Over the past decade, our standard of living has increased, yet our wages adjusted for inflation stayed the same, or in some cases even declined. As a nation, we accomplished this by borrowing. Everything was going well until the banks started running out of money to lend, and they started getting stricter on loaning money out.

What about you? Did you buy a bunch of stuff you couldn't afford using credit cards and a HELOC? Are you up to your neck in debt?

I've got a mortgage on my rental property (rent pays the mortgage), and I've got a CC with $2200 on it at 0% from home improvements on the rental property. The CC will be paid off next month.

 

The only debt I have are on a home because it's not bad after my big tax deduction I get, a small student loan on my wife that is at 2.4% fixed for life and a small credit card balance at 1.9% for life. I used that 1.9% offer to write a check to myself and invest for more than 1.9%, so I technically have that money still, but there is no point in paying off the loans since the interest rate is so low.

Otherwise, no debt.

 

Thank god I'm too young, and my parents dont believe in CCs...haha

 

Shortly after I bought my home in 2005, I used credit to build my media room and got myself serviously deep into debt... totalling about 20K. Half was 0% stuff, the other half was on good old-fashioned 10%APR credit cards. Once I realized the folly of my ways, I set up a budget, cut out almost all non-necessities and after two years of being effectively broke, I finally paid it all off.

Now, I've got no car payment, I pay my CC balance off every month, my only debt is my mortgage. I max out my 401k & Roth IRA investments, plus I'm adding to my cash savings and other investments. I'd like to start spending more money on my hobbies, but at the same time, I'm starting to see the positive effects of saving & investing, so it's hard to pull money from that part of my budget and "blow it" on fun stuff.

So, yeah... I got myself neck-deep in debt, but I was one of the fortunate ones that was able to dig myself out. Now I just have to keep myself from falling back to my old credit-crazy ways.

 

--mortgage on the house (30 year)
--small Line of credit on the house (1/3 of equity currently on house - 5yr draw, 30 year payoff)
--2 cars, one paid off (1 year left on the financing)
--small signature loan (1 year left on financing)
--normal bills

--wife has several credit lines that she manages

all in all...maybe 3k in unsecured debt

not bad but not debt free

 

it takes about 10-20 years for most people of age (18+) to realize what is really important to them.

chasing all the video game platforms and iphones etc etc is fine if you spend the money when it is free and clear.

I am not saying to go straight buddhist in your outlook on material items but try to be more realistic in general and not go haywire trying to get to your 1080i HD lifestyle.

 

I have almost no debt. I only use one of my CCs, and I pay if off in full every month. I don't use it as 'credit' because I don't charge more than I have in the bank to pay it off. On the rare occation I run across a place that doesn't accept my AmEx, I will use one of my check cards instead of a different CC.

I have a student loan with several years of payment left, but the rate is 2.5% so it hasn't, and still doesn't make sense to pay it off.

I purchased a 50" Plasma last November with 0% for 18 months.. I'm making minimum payments ($49 last month, $1 less every month) until the APR kicks in when I will make the last lump sum. I don't really consider this real debt because I could pay it off today.

No mortage, no car payments.. just normal bills

 

No unsecured debt.

Mortgage fixed 30 year, (~1300 inc taxes and insurance)
Car payment (~240 month)

 

Wow, I pay more than that in rent PLUS insurance on a 1000sq ft. condo. How big is the house?

My car payment is more than twice yours as well. Gee, wonder why I have been feeling like I'm broke for the past 2 years

Amazing how varied the cost of living is across this continent, as well as the variations in incomes. My income is around twice the average (which is always surprisingly low regardless of region) but it sure doesn't feel like it!

I have a substantial amount of debt due to a couple of reasons. I joined a very small company several years back and took a desk in a single 500sq ft room with the 3 principals of the company. In just a few years we've grown to 3 offices in different cities across the country and income has more than doubled since first signing on. Unfortunately when I signed on I decided I wouldn't change my lifestyle and was comfortable taking on debt until the company could support me properly and we'd see the fruits of our labor - I just didn't think it would take 5+ years to get there.

Summed up: about $25k in debt at 8%, and $19k remaining on my car, recently refinanced to be paid down in full over the next 5 years. I'm so uneasy about it but I can't do anything except work super hard and make some cash to pay it off sooner if possible.

Realistically I plan to be fully debt-free by age 30, with RRSP (retirement) investments, home down payment money, and a little back-up money for the unexpected. The automatic withdrawal/investment plan I have right now will take me there.

 

got about 20k in low interest credit card (all at 1.9% or less) debt from two big 'purchases' (wedding and IRS snafu). good times.