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Discussion Starter #1
Okay, I'm new to the survival mindset. With that said, I have a long way to go with my preparations.

I envision hyperinflation and a complete economic collapse within the next few years. The Fed is destroying the dollar, and the structure of the short term treasuries almost guarantees that interest rates will not go up. I am tempted to use my credit cards to buy prep items. The problem; it feels like stealing.

I have cards from the "to big to fail" banks. I don't expect these entities to live. The commercial real estate market is headed for a big crash which will take down many more banks, and there are more ARM mortgages that adjust in 2011. I just don't see the government bail out recipients surviving, and they can forget about a bail out in an election year.

I could go on a buying spree and stock up food and secure a source of potable water over the next year. Is it stealing to do so, if I expect these banks to go into default? I expect it will take years for the "to big to fail" banks to be sorted out, if ever, when they go under.

Realistically, the government is stealing from all of us by marching down the hyperinflation path. A part of me wants to get something out of the system before it is destroyed. Another part of me thinks that this is tantamount to stealing from someone.

On a different note, I see my obligations to my family as trumping all other considerations. What kind of a man would I be if I did nothing, while expecting TEOTWAWKI? With an economic collapse, we will have shortages of food, fuel, and eventually, electricity and potable water. The food and the fuel will disappear within a day or two. The power and water will become unreliable, when people realize that their paychecks are worthless.

What would you do in my situation?
 

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I wouldn't do it for one...moral problems.

Two...for them to just forget about you and the debt you'd need a complete meltdown with no functioning banks whatsoever, no court system, no nothing, etc. Remember, they usually get what they want. It is very unlikely (IMO) that they will just forget about you.

What happens to you if it does not get that bad? Would you be able to pay the monthly payments?

Instead of that, just do what you can now with what you have. Slowly but surely is the way to go if you're on a limited budget like most of us.
 

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if you just go out and buy everything all at once you could hurt your preparedness with financial insicurity good budgeting is key i would recomend talking to your wife about your concerns and together the both of you come up with a plan that will work for your family
 

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RESET CONGRESS!!
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Consider attacking the problem from the money side. Maybe get a second job for a time and use every penny from that for preps. Be creative, find ways to make some extra cash here and there. Maybe do odd jobs for others for a little $$ or prep items?
Exploit you talents.
 

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My Temperature is Right
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There is not going to be an instant collapse, it will be more of a protracted slide into chaos. Maxing out your cards will only serve to let some REMF sort of administrator squash you like a bug. Take heed of the message of the old man in "O Lucky Man" and try not to die like a dog.

Okay, I'm new to the survival mindset. With that said, I have a long way to go with my preparations.

I envision hyperinflation and a complete economic collapse within the next few years. The Fed is destroying the dollar, and the structure of the short term treasuries almost guarantees that interest rates will not go up. I am tempted to use my credit cards to buy prep items. The problem; it feels like stealing.

I have cards from the "to big to fail" banks. I don't expect these entities to live. The commercial real estate market is headed for a big crash which will take down many more banks, and there are more ARM mortgages that adjust in 2011. I just don't see the government bail out recipients surviving, and they can forget about a bail out in an election year.

I could go on a buying spree and stock up food and secure a source of potable water over the next year. Is it stealing to do so, if I expect these banks to go into default? I expect it will take years for the "to big to fail" banks to be sorted out, if ever, when they go under.

Realistically, the government is stealing from all of us by marching down the hyperinflation path. A part of me wants to get something out of the system before it is destroyed. Another part of me thinks that this is tantamount to stealing from someone.

On a different note, I see my obligations to my family as trumping all other considerations. What kind of a man would I be if I did nothing, while expecting TEOTWAWKI? With an economic collapse, we will have shortages of food, fuel, and eventually, electricity and potable water. The food and the fuel will disappear within a day or two. The power and water will become unreliable, when people realize that their paychecks are worthless.

What would you do in my situation?
 

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I had a card through Home Depot that was paid when due, never overdue and carried a small workable balance. Received a letter from them statign that they were closing all credit card accounts, but that outstanding balances would be allowed to be paid off in the same manner as it is now.

This is a huge corporation that is closing its credit card portion - - while this is being done by their bank it is a cause for some concern - - how solvent is Home Depot?
 

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What happens to you if it does not get that bad? Would you be able to pay the monthly payments?

Instead of that, just do what you can now with what you have. Slowly but surely is the way to go if you're on a limited budget like most of us.
I agree with Midwest you can't put all your eggs in one basket. Go on as if things were going to go on, but prepare like you new that a Hurricane was coming.
 

