Applied for a personal loan a moment ago...

dane_peterson

I just applied for an unsecured loan of $5000. I don't really know the likelihood of being accepted, but it could mean upgrades in the near future if I am. A good portion would be going toward debt consolidation, but I'd have a nice wad left over.
So JUST FOR KICKS, please take a look at my signature and advise as to what you'd change, add, or improve with a couple G's. I've not really made any purchases towards my system since the 9's... It's a little depressing!

Don't hesitate to say "hey, you do mostly HT, why don't you sell the LSis and get ____" I'm curious to see what people have to say.

66chevyIISS

I'd advise you to invest your money so you don't have to take out loans to pay off debt

VR3

preamp, fo sho.......

dane_peterson

66chevyIISS wrote: »

I'd advise you to invest your money so you don't have to take out loans to pay off debt

Well, I was already declined. I don't need it so much as it would just be convenient to have one payment instead of several. But for conversation's sake, let's keep up the suggestions!

Sid, I originally thought Preamp, but was told that the 2807 actually has quality audio processing to where it wouldn't be worthwhile to replace yet. Plus, I'm kind of invested in HDMI connectivity.

VR3

Trust me, get the Outlaw or something and dont ever look back. It will blow the socks off the Denon.

Ricardo

I think you have a great setup; there's nothing that jumps at me as weak. Buy some games

RuSsMaN

Don't buy any equipment. Pay off your debt, save some money, get a house.

THEN we can talk about upgrades.

AndyGwis

listen to russman. Pay off your debt first. Then, get some tangible assets to help your asset to debt ratio. If you have some dough left over, put some in a mutual fund, gold, bonds (not gold-bond anti itch), etc.

If you do go audio, with future purchases, don't buy unless you can resell it and break even, if at all possible. That's my personal philosophy, but I'm a parsimonious miser and former finance major

dane_peterson

I was wondering how many posts it would take to get to this conclusion. The less fun, but much more intelligent choice.

The wife and I have been discussing the whole home thing. We have 10 months before it can be considered, as we have just moved in here two months ago. But we're talking about getting into a starter home (town home, or even a condo) to build some equity and stop throwing our money down the drain. I look forward to that day, let me tell you!

shack

I would never borrow money to purchase audio gear. Toys should be bought with disposable income and/or savings.

Russ has it right. You need to payoff everything but your house, car and student loans if you have them. Then put at least a minimum of 3 months (better yet 6 months) of your expenses in some sort of savings. THEN...save enough to buy whatever gear you want. Anything else is not financially sound.

AndyGwis

It's easy to get caught up in audio upgraditis, especially here where it's usually people telling you what the next step is. . . something bigger, better, and almost always more expensive.

Loans - good for things that will increase in value, or help you grow your earning potential (houses, education, etc.)

Lottery winnings, spare change, embezzled funds, tax refunds - good for upgrading stereo equipment.

66chevyIISS

I was right first! bah, Russ jacking my credit

AndyGwis

He always gets the credit for other's ideas. . . but, he's earned it.

I mean, reposting funny $hit from 3 years ago, that's an innate brilliance that most of us here just don't possess

dane_peterson

Nah, I recognized it immediately, chevy. Way to be smart.

You guys are so old and wise. lol And I totally agree. I think I just got bitten by this bug several years too early.

On the positive side, I have a bonus coming next month. But that too, I suppose, should be directed towards more important costs.

Schwingding

Be glad you were declined. Loans are not free money. In fact, a man in debt is not a free man. The fact that you were declined tells you that you can't handle the debt anyway - not that any more proof were needed - your attitude that it is play money is proof enough.

Keep your credit intact for things that might really require it - home loans, basically the only way anyone can buy a home anyway, and auto loans. Throwing it away on things as frivilous as home audio is a sure fire way to eternal servitude.

krabby5

Get a house...then you don't have to worry about turning yer $hit up too high

Looking at your gear, I'd say they are screaming to be let loose..:D

dane_peterson

Indeed. I posted this knowing it would be more a hypathetical anyway. I'm actually sitting pretty good financially... have two cars I'm paying for while the wife is in school, and then rent etc. Still have some extra funds every month, and I just get carried away with ideas.
My own home still feels so far out of reach right now... especially considering all my friends are either living at home with their parents, in 5-br houses with 4 roommates, or barely getting by in their apartments. Our place inevitably then becomes the hangout for everyone, and I always want to get something bigger and better to showcase. Hmm... a house would definitely be better for such things.

Maybe everyone should keep reminding me of this, and I can bookmark the thread for days I'm feeling weak.

jflail2

You and me both dane. I am not letting myself do any other "goody upgrading" until we get into a house. When the next bonus check comes, I'm going to take the 2k I would've spent on a nice tv and drop it in the bank. Same goes for the 1k I wanted to put towards a new pc.

Besides, there's no point in having a nice system if you can't make your own walls rattle

Be strong brother; we're in the same fight.

Nisqually Dave

Save your money and by with cash and then by what you want. Everyone is telling you this. The reason they are telling you this is they all most likely made the same mistake.

madmax

dane_peterson wrote: »

We have 10 months before it can be considered, as we have just moved in here two months ago. But we're talking about getting into a starter home (town home, or even a condo) to build some equity and stop throwing our money down the drain. I look forward to that day, let me tell you!

