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What do you consider a inordinately large amount of unsecured debt? This would be credit cards, personal loans, student loans, etc.
I know this is a skewed place to ask, since we tend to be more budget minded/aware than the average person (otherwise, we wouldn't post on a finance forum) and I know that income makes a difference in some ways as well.
I guess I ask because I thought I was drowning in debt with a $12,500 personal loan until I started reading financial message boards. I see people who routinely have $18K on a credit card plus other cards and loans as well.
I can't even imagine how one gets that much cc debt. My debt was from a very large car repair on a newish (at the time) car and very expensive vet surgery for a dog (I regret spending the money on both of these things… dog died anyway & car died a year later). These two things happened within 1 week of each other back when I did not have much of an e-fund.
I'm not trying to sound snobby, I just really am curious. What do you buy that racks up to $18K on a cc? Is your debt from emergencies or is it from little things that add up?
What amount of cc debt do you hear of that makes you really cringe? I hear of someone with $1000 and, assuming they are employed and making payments, I think nothing of it for the most part. Obviously, would be better if there was $0 debt but $1000 doesn't strike me as a nightmare scenario.
But I hear someone with $20K and I don't care if they make $100K a year, it sounds bizarre to me that someone would charge that much. Example, my parents have income into the $500K area. They have one card with a $40K balance. It's like, why would you not just pay cash if you had that much cash?
I know this is a skewed place to ask, since we tend to be more budget minded/aware than the average person (otherwise, we wouldn't post on a finance forum) and I know that income makes a difference in some ways as well.
I guess I ask because I thought I was drowning in debt with a $12,500 personal loan until I started reading financial message boards. I see people who routinely have $18K on a credit card plus other cards and loans as well.
I can't even imagine how one gets that much cc debt. My debt was from a very large car repair on a newish (at the time) car and very expensive vet surgery for a dog (I regret spending the money on both of these things… dog died anyway & car died a year later). These two things happened within 1 week of each other back when I did not have much of an e-fund.
I'm not trying to sound snobby, I just really am curious. What do you buy that racks up to $18K on a cc? Is your debt from emergencies or is it from little things that add up?
What amount of cc debt do you hear of that makes you really cringe? I hear of someone with $1000 and, assuming they are employed and making payments, I think nothing of it for the most part. Obviously, would be better if there was $0 debt but $1000 doesn't strike me as a nightmare scenario.
But I hear someone with $20K and I don't care if they make $100K a year, it sounds bizarre to me that someone would charge that much. Example, my parents have income into the $500K area. They have one card with a $40K balance. It's like, why would you not just pay cash if you had that much cash?
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