NationStates Jolt Archive

I had to take out a loan today to pay off a number of unexpected (and unaffordable) emergency expenses and I did a quick overview of my various debts, student loans, mortgage etc, and as always, it really depressed me to think of how much interest gets pissed away month after month, and how long it is going to take me to dig myself out of this hole...

So. How much in debt are YOU? (let's go with total household debt if you are married or common-law, and total personal debt if you are single. You can of couse, NOT do that, but please specify.)

And if you care to share...what kind of debt do you have? Credit cards? Car payments? Etc?

I suppose I should mention, I was thinking Canadian dollars, but since the majority here are from the US, we'll go with US currency.

Give me 2 months, when I have to pay the next installment for my tuition. Then I'll be in the hole $5k.
*sighs* Looks like that golden toilet I always wanted is gonna stay out of reach...

I'm not counting the house that my husband just got a mortgage for as our debt, as his parents will be making the payments. Our credit card bills are not bad (I've kept my limit down to $1000), but I still owe $16,000 in student loans (GRRRR!!!!) and the mortgage, the stupid van I can't live without in the country, and the house I bought in December of last year AND the damn line of credit I just had to get to pay off miscellaneous bills are sitting on the top of my head, driving me down into despair.

Savings? Hah. I manage to steal from myself enough to put $100 a month for each child into an education fund. It's ridiculous...the more you make, the more you spend. My father-in-law makes $32,000 a year and manages to (admittedly with our help) support a family of 6, and between me and my husband, we gross $150,000 a year and can barely make ends meet!

Then again...we have a house now, and they wouldn't be able to ever own one if we didn't help, and none of them have been to University....

Argghhh. It's just a scary thing, to owe so much. We need to sort things out and cut down our debt.

11.000 - 20.000 somewhere..... But I still have 10.000 in an account somewhere, but that is for if I want to study some more

Just the mortgage. Nothing else at all. We pay off the credit cards every month, we do not borrow to buy material goods, we save first and spend later.

Our mortgage is more than half gone now, so all is good.

Edit: Had to check the current debt: R$ 65,000 = US$ 27,085

Credit Card: about $1,500
Credit Line: about $14,000

The Credit Line will be paid off relatively quickly, and I'm expecting some retroactive pay at the end of the month that will help with the Credit Card debt. All in all, I am still in pretty good circumstances.

We just bought a new house.. so.. $$$$

Give me 2 months, when I have to pay the next installment for my tuition. Then I'll be in the hole $5k.
*sighs* Looks like that golden toilet I always wanted is gonna stay out of reach...
Only $5K? Lucky bastard. I'm sitting on $36K unrefinancable student loan at 8% and capitalizing over $200 interest every month because I was (only) able to parlez my highly vaunted college edjumakation into a $16,000/yr (net) job.

Add my mortgage at $69,000 @ 6% and about $2,000 in revolving debt at 7% and a chronically ill wife (to the tune of nearly $1000/mo in medications) I'm having a hell of a lot of no fun. (or TV, or broadband/pay ISP except at work, or hobbies beyond $10/month in black powder shooting supplies... between my small liquor allowance, NS & Guns I "get" to spend about $30/mo on "fun".)

Yay me. :(

I have the principle that I shall never be in debt. This means that I don't borrow money, but if I can't help it, I must be able to pay it immediately should the need arise. (This would obviously mean that my account would be emptied, but still, there would be nothing owed to anyone, and that is more valuable than having dispensable cash.)

EDIT: I don't have a credit card. Debit cards are used here.

We just bought a new house.. so.. $$$$

Actually, I'm not in as much debt as I put on the poll, because doh! I forgot to add in the equity from the house we just sold and the money we're putting into the down payment of the new house, so it's less. But the new house is on a much grander scale.

The advantage to not being married or having children, not one penny of det. I actually have a positive value. I can't tell you how great it is not to have any debt. Sorry if I sound a little excited, but it's a relatively new thing for me.

Between Mortgage, Student Loans, and Credit Card (out of work for about 6 months), We're at about $110K. My job is covering them all + monthly expenses w/ a very little savings left over so we're not doing to bad.

The advantage to not being married or having children, not one penny of det. I actually have a positive value. I can't tell you how great it is not to have any debt. Sorry if I sound a little excited, but it's a relatively new thing for me.

Yeah, but do you own a home or rent?

Well, my mortgage closing date is the 29th. At that point, I will be about $175,000 in debt.

ouch.

Currently none, I own my car outright & I pay off my credit cards in full every month. That'll change when I buy a house though.

Yeah, but do you own a home or rent?

Actually, I'm looking for a house now. Even when I buy though, I will still have no actual debt as my down payment will created equity right off.

