nope. managed to get out of debt 2 years ago. (that's if we dont include renting)
Are You In Debt?
- Thread starter All Seeing Eye
- Start date
I agree that everybody pays for accommodation one way or another, but if I stop paying rent I won't incur in financial issues, while if I stop paying a mortgage the bank will seize the house.
Nope, I own my property and I have the equivalent of $680k in savings. 
Mind you, I shouldn't start feeling too comfortable. Come the next banking crisis, or if governments decide to inflate themselves out of debt, I'll be as stuffed as everyone else.
Mind you, I shouldn't start feeling too comfortable. Come the next banking crisis, or if governments decide to inflate themselves out of debt, I'll be as stuffed as everyone else.
Yes...I have a mortgage, car payment and student loans. Small bit of credit card debt that will be gone within the next few months.
Goal is to get it all gone within the next 3 years. Totally doable.
Goal is to get it all gone within the next 3 years. Totally doable.
Yeah, right now around 12000 Euro student loans, but of this I have to pay back only half (half of it pays the staate)...so 6000 Euro. Have to pay it back in 5 years. However I may can reduce it somemore, should I belong to the best 10% of my study it is 20% less.
As I have a stipendium right now (means an organisation gives me money for studying and living and I have not to pay back a cent of it) I do not need any more student loans at the moment...should I loose the stipendium however I need student loans again...so more dept. Of course don´t hope that this happens.
TerokNor
As I have a stipendium right now (means an organisation gives me money for studying and living and I have not to pay back a cent of it) I do not need any more student loans at the moment...should I loose the stipendium however I need student loans again...so more dept. Of course don´t hope that this happens.
TerokNor
You kinda WILL, though, as you'll be kicked out of your apartment. How's that different than the bank taking the house? Either way, you have to leave, and don't get the money you put into it. Payments stop, but you have to move out.
Stay in the house long enough, and pay the mortgage, though, you eventually own it. Not true with an apartment...
I don't think that counts as debt. You can always cancel your phone service.
Oh, I do agree that paying rent or paying mortgage is operatively identical, and that having a mortgage is a much better long-term investment. I was arguing about the definition of "debt". A mortgage is a debt, a rent is not. Just that.
Well from a strategic-financial planning standpoint, renting/leasing a house or a car is always superior to ownership. At least in the USA.
If you default on a unsecured note (ex: visa card) they can haul you into court. And depending on the state they can get a judgment to force you to pay (barring bankruptcy), including a Writ Of Execution (Court Order Of Forced Sale) for non-exempt property.
For example: Say your state is no direct exemption for a car, but they have $4,000 (TN) in wild-card property. Now lets say you car is worth $8,000 (no bank note attaching the car). If you refuse or fail to pay your court order, and you don't file for Ch. 13 or Ch. 17 bankruptcy protections and relief, including paying the fee to have any judgment-liens stripped, the creditor can go back to the court and force you to surrender that car and give you 14 to 30 days to pay the judgment in full or have the car sold. If sold, they give you the first $4,000 dollars and keep whatever is needed to satisfy their judgment and court fees. If they don't get enough, to meet the exemption they have to give YOU what they got. Either way you've lost a $8,000 car.
Now if you lease/rent, then you have no "real property" for them to attach. The worse they'd get is a garnishment against your wages; which is some case can be a "win" for you and work in your favor.
That works form the assumption that your income situation is going stay at it's current level or improve, and is not going to decline. Even then, something like refinancing every 15 to 20 years will protect a home.
Well, yes, but I'd rather do that than live in fear of my income dropping.
Learned my lesson-- the hard way-- about that one. When the money was steady or good, I didn't worry to much. Had 6 months or more in the bank. We followed all the tips and tricks. We thought "we're ready". Then the shit hit the fan medically and employment wise, and we found out we didn't know dick.
I'm a bit more...fatalistic these days when it comes to finances. Sort of "once bitten" you might say.
They can't change an existing loan, it's sold on the terms at the time of sale, not some new ones they made up later. Just as I wasn't affected by 'Top Up fees' as an existing loan holder. There are some major changes likely ahead for new students but if they think they can shoehorn those of us already in the 'system' into the changes, what's the phrase? They'll be hearing from my lawyer
Besides, the amount I pay now is frankly an embarrassment. I spend more on orange juice. So I wouldn't be too cut up if it went up a bit. I won't pay it off before its written off anyway so the interest level is irrelevant. For all practical purposes, it's a 15 year graduate tax not a loan repayment.
Mortgage aside, no.
I save my money and pay for the things I want in full. I have one credit card that I dust off once in a while when needed. I mostly use my debit.
I save my money and pay for the things I want in full. I have one credit card that I dust off once in a while when needed. I mostly use my debit.
Well, it counts in the sense that I need to make regular payments on it. But that's all.
