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Yahoo
01-08-2025
- Business
- Yahoo
5 Most Terrifying Money Stories on Reddit
Reddit offers a veritable smorgasbord of wild stories. There are sweet, funny stories, like the girl who found the star of her favorite movie randomly sitting in her airplane seat. Then there are the tales of family drama that would make 'Game of Thrones' feel like 'Full House.' And the scary stories — oh yes, Reddit abounds in tales of terror in all areas of life. Money matters are no exception. Be Aware: Read Next: GOBankingRates decided to spelunk into the deepest caverns of Reddit (well, within reason) to find spine-tingling tales of money woes and mismanagement. These stories will shock and amaze you — and if nothing else, they'll serve as cautionary tales while reminding you to be grateful for the money skills you've mastered. 1. $10K in Take Out The pandemic was a hard time for everyone, some of us more so than others, obviously. People who weren't on the front lines had their own ways of coping, like picking up new hobbies and baking sourdough bread. So much sourdough bread. Well, for one Redditor in the Caleb Hammer community, the strain of lockdown led to a major penchant for DoorDash — to say the least. Redditor Somnus Sampling spent a whopping $10,000 in savings on DoorDash, including tips, to 'cope with the stress and my family's situation.' To put things in context, it's actually possible to get a used car for that amount of money in some instances. You could also pay off a lot of debt, make significant investments in the market or even start a small business with that much cash. Instead of being mired in their mistake, Somnus Sampling learned from it: 'Since the beginning of 2022, I stopped using any food delivery service apps.' Check Out: 2. The Dinner Out That Turned Into a Mad Search for Rent Money When the Redditors of the Money Diaries community asked each other to spill their own scary money stories, user Mordecai_AVA_OShea spun a truly terrifying story of a night out gone terribly wrong. Picture it: New Year's Eve brunch at a trendy DC establishment. Mordecai and their husband are both 'broke graduate students' visiting hubby's best friend from high school, who is now an attorney at a big DC firm. A meet-up with 10 of bestie's law school friends turned into a three-hour shindig with people ordering many bottles of Prosecco — to the tune of $300 per person. 'I was beside myself,' Mordecai said. 'We got home my husband and I went through our apartment and made a pile of anything we could live without and sold it on Craigslist to make rent. 15 years later and I'm still sad I traded a breakfast with strangers for my grandmother's rocking chair that my mom used to rock all her babies.' 3. A $25K Investment Tossed Out With the Trash An engagement ring and wedding band represent investments in the strength of your love and your future as a happily married couple. Let's be real, though, it's also a major financial investment — one you'll want to get insured. Redditor Petite AC learned that lesson the hard way, when she lost her wedding band and engagement ring only three months after her wedding. 'I had planned on getting insurance after the holidays as it was a very busy time,' she wrote. '$25k gone. Pretty sure they were thrown away with our take out.' 4. Putting All the Eggs in One Basket In a thread dedicated to how ex-millionaires lost their money, Redditor wishnana shared the gob-smacking story of a close friend's parents. They were frugal folks who worked hard at a well-regarded American company that was flying high back in the 2000s, eventually ending up in high managerial positions — as well as the perks that came with those positions. They put all their investments, from 401(k) funds to cash, back into the company — and only the company. The Redditor guessed that, all in all, they'd probably invested close to $5 million to $6 million into the company. Just as they were about to pull that money out so they could retire, they found the rug pulled out from under them. That company's name? Enron. As in, soon-to-be-mired in scandal and go belly-up Enron. Their friend's parents lost those millions in savings. 5. The Hypothetical Millionaire Fans of 'The Twilight Zone' could count on Rod Sterling to take them through alternative worlds, featuring protagonists whose one small move can bring about devastation — like the last man on earth, who was oh-so-happy to be alone with his books, until he broke his glasses. One Redditor doesn't need to go to the Twilight Zone to imagine that kind of scenario: They bought $100 worth of Bitcoin when they were only $1 each. 'I sold them when they were about $2.50 each and was so happy I made money from 'internet coins,'' they wrote. 'As of the moment I am typing this, those coins would be worth $1,855,000.' More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit -- Here's What To Buy 25 Places To Buy a Home If You Want It To Gain Value This article originally appeared on 5 Most Terrifying Money Stories on Reddit Solve the daily Crossword