Student loans and some credit card debt. We just made the last payment on the car, so ... woo!

I had to take out a loan today to pay off a number of unexpected (and unaffordable) emergency expenses and I did a quick overview of my various debts, student loans, mortgage etc, and as always, it really depressed me to think of how much interest gets pissed away month after month, and how long it is going to take me to dig myself out of this hole...

So. How much in debt are YOU? (let's go with total household debt if you are married or common-law, and total personal debt if you are single. You can of couse, NOT do that, but please specify.)

And if you care to share...what kind of debt do you have? Credit cards? Car payments? Etc?
I wouldn't feel bad about emergency expenses driving you to a loan. Now is a good time for a second mortgage. I'd only worry if your debt was caused by borrowing money to have a certain lifestyle. If that's the case, then panic.

I'm in the hole to the tune of $18,000 for my student loans. I was in debt for $40,000 at this time last year, but there's no way I'll be able to pay off so much so fast again. Unless I get rid of my Italian Sportscar, which ain't gonna happen. They can take the steering wheel from my cold dead fingers, and no other way. I was a starving artist for many years, up until around 18 months ago, when I got a dream job (Sculptural Restorer @ a Foundry specializing in brass & bronze castings)

So yeah, things were worse, much, much worse. My employer co-signed on a consolidation loan for my various student debts AND kicked in $5000 in bonuses towards it over the past year. I work in a somewhat anachronistic field, where job openings are few and far between, but require such specialized knowledge that when an opening is available, wise employers will bend over backwards to ensure you stay with the company. If it wasn't for that and the old fashioned charity of my employer (he went above and beyond, bless his soul) I'd be practicly on the streets because of my debt.


The only debt forgiveness program I know of for federal student loans in Canada is Permanent Disability Debt Releif. You have to be in reciept of fulle Disabilty pension/benefits. :mad: I guess being dirt poor doesn't count.

EDIT: My car was a restoration special: A ten year long labour of love paid in full eons ago, and siting on blocks in my Dad's garage for 3 years while I had a run of very bad luck. Otherwise it would've been seized to help pay my loan (and for a fraction of the actual money its now worth)

I think my getting into debt is influenced in part by the fact that my parents never ever had anything new, still live in an old farm house with newspaper for insulation in the walls, and a wood/coal cookstove for heat. They managed things well though...they have no debt and they managed to raise five kids who, despite never having 'new' things, always managed to eat well...I guess I just wanted to have a house for my kids to grow up in, and I knew that this wouldn't happen unless I went into debt over it. We'd be renting apartments or townhomes instead...paying all that money, month after month into nothing.

My husband grew up in a slum, with much less than my family had, and I think for him, this is almost dreamlike in its quality. He makes more money that he ever thought he could, and like me, had never thought he would ever own anything new. It's been a battle...we were both raised to save, and not go into debt...but we also felt that certain things were important when raising a family...living in the country (so we need a reliable vehicle. My dad's a great mechanic, so old beaters come to life and STAY alive with him...we'd not be so lucky), and a house. I had to go into debt for my University...but I admit I could have done it so much smarter. What the hell does a 17 year old know about managing money?

And yet, I have NO money left to spend on 'things', vacations or otherwise. Any extra money we have goes to my husband's family so they can actually eat. I love being able to help them, but sometimes it's hard, because we have our own debts to pay, and this kind of prevents us from really doing that. I don't know. We'll see how it goes..money is ALWAYS a problem, no matter how little, or how much you have.

I had to take out a loan today to pay off a number of unexpected (and unaffordable) emergency expenses and I did a quick overview of my various debts, student loans, mortgage etc, and as always, it really depressed me to think of how much interest gets pissed away month after month, and how long it is going to take me to dig myself out of this hole...

So. How much in debt are YOU? (let's go with total household debt if you are married or common-law, and total personal debt if you are single. You can of couse, NOT do that, but please specify.)

And if you care to share...what kind of debt do you have? Credit cards? Car payments? Etc?
My income will effectively double on July 27th, and I plan to be debt-free by the end of the year ... or by February, 2006 at the very latest! Yayyyy! :D

I wouldn't feel bad about emergency expenses driving you to a loan. Now is a good time for a second mortgage. I'd only worry if your debt was caused by borrowing money to have a certain lifestyle. If that's the case, then panic.
That actually does make me feel a bit better! We don't buy 'stuff'. We have no need for expensive decorations, or gadgets or 'toys'. I still shop second hand for clothes, with the occasional 'new' purchase over the year...mostly the new clothes are for the kids, because we don't have many people to give us hand-me-downs (though that's changed since we moved to a small town again...). Our expenses are basically servicing our debts, paying bills and buying food, saving a bit of money for university for our kids and my husband's family's kids, guitar lessons (for the in-law kids), and assorted financial help to the in-laws. We're actually kind of supporting two families, because my father-in-law just makes enough to cover rent and bills. I don't really see how we could cut down more, and still meet the responsibilities we've chosen.

