How much are you in debt?

[Rainey]

Re: How much are you in debt?

Heh.... Don't think so. We probably just manage our money better.

I'm just afraid I'll be bailing out some of these guys with massive debt in a few years.

[Chief Illinimac]

Re: How much are you in debt?

Don't know what the finger wagging is for. But it's DEBT. Debt is debt. Thanks for the sage wisdom though.

He's right though. Equitable debt means you are gradually increasing your ownership/wealth with each payment, where the unsecured loans are just throwing money away until your final payment on the debt.

[madscientist]

Re: How much are you in debt?

2 new cars, a house, and a few student loans = $180,000 in debt.

[Altimus]

Re: How much are you in debt?

I thought the GTR was going to MRSP around 70K?

70-80K.

But I'm trading/selling my Z for a sports sedan as I won't be driving the GTR in winter. After that I'll be putting my own saved money for the GTR and after all is said and done I should be 30K in.

[Behindshadows]

Re: How much are you in debt?

around 18k Just bought a new car.

other than that, I don't owe anyone anything!

[Jistic]

Re: How much are you in debt?

He's right though. Equitable debt means you are gradually increasing your ownership/wealth with each payment, where the unsecured loans are just throwing money away until your final payment on the debt.

Sure, and add take your vitamins and say your prayers before bed to that.

But 'equitable' debt is also putting you under the assumption that your wealth will increase from your debt. And if you've seen the market lately, that's not the case.

With automobiles that's never the case, unless it's a collector.

My point was that houses/cars are rarely investments...not if you live in them. Mortgages however are a necessary evil. I know I'd rather take the 10K I spend on interest in one year and put it in a random mutual fund than piss it away on interest. But I need a place to live.

Again, at the end of the day. Debt is debt. We can argue semantics all we want if it makes us feel better.

[bkrich83]

Re: How much are you in debt?

House roughly $700k
Cars are leases so not a ton. (1 is a 3 year lease on $40k car, and one is a 2 year lease on a $38k car.)
About $1000 in credit cards.

That's it.

[bkrich83]

Re: How much are you in debt?

Heh.... Don't think so. We probably just manage our money better.

Or you live in a place with a much lower cost of living.

[jmood88]

Re: How much are you in debt?

I have a credit card with a $400 limit that I use for books each quarter and then whatever the student loan I have. I'm lucky since I get half off tuition since my mom's a professor and I have a grant so I don't have a huge student loan. The credit card people are ridiculous, I've been getting offers since my senior year and they just won't stop sending me that "you're pre-approved!!!!!!" letters.

[themush]

Re: How much are you in debt?

Sure, and add take your vitamins and say your prayers before bed to that.

But 'equitable' debt is also putting you under the assumption that your wealth will increase from your debt. And if you've seen the market lately, that's not the case.

With automobiles that's never the case, unless it's a collector.

My point was that houses/cars are rarely investments...not if you live in them. Mortgages however are a necessary evil. I know I'd rather take the 10K I spend on interest in one year and put it in a random mutual fund than piss it away on interest. But I need a place to live.

Again, at the end of the day. Debt is debt. We can argue semantics all we want if it makes us feel better.

Sorry for the finger waving.

Just saying if you have a mortgage and need some money you can take out a HELOC or Re-Fi. I do it for a living. If you owe AMEX or CapitalOne for a CC debt can you go to them and take a loan?????

[mjb2124]

Re: How much are you in debt?

Or you live in a place with a much lower cost of living.

True and Pittsburgh is certainly a lower cost of living than some other areas. Although I think many people live outside their means and that causes them to get in trouble. They're often the same one's who don't really know how to make their money work for them through investments. I always abide by the theory that if I can't pay for something in cash, I don't buy it (does not apply to cars or a house though). I know too many friends that just spend and spend and spend. One of my friends even took money out of his 401K to buy things. He took a huge hit by doing that.

One thing I suggest to everyone that is younger is to put money into a Roth IRA. Not just an IRA, a Roth IRA. Pay the taxes on it now when the Roth is of a smaller size and the taxes aren't very high and then let it grow. By the time that person is in their 60's, they can take the entire thing out without having to pay taxes. If it were an IRA, that person would have to pay taxes on the final amount which would be much higher. Example: Pay taxes on 20,000 when you're 30 or pay taxes on 300,000 when you're 60.

[Jistic]

Re: How much are you in debt?

Sorry for the finger waving.

Just saying if you have a mortgage and need some money you can take out a HELOC or Re-Fi. I do it for a living. If you owe AMEX or CapitalOne for a CC debt can you go to them and take a loan?????

Of course not, I've never said unsecured debt was good. No debt is "good".

The problem a lot of people do, is they do that HELOC and pay off the credit card....then what? They go charge up the credit card again.

We're a credit addicted society.

[Chief Illinimac]

Re: How much are you in debt?

Of course not, I've never said unsecured debt was good. No debt is "good".

The problem a lot of people do, is they do that HELOC and pay off the credit card....then what? They go charge up the credit card again.

We're a credit addicted society.

Well, unfortunately it's pretty much unavoidable since most people NEED but cannot AFFORD things like school, a car, and a place to live, without credit.

School is the only debt I have, but I will need a car and eventually a place to live, so I won't be debt free for a while. It's something I can't really control.

[Pared]

Re: How much are you in debt?

True and Pittsburgh is certainly a lower cost of living than some other areas. Although I think many people live outside their means and that causes them to get in trouble. They're often the same one's who don't really know how to make their money work for them through investments. I always abide by the theory that if I can't pay for something in cash, I don't buy it (does not apply to cars or a house though). I know too many friends that just spend and spend and spend. One of my friends even took money out of his 401K to buy things. He took a huge hit by doing that.

One thing I suggest to everyone that is younger is to put money into a Roth IRA. Not just an IRA, a Roth IRA. Pay the taxes on it now when the Roth is of a smaller size and the taxes aren't very high and then let it grow. By the time that person is in their 60's, they can take the entire thing out without having to pay taxes. If it were an IRA, that person would have to pay taxes on the final amount which would be much higher. Example: Pay taxes on 20,000 when you're 30 or pay taxes on 300,000 when you're 60.

That's ridiculous to take money out of your 401k unless you plan on dying young or working the rest of your life.

What looks like $1000 to him actually cost him maybe something like 30,000 in the long run. Just to get that PS3 and awesome surround system!

[bluengold34_OS]

Re: How much are you in debt?

Well, we just bought the wife a new car, but it was only $18,500 ( Colbalt Lt2 )
and we do a good job of keeping our CCard debt low and try to buy as much as possible w/ cash. Our biggest problem is $130,000 in student loans for my wife ( I had a baseball Sship so I owe $0 ) She had to go to LSU/ U. Of Missou/ Kansas State and Iowa State...plus Culinary School in Germany. Just her student loan a month is $872. We are only leasing a town home right now until we decide to buy......

We would be good if it wasn't for that damn Student loan, as we will be paying on that for the next 30 years.