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| Debt Anything to do with debt including debt reduction, debt concerns, debt consolidation and how to get out of debt |
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07-30-2009, 03:42 PM
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Yes we do have enough info (that's $330k reasons not counting the car loan):
Rental Property Mortgage $130k 4.625% Rental Property HELOC $35k 2.75% Car $12k 5.5% Land loan for 6 lot subdivison development $165k 4.75% Not one of those is something someone should be buying if they are not debt free. "Many of the posters on this site are of the mindset to be and stay completely debt free. That is a noble goal, but unrealistic for most and can sound judgemental to those desperate folks that are drowning in unmanageable debt." I am just saying most of this debt could have been avoided, you know that and I know that. 
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07-30-2009, 07:59 PM
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I purchased the rental property first. It is a 3-unit property that I could afford at $165k (which was a good price for my area). I lived in one of the units and rented the other two to pay off my mortgage. So I was living rent free. I bought the building with a 5% down loan and refinanced 8 months later to 15year fixed rate, I have 10 years left on this. The property appraised for $235k so I opened a 50k HELOC as well which I used to purchase my next property, a house with 27. I bought it for 300k and subdivided the house off and sold it for $205k. I got a land loan for the remaining lots and to cover the development expenses. I now own 6 building lots conservatively valued at 60k a piece. My goal is to build my own home on one of these lots some day. Soon after I bought the house with land I met the love of my life, who had a good amount of debt. We got married 4 years later and have paid off over $75k of her CC debt, $30k remains. The car loan was hers as are the student loans. My rental unit brings in $2500 a month and I am renting my house out for $1200k a month. Once we pay down the rest of our unsecured debt (the plan is to have it all gone but the student loans by May) we will start saving to build on one of our lots. The whole reason I went into debt was to make money. I hate debt, but it is a tool that can be used responsibly to accumulate wealth. Granted when I was in my early twentys I accumulated some "bad" debt, that I have paid off, and we are working on paying down the rest. I just think it is rather judgmental and bretty snobby to comment on someone's debt load as being "ridiculous" without knowing the situation, as the other poster said. Owning small income rental properties can accumulate wealth even with mortgages. Get off your high horse.
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07-30-2009, 08:42 PM
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07-30-2009, 08:48 PM
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Did I ever say this is a plan? I only outlined my plan in order to show that some types of debt can be good. I never said it was for anyone else. It was pretty high risk to start and I was young so I didn't have a family to worry about. It has been working out so far. Why do you have to be so critical? Your way isn't necessarily the only way.
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07-30-2009, 08:56 PM
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"It has been working out so far. Why do you have to be so critical? Your way isn't necessarily the only way."
I'm sorry I came across critical, I'm really not trying to be. This is the thinking that got a lot of people in the mortgage 'crisis' situation we have at hand...buying up land/property to flip/sell/so forth...but it didn't work out so well for them. My dad builds/sells land/property and I know first hand that if you don't know what you are doing, you'll lose your butt.
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08-05-2009, 03:26 AM
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Definately in debt
I am and will be in debt for quite some time. I am in for the long haul with my student loans. I used to work for a bank and I think I am pretty knowledgeable about how to manage my debt though. My credit score is decent for only being 22 (in my opinion) so I should be able to maintain low rates.
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08-06-2009, 08:32 AM
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Yes, but we've decided not to pay it all down immediately because the terms are, at the moment, pretty good.
DH has 20,000 in student loans, interest is 2.3% and the payments are calculated based on 4% of his income. After he turns 65, the remaining debt is written off. (don't think this will happen) We could pay down this debt tomorrow, but will stay put as long as interest rates are low and we gain more investing the money. So yes, we have debt, but overall we are in the black. This could be foolish, I don't know...
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10-09-2009, 01:02 PM
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Count me in
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10-09-2009, 06:16 PM
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^ that much student loan, you must have a super high paying job though.
I have $8k in car loan debt and like $120 in credit card debt.
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10-09-2009, 08:54 PM
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As of 9/21/2009 we are debt free!! Do-able folks, especially if you can get & stay focused. Saving advice dot com is a good place to help with that focus.
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10-09-2009, 09:23 PM
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Balance 20 months ago
$277K Mortgage $15K 2nd mortgage $16K Car note (20 months remaining) $10K Personal Loan $319K Total Debt NEW UPDATE $271K Mortgage $13K 2nd mortgage $8K Personal Loan $292K Total Debt We paid off Car Loan 4 months ago & NO CC balance
__________________
Carpe Diem
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10-10-2009, 01:58 PM
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10-13-2009, 04:25 PM
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No car/credit card/consumer debt.
Just $450,000 in mortgage debt, and across those properties the equity is around $350,000. Income including rentals and job is $180,000/year. Annual living expenses are about $20,000.
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10-13-2009, 08:58 PM
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10-15-2009, 06:23 PM
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I have debt...old credit card debt from the time when I had a part-time job and a car that always broke down. Now I'm getting a hold on the debt and bringing it down bit by bit. It's exciting to see progress!
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10-19-2009, 10:35 AM
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15k on last CC - hopefully paid off this year
45k in student loans - just finished school ~2k in misc debt I paid off 2 other CC earlier this year as well as paying off my car. After I pay off that monster of a CC I'll be so effing relieved! Then I'll start working on saving for retirement, emergency fund, and investments. 2009's been a very productive year for me. Didn't do everything I wanted, but I did a lot. 2010's gonna be even better!
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10-23-2009, 11:48 PM
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I have about 25K in credit card & line of credit debt that is hanging over my head that I want to get rid of. I also have a mortgage but apparently I cannot afford it since I'm trying to sell my house (no luck yet). I'm hoping to blog my way to a debt-free lifestyle.
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just like to know how many are still in financial debt?
