Just wondering how many people are in debt and will admit to it. Also, if you don't mind telling me the primary reason why you are in debt.
2007-10-24 15:36:27 · 4 answers · asked by lil_bit 4 in Business & Finance ➔ Personal Finance
Dont listen to curtis. Debt sucks. Just think of the money he would have saved in interest if he would have payed his house off. Not to mention the risk he can avoid. Something happens like him losing his job and he cant make the payments they will take his house. Then once its payed off he could take what was the house payment every month and invest.
2007-10-24 18:33:09 · answer #1 · answered by heybulldog 5 · 1⤊ 0⤋
I had a number of debts not to long ago, student loans, car, defunct business, IRS issues... it was depressing to be quiet honest. But I've worked my way out from under all of them, except the school debt (which I re-fi'd a while back at 3.75%... so no big rush there!)
Debt can be good or bad debt. Credit Cards are without a doubt bad debt. The rates are ridiculously high most times, and someone who gets in the CC habit will have a tough time breaking the cycle.
Home Debt is good debt, the rates are generally low and with the tax benefits its effectively even lower. To a lesser extent the same applies to student loans.
Although to be totally debt free is the best kind of debt to be in.
2007-10-25 14:10:51 · answer #2 · answered by tiescore 6 · 1⤊ 0⤋
You say the word like it's a bad thing. It isn't. Ask most wealthy people if they could be where they are today without having used debt. Very few people can afford to pay cash for a home, one of the primary building blocks of a solid financial foundation. They get a mortgage and pay it off, building equity in the process. Corporations routinely borrow to finance growth. Debt is an asset when used responsibly.
I am in debt, mortgage only, about $60,000. I could pay it off in a year if I thought it would benefit me. I could have paid it off years ago. Instead, I paid the payment (occasionally paying some extra principal), and put my money to work in better investments.
2007-10-24 22:45:22 · answer #3 · answered by curtisports2 7 · 1⤊ 1⤋
Yes I am in debt because my daughter wanted to go to a fancy college.
Also because my 2002 auto keeps needing work.
Then my hubby backed it into a pole and it needed more work so that is all on the charge card.
We own a house that we are still paying for so that is a debt.
I should be out of debt in the next 6 years.
2007-10-24 22:46:03 · answer #4 · answered by Tigger 7 · 1⤊ 0⤋