Post # 1
That thinks there is an ‘acceptable’ debt and an ‘unacceptable’ debt??
‘acceptable’ is car loans, student loans and house loans IF they are within your means.
‘nonacceptable’ to me is recieving credit for wedding, parties (21st, 18thect), bond loans, credit cards, personal loans, loan sharks, borrowing $50 of your mate every week Christmas/birthday gifts ect (or any of above if not within your means)
ETA i understand an emargency credit card
Post # 3
I’m with you. But lots of people have different life situations so I try to never judge their decisions. And these days school loans are coming under more scrutiny, espeically if the degree won’t pay for itself!
Post # 4
I’m in agreement with this. Acceptable is my husband’s student loans. Unacceptable is a credit card maxed out on frivolous purchases or on items that are not needed, couldn’t be afforded otherwise, but were because a credit card was used.
ETA: And don’t even get me started on how my husband and I are not paying student loans on a degree he doesn’t use!
Post # 5
The only “acceptable” debt to me is a home or student loans.
Post # 6
I agree with this. Our only debt at the moment is student loans and DH’s car. We pay off more than the set payments for all every month and will have all these gone about two years.
Post # 7
i think student loans are paid differently here in Aus mind you, ours are through HECS so are paid back through your taxes and ONLY if you earn a certain amount (i dont know exact figures) but the more you earn the more you pay back. if you never earn over $45k a year you never pay it back
Post # 8
@Pokemon: Yeah, Australia’s pretty lucky with the student loans (though apparently the HECS debt is kinda large here…). That aside, I’m totally with you!! The only loan I have is my HECS debt, which is slowly getting paid off, everything else, I buy outright.My brother, on the other hand, used to buy some big stuff on credit (as well as paying for some of his wedding on the credit card), and he’s now over $15,000 in debt! I honestly don’t think I could ever live like that, unless the loan was for something important (e.g. house, or a really good car).
ETA: Love your name
Post # 9
I agree with you. My mom always told me “if you can’t buy it with cash, don’t do it.” Well I couldn’t buy my house with cash, so it’s the only loan I have. My parents paid everything for my education (Bachelor and Master degrees) so I plan to do the same thing for my son so he will be debt free when he graduates :-).
Post # 10
I’m agree that there are different types of debt. Its hard to completely define them as some people in the economy have had rely a little bit more on credit cards as the economy bounces back, but frivilous spending is controlled by you so debt accrued on credit cards, etc is irresponsible. As of right now, my fiance and I have only student loan debt, a mortgage, and he just bought a new car in April. My car is paid off 🙂 no credit card debt though! Woo hoo. Thankfully, we have both been pretty responsible with our credit card purchases and re-payments.
Post # 11
I definitely think there are certain kinds of debt that should be less worrisome — most people have student loans or car loans or both, and I don’t know anyone who has purchased a house outright!
However, it’s a tough economic climate out there. I get that people may need loans for other things. It’s all so personal!
Post # 12
I agree with you for the most part. Car loan is on the border for me. I’m okay wtih interest free debt as long as you 1. could pay for it in cash up front and 2. can pay it off before you owe interest. E.g., FI and I have taken advantage of interest free deals for a couch and some appliances – it just nice to not have to pay for it all at once, though we could if needed.
Everyone has different circumstances though. I hate CC debt with a passion but sometimes life happens. I don’t like digging into my savings so I’d rather put some stuff on CC until I get my next paycheck.
Post # 13
I think that it depends on your situation.
I know what is acceptable for me, but don’t judge others as frankly it is none of my besswax 🙂
Post # 14
@Nat_can: I agree with your mom 100%!
Post # 15
In business, the kind of loans you’re talking about as “acceptable” are often called “managed debt.” It’s debt you go into to advance your life in productive way: house, car, student loans. It’s planned. It’s like taking out a business loan to start or expand a business.
Post # 16
I thnk home loans and student loans are acceptable debt. Credit card and car loans are unacceptable to me. I figure if I can’t pay for a car in cash, I can’t afford it and should get something I can afford.