My income will effectively double on July 27th, and I plan to be debt-free by the end of the year ... or by February, 2006 at the very latest! Yayyyy! :D
Why is it going to double?

Just my student loan, thats about £11,000.

What's "debt"?


Seriously though, do you think I'm going to tell you? :p

70,000 house
13,500 equity line
16,000 2 credit cards
22,500 New car 2 months ago

isn't the american dream wonderfull

of course I own 2 paid for cars and 2 paid for motorcycles, so you can see where some of the debt came from

What's "debt"?


Seriously though, do you think I'm going to tell you? :p
Why not? Everyone else knows. Your credit information gets traded, received, sent, passed about by almost everyone out there...

Why not? Everyone else knows. Your credit information gets traded, received, sent, passed about by almost everyone out there...*weakly* Oh...dear... *collapses* :D

Mortgage
2nd Mortgage :(
1 Credit Card
1 Car.

Mortgage
2nd Mortgage :(
1 Credit Card
1 Car.
Question...what is a second mortgage? I always hear that term, but I don't understand what it means...it isn't another house, is it? It's just another loan to pay for your house or something?

About £6000 now, but that's all student loan, and I still have another year to go, so that'll go up to around £9000. But then I don't have to start paying it back until I'm earning over £10k/yr, and there's no real interest - it's index linked, so the amount I eventually pay back will be £9000 at 2006 prices.

Well I made a slight miscalaculation on exchange rates and it appears I am somewhere in the region of about 20k worth (USD) of debt....mmmmmmm red ink....

However, take away my student loan (18k USD...so far) which will be paid off for me by the gov when I train to become a teacher, its looking ok...then I have to get a house and in the UK houses cost a friggin fortune....

*Crosses fingers and hopes for a property crash, nice mild one of course...*

EDIT: 11 Grand GBP in other words

Why is it going to double?
Well, I've been surviving ( barely ) on my military disability pension of $1,400/month since 2000. It's tax free, so at least I've been getting all of it. And I applied for early Social Security, into which I have paid a small fortune over the years. I will get my first SS check of $1,200/month on the 27th of July. That's a bit short of actually "doubling," but close enough for government work. Since I don't have any other source of income, I won't be paying any tax on the SS income either. :D

I'm in about... $13-1400 worth of debt. Which for me is 13-1400 more than is sitting in my bank account. They really want it back, too.

Give me 2 months, when I have to pay the next installment for my tuition. Then I'll be in the hole $5k.
*sighs* Looks like that golden toilet I always wanted is gonna stay out of reach...
You know there's a solid gold toilet here in Hong Kong? It cost $5Mill US. The bathroom has two solid gold toilets, toilet brushes, toilet paper holders, basins, doors and even wall tiles made of gold. A jeweller here had it built at one of his shops. You used to be able to use it if you spent some money at his shop (not much, like $150US) but I think now you can only visit it to take photos. I for one who have loved to have taken a huge stinky dump in the bowl, blocking it completely.



Anyway, back to the debt issue. This time last year I owed nearly $30 000NZ, $9000NZ of which was on VISA. Rest was Student loan ($14500) and a personal loan ($4500) Having moved overseas and getting a much better paid job, I now have paid off my VISA and a 1/3 off my personal loan.

So I now owe $17500 in total. It certainly felt bloody good to finally pay off my VISA. It was costing me $120 p/mnth in interest charges alone. I had owed money on it since 2000, so this is a huge relief for me. I shudder to think how much interest I've paid over the last 5 years. Once you get caught in the VISA trap it's damn well nigh impossible to escape it. The credit card companies know this, which is why they're so ready to give you card after card and raise your limit even when you don't ask for it.

I celebrated my release from the VISA trap by spending my entire month's salary on stuff for myself. I've bought a I-River (it has a colour screen which sold it for me), a digital camera, a home theatre system and a bunch of clothes from the Armani store, as well as having a huge party weekend in Macau (there was also a dragonboat race I competed in there).
Next month I go back to paying off debt as well as saving money towards having a deposit on a house within two years.

One of my biggest reasons for getting out of debt is so I can be in a position to help my parents out when they retire in a few years time. Mum especially pretty much sacrificed her entre working life to ensure we never went without, so I feel when she retires it's only right that I make sure she doesn't go without herself.