Most people can walk right up to a realtor, tell them which home they want and start paying a mortgage. Easy as that. I see your 10 months with a lease or whatever. Otherwise I would suggest getting into a home next week. Its all a mindset that you have to wait. In reality by the time you decide to buy you will have paid more than you would have saved or payed off on bills. "Just do it" applies here.

madmax

zombie boy 2000

And it's a buyer's market....
we really, really lucked out with our timing in buying our first home last summer.

As for taking out a home loan -- be honest with yourself on what you can afford in regard to mortgage payments. Our bank was all too eager to loan us nearly double what I knew we could afford.

shack

madmax wrote: »

Most people can walk right up to a realtor, tell them which home they want and start paying a mortgage. Easy as that. I see your 10 months with a lease or whatever. Otherwise I would suggest getting into a home next week. Its all a mindset that you have to wait. In reality by the time you decide to buy you will have paid more than you would have saved or payed off on bills. "Just do it" applies here.

madmax

Sorry, that is not the case today. Too many problems have occurred in the mortgage loan industry. Several of even the very large mortgage lenders are facing big losses and possibly bankruptcy or restructuring. I think you will find the days of no money down, 100%+ loan to value, high debt ratios allowed, etc…is a thing of the past. The mortgage industry is in serious trouble because of what you have described. Cash for a down payment and closing costs is a must. Low teaser rates, negative amortization, interest only loans will be difficult as well. It is a buyer's market...but...there will be a lot of scrutiny in the appraisals and you will start seeing a very strict adherence of the LOWER of the purchase price or appraisal.

There may be some opportunities when the foreclosures really heat up. The lenders may offer generous terms and allow for a takeover of a foreclosure to get it off the books. Or a private seller may finance the sale of a house they are about to lose (be very careful of this).

Getting a conventional mortgage will be tougher for the marginal borrower with no down payment. Just another reason to save like crazy.

66chevyIISS

dane_peterson wrote: »

Nah, I recognized it immediately, chevy.

You guys are so old and wise. lol And I totally agree. I think I just got bitten by this bug several years too early.

Old? I'm only 26

AndyGwis

yo soy veinte y seis tambien.

Lo siento, Zombie.

zombie boy 2000

Yo creo que es "veinte y seis" Senor AndyGwis. Pero mi espanol is muy malo and tengo un diablo en mis pantalones quien esta comiendo zanahorias todo al tiempo.

madmax

shack wrote: »

I think you will find the days of no money down, 100%+ loan to value, high debt ratios allowed, etc…is a thing of the past.

Actually, not at all what I was talking about. FHA, 5% down, those are more my lines of intent. Most can say they have 5% in the bank and come up with it somehow. Tough sometimes for sure but if you really want something you can come up with a way.

madmax

Edit: I am assuming he would be a first time home buyer.

66chevyIISS

I got into my first house with an FHA loan and 3% down.

Sherardp

Good subject here, just now having my first home built, around 2800 sq feet, my only request was a dedicated theater room. Spending about 280k for it.

First you should pay yourself first. As in pay your savings account first, even if its only 100 bucks. When my paydays hit I make it my business to pay myself at least 1500 twice a month, then after that the bills, and whatever is left over I may splurge or put more away. I have used this method since being told that in the military and it has never failed me.

dane_peterson

Wow, I wish I made 1500 twice a month!

That's actually the plan now. I think I've been so inundated with "my new speakers" threads that the ball never stops rolling. Now that I've had a little sense talked into me, I've come to the realization that it's really a wasted investment at this point.
I was listening to music last night at a comfortable level, and my wife gets home from work. "You can hear that all the way down in the parking lot!" I instinctively turned it down, disappointed at the whole situation. (see quote in sig)

So now, I'm in the market for some smaller bookshelves, a milder amp (if at all), and with the rest will pay off a car loan. Then I'll put what I was paying per month for that loan towards a savings account! Genius, eh?

AndyGwis

Sherardp wrote: »

I make it my business to pay myself at least 1500 twice a month, then after that the bills, and whatever is left over I may splurge or put more away.

Wait, you pay yourself a set amount before bills? That's a fine savings strategy if you are making bank, but not so good if you are looking to "get by" and save some here and there.

If you're not rolling in money, play your bills first so you don't get into debt. Credit card bills and bad debt will grow a lot fastest than your savings account.

66chevyIISS

dane_peterson wrote: »

Wow, I wish I made 1500 twice a month!

So now, I'm in the market for some smaller bookshelves, a milder amp (if at all), and with the rest will pay off a car loan. Then I'll put what I was paying per month for that loan towards a savings account! Genius, eh?

Great idea. Also, I think I saw recently that you got a raise or a promotion? If you were getting by and paying your bills with your old salary, you should continue to go down that track and start saving your increased wage. When ever I get a raise, I try to raise my 401k contribution close to the same amount or put the difference into savings/bonds. Ifi was making it by with the previous salary then I won't need it now. Once you have enough saved up you can start spending your earned intrest and still keep your base in savings.

There is a reason why people who make $200,000 can have just as much trouble/debt as people who make 30,000. People tend to spend what they make.