Miami Herald
30-07-2025
- Automotive
- Miami Herald
New Car Buyers Are Getting Trapped in This Scary Financial Situation
New cars are expensive. According to data from Kelley Blue Book and Cox Automotive, car prices are being kept steady, but the average new car in the U.S. still costs a whopping $48,799 in May 2025, a 2.1% increase from the same month in 2024. Despite this, it's easy to get tempted by the idea of a new car. It can be anything: either your current ride is giving you headaches, the new model for 2026 looks really cool, or your local dealer is offering a sweet financing deal on a 2025 model that can be shoehorned into your budget. However, for a disturbing number of Americans, these decisions leave them in a level of debt that would make Dave Ramsey and Caleb Hammer emotional and stuck in a hole that's getting even harder to climb out of. According to new data from car-buying authority Edmunds, the level of negative equity (when people owe more money on a car than its value) in new car purchases has reached a four-year high. They report that 26.6% of cars traded in towards new cars had negative equity in the second quarter of 2025, up from 26.1% in Q1 2025 and 23.9% in Q2 2024. When buyers trade in a car with negative equity, the amount people owe is usually rolled over or paid up front. Edmunds data shows that the average amount that buyers owed on cars with negative equity in Q2 2025 was $6,754, and over a third (32.6%) of underwater buyers carried between $5,000 and $10,000 in debt into their next car loan. Additionally, 23.4% of these buyers owed more than $10,000, and 7.7% owed more than $15,000. "Consumers being underwater on their car loans isn't a new trend, but the stakes are higher than ever in today's financial landscape," Edmunds director of insights Ivan Drury said in a statement. "Affordability pressures, from elevated vehicle prices to higher interest rates, are compounding the negative effects of decisions like trading in too early or rolling debt into a new loan, even if those choices may have felt manageable in years past." The rise of negative equity comes as buying a new car is tougher than ever. Car prices are still high, and interest rates are much higher than those of the COVID years in 2020 and 2021. Despite this, many consumers follow along, trading in their cars early and/or rolling existing debt into their next car without adjusting their budgets. As a result, in the second quarter of 2025, the average buyer who piled their negative equity on top of a new loan financed an additional $12,145 compared to the typical new car buyer. Additionally, they made average monthly payments of $915, compared to the typical new car buyer who paid $756. Figuring out if you have negative equity with your car loan is pretty simple. Start by checking how much your loan payoff amount is, which you can find in your monthly statements. Then, see what your car is worth right now on sites like Edmunds or Kelley Blue Book. If your loan payoff is more than what your car is worth, you have negative equity, and the difference between the two numbers is how much you're underwater. Joseph Yoon, a consumer insights analyst at Edmunds, advises, "In many cases, holding onto your current car and staying current on payments and maintenance may be the wisest choice." That said, if getting a new car feels right, then making the right decision about your shopping is crucial. He also says, "If a new vehicle is the right decision for you, doing your research is key. Choosing the right car for your needs and budget can save you more in the long run than any incentive the dealer or manufacturer may be offering. In today's market, smart shopping is your strongest defense." Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Miami Herald
07-07-2025
- Automotive
- Miami Herald
The Rise of 84-Month Car Loans: Why Buyers Are Trapped