On another note - to all students out there. Do your homework when it comes to what you're entitled to, re Student allowances + grants. Had I been bright enough to do a bit of research myself I wouldn't owe a thing on my Student loan.
The reason why?
In NZ, you're entitled to so many years student allowances. After that, you have to take out a loan if you want an allowance - which comes to $6000 p/year. However, you're entitled to one extra year (which they don't tell you) if you're finishing a Masters or doing a Teaching Diploma. Stupid me - I used up my last year doing my Teach Dip, then did another year to do a Computer Sci Dip, which I needed to take out a loan for. If I'd done it the other way round, I would have got the extra year's allowance saving me from a $6000 loan.

Coupled to this are the grants out there you can apply for. For teaching there's quite a few and they're $10 000NZ. The trick here is that you have to apply by June (or July) the year previous to doing the TeachDip. Since you usually can't apply until November, and be accepted until December not many people (including myself) apply. So a few don't get taken up. You bascially apply saying you have the intention of going to TeColl. If you get in, you get the money. It would have more than paid off the course fee (which was $4500).
To sum up, if I had been a bit more onto it, I could have saved myself $10500 in student loans - which with over 4 years of interest = $14500 (aprox) and that is exactly what I owe right at this moment. It's certainly one of my more dumber actions, when I think how long it'll take to pay off and what I could do with that money (it's 1/2 way towards a decent deposit on a house for example).

Mine are credit card debts that I made mainly before I was 20. Had 2 credit cards with 8,500 dollar limits at 16. I jacked both of them up eventually. I paid on them monthly but kept on using them. I never should have had a credit card with that high of a limit at that age. Have had various other credit cards but none with the high limits those two AT&T Universals had.

I will eventually pay all of these debts off. If I ever win a lottery or come into some money.. these debts will be the first thing I take care of.

Just the mortgage. Nothing else at all. We pay off the credit cards every month, we do not borrow to buy material goods, we save first and spend later.

Our mortgage is more than half gone now, so all is good.

Edit: Had to check the current debt: R$ 65,000 = US$ 27,085

Whoa! I didn't think someone else like me existed!!
(I never carry balances, either. Just the mortgage.)

Question...what is a second mortgage? I always hear that term, but I don't understand what it means...it isn't another house, is it? It's just another loan to pay for your house or something?

It's taking out a loan against your house. The purpose doesn't matter (repairs, debt consolidation, etc), but unlike a loan, the bank or issuing authority holds a lein on your house. You don't pay, you default. You default, you lose your home.

Mine are credit card debts that I made mainly before I was 20. Had 2 credit cards with 8,500 dollar limits at 16. I jacked both of them up eventually. I paid on them monthly but kept on using them. I never should have had a credit card with that high of a limit at that age. Have had various other credit cards but none with the high limits those two AT&T Universals had.

I will eventually pay all of these debts off. If I ever win a lottery or come into some money.. these debts will be the first thing I take care of.
You know, with that sort of thinking, you'll never pay off your cards. You can't just hope that one day you'll come into some money and bam! the problem's gone. Cause believe me it's not going to happen.
I forced myself last year to pretty much go without, budgetting on every last detail so I could pay off my card (like even walking to the next train station - only 10 minutes away - cause it would save me $100HK/$12US a month). It was pretty boring and quite depressing but the end result was definitely worth it.
I feel so relieved and happy to finally have that mill stone off from around my neck. To be able to go out and buy something expensive paying with cash, without worrying about how I'm going to pay off the card next month is such a good feeling. I just spent more on clothes yesterday than I was spending in two months worth of daily expenses (lunch/dinner/commuting etc) last year.
*sigh* Next month I go back to that. Though I have given myself a modest pay raise as a reward. Rest goes straight to Student loan or a long-term savings a/c.

Man. I feel so grown-up trying to save for the future.

credit is a huge hole that you cannot dig yourself out of. lucky my dad is a real estate broker and taught me to buy houses at a young age. all i have is my mortagage on the house i live in, and the two other houses i own and rent out make most of the payment for me. but , you can spend thousands upon thousands of dollars when you go to europe for a month, jobless husband in tow. not that i did, of course>>>>>>> ;)

If you count my student loan, which I don't have to pay off yet. And you count it in USD....

Then I'm less then $5k in debt.

credit is a huge hole that you cannot dig yourself out of. lucky my dad is a real estate broker and taught me to buy houses at a young age. all i have is my mortagage on the house i live in, and the two other houses i own and rent out make most of the payment for me. but , you can spend thousands upon thousands of dollars when you go to europe for a month, jobless husband in tow. not that i did, of course>>>>>>> ;)

Hmm. I agree if you reword it to "Credit can become a huge hole that you cannot dig yourself out of."

...I have two very good friends. Coming out of college, we all owed about 10k.

