anyone taken out a loan for their fish tanks?
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LauraCline
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No that is not what I would say however, I would say that a house can be an asset if careful considerations are made of each individual's situation and priorities. I also wouldn't say I advise taking loans on your house to finance a hobby. In fact, I think it is irresponsible and would strongly advise a client not to do it but, some people have different priorities. When you work for people all you can do is try to keep them from doing things that are not financially prudent. In the end though, they pay your salary and you must do as they ask.
About 2 months ago, a man came to me and wanted to refinance his house to buy his wife a car. The car she had wasn't too old and worked fine, they didn't owe much on it, she didn't work, he had a very low credit score and the rate on his mortgage would go from a fixed 7% to a variable 10.5%. I begged him not to do this, explaining several times why it was not a good idea and how much the car would end up costing in the long run. Even though it meant I would not make a commission, I even offered to help him work on his credit for free so that he could qualify for the car. He was determined that this was his course of action and it was either I do it for him or he would pay someone else to. What can you do?
LauraCline
New member
No that is not what I would say however, I would say that a house can be an asset if careful considerations are made of each individual's situation and priorities. I also wouldn't say I advise taking loans on your house to finance a hobby. In fact, I think it is irresponsible and would strongly advise a client not to do it but, some people have different priorities. When you work for people all you can do is try to keep them from doing things that are not financially prudent. In the end though, they pay your salary and you must do as they ask.
About 2 months ago, a man came to me and wanted to refinance his house to buy his wife a car. The car she had wasn't too old and worked fine, they didn't owe much on it, she didn't work, he had a very low credit score and the rate on his mortgage would go from a fixed 7% to a variable 10.5%. I begged him not to do this, explaining several times why it was not a good idea and how much the car would end up costing in the long run. Even though it meant I would not make a commission, I even offered to help him work on his credit for free so that he could qualify for the car. He was determined that this was his course of action and it was either I do it for him or he would pay someone else to. What can you do?
asnatlas
New member
I agree with you, all you can do is recommend that they not do this or that and provide valid reasoning... But again itââ"šÂ¬Ã¢"žÂ¢s up the client and if that is what they want, you have to make them happy as well as bring home a paycheck at the end of the day... I donââ"šÂ¬Ã¢"žÂ¢t think you did a think wrong in the situation that you described above...
speedingredline
New member
I don't know why somebody would do that. All we do is look for ways to lower interest rates. I have my primary mortage down to 5.5%. My second is a higher but we pay enough on it, that the 15yr will be paid off in 7.5 yrs, I only have 2.5yrs left. Do to the "games" we play with credit cards, all we have left in bills is the mortgages, my car loan, and my wifes school loan will be paid off with the tax returns and then still have some play money. When I inquired about refinancing my second mortgage, the broker said they get me a lower interest rate, cut my payment in half, but I would be starting all other with a 15yr loan. They suggested I leave alone, they lost money by doing that, but I took their advice and left it alone.
Aside in from routine pet bills, vet trips, food...etc, which go on the credit card, all my dogs are paid in cash. What I paid for my 2 rottwielers would shock most people. The 2 whitches equal a very nice down payment on a car. It took my tens years to get credit card debt free, and I'm never going back. It is just crazy to take a loan out for a pet hobby.
Aside in from routine pet bills, vet trips, food...etc, which go on the credit card, all my dogs are paid in cash. What I paid for my 2 rottwielers would shock most people. The 2 whitches equal a very nice down payment on a car. It took my tens years to get credit card debt free, and I'm never going back. It is just crazy to take a loan out for a pet hobby.
LauraCline
New member
Some people just will not listen to reason. When somebody who stands to make money off you is telling you not to do something, that should be a clue. I'm honest with people and try to educate them, many times at my own detriment. At least if they are going to do something stupid it won't be because they were lacking information. Unfortunately, many of my colleagues do not share my desire to do business ethically with well-informed clients.
Pilot Fish
New member
I have worked for a few LFS in my time and I have seen peolpe drop a lot of cash over a few months time , just by nickle and diming themselvest to death. This hobby like many others can be very addicting. I can see how almost all of us have thought of taking out a mortgage just for a tank project.
I remember the day my 375 came in, as I was inspecting it before it came off the truck I turned to my coworkers who had come over to help and told them it was not big enough. I wanted to go bigger. I realized then that I truely had a problem.(Not that I was crazy just that I neede to get started on aquiring a bigger tank)
My wife can't believe the amount of $ I spend on my tanks. I went as far as to get a side job that only supports my hobby.
I remember the day my 375 came in, as I was inspecting it before it came off the truck I turned to my coworkers who had come over to help and told them it was not big enough. I wanted to go bigger. I realized then that I truely had a problem.(Not that I was crazy just that I neede to get started on aquiring a bigger tank)
My wife can't believe the amount of $ I spend on my tanks. I went as far as to get a side job that only supports my hobby.
JoeyK@OCMD
New member
I remodeled my home and used a chunk of it for the fish tank. but this thing is built in to the house, plumbing and all. It was nice to just buy everything at once and bulid it one time. going back and changing a systme or adding new pipes to feed off for additional purchases sucks. I have done it and I refused to do it in this house. The whole set up is clean and simple. My philosophy is : do it once and do it right.
LauraCline
New member
That sounds like a dream JoeyK, I agree do it right only once. It sounds like you were doing the remodeling anyway and if you can afford it why not? I should clarify that there are situtations where this fits. I also see you're in construction so I'm betting you didn't spend as much it would cost most of us for the same job (wanna be good friends? j/k) . In general though, I see people who cannot afford things like this in a pattern of getting themselves into a troublesome amount of debt attached to their main asset.
I find that many people view the equity in their home as a way to pay for things they wouldn't normally be able to afford. The problem comes when they finally realize that equity is truly only realized from profit. Then they find themselves strapped to make a monthly payment that they couldn't afford to begin with, some inevitably end up in foreclosure - not to mention the effect of compounded interest on the true cost of whatever luxury item it is. (For example a $15,000 item at 7% over 30 years totals to $35,828.33 and a payment of $99.80/month.) This also leaves them lacking in savings and without the ability to borrow against the property if a serious need arises.
. In general though, I see people who cannot afford things like this in a pattern of getting themselves into a troublesome amount of debt attached to their main asset. I find that many people view the equity in their home as a way to pay for things they wouldn't normally be able to afford. The problem comes when they finally realize that equity is truly only realized from profit. Then they find themselves strapped to make a monthly payment that they couldn't afford to begin with, some inevitably end up in foreclosure - not to mention the effect of compounded interest on the true cost of whatever luxury item it is. (For example a $15,000 item at 7% over 30 years totals to $35,828.33 and a payment of $99.80/month.) This also leaves them lacking in savings and without the ability to borrow against the property if a serious need arises.
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