this post was submitted on 20 Oct 2023
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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?

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[–] [email protected] 6 points 1 year ago (1 children)

TLDR: Low interest debt that provides long term financial gain is good. Mortgage for primary residence is almost always considered good. Loans to invest into your home that increase its value and make it more reliable/long standing is good. Low interest debt to buy assets for your business is good. Reasonable loans for college is considered good.

Car loans are a bit harder because they lose value as time goes on. But a small loan with good interest is usually considered fine for a car. Buying a brand new car with a loan will almost always be bad, since you're paying interest to use a depreciating asset. But basically a car loan is always bad if it ever goes upside down, meaning you owe more on the loan than the car is worth. New cars that happens almost instantly.

Basically all other debt is bad.

https://www.experian.com/blogs/ask-experian/good-debt-vs-bad-debt-whats-the-difference/#:~:text=The%20difference%20between%20good%20debt,loans%20that%20provide%20job%20skills.

[–] [email protected] 1 points 1 year ago (1 children)

Ok!

Not in US. Have about 80k€ mortgage debt at very low interest, for renting. Totally covers my monthly payments

[–] [email protected] 2 points 1 year ago

Oh that's great! Sounds like you're rocking.

Don't know where you live but in the US any home near a city is like 400k, so having a mortgage at low interest at 80 sounds great.