Two years later, I was out of debt, Steve was doubled, and Bob was about the same. Two years after that, I was still out of debt, Steve was doubled again, Bob had quadrupled.
Today, I am out of debt, Steve is out of debt, and Bob's declared bankruptcy...

Hmm. I agree if you reword it to "Credit can become a huge hole that you cannot dig yourself out of."

...I have two very good friends. Coming out of college, we all owed about 10k.

Two years later, I was out of debt, Steve was doubled, and Bob was about the same. Two years after that, I was still out of debt, Steve was doubled again, Bob had quadrupled.
Today, I am out of debt, Steve is out of debt, and Bob's declared bankruptcy... awesome for you. i stand corrected. and thats the only time i may say that.

Whoa! I didn't think someone else like me existed!!
(I never carry balances, either. Just the mortgage.)

I am willing to bet that we have a far higher standard of living per dollar earned than the others here. After all we spend our money on us, not on interest.

House: paid off. (#4 house, sold each previous one to pay off the new one quickly)
Student loans: never had them
Line of credit: owed $40,000 for almost a year once (thanks to my ex), but paid it off
Car: couldn't resist 0.9% interest, 2 years to go

I don't like debt, and I'll live cheaply until it's all gone.

You know, with that sort of thinking, you'll never pay off your cards. You can't just hope that one day you'll come into some money and bam! the problem's gone. Cause believe me it's not going to happen. -snip-


No, no .. I didn't mean it that way. I pay on them regularly now. What I meant was If I did come into some money I would pay them all off immediatly.

Glad to hear you got yours handled :)

House: paid off. (#4 house, sold each previous one to pay off the new one quickly)
Student loans: never had them
Line of credit: owed $40,000 for almost a year once (thanks to my ex), but paid it off
Car: couldn't resist 0.9% interest, 2 years to go

I don't like debt, and I'll live cheaply until it's all gone.Funny, I don't think I could have imagined you being in debt... :p

I am willing to bet that we have a far higher standard of living per dollar earned than the others here. After all we spend our money on us, not on interest.

Truer words ne'er said... :)

I am willing to bet that we have a far higher standard of living per dollar earned than the others here. After all we spend our money on us, not on interest.
Agreed. People really fool themselves about interest. I will have paid off my student loan twice over by the time I'm done. Literally. From a $25,000 debt, I will have paid $52,000. On the house my husband bought to turn over to his parents, over five years they will pay $25,000 in interest alone. And that is with the current wickedly low interest rates. On the line of credit I just got, if I carry a balance of $10,000, I'll be paying $80 in interest a month. The amount of money that gets flushed down the drain is unbelievably depressing.

I had to take out a loan today to pay off a number of unexpected (and unaffordable) emergency expenses and I did a quick overview of my various debts, student loans, mortgage etc, and as always, it really depressed me to think of how much interest gets pissed away month after month, and how long it is going to take me to dig myself out of this hole...

So. How much in debt are YOU? (let's go with total household debt if you are married or common-law, and total personal debt if you are single. You can of couse, NOT do that, but please specify.)

And if you care to share...what kind of debt do you have? Credit cards? Car payments? Etc?

I suppose I should mention, I was thinking Canadian dollars, but since the majority here are from the US, we'll go with US currency.


I included my mortgage, motorhome, hubby's motorcyle, and credit card debt, so that put me in the 300-500K range. :(

What with student loans and stuff, last count was £11,000. (Not sure what that is in USD, maybe $20,000 or thereabouts?)

By the end of my course, I'll be around £30,000 under. ($55,000 - guess)

But, y'know, that's when I plan to skip the country.. ;)

Ninja edit: oh, and I'm £1400 overdrawn..

I am curious as to how people who live on Credit card debt, and bank loans etc would cope in the third world. The interest rates here on credit cards are of the order of 10.7% per month (not per annum) giving annual rates up in the 170% region. Technicaly these rates are illegal, but you have to pay, then go to court to get your money back, and the odds are you will have to pay court costs even if you win.

Bank loans are 3% to 4% a month. Car purchase financing is normally 2% to 3% a month. The only reasonable rates are mortgages that are about 7% a year.

Put interest charges like these in the first world and the system would collapse.

Put interest rates like that in the first world, and nobody but the really ignorant buys. You can always find someone else cheaper.

Anyway, I'm one of those save-first-spend-later types, but I want a house, so I'm forced into accumulating debt in order to build a credit rating so someone will finance me in a new home. There's no sense in being annoyed in cramped quarters of an apartment and getting zero return on my rent investment, when that could go to a house that will make money.

So I bought a car, and owe $12k on that still. Otherwise, I have one credit card my wife uses for household expenses, and I pay it off every month, and therefore doesn't actually accrue interest and add debt. That's it. I own two other vehicles, but I paid cash for them.

