the house but have a small amount of credit for the car. We do have credit cards but pay it off every month. In England the banks are always sending offers for loans, it is no wonder people get in financial trouble. I was brought up to save for anything I wanted and if I had not got the money I could not have the item.

  14. We sort of live like that now. We use our credit card for gas and miscellaneous purchase but ALWAYS pay it off at the end of the month. We really only have it because my hubby doesn’t have the checkbook, I do. My parents were very cautious about using credit cards and that has passed on to me. I try to stick to our family budget and make smart decisions. I just try to remember that those interest charges will add up and that if I really want something, I can wait.

  15. We don’t a own a credit card, nor do we have any loans. We saved up and bought our car for cash. It’s how we buy all our stuff. If we can’t afford to pay cash, we go without. So it wouldn’t change anything for us personally.

  16. We do have one credit card and pay the balance off every month. Living on credit = bad idea! I must say I like having it for travel (which we rarely do, alas) in case of emergencies.

    We’d have to get a loan for a car. Other than that, cash / debit wouldn’t really be a hardship at all.

    Reading the comments above, I guess a lot of us are already prepared for the coming depression / recession / “adjustment” — too bad others are not. And I’d be really unhappy if I were about to retire and my retirement fund suddenly was worth zip.

    Or were about to sell my house. Which is the situation my Mom is in — she’s been talking for years about selling and moving to an apartment in a retirement community and is finally about to do it. Sigh. What timing — NOT! No way are we going to tell her to wait, though! We’ve been wondering if it would take dynamite to get her out of there! Our one consolation is that it is an older, less expensive house in a “good” area, so we hope someone will consider it a “bargain” and snap it up.

  17. Wow, gas is only $2,80 per gallon?? $2,80 is €1,90. Since 1 gallon is about 3,78 liters, that would mean 1 liter costs € 0,50 where your live. That’s cheap!! This morning the prices here were around € 1,52 per liter, so that would be € 5,75 per gallon, which is $ 7,29!!

  18. Having no more credit wouldn’t really affect us. We pay for everything with cash or check. We don’t use credit cards.

    Hubby does owe a small amount on my van. The van really isn’t a necessity though. I could live without it if I had too. The other 3 vehicles are all ours and paid off.

    We have barely over a year left on our mortgage. (and it’s a tiny payment) We do have enough we could pay it off now if we needed too.

  19. I lived without a credit card the first 26 years of my life. I imagine I could do it again.

    As to the gas prices – I wanted to say that my parents have been talking gas prices since the day I was old enough to understand them. It is one of the very first things they mention whenever I see them. “Gas was $3.89 in Hays. but only $3.85 in Salina!” I used to think it was normal to spend a lot of time discussing gas prices, until I met other people’s parents who never even mentioned gas prices when they talked to their children and now I think my parents are kind of strange.

  20. We would lose everything! We wouldn’t have enough cash for Jessica’s meds and treatment…which would leave us with not enough cash for food or anything else…so if it weren’t for our credit card, we would have even lost our house a long time ago 😦

  21. We would stay home A lot! And walk a lot and probably be in better health and have a less cluttered home – I’m not sure it would be that bad.

    My father never used credit. He got a credit card 2 yrs before he died because he and my Mom were driving to Florida and we made him get one in case his old car broke down – it didn’t and he never did use that card.

  22. It wouldn’t effect us too much. We’re cash in hand only people. But I wonder if it would effect perhaps the companies my husband works for. If *they* couldn’t get credit and needed it for payroll or something like that. I wonder if we would be out of a job. I wonder how many people would be out of jobs – probably alot. But at the same time, we still fully believe in cash only and don’t use credit.

  23. Not being able to get a car loan would be hard. The only car I’ve ever bought for cash was a baby blue $400 VW Rabbit with a wonky electrical system. Our credit cards are used pretty rarely now, but they did help build our credit when we were younger so they aren’t completely evil.

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