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How much bad debt do you have?

Discussion in 'General Property Chat' started by JohnPropChat, 15th Jul, 2016.

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How much bad(unsecured) debt do you have?

  1. < $10k

    67 vote(s)
    79.8%
  2. $10k to $25k

    6 vote(s)
    7.1%
  3. $25k to $50k

    8 vote(s)
    9.5%
  4. $50k+

    3 vote(s)
    3.6%
  1. JohnPropChat

    JohnPropChat Well-Known Member

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    Perth
    How much bad(unsecured) debt do you have? Include loan limits not just current balance.
     
  2. spludgey

    spludgey Well-Known Member

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    Sydney
    $3613.08 on a combined credit card limit of $6000.
     
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  3. Hodor

    Hodor Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    748
    Location:
    Homeless
    $0
     
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  4. chylld

    chylld Well-Known Member

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    $3688.05 on shared CC. Must admit I have no idea how to accrue unsecured debt otherwise?
     
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  5. turk

    turk Well-Known Member

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    Unsecured debt is not necessarily bad, perhaps you meant non deductable debt.
     
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  6. chylld

    chylld Well-Known Member

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    That's what I originally thought (based on the thread subject) but I'm pretty sure most PPOR owners would have >$50k non-deductible debt :)
     
  7. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    I have 2k available on credit card paid off every month
     
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  8. JohnPropChat

    JohnPropChat Well-Known Member

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    Unsecured debt is bad for servicing unless one really needs that for investment (have to be real careful if relying on credit card/personal loan debt for investments)

    As @chylld mentioned, most on here will have a decent size non-deductible debt that is not part of their PPOR mortgage.
     
  9. wylie

    wylie Moderator Staff Member

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    Location:
    Brisbane
    We have no "bad" debt but quite a chunk of "good" debt. :eek:
     
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  10. JohnPropChat

    JohnPropChat Well-Known Member

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    Location:
    Perth
    You are in a better position than many :)
     
  11. turk

    turk Well-Known Member

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    18th Jun, 2015
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    Victoria
    By your logic unsecured debt is not bad when used for investment purposes but is bad when used for personal spending.
    Comes back to deductibility, not whether it's unsecured or not.
     
  12. Cactus

    Cactus Well-Known Member

    Joined:
    18th Jan, 2016
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    Location:
    Melbourne
    $20k in credit cards paid off monthly.
     
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  13. Leo2413

    Leo2413 Well-Known Member Premium Member

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    How much bad debt do you have?

    The wrong folks are being asked.

    Ask the ppl at your work places for entertaining, mind boggling answers. :)
     
    Player, Dan Donoghue, C-mac and 7 others like this.
  14. chylld

    chylld Well-Known Member

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    Sydney
    The last time I heard this topic brought up outside my investment circles it ended in a heated argument. Crux of their argument: $300k outright is much better than a $500k asset with $100k debt. Because debt is bad! Got to pay it off! No no no you're wrong! $100k debt is baaaddd!!!

    -_-
     
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  15. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Many folks have this perception and understanding. It's just a lack of a financial education. For some of them, any kind of debt is probably a bad idea but there are many others who could most likely benefit from understanding how to use debt. No point arguing with them mate :)
     
    Eric Wu likes this.
  16. chylld

    chylld Well-Known Member

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    The scary part is that some of them are licensed financial advisors o_Oo_Oo_O
     
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  17. Leo2413

    Leo2413 Well-Known Member Premium Member

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    heheh,,,why am I not surprised...Financial Advisors... gotta love em bless their hearts :D
     
  18. barnes

    barnes Well-Known Member

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    674
    Location:
    Adelaide
    0. But I don't have ANY debt at all. To me - every debt is BAD. :)
     
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  19. barnes

    barnes Well-Known Member

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    Adelaide
    Completely agree. 1 cent of debt is bad.
     
  20. alexm

    alexm Well-Known Member

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    18th Jun, 2015
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    Sydney
    What will this information achieve?

    Without measuring this against another metric is pointless. Or am I wrong...?
     
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