I am curious as to how people who live on Credit card debt, and bank loans etc would cope in the third world.
You couldn't. You'd have to learn to save. But the first world lives on debt. It's become a fact of life that you will have debt at some point in your life. Our whole working lives are focused on 'building up credit' so we can be eligible for more debt. The very idea of buying a vehicle or home outright is something completely foreign to us now...though even thirty years ago, it wasn't so unthinkable. It's kind of scary really. You can't even get a damn movie rental membership in most places without a credit card...and you want to hook up gas and power in your house with no credit? Forget it! You literally can not be allowed to have no credit history (based in most part on going into, and paying off debt) here.

The more I think about it, the more I want to wean myself off the practice of living in debt. But it's damn hard.

certainly less than 5k USD - just over £1300 in overdraft i think. kept that way by earning a small salary, not buying that many things in general, spending only on debit cards & not credit (so i can never spend more than i actually have/agreed overdraft), and that my parents still help me out for some things - like usually putting up half the dough for new computers, software etc (as i need em for work)

i have about 100,000 left on my house, and that will be paid off in 14 years. (i refinanced about three years ago, so that might not be exactly right, but i know i saved about 60,000 in interest by doing it) i don't feel bad about it, though. if you have to be in debt, owning a home or having a student loan is the debt worth having. (as long as you pay it off!)

no car payment, (try as i might, i suspect my car isn't going to last forever) and i pay my credit card off each month.

there was a time about 15 years ago that i dreaded getting the mail. a nice combination of good luck and hard work got me past that point. i still remember how horrible that felt, and that alone is enough to keep me disciplined.

You couldn't. You'd have to learn to save. But the first world lives on debt. It's become a fact of life that you will have debt at some point in your life. Our whole working lives are focused on 'building up credit' so we can be eligible for more debt. The very idea of buying a vehicle or home outright is something completely foreign to us now...though even thirty years ago, it wasn't so unthinkable. It's kind of scary really. You can't even get a damn movie rental membership in most places without a credit card...and you want to hook up gas and power in your house with no credit? Forget it! You literally can not be allowed to have no credit history (based in most part on going into, and paying off debt) here.

The more I think about it, the more I want to wean myself off the practice of living in debt. But it's damn hard.

The frightening thing is that this is beginning to become a requirement here. With banks and finance companies being taken over by international corporations, they are applying their credit rating rules from the first world to the third. For the middle classes and upwards this is usually not too much of a problem as they tend to have had loans to buy their first car, and a mortgage. For the working classes however, it traps them in their situation. They can not obtain a car as they have no one with the credit rating to guarantee it for them, without the car they can not get the better job etc. Nor can they get short term loans to cover emergencies etc. etc.

I have nothing against the system being globalized, so long as the interest rates are globalized along with it.

The counter side of the high interest here is that savings attract high interest as well. This holds our economy back by funneling investment capital away into the first world through the multi national banks etc.

there was a time about 15 years ago that i dreaded getting the mail. a nice combination of good luck and hard work got me past that point. i still remember how horrible that felt, and that alone is enough to keep me disciplined.
ROFL... I dread going to the mail right now for exactly the opposite reason. Now that I've got some credit activity going, everyone in the free world wants to give me a credit card or a new car.

My favorite is the one company that sends me credit card offers with no identifying marks on the outside of the envelope (most of them don't, because they want you to have to open it to find out what it is) other than the message "please do not discard." Discard is the first thing I do. Thanks for the tip.

My favorite is the one company that sends me credit card offers with no identifying marks on the outside of the envelope (most of them don't, because they want you to have to open it to find out what it is) other than the message "please do not discard." Discard is the first thing I do. Thanks for the tip.

i agree! it's much easier to open those by ripping the entire thing in half, rather than fussing with opening it properly!

I lied, I said no debt, I do have a 20K mortgage, but the house is worth 700K, I have savings that cover the mortgage but want to keep that for other things, if the worst happens I'll be OK

The counter side of the high interest here is that savings attract high interest as well. This holds our economy back by funneling investment capital away into the first world through the multi national banks etc.
Yes, this is actually really awesome (for some). We have a bank account in Chile that gives us 12.5% interest. !!!!!!! The TOP interest rate I can get right now in a savings account in Canada is 1%...and that is with a minimum balance of $1000. The problem is, we have to report 'interest income' on our taxes, we can only put so much in there per year, and blah blah blah blah blah:(. We're trying to find ways around it...I think it's time to just pay a good accountant and get our finances in order.

I'm into student loans and a sad, sad state of credit-card living while I was theoretically engaged in Tex-Ass to the tune of $30K. In a bit of coincidence, that's exactly how much my own life insurance policy is worth...hmmm...I think I see a way outta this. Excuse me, will you?

