106
So how much "bad" debt are you in?
(lemmy.world)
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 20 Oct 2023
106 points (96.5% liked)
Ask Lemmy
26736 readers
506 users here now
A Fediverse community for open-ended, thought provoking questions
Please don't post about US Politics.
Rules: (interactive)
1) Be nice and; have fun
Doxxing, trolling, sealioning, racism, and toxicity are not welcomed in AskLemmy. Remember what your mother said: if you can't say something nice, don't say anything at all. In addition, the site-wide Lemmy.world terms of service also apply here. Please familiarize yourself with them
2) All posts must end with a '?'
This is sort of like Jeopardy. Please phrase all post titles in the form of a proper question ending with ?
3) No spam
Please do not flood the community with nonsense. Actual suspected spammers will be banned on site. No astroturfing.
4) NSFW is okay, within reason
Just remember to tag posts with either a content warning or a [NSFW] tag. Overtly sexual posts are not allowed, please direct them to either !asklemmyafterdark@lemmy.world or !asklemmynsfw@lemmynsfw.com.
NSFW comments should be restricted to posts tagged [NSFW].
5) This is not a support community.
It is not a place for 'how do I?', type questions.
If you have any questions regarding the site itself or would like to report a community, please direct them to Lemmy.world Support or email info@lemmy.world. For other questions check our partnered communities list, or use the search function.
Reminder: The terms of service apply here too.
Partnered Communities:
Logo design credit goes to: tubbadu
founded 1 year ago
MODERATORS
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.
Ok!
Not in US. Have about 80k€ mortgage debt at very low interest, for renting. Totally covers my monthly payments
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.