29 years old and almost $1,000,000 in debt. (debts, invest, cost, education)

[skaternum]

I cannot believe that this thread involves a debate about how to define debt. Mortgage isn't debt? Rent is debt? I feel like I've taken crazy pills.

[FiveLoaves]

I don't know about anybody else's definitions. But Mortgage Debt in their Income Bracket and Location wouldn't be considered "Bad" Debt. You have to live somewhere, and this is probably close to where they work, generating the $230K per year.

And Rent Payment, at least according to the terms of your Lease, has to be accounted for somewhere on your Net Worth Statement. It would be a Liability, with no associated Asset. Again, you have to live somewhere.

[TimtheGuy]

Originally Posted by WannaliveinGreenville

She is 29 and her husband 32 and they are nearly in $1,000,000 in debt.


She and her new husband live in D.C. and her debt as follows:


Mortgage $210,000. $335,000 student loans, $136,000 credit cards debt, $44,000 personal loans, $35,000 in car loans.


They make $230,000 a year.


https://youtu.be/rMk7CKwJ8OM

oh, but I saw it on youtube!

[WannaliveinGreenville]

She said, "I have the majority of student loan debt and he has most of the credit card debt." (1:46) She said she did not have much credit card debt herself.

[Serious Conversation]

Originally Posted by WannaliveinGreenville

She said, "I have the majority of student loan debt and he has most of the credit card debt." (1:46) She said she did not have much credit card debt herself.

All that comes out of cash flow. The CC debt interest is likely to be over $20k annually after tax.

[asufan]

Originally Posted by mysticaltyger

The house was a rental condo. They live either with her parents or his. I think they have way too much debt. Dave told her to sell the condo and use it to pay off the debt, and I concur.

If it was just the student loans and the mortgage, it wouldn't be too awful.

I agree the headline is way too clickbait-y.

I didn't watch the video but it sounds like Dave has made the assumption that they have enough equity in the condo to pay off the credit card debt. The smarter move (if they want to keep the condo) might be to refinance for enough to pay off the higher interest CC debt. Now all they would have is the mortgage and student loans and the monthly payments go way down.

[Rocko20]

Originally Posted by oceangaia

I'd rather have the "peace of mind" knowing the landlord isn't going to jack up the rent next year or decide to sell and tell me to get out.

Then sign a long term lease... Or rent from an actually apartment complex and not a place owned by an individual landlord. It isn’t rocket science.

[Rocko20]

Originally Posted by Lizap

As I've gotten older, just not a fan of debt. I know some make debt work for them. But, there's little like the feeling of being debt-free.

Most people aren’t fans of debt, but unless you’re born rich, then you’re likely going to use debt to finance your house and education.

[hawaiishrimp]

I don't blame them. They consume lots of education, lots of goods and services, lots of house. Now they need to ****ing pay for it. Good for them. Don't let them go bankrupt. We, the creditors, the stockholders, need them to pay back every single dollar plus interests.

[oceangaia]

Originally Posted by Rocko20

Then sign a long term lease... Or rent from an actually apartment complex and not a place owned by an individual landlord. It isn’t rocket science.

Apparently it is. I've not seen any complexes that offer more than 18 month rental term. And complexes get sold all the time.