How much bad debt do you have?

Discussion in 'Investor Psychology & Mindset' started by JohnPropChat, 15th Jul, 2016.

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How much bad(unsecured) debt do you have?

  1. < $10k

    92 vote(s)
    78.6%
  2. $10k to $25k

    8 vote(s)
    6.8%
  3. $25k to $50k

    8 vote(s)
    6.8%
  4. $50k+

    9 vote(s)
    7.7%
  1. JohnPropChat

    JohnPropChat Well-Known Member

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

    Hodor Well-Known Member

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    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 Life is good ☺️ 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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    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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    You are in a better position than many :)
     
  11. turk

    turk Well-Known Member

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    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

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    $20k in credit cards paid off monthly.
     
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  13. Sackie

    Sackie Well-Known 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. :)
     
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  14. chylld

    chylld Well-Known Member

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    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. Sackie

    Sackie Well-Known 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 :)
     
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  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. Sackie

    Sackie Well-Known 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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    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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    Completely agree. 1 cent of debt is bad.
     
  20. alexm

    alexm Well-Known Member

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    What will this information achieve?

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