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?
200k student loans, 110federal, 90k private
Art school degree was 80k. It’s down to 40k now, still feels impossible.
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.
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.
As a Dane am I envious of some of your systems like investeringssparkonto, but we have the better mortgage system. My home loan is locked in at 1% for 30 years.
You guys have had ENORMOUS immigration over the last eight years without building homes at commensurate rates. No wonder it placed pressure on housing. I don’t think your government had a realistic housing and immigration plan. I guess that’s why they were voted out. I hope things improve.
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).
But cars don’t appreciate in value…
Good on you with everything else and I’m with you 100%, but as soon as you drove that car off the lot it’s been deprecating in value.
Yes they do.
You just have to pick the right car, and it’s not gonna be an off-the-shelf regular car.
If you look at all the cars that have ever existed 99/100 times that car is deprecating.
Yes, OP may have bought a classic car or something with high resale value. I was simply speaking in generalizations. The vast majority of cars depreciate in value once you drive them off the lot.
I have a 1964 Lincoln Continental convertible. Cars can appreciate, I assure you.
You can’t leave a comment like that and not tell the car bois what you got.
I mean if it can be paid off with fun money and doesn’t ruin retirement plans, not the end of the world if the interest rate was good!