Regardless of whether you've nervously scrolled through endless listings on dealer websites or wasted hours of your life configuring your dream cars online, it hurts to know that new cars are expensive. According to analysts from Kelley Blue Book and Cox Automotive, dealers are doing the most they can to keep car prices steady; however, the average new car in the U.S. still costs a whopping $48,799 in May 2025, a 2.1% increase from the same month in 2024. Although data shows that tariffs have influenced some buyers in the U.S. to defer or delay their buying decisions, other buyers must finance their cars, which keeps a disturbing trend alive among new car buyers. According to new data released by car buying authority Edmunds, Americans' auto loans are reaching a point where Dave Ramsay and Caleb Hammer would declare a personal finance armageddon. While automakers and dealer groups would advertise their single-digit promotional financing rates as terms that extend over 60 months (5 years) or 72 months (6 years), buyers are stretching their payment plans for much longer. Edmunds reports that in Q2 2025, more buyers than ever are taking out loans over the course of 84 months (7 years), making up about 22.4% of new-vehicle financing in the quarter, up from 20.4% in Q1 2025 and 17.6% during the same period last year. Though buyers are willing to stretch and spread out their loan terms for a lower monthly payment, they aren't being spared from paying out the wazoo every month. According to Edmunds, over 19.3% of new car buyers had monthly payments that exceeded $1,000 in Q2 2025, a notable increase from the 17.7% in the previous quarter. As more buyers opt for extended loan terms, Edmunds' consumer insights analyst Joseph Yoon warns that this could have later consequences, especially as the risks and tribulations of car ownership, such as upkeep costs and depreciation, kick in. "While extended loan terms may make a monthly payment more palatable, consumers need to keep in mind the risks associated with a loan extended that far into the future, including increased costs for upkeep down the line and the risk of being underwater on the loan if the car is traded in before it's paid off," Yoon said. "If payments on a more standard 60- or 72-month loan don't fit your budget, you might consider leasing. While you won't be building equity in your vehicle the way you do with a purchase, leases afford time to get your finances in better shape with lower monthly payments in the meantime." Although ads on TV during select promotional periods, like certain federal holidays, show that your local [insert automotive brand here] dealer is offering 0% APR loans, or a number close to it (such as 0.9%) on a specific model, these kinds of rates are far out of reach for the average new car buyer. Edmunds says that the average buyer financed their cars at an annual percentage rate (APR) of 7.2%. However, this doesn't mean that 0% finance deals don't exist; in fact, they accounted for 0.9% of new-vehicle loans in Q2 2025. This was the lowest share Edmunds recorded since 2004, down from 1% in Q1 2025 and 2.9% in Q2 2024. However, while it is commonly known that a sizable down payment is required to achieve manageable monthly payments, in addition to accepting longer loan terms, Edmunds found that buyers are putting less money down on their new car loans than ever before. According to their data, the average down payment that buyers put down on their new-car loans was $6,433 in Q2 2025, which is down from $6,511 during the previous quarter and $6,579 during the same time last year. At the same time, Edmunds found that new car buyers are financing increasingly expensive vehicles. They found that the average amount financed for new cars climbed to an all-time high of $42,388 in Q2 2025, up from $41,473 during the last quarter and $40,873 during the same time last year. In a statement, Ivan Drury, Edmunds' director of insights, noted that while it would be easy to assume and point fingers at the Trump administration's tariffs, car prices remain steady at a level that car buyers still can't afford. "It's clear that buyers are pulling the few levers they can control to manage affordability, whether that's by taking on longer loans, financing more, or putting less money down - even if some of those decisions increase their total costs," Drury said. "Consumers are continuously stretching to afford new vehicles in this market, and while tariffs haven't directly driven these Q2 numbers, they're certainly not going to make things any easier for shoppers moving forward." We are seeing automakers react to the reality of extended loan payments, too. In fact, the Stellantis-backed Ram Trucks began to offer a best-in-class 10-year/100,000-mile powertrain warranty, which gives Ford and Chevy something to think about. However, in its press release, Ram acknowledges that the warranty comes as "more buyers opt for extended loan terms." "Everything is more expensive, and trucks are certainly no exception. Truck buyers are financing purchases for longer periods of time, with nearly 80% of new truck loans exceeding five years," Ram Trucks CEO Tim Kuniskis said in a statement. It is one thing for automakers to recognize this reality, but it is another to enable it. This data comes at the same time when auto loan delinquency is at its highest, as 1.4% of auto borrowers were at least 60 days behind on their auto loan payments during the first quarter of 2025, per TransUnion. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Yahoo
