So how much "bad" debt are you in?
So how much "bad" debt are you in?
Hear about how much debt everyone in the US has all the time, curious about some of your stories!
My bad debt is 10k left on a school loan from a for profit school that is now out of business.
Only other debt is house.
So how are you all doing with debt management?
I live in the Midwest region of the United States.
$55k in student loan debt, down from $100k eight years ago. $10k auto loan. $210k on the mortgage, which I honestly can't believe I was ever approved for. No credit card debt.
There have been some very scary moments, but I've somehow managed to keep my head more-or-less above water so far.
I'm almost 3k behind because my parents forced me into choosing college or the military at 18. I wasn't remotely ready for either (was dealing with extreme gender dysphoria at the time) and I'm deeply opposed to the army but sometimes I wish I had chosen otherwise -I don't know if I'm ever fixing this. All my cash goes to survival and everything I own is constantly breaking. Poverty is a vicious, vicious cycle...
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Seattle Washington area
10k in credit cards
110k in loans
430k mortgage
20k car loan
Credit cards are a little high but that's just because I just took a vacation to Japan. I feel like I'm in a good place otherwise. I was lucky enough to buy my house before the pandemic when interest rates were super low and prices hadn't yet spiked so I'm hoping to sell it in a few years when the interest comes back down. My loans are 50k I took out of my 401k as a down payment on house, 35k for a heloc to fix the house, and 20k on a personal loan.
None.
I have made it a point to live a debt free life as much as possible. My only debt is my mortgage. I've had a couple of car loans in the past, but nowadays not even that. I have quite enough wheels; If I buy another vehicle it'll be with cash. If I can't do that, I don't need it right now. (2 cars, 1 truck, 7 motorcycles. It's going to be a cold day in hell before my ass is out of transportation options.)
A car loan for a completely unnecessary car.
Can we afford it? Yes, with reasonable budgeting, no sacrifices needed.
Will the car appreciate? Undeniably.
Do we need a toy like this? Fuck no.
Did it anyway. I’ve been poor for such a long time it’s really hard to justify any frivolous purchase at all, but we have good jobs now. I waffle between “This is stupid” and “I’ll never get to do this again, so why not now?” Literally YOLO.
The rest of debt is “good”, like the mortgage building equity, a CC to keep credit rating good (paid off monthly).
Bad, as a % of annual gross pay is about 25% of one year's pay. Mostly the deficit accrued from when my ex was not working. It's smaller than it was, but not by much. But moving in the right direction at least.
Plus mortgage on the house and a separate loan for the roof we had put on when we bought it.
I had pretty substantial CC debt about a year ago. Nearing $14k. After health issues, having to move, replace many belongings, car repairs, etc. Used a 401k loan to pay off 10k of it, and since that loan was paid off (it was over $800 a month) I've paid the rest down under $3k, and should hopefully have it paid off by either year end or spring at the latest. Currently it's sitting in 0% APR though, so it's at least not eating away with interest.
Like £25k for a photography degree from 15 years ago. I moved to the US and paid bits of it back (it's means tested so you just tell them what you earn and they base it on that). I've been ignoring their letters because idk, I don't really want to pay it back? I remember the mandatory classes where we applied for ucas, so I feel like it's on them for shoving 18 year olds through the loan system for profit.
I have around 5k€ left to pay for my car, for the rest I just spend what I know I can. I have a credit card but I just keep it there for emergencies or to pay in installments when the seller doesn't allow it, everything else goes to the debit card.
Edit: for context since I just read "in the US", I'm italian. My school was 150€/year so I saved myself the school debt thing.
Art school degree was 80k. It's down to 40k now, still feels impossible.
80k€ for the house but other than that debt free and plenty of savings/investments
I guess my mortgage could be considered bad debt on account of being adjustable interest rate - this is however the most common type of mortgage arrangement in Sweden where I live. This has led to my interest rate costs going up an eye watering 400% in about a year.
I've got ~130k in loans on it. I'm in the privileged position of being able to pay it off fully if the interest rate costs start exceeding the expected returns from the stock market, though, so feel no need to shed even a single tear for me.
The Swedish housing market is a classic zero interest trap story - low interest rates combined with tax incentives and housing availability rates leading to ownership being significantly more lucrative - has led to prices skyrocketing and debt to income ratios spiraling out of control. With adjustable rates being the most common arrangement - again, due to some truly psychotic public policy - now the population that lent money to buy homes are stuck with sickening monthly payments and no way to get out of the debt, since the prices have dropped below purchase price. Not too much though, because of how crazy scarce the housing is.
Everyone loses but the banks.
A bank overdraft I use to restrain my consumerism.
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$628.94 on my credit card.
None that I would call bad. Less than 10k school loans, about 3K on a new car I a bought a few years back, and 110K on my mortgage. It's all under 3% fixed rate and well within my budget though, so I'm not too worried.
That said I won't be taking out any new loans or refinancing for quite some time thanks to current interest rates.
I have $150k in mortgage debt on a house worth about twice that. Plus a couple more years car debt.
What really gets me is my health insurer severed relations with the county in May and I got hospitalized two weeks ago. So now I will owe the $8,000 out of network deductible. That pisses me off.
200k student loans, 110federal, 90k private
None. Just my house.
I have a credit card bill but it gets paid off regularly.Permanently Deleted
Only debt we have a mortgage we owe 226k on. Cars are owned outright and were paid off early. Student loans we paid off early. We generally live below our means. CC's are used for general purchasing and paid off in full each month. They are basically a stop-gap for fraud protection.
Approximately 1.5k
Had to replace some shit around the house unexpectedly, and credit was the only route there.
Like you, it's the only debt I have other than mortgage, though I suspect in going to end up having to take on some fire a vehicle swap soon-ish
None? A lot? The concept of debt is confusing to me because there's a moral way to look at it and a legal way. Have I ever asked for a loan or favor I later didn't pay for? No, I owe nobody anything. But legally, you have economic principles, like unnecessary medical expenses or ones which you didn't know an action of your were accumulate, which are only debts in the sense that the law says so. I owe medical providers something like a few thousand dollars (which my legally recognized debt can be rounded down to) for things like this and this, and an online course I take decided to say I owe them without telling me, though they haven't dropped me (yet).