How much are you in debt ?

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How much are you in debt ? I'm talking about credit card,students loans etc.
I have 0 debt, from every paycheck I try to save at least 2/3.Whenever I buy plane ticket using credit card I pay at once full amount back.
How about you people ?
 

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  • #2
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Currently 0.
 
  • #3
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spender said:
How much are you in debt ? I'm talking about credit card,students loans etc.
I have 0 debt, from every paycheck I try to save at least 2/3.Whenever I buy plane ticket using credit card I pay at once full amount back.
How about you people ?
$2250 in student loans.
 
  • #4
brewnog
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About £10,000 (GBP), probably around 15k by the time I finish. What's that, about USD 25,000?
 
  • #5
Moonbear
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Well, there's the mortgage on the house and about a year's worth of car payments (I'm not disclosing the amounts). Until I bought my car and house, I had no debts, and I continue to avoid having any debt aside from those.
 
  • #6
brewnog
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Moonbear said:
Well, there's the mortgage on the house and about a year's worth of car payments...
I don't have car debts ner ner ne nerr nerr!
 
  • #7
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Moonbear said:
Until I bought my car and house, I had no debts, and I continue to avoid having any debt aside from those.

I have a credit card, but i avoid using it as much as possible, and always pay it off immediately. Basically i only use it when i have to order something online, that i already have the cash for anyway. Not worth building up debt early in life.
 
  • #8
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Maybe $150K. I'm working to get it up over $1 million though. :biggrin:
 
  • #9
Moonbear
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franznietzsche said:
I have a credit card, but i avoid using it as much as possible, and always pay it off immediately. Basically i only use it when i have to order something online, that i already have the cash for anyway. Not worth building up debt early in life.
I learned early on that you should use your credit card instead of cash as often as is possible -- as long as you pay off the bills right away. It helps you build up a good credit rating, so when you do need to get a loan for something big, like a car and house, you have a good credit history established. I've known people who always paid everything in cash and then wound up needing a co-signer to buy a house, not because they couldn't afford it or weren't responsible borrowers, but because they had no credit history. I know it sounds crazy, but that's the way lenders think. :rolleyes:
 
  • #10
JasonRox
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Moonbear said:
I learned early on that you should use your credit card instead of cash as often as is possible -- as long as you pay off the bills right away. It helps you build up a good credit rating, so when you do need to get a loan for something big, like a car and house, you have a good credit history established. I've known people who always paid everything in cash and then wound up needing a co-signer to buy a house, not because they couldn't afford it or weren't responsible borrowers, but because they had no credit history. I know it sounds crazy, but that's the way lenders think. :rolleyes:
That's so true.
 
  • #11
JasonRox
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Deleted.

I deleted it.
 
  • #12
brewnog
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With credit cards, you also get a lot more buyer protection too (if a supplier goes bankrupt, for example, the card company will refund your purchase because they're nice like that). Set up a direct debit, and it's just like using your debit card!
 
  • #13
russ_watters
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I have a nasty habit of holding a little credit card debt - but not too much, just $1000 or so. Other than that, just my car (8 months into a 5 year loan). But I'm hoping to go another $150-$200k into debt within the next year. :wink:
 
  • #14
Moonbear
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russ_watters said:
I have a nasty habit of holding a little credit card debt - but not too much, just $1000 or so. Other than that, just my car (8 months into a 5 year loan).
Let me guess, cameras and telescope type equipment? :biggrin:

But I'm hoping to go another $150-$200k into debt within the next year. :wink:
Ah, the joys of buying a house! I remember that slightly panicky feeling the night before closing on the house, thinking what on earth am I doing getting myself into that kind of debt when I had never been in debt my whole life! But, it still beats living in an apartment.
 
  • #15
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15,000 student loans.
1,000 credit card debt (I revolve this. It never goes higher than this number, or I just pay it down, so 1000 I say)
12,000 car loan
------------------

Wooh, another couple of years and I can figure out how to finance med school on top of all this too, wooh!
 
  • #16
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Moonbear said:
Ah, the joys of buying a house! I remember that slightly panicky feeling the night before closing on the house, thinking what on earth am I doing getting myself into that kind of debt when I had never been in debt my whole life! But, it still beats living in an apartment.

What is the deal here in America with buying a house,seams like everyone must own a house even if person gets into financial black hole for the rest of their life, and if you loose your job you are screwed.
In Europe lots of people just live comfortably whole life in rented aprtments and no one is complaining.
 