30-05-2025
- Business
- Yahoo
The Worst Financial Advice on Reddit and What To Do Instead
Reddit is a goldmine for personal finance stories, but it's also a place where bad advice gets shared, and sometimes followed. Threads on r/DaveRamsey and r/CalebHammer asked users to share the worst financial advice they've ever received and the responses were eye-opening. Read Next: For You: Here are some of the most damaging advice shared in that thread and what to do instead of following that advice. One of the most common pieces of bad advice is to take out a car loan just to build credit. 'For me, it had to be to finance a car because I could build my credit. However, I did not do that but instead bought a car with $160k miles for $4700 and pocketed about $1500 after registration was done [sic],' one Redditor by the username u/[deleted] wrote. What to Do Instead: You don't need to go into debt to build credit. A secured credit card, used responsibly, can help you establish a credit history without the burden of a car loan. Becoming an authorized user on a family member's credit card can also help. Check Out: Another Reddit user reported being told that saving money isn't important when they're young. '[I was told that] saving doesn't matter when you're young, because the money you'll make when you're in your peak earning years will make the early savings irrelevant. Lived like that through my twenties. Pretty much spent everything I made. Now in my thirties, and not really making what I thought I would be at this time in my life,' the user u/WORLDBENDER wrote. What to Do Instead: Enjoying life while you're young doesn't mean you should spend all your money and not prepare for the future. Take advantage of compound interest and start saving and investing money every single month to build a solid financial foundation. Most students are encouraged not to take out too many student loans, but one was told to take out as much money as they could. '[I was told m]ax out your federal student loans. It's the cheapest money you'll ever borrow,' user u/napashadow explained. What to Do Instead: Only borrow what you absolutely need for tuition and essential expenses. And before taking out student loans, make sure you've looked into scholarships, grants and work-study programs. You can also consider going to a community college for the first two years to save money. A user said the worst financial advice they ever received was to take out a loan to buy cryptocurrency. '[I was told t]o get a second mortgage on my house to buy dogecoin,' user u/gumercindo1959 wrote. What to Do Instead: Using debt to chase quick gains can easily backfire and leave you underwater if the market crashes. Instead, only invest money you can afford to lose, and build wealth by diversifying your portfolio with less volatile options like index funds. Another person said they were advised to use their credit card as much as possible to earn rewards. 'The more you spend with your credit card, the more money you make,' Reddit user u/[deleted] wrote. What to Do Instead: Credit card rewards are great, but they're definitely not a reason to spend more than you normally would. If you're racking up debt just to earn rewards, you'll ruin your credit score if you fail to pay it back. The best way to use credit cards is to use them for stuff you were already planning to buy and pay your balance off in full and on time each month. Another user shared the bad advice they got about stretching out payments just because the option was available. '[I was told t]hey're letting you pay it over 12 months, why wouldn't you take that deal?' u/Honest_Grapefruit259 wrote. What to Do Instead: Just because you have the option to pay something off over time doesn't mean you should. 'Buy now, pay later' plans can make it easy to overspend and lose track of what you actually owe. Plus, those monthly payments add up fast and missing one could come with fees or hurt your credit. If you can't afford to pay for something upfront, you may want to reconsider the purchase altogether. You shouldn't take financial advice from just anybody, especially when it comes to your finances. Just because a friend, family member or random Reddit user recommended something doesn't mean it's right for you. If you need help making a financial decision, reach out to a certified financial advisor who can give you advice based on your specific situation. More From GOBankingRates Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit -- Here's What To Buy The 5 Car Brands Named the Least Reliable of 2025 This article originally appeared on The Worst Financial Advice on Reddit and What To Do Instead Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
