I get your point Boe.boethius wrote:I agree with you.C-Mag wrote:Yeah, given that scenario, I take B every time.boethius wrote:Paying off debt in anticipation of a societal collapse is about the dumbest piece of advice routinely given.
Which basket would you rather have 1 second before the EMP/nukes/zombies/plague destroys society:
Basket A
$50,000 in maxed out credit cards / consumer debt
$50,000 in silver coins, guns, off road vehicles, tools, laser eye surgery, dental work (get those teeth perfect before your cannibal days), etc.
Basket B
No consumer debt.
No metals, guns, tools, shitty eyesight, rotten teeth, etc.
I built homes for Y2Kers complete with safe rooms, generators, larders and root cellars. I watched as some of these people basically bankrupted themselves to watch the magic hour come and go.
History tells us that crisis events and periods happen. Being ready to survive that well is not crazy. Making a particular potential event your entire life is crazy. Flexibility and diversification of assets and skills makes far more sense.
I guess where I come from is I'll visit these sites where these people's entire philosophy is that the collapse is imminent. But then they tell you, "Payoff all your credit cards".
Why?
In fact, even if the world doesn't collapse, don't pay your fucking credit cards unless you really want good credit. Stop paying your cards, and in 6 months they will call you up and offer you a settlement at 35 cents on the dollar, payable over 3 months. Or offer to close the account and let you payoff at 0 percent over 5 years. All you have to do is claim a "hardship" (which can be anything, really--they just need to fill in the blank on their computer to make the deal happen). Yes, your credit will be shit. But if you're in debt, you don't want good credit anyways---you are clearly not responsible with it.
If you want to go to an all-cash lifestyle, there's no reason to payoff unsecured debt in full. Stop making payments and settle with them at dimes on the dollar later on.
But with economic stuff the way I imagining stuff going is that gov just shuts down Wall Street and banks on a Friday afternoon on a 3 day weekend and says they will open up Tuesday or Wednesday or whatever, but they either don't open or open with severe restrictions to economic activity.