  • #17
Moonbear
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spender said:
What is the deal here in America with buying a house,seams like everyone must own a house even if person gets into financial black hole for the rest of their life, and if you loose your job you are screwed.
In Europe lots of people just live comfortably whole life in rented aprtments and no one is complaining.
You're not in a financial black hole for the rest of your life, just 30 years. :biggrin: If you lose your job, you still have the house to sell, which is better than if you are renting. Houses are good investments, because they usually appreciate in value, so instead of just paying rent and never owning anything, you buy a house and gain equity. Now, it doesn't make sense to buy a house that would require mortgage payments that are higher than you can afford, but I have a 4 bedroom house with a mortgage payment (principle + interest) that's actually a little less than what I was paying in rent for a 2 bedroom apartment, and in just three years, my house has increased in value by about 20% (and I'm in a neighborhood where houses are more stable in value than other areas where homes have doubled in value in the past few years).
 
  • #18
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Moonbear said:
I learned early on that you should use your credit card instead of cash as often as is possible -- as long as you pay off the bills right away. It helps you build up a good credit rating, so when you do need to get a loan for something big, like a car and house, you have a good credit history established. I've known people who always paid everything in cash and then wound up needing a co-signer to buy a house, not because they couldn't afford it or weren't responsible borrowers, but because they had no credit history. I know it sounds crazy, but that's the way lenders think. :rolleyes:

That is actually the only reason i have the card at all. But i still stick to internet purchases with it. Although, its not like i spend much money anyway. Well...not directly at least.
 
  • #19
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spender said:
What is the deal here in America with buying a house,seams like everyone must own a house even if person gets into financial black hole for the rest of their life, and if you loose your job you are screwed.
In Europe lots of people just live comfortably whole life in rented aprtments and no one is complaining.

House payments are not usually drastically higher than rent payments(the difference you don't typically have roommates splitting a house payment). At least, not in what i've seen. When we rented out our house, we basically rented at what the mortgage payments were (a little higher actually, since property values had gone up in the six years since we bought it). So if you lose your job, you would be equally screwed either way. Well, actually no, you'd be less screwed owning the house, since presumably, if you'd been paying on it for a while, it would be worth more than you owed, so you would profit if you had to sell. Renting, you'd just lose the apartment and have nothing to show for it.
 
  • #20
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franznietzsche said:
House payments are not usually drastically higher than rent payments(the difference you don't typically have roommates splitting a house payment). At least, not in what i've seen. When we rented out our house, we basically rented at what the mortgage payments were (a little higher actually, since property values had gone up in the six years since we bought it). So if you lose your job, you would be equally screwed either way. Well, actually no, you'd be less screwed owning the house, since presumably, if you'd been paying on it for a while, it would be worth more than you owed, so you would profit if you had to sell. Renting, you'd just lose the apartment and have nothing to show for it.
All true. Plus, once you buy your house, your payments remain the same for the rest of your mortgage term (assuming you get a fixed rate mortgage). You can also refinance if interest rates go down to lower your payments. That means that when property values keep going up and rent keeps going up every year, your mortgage remains the same, so over your lifetime, you pay far less than if you're dumping that money into ever increasing rent. (Yes, taxes and insurance rates continue to go up, but you're paying for them in your rent too; if the taxes go up, you can bet your landlord will raise rent when it's time to renew your lease).
 
  • #21
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There's actually nothing wrong, per se, with having debt. Credit is one of the greatest economic tool ever developed, allowing people to buy things they'd have to save up their whole life to buy otherwise. Having a large debt may make you nervous, and that's a good thing. It's a powerful tool and it needs to be treated with respect.

All credit is not created equal though. Paying 26% on a huge credit card bill or 119% on a title loan is a good way to end up bankrupt, but other sources of debt may not be bad. For example, if you're paying 0% on your credit card bill, there's no** reason to pay it off before the initial period ends. A home mortage is even better: It's a relatively low interest rate; it's attached to something that has value (i.e., the house); and you can deduct the interest, depreciation, and upkeep from your taxes, offseting a large part of the interest you pay into the house. If you look at some of the richest men in America like Donald Trump or Bill Gates, I suspect you will find they have millions or possibly billions of dollars of real estate debt.

**No financial reason. If you suspect you may spend the money before the grace period ends, that's a good reason.
 
  • #22
Mk
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Where's tribdog? I figured he'd post like crazy over here? Maybe he's too busy throwing up from the gum?
 
  • #23
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I owe about $180,000 in hospital bills, no joke, which I will never pay. I just hope they don't show up someday and put the knife back in.
 
  • #24
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tribdog said:
I owe about $180,000 in hospital bills, no joke, which I will never pay. I just hope they don't show up someday and put the knife back in.

That would be bad if they did so.

Funny, but bad. Well, funny in a rather morbid sense.

I'll stop now.
 
  • #25
Mk
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Man, those scapels are mad sharp... I remember in biology, cutting through my glove farily deep into my finger, but the incision was like as thick as a paper cut.
 

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