*sound of loading shotgun*

Oh, wait. My accounts won't be paid if it's a suicide. Shit. Say...any of you folks busy? I tell you it's a creepy feeling being worth more dead than alive.

House payments, car payments, credit card, student loans - I think that's it LOL.

That is household, by the way - I don't have a house payment all on my own. =)

Debt? I'd tell you, but how can I when I have none?

In fact, I have money in my bank account and no tuition debt and I'm not done school yet... :D *dodges tomoatoes*

It's taking out a loan against your house. The purpose doesn't matter (repairs, debt consolidation, etc), but unlike a loan, the bank or issuing authority holds a lein on your house. You don't pay, you default. You default, you lose your home.

It's also a case when the bank doesn't want to give you the full amount so they will give you basically a line of credit at a much higher rate for the difference.

It's also a case when the bank doesn't want to give you the full amount so they will give you basically a line of credit at a much higher rate for the difference.

Oooo! Forgot about that version! But then, with the housing market insanity of the past 5 years, I'd think that'd be the exception...

I think my getting into debt is influenced in part by the fact that my parents never ever had anything new, still live in an old farm house with newspaper for insulation in the walls, and a wood/coal cookstove for heat. They managed things well though...they have no debt and they managed to raise five kids who, despite never having 'new' things, always managed to eat well...I guess I just wanted to have a house for my kids to grow up in, and I knew that this wouldn't happen unless I went into debt over it. We'd be renting apartments or townhomes instead...paying all that money, month after month into nothing.

My husband grew up in a slum, with much less than my family had, and I think for him, this is almost dreamlike in its quality. He makes more money that he ever thought he could, and like me, had never thought he would ever own anything new. It's been a battle...we were both raised to save, and not go into debt...but we also felt that certain things were important when raising a family...living in the country (so we need a reliable vehicle. My dad's a great mechanic, so old beaters come to life and STAY alive with him...we'd not be so lucky), and a house. I had to go into debt for my University...but I admit I could have done it so much smarter. What the hell does a 17 year old know about managing money?

And yet, I have NO money left to spend on 'things', vacations or otherwise. Any extra money we have goes to my husband's family so they can actually eat. I love being able to help them, but sometimes it's hard, because we have our own debts to pay, and this kind of prevents us from really doing that. I don't know. We'll see how it goes..money is ALWAYS a problem, no matter how little, or how much you have.
I'm missing something, maybe you are too. Your husbands family is paying your mortgage, but you are paying for their food. What gives?

If you're that worried about debt, make a budget, get a book on money management -- Sylvia Porter comes to mind, or see whatever version of a nonprofit Consumer Credit Counsellor you have up there in the Great White North. Read Clark Howard's web pages about debt reduction. Read the Motley Fool web pages about debt reduction. There are plenty of ways to stretch $150K, even if it is Canadian.

Yes, this is actually really awesome (for some). We have a bank account in Chile that gives us 12.5% interest. !!!!!!! The TOP interest rate I can get right now in a savings account in Canada is 1%...and that is with a minimum balance of $1000. The problem is, we have to report 'interest income' on our taxes, we can only put so much in there per year, and blah blah blah blah blah:(. We're trying to find ways around it...I think it's time to just pay a good accountant and get our finances in order.
Look into eliomosanry accounts. ( I think I spelled that right )

only thing wife and i have is mortgages. We own several homes that we rent. Have a net worth with everything combined. Also dont owe anything put property mortgages in my business too. Net worth there also.

I'm into student loans and a sad, sad state of credit-card living while I was theoretically engaged in Tex-Ass to the tune of $30K. In a bit of coincidence, that's exactly how much my own life insurance policy is worth...hmmm...I think I see a way outta this. Excuse me, will you?

*sound of loading shotgun*

Oh, wait. My accounts won't be paid if it's a suicide. Shit. Say...any of you folks busy? I tell you it's a creepy feeling being worth more dead than alive.
Join the club! Dead, I'm worth about 500K ( US ). Alive, I can hardly pay my bills. Heh!

Let's see...about $11,000 in student loans that's probably going to balloon into about $15,000...a jeweler's bill that's probably close to $3,000 in total, after an engagenent ring, a wedding ring, and a Mother's Day present...plus a dog payment that's sure to total $3,000 by the time I finish paying.

However, I put myself in the $11,000-$20,000 range for this reason: My student loan is still only about $11,000, my jeweler's debt is down to about $1,500, and the dog payment is spread out over four years. At this rate I will be out of debt when I turn 38, assuming I don't buy a house or a car.

I owe dad $20 but mom owes me $25 from 4 years ago, so I would say I'm -$5 in debt :D

I owe my bro about $200.

