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3 Bumps

Do you care about debt as long as you have the money ever month

Would'nt you want a nice house and car. Even if it takes 30 years for the house and 5 years for the car. I want to get a house built with a basement when I get married. But I hear a lot of people saying why go into debt when I can pay this one off. But its not up to date and it will cost me 100,000 grand to bring it up to date. When I can get a house I can be happy in. So what if its 30 year you can make extra payment and cut off some years.

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mamaofficer

Asked by mamaofficer at 11:43 AM on Jul. 6, 2010 in Home & Garden

Level 31 (50,120 Credits)
Answers (13)
  • I would be fine purchasing a house, and having to make payments for 30 years. A house is something permanent... something you can leave to your children and such.
    xxlilmomma09

    Answer by xxlilmomma09 at 11:44 AM on Jul. 6, 2010

  • For some things, such as a home and a car, I don't mind going into debt. As long as the cost of the house and of the car doesn't exceed my reasonable projected ability to pay them off and still maintain a good quality of life. But I wouldn't go into debt to buy a pair of expensive dressy brand name shoes, for example, or a thousand dollar handbag.
    Bmat

    Answer by Bmat at 11:46 AM on Jul. 6, 2010

  • We would like to get a house, but would get a 20 year loan and try to pay extra on it. Last time we got a 30 year and paid extra. We have NEVER gone into debt for anything else. We pay cash for used cars (I think we have spent $1500 total on the last 4 vehicles we have owned). We pay off credit cards each month. I would LOVE to pay cash for a house, but don't see that happening in my lifetime!
    micheledo

    Answer by micheledo at 11:47 AM on Jul. 6, 2010

  • I am ok with house debt as long as you have money in the bank incase of a job loss or something. I also would make the payment be no more than 1/4 of your income. I dont like any other kind of debt..even a car payment. I would rather drive my old car that is paid off and save a little every month like I'm making a payment. When my old car gives out Iwill have money for a good used vehicle. Just make sure the house is something you can afford with repairs, insurance, taxes and other things that come up in life like medical emergencies, new babies...etc.
    ria7

    Answer by ria7 at 11:49 AM on Jul. 6, 2010

  • I will not be going into debt for a house or a car, anymore. Right now we have 2 cars financed, and other debt, but when this is all gone, we'll be saving up money to pay cash for a house. Yes, it IS possible, and my husband and I agreed to never ever ever go into debt again.
    eeyore530

    Answer by eeyore530 at 11:58 AM on Jul. 6, 2010

  • When your young and just starting off you can’t pay off a house unless you won a lottery or something. The key in getting a home is to buy not what you qualify for but going below that qualifying amount. Say the home cost $150K well then look for a home that is $130. This way you have money for other expenses that come along with home or emergencies.


    Now a days it is scary to go into debt with all the job instability. Just do what your home situation is and forget what other people do. 

    musicmom08

    Answer by musicmom08 at 12:02 PM on Jul. 6, 2010

  • Well by the time we get the house built I hope to have 50 grand saved. That way I will have to finace 100,000. That's my plan and plus my kids will be bigger.
    mamaofficer

    Comment by mamaofficer (original poster) at 12:07 PM on Jul. 6, 2010

  • Debt is serious. It's not something that you just decide you can live with, because you want something better. That is your name you're putting a red line through and nobody is going to trust someone who willingly goes into debt. If you own a home right now then your best bet is to fix it up and sell it for more then you purchased it. If you sell if for what you bought it for you're merely breaking even and not getting any return on the home. If you sell if for less then you've lost money. If you sell a house before it is paid off, then that money you sold it for is going to go towards the remaining payments. Soo for exmaple, if you owe 30,000 on the home still and you sell it for 60,000, then you're only going to have a 30,000 return on the home. Whereas if you pay off the home now then you're going to have a 60,000 return when you sell the home for the value it's worth.
    JazzlikeMraz

    Answer by JazzlikeMraz at 12:31 PM on Jul. 6, 2010

  • (Contin) When you're buying a home and when you're buying a car you need to make sure that you can afford them first. The payments, the insurance, the maitenence. Even with a new house there are going to be maitenence costs, especially if you live in an area that gets hit hard with seasons and natural disasters. You can't get a general FHA loan when you're building a house, which means the downpayment, the building costs, the follow up costs are going to cost you through the nose. You have to be prepared for that stuff to. It's not just the cost of buying the house itself. You have to purchase the land, you have to get building permits, floor plans, you have to purchase building materials, you have to pay downpayments, land tax, etc.

    Going into debt shouldn't be a frivilous thing. It should be a serious consideration that you can actually afford what you're getting.
    JazzlikeMraz

    Answer by JazzlikeMraz at 12:36 PM on Jul. 6, 2010

  • Personally I like the security of knowing something is MINE. If I owe on it, it means it can be taken at anytime and if things (like a sudden down turn in the economy results in you losing your job...) like you are unable to make a payment *Poof* that sucker is gone.

    So yeah, you can do it. And yeah, things will probably be 'just fine', but why have that constant 'what if' hanging over your head?
    ethans_momma06

    Answer by ethans_momma06 at 1:40 PM on Jul. 6, 2010

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