That is a horrible tldr.
A better tldr is lenders are looking at your current and past ability to pay your current, past, and predicted debt.
Nothing in that message has anything to do with better wages.
Comment on Anon tries to understand credit scores
IronBird@lemmy.world 3 weeks agotldr, debt is a trap. only when you accept it’s a trap does it become a tool
you want more $…learn the value of your labor.
uncouple9831@lemmy.zip 3 weeks ago
IronBird@lemmy.world 3 weeks ago
nah, no lender gives a fuck about your financial situation, certainly not in america. bankstreet turned boom and bust investing into an science, nothing has changed there.
uncouple9831@lemmy.zip 2 weeks ago
It’s not really a trap, it’s how you get money to make big things happen. Obviously you can make big things happen through authoritarian means (like pyramids) but in a less authoritarian society, which I think everyone except the lemmy ml folks would say is good, the way you make big things happen is through borrowing money at the lowest possible interest rate. There’s a reason the fed rate is such a critical, newsworthy figure in our society – not just for the us but for many countries.
RamenJunkie@midwest.social 2 weeks ago
They are right, its a trap.
If the system were set up in a way that you could actually get to the point where those “big things” were not always required, on an individual basis, it wpuld not be.
But that isn’t the world we live in. We live in one where everything needs to keep raising in cost until there is nonescape from the debt requirement for anyone. And the squeeze will happen until everyone becomes a part of the trap.
ryathal@sh.itjust.works 3 weeks ago
For the vast majority of people the only debt they should ever get is a house.
KoalaUnknown@lemmy.world 2 weeks ago
The average person does not have to financial means to pay for a car or school without loans.
ryathal@sh.itjust.works 2 weeks ago
A car is absolutely doable without financing l. It’s a poverty trap to finance a car. What you can’t do is have a brand new car.
phlegmy@sh.itjust.works 2 weeks ago
Same with phones. Buy a second-hand flagship from a couple of years ago (eg pixel 8), and use a pre-paid plan.
It’s not just a few hundred dollars saved on the phone, it’s also a few hundred per year on less overpriced contracts.
Prepaid plans have to be more competitively priced because you can switch at will.
sp3ctr4l@lemmy.dbzer0.com 2 weeks ago
caredge.com/…/used-car-price-trends-for-2025
moneyzine.com/…/savings-statistics/
Image
… that’s as of 2022.
Its worse now, considerably.
But, even assuming 2022 savings levels… that’s half the population that would need their savings to multiply by a factor of ~x42.5, to be able to afford the average used car, without financing.
… You are wildly, incredibly out of touch.
Sure, yes, its technically possible, technically doable, in approximately the same way that it’s technically possible and doable that I could become a millionaire by the end of 2026.
Trainguyrom@reddthat.com 2 weeks ago
When I was car shopping at the end of 2024, I quickly realized the best bang for the buck was around $10-12k because at that price you could get a low-mid range vehicle that was around 6 years old with around 100k miles. Obviously some vehicles in that price range would be older with fewer miles, some would be newer with more miles, but that seemed to be about the price range where you’d get a vehicle which you could reasonably expect to be mechanically sound for at least another 2-3 years. Less than that and you got into vehicles that were far more worn either by age or by mileage, so you’d be trading upfront payment for additional maintenance costs.
$10k is a lot of money to save up. That’s about my entire emergency fund right now. That’s almost 3 years of socking away $300 a month, or 2 years at $500 a month. Simply put vehicle ownership is horrendously expensive especially for folks making close to minimum wage
RamenJunkie@midwest.social 2 weeks ago
It used to be, butnthse days the average person can barely afford groceries without a loan.
BananaIsABerry@lemmy.zip 2 weeks ago
How to skip steps 2-4?
TubularTittyFrog@lemmy.world 2 weeks ago
it’s fine to finance a car you can afford. it may even be benefincial. i can take aout a 20K loan at a near 0 apr, i can take that 20K and invest it and get a return on it. which is better than dumping it all at once into a depreciating asset.
the problem is that people fiance cars they can’t afford.
Korhaka@sopuli.xyz 2 weeks ago
That is what I have done, I don’t like that debt either and some cunt at the bank getting 2/3rds of my housing expenses is only slightly better than a wanker of a landlord getting all of it.