My dad owes the bank & people roughly Rm 2 mil. = USD 526k. From Business debts.

Might Increase more, depends on the Euro Currency rate, we do some business overseas. But if your in business, it's not unnatural having huge debt. Just make sure your cash flow is alright.

I am curious as to how people who live on Credit card debt, and bank loans etc would cope in the third world. The interest rates here on credit cards are of the order of 10.7% per month (not per annum) giving annual rates up in the 170% region. Technicaly these rates are illegal, but you have to pay, then go to court to get your money back, and the odds are you will have to pay court costs even if you win.

Bank loans are 3% to 4% a month. Car purchase financing is normally 2% to 3% a month. The only reasonable rates are mortgages that are about 7% a year.

Put interest charges like these in the first world and the system would collapse.

170%??? Wow! My credit card rate is currently 0%. Theoretically speaking, I should be able to pay it off before the teaser rate expires. Actually, I haven't paid interest on anything that wasn't tax deductible in years. I'm hoping to keep it that way.

So far it's about $14,000 US, I guess (the US dollar being so unstable nowadays, that's not an accurate conversion). All of it student loans. Fortunately they're low interest loans from the government, so they will, hopefully, not be too demanding when I have to start paying them back once I graduate uni.

Only got positive numbers, but have to pay some for that too. Just had to pay my first capital tax (yay for being 18). It's about half of the interest earnings, and along with inflation, makes it mostly pointless to have money in the bank.

I need to invest in something...

I'm missing something, maybe you are too. Your husbands family is paying your mortgage, but you are paying for their food. What gives?


Hahaha...no..worse...my hubby had to get the mortgage for a house for his folks, because they don't have the credit for it. They'll assume the mortgage in about six months. So they are paying for their home. We are paying for ours which I bought. And paying for their food. Among other things.

All of my debt is school loans. I'm at about 8k right now I believe. It'll be about 15k when I finish.

Just paid off my overdraft so none - unless you count £15,000 worth of student loans etc (which personally I don't).

Just paid off my overdraft so none - unless you count £15,000 worth of student loans etc (which personally I don't).

Why not? Either you owe it or you don't - right?

More than $501,000.

I'm eternally in debt to God and my parents for giving me life.

I have a £10,000 car loan. However, I have more than that in my savings account anyway so it balances out. As I earn more from the interest on my savings than I lose from the interest on my loan, it's actually more profitable to do it like that.

Well...... I'm 12, so I don't have to worry about any payments(SUCKERS!!!!!). :mp5:

I'm not in debt. My parents put money into a savings plan for my tuition.

They're in debt though... my mom insists on doing major renovations on the house they haven't paid off and the cars they haven't paid off always seem to have something wrong with them. There's something else I'm forgetting about... oh yeah, next year they're paying all the tuition and rent for my sister going to college. She's living in Toronto, where a dump goes for double the rent of my place.

I'm not in debt. My parents put money into a savings plan for my tuition.

They're in debt though... my mom insists on doing major renovations on the house they haven't paid off and the cars they haven't paid off always seem to have something wrong with them. There's something else I'm forgetting about... oh yeah, next year they're paying all the tuition and rent for my sister going to college. She's living in Toronto, where a dump goes for double the rent of my place.
Sounds like your parents are sacrificing their financial health for your education. I hope you thank them regularly.

Well, I'm 18 and currently in about £2,000 of debt. However, from September that could increase to about £10,000 over the next three years. Maybe even more.

Holy Gravedigging, Batman!

Holy Gravedigging, Batman!
No doubt! Wow! They like me! They really like me! And they archive these old, old, old, old threads :rolleyes:

Recently bought a house, got a new car and got married. So, I'm obviously in debt!

However, it's just the mortgage and two car payments. Other than that, I'm completely in the black. Considering the nature of those debts (items you'd normally finance), I basically consider myself free of debt.

Well, as this thread appears alive again and we don't seem to be counting assests but rather just debts, I'm somewhere around $500,000.

Let's see, we have two mortgages and two credit cards...we're probably somewhere in the $150,000 mark. The second mortgage was to pay off car loans and student loans. We got a much better interest rate than what was being offered separately.
We don't like having two credit cards though with only one income so we are currently downsizing. I just changed cards to take advantage of a 0% introductory APR. My in-laws are out of debt completely and that is where hubby and I would like to be. We are taking steps to drastically reduce our debt over the next few years. I'm making two double mortgage payments a year, I pay extra onto the principle every month, I froze our credit card accounts so we can't put more on them and I make a double payment on the second mortgage as well. Also, when hubby gets a bonus at work, we usually splurge on one small thing, like maybe dinner at a fancy place and then dump the rest of it onto our highest percent interest account.