(Closed) S/O: What is your stance on debt?

posted 7 years ago in Money
  • poll: What kind of debt is acceptable?
    No debt is acceptable - Save until you can afford it : (15 votes)
    2 %
    Mortgage : (249 votes)
    31 %
    Car Loans : (172 votes)
    22 %
    Student Loans : (207 votes)
    26 %
    Personal Loans : (16 votes)
    2 %
    Credit Cards (when it gives you a discount or a special deal) : (64 votes)
    8 %
    Credit Cards (any situation) : (27 votes)
    3 %
    Borrowing money from a family member : (27 votes)
    3 %
    Store Cards : (22 votes)
    3 %
  • Post # 34
    Member
    1646 posts
    Bumble bee
    • Wedding: November 2015

    @IowaDDS13:  I believe that some types of debt are ok when they’re at reasonable levels; such as student loans, car loans, and a mortgage that you can afford to pay. And I also think that if theres a medical emergency and someone doesn’t have the money to immediately pay it off, that that’s ok too (a lot of Doctors and Hospitals will try and set up payment plans).

    Currently I have a small amount of debt in student loans, as well as a small car loan (both totals are under $9,000.00 each). My Boyfriend has a car loan that’s a bit bigger than mine and, as of Wednesday, will have a mortgage as well. We both make sure we pay our credit cards in full each month and we would only borrow money from family if it was an absolute emergency (same goes for lending money to family).

    Post # 36
    Member
    4369 posts
    Honey bee

    @IowaDDS13:  I don’t like debt,  but I think mortgage and student loan debts are ok. And car loans are unavoidable for most. But I really want to know, what car does your dad drive that has gone 450k miles?

    Post # 38
    Member
    1075 posts
    Bumble bee
    • Wedding: November 2013

    I currently have some “bad” debts, thanks to being young, stupid, and irresponsible with credit cards.

    I’ve definitely learned my lesson and once I’ve eliminated my debts, I vow to never use a credit card again, not even for emergencies.

    To the OP: you are one of the fortunate ones who grew up with enough money to be able to purchase everything with cash. 

    My mom and the rest of our family, however, sometimes literally struggles to put food on the table. So everyone’s situation is different, which is why I checked most of the boxes on your poll.

    Post # 39
    Member
    186 posts
    Blushing bee
    • Wedding: June 2013

    I think the “typical” types of debts are perfectly fine – mortages, car loans, student loans.  I have 1 credit card that I barely use, typically only for emergencies.  I don’t feel comfortable having debts that aren’t the “norm” (ie – the ones I listed above).  My parents lived virtually debt free and raised me to be responsible with my money.

    Post # 40
    Member
    1299 posts
    Bumble bee
    • Wedding: August 2015

    I chose mortgage, student debt, and medical emergency.  I really value my education and, although I have tons of student loans from grad school, going to grad school was the only way for me to have a career in my desired field.  It sucks, but I have a payment plan so I don’t view them as a huge problem.  I know people say that it doesn’t really matter what college you go to, but my college literally changed my life.  I don’t think I would have had the same outcome if I went to a large, state school.  My parents paid for all of it with no loans, but if when my kids go to college we need to take out loans, I think it’s worth it.

    For a mortgage, as a PP stated, in some areas is pretty impossible to buy a place outright.  Not having hundreds of thousands of dollars in the bank to buy a house is understandable.  As long as you buy a house within your means to pay the mortgage on, I don’t see why it’s a big deal.

    While money is important, life experiences and enjoying life are equally important to me.

    Post # 41
    Member
    667 posts
    Busy bee
    • Wedding: August 2010

    Mortgage and student loans are my only “okay” debt. For my husband’s grad program, there was NO WAY we were going to be able to pull 30k/year out of the air for  three years straight. No way. So we went into debt for that.

    We will also go into debt for a mortgage.

    Post # 42
    Member
    15000 posts
    Honey Beekeeper
    • Wedding: June 2011

    Mortgage, credit card with special rates, and medical were my picks.