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My Temperature is Right
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I had a card through Home Depot that was paid when due, never overdue and carried a small workable balance. Received a letter from them statign that they were closing all credit card accounts, but that outstanding balances would be allowed to be paid off in the same manner as it is now.

This is a huge corporation that is closing its credit card portion - - while this is being done by their bank it is a cause for some concern - - how solvent is Home Depot?
Store credit cards come and go, when they can make easy money from credit cards then they have them, when they have to start managing bad debts they tend to let them go. Small contractors and homeowners are fighting one another for crappy work right now and for the foreseeable future, would you extend any of them credit? It's easier to let the banks deal with it, it's their core business after all.
 

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I agree with Midwest you can't put all your eggs in one basket. Go on as if things were going to go on, but prepare like you new that a Hurricane was coming.
Thought of something else I should add, this is from my paranoid alter personality.

If you buy all that good survival gear, food, etc, you're leaving a paper trail for someone to find. If it does really collapse as many of us think, but they start looking at where you spent all that $$$, that could cause problems for you.
 

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The surviving big banks will buy up your debt and come looking for what you owe. I started a thread like this when I started here too. LoL:D:
 

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You´re asking if you should go heavily in to the most expensive kind of debt to prep?

How can that even be considered survivalism?

OK, let´s say your "too big to fail" bank actually fails. Do you think your debt evaporates? No, it get´s bought and bought by someone for whom you are not a longtime trusted client. No, you´ll only be an asset and they´ll chase you to hell and back.
 

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Google Duckweed!!!
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You're eating already...

What's wrong with buying the food up front and making a monthly payment on it? You do that frequently with a credit card and eating out. So you decide to do it on a slightly larger scale.

Buy the rice and beans and canned meats. Use them on a daily basis and maybe supplement your meals with some fresh veggies.

I concede that maxing out your cards and NOT paying is wrong. We might pull out of this economic nose dive. On the other hand, sitting around starving to death because you didn't borrow money you were legally entitled to borrow doesn't sound too appealing. They loan, you make payments, they make a profit from interest.

We are talking about a a few thousand bucks to survive past the collapse and get into the regrowing phase. Borrow enough to be prepared, but not too much you cannot make a minimum payment.

Also, you can cash advance and then buy with very little paper trail. Borrow just a little at a time.



Sierra Dave
 

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My take on it is not to buy anything on credit that you can't afford. That happened often during the Y2K scare. When the crash didn't happen, those folks were straddled with major debt.

I'm also in the "stealing is stealing" camp. Credit cards are a promise to pay. Do you keep your promises?

I might be tempted to put as much preps on credit cards as I could afford to pay on, and see what else I could do to generate some extra income to buy preps with also. Maybe trim the budget a bit, try to get a second job, sell off some unneeded things around the house, etc.
 

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I had a card through Home Depot that was paid when due, never overdue and carried a small workable balance. Received a letter from them statign that they were closing all credit card accounts, but that outstanding balances would be allowed to be paid off in the same manner as it is now.

This is a huge corporation that is closing its credit card portion - - while this is being done by their bank it is a cause for some concern - - how solvent is Home Depot?
The Home Depot credit cards are backed by Citibank. Gee I think I have heard somewhere that Citibank got some money from some taxpayers somewhere, naaah must have been some other noname bank.
 

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Discussion Starter #18
I was not considering maxing out my credit cards. We can make the payment right now, but in the event of an economic collapse, that will probably change. I was thinking more along the lines of buying whatever we may need now, rather than wait one day to late.

In the event of a collapse, I would expect about half the people in the country to be unable to pay their debts.
 

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Live Secret, Live Happy
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I don't think that I can over emphasis the down side of running up a large credit card debt, if the economy continues to tumble into a depression, yet there is not a failure of civil order. Read what they did to people during the Great Depression. They did not let people file for bankruptcy back then. They took every thing they had and then hung a judgement against them so they could continue to take every thing they made in the future.

Will the government change the bankruptcy laws to match the 1930s. Two years ago I would say not, but after the TARP program and the Federal takeover of General Motors I am not so sure.

I suggest that you would be infinitely better off if you were flat broke but not in debt. Perhaps selling unneeded items and cutting unneeded services if you have not already.
 

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...What would you do in my situation?
I don't know where you live or what it's like, but I'd prepare for the worst and hope for the best.

Worst case scenario: You can store stuff up, but eventually it will all run out and you will be forced to live off the land or try to steal/ scavenge what you need or beg for help.

My preparedness focuses around living off the land. Hunter/ gatherer and possibly farmer. A new Neolithic lifestyle! All but your most serious medical needs can be obtained in this fashion. I would prepare myself to defend my little neck of the woods, because most certainly groups will be out to get you. Establishing a group of your own would be the only long term solution to that problem.
 
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