    Mortgage – houses here cost at least 400k for something decent in a decent place, 500k+ for something in an excellent place we wanted to raise our future kids.  1. We’d take forever to be comfortable paying that out in cash.  2.  At the interest rate that we got, it beat inflation.  The payments we lock in and make today, will effectively be even less after a few more raises at work.

    Credit card – I hardly call it debt, but we have a “debt” when it’s 0% and it benefits us.  We still have the money to back it, but it might as well sit in my savings and earn me interest.

    Medical – If you gotta save your life, you gotta do it.

    I didn’t vote for car, but I do have a car loan.  Once again, it’s 0% and we have the cash to back it.  But why fork over 20k+ when you don’t have to.  I might as well continue to work for me and earn me money.

    Post # 43
    Member
    744 posts
    Busy bee
    • Wedding: April 2013

    I checked mortgage, car loans, personal loans and credit cards with rewards and will explain below why I chose what I did.

    A). Mortgage – most people are not in a financial position to purchase a $200k+ house. A mortgage is something that is unavoidable for a lot of people.

    B). Car Loan – Another unavoidable debt.  As long as you purchase a vehicle within your means and you are not stretching your monthly budget to the extreme by purchasing a Range Rover when you can only afford a Kia, I think this is fine and quite honestly a part of normal life for some.

    C). Personal Loan – I only chose this option for people who need to build up a credit history. Having NO credit in America is just as bad as having BAD credit. You can’t be approved for some unavoidable loans (mortgage, car) without the banks knowing if they can trust you. Back when I had no credit and was trying to purchase my first car I got declined unless I had a co-signer. I was a member of a credit union who trusted me enough to give me a line of credit which I never actually used the money, I put it in savings and then paid the loan off with it (with an extra $20 in interest over 6 months), I did the same thing after that one was paid off and BOOM I had a credit history. It was amazing!

    D). Credit Cards with rewards – This just makes so much sense to me. Example: I have $2k already saved for a major purchase, I can pay cash if I want, BUT if I use this credit card I can get enough miles to fly round-trip to Hawaai without having to purchase a plane ticket. Kill 2 birds with one stone. Pay for the item via credit card, get your points and pay off the card with the cash you saved, no interest. You get 2 things you want while only actually paying for one. Double win!

    Post # 44
    Member
    685 posts
    Busy bee
    • Wedding: June 2013

    I have student loan debt, but I only regret taking out so much in private loans with such a high interest rate. The schooling eventually lead to a higher paying job, so I think it was overall worth it–it’s just a pain to pay off.  I probably wouldn’t mind if it was just the loan, but I hate interest!!

    Post # 45
    Member
    1425 posts
    Bumble bee
    • Wedding: August 2013 - Rosehill Community Center

    Mortgage is kind of a necessary debt for us, it felt like the right choice to buy rather than keep renting, and we can make payments, so it’s okay.  I had a little student loan debt, but have been trying to pay that off asap (less than $300 left!).  Sometimes a little debt is necessary if you can responsibly pay it off without missing payments or anything.  

    I love my credit cards, though!  My rule of thumb is to always have more money in the bank than I am charging and pay off the card 100% each month.  I have been lucky in that I can stick to that without much of an issue, and haven’t ever had to carry a balance.  My Fiance used to carry a balance which really bugged me since he could pay it off.  But his credit ended up being better than mine, so…  maybe that helped?  

    Car loans I find to be unnecessary – I would never buy a new car, though, and don’t care too much as long as it runs and is safe, so saving up for a used car wouldn’t be a huge issue.  My Fiance bought a car a couple years ago, and charged it on his credit card (high limits!) and was able to pay it off within a couple months, so that was good.  

    I really don’t like to have debt, and hate when it is hanging over my head, so I try really hard to make sure it doesn’t swallow me whole!  It really scares me!  

    Post # 46
    Member
    619 posts
    Busy bee
    • Wedding: January 2015

    None, except a mortgage and that should be paid off ASAP. I hate credit cards, store cards, borrowing, and debt in general. I like savings and cash.

    The topic ‘S/O: What is your stance on debt?’ is closed to new replies.

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