How much bad debt do you have?

I agree. Imo it depends on the individual, their risk profile, financial sitation, goals, serviceability, etc

 

Other than a credit card paid in full each month, none.

More and more I'm hearing of school families moving in with their parents so they can pay off bad debt. I can't even fathom what sort of debts they have got themselves into if they can't afford to live in their home anymore

 

I voted $0.
We do have a credit card which is cleared monthly so don't count that.

However we do have $500k or so used for investing, which is non-deductible. So could technically include that as well.

 

My sisters' and brother-in-laws argument right there.

 

Wise people.

 

Considering how bad serviceability gets for every $10k in unsecured debt. I wanted to check how the PC crowd is managing/(not having) unsecured debt.

 

OO debt or investment debt?

 

$4k credit card, paid off monthly. Any "bad" debt is held by my company for deductibility reasons.l

 

$5,000 cc limit, paid automatically monthly.

Don't actually need that limit, but leave it there 'just in case'

 

Finally $0. All consumer debt paid off with today's pay
Onviously plan to keep it that way but $3.5k root canal and $7k Immi visa in the same week put me out but can know start saving properly for the deposit.

Avg debt is $4.3k https://www.moneysmart.gov.au/borrowing-and-credit/credit-cards/credit-card-debt-clock

But I think the majority of investors here use their credit cards far more wisely than the average.

 

They won't invest... believe they have paid off their OO debt....

 

Perhaps you could have then asked what percentage of unsecured debt do people have within their total asset allocation (or something similar)?

Simply having numbers doesn't provide any relevance.

A tip for next time

 

What about debt secured against depreciating assets (e.g. Car Loans), often worse than people's credit card debts.

 

20 k cc paid off monthly (limit 60k)
30k car

Not sure it's all "bad" though. I pay my business expenses and get the points, and deferred payment for a month.

 

Just a credit card paid in full monthly and I owe a friend a curry.

 

So if you have a credit card of 5k limit example

And you put all your oersonal expenses eg shoping. Entertainment. Utilities. Insurancea. Car reg etc
But pay it off every month

Is this still bad debt

 

I would say not as its not costing you anything. It's actually saving you some money.

Blacky

 

We have a card with a 5k limit that we just don't use. It's there as a plan G or H should fertilizer hit oscillator and plans A through to F fail....

 

We do have a 30k car debt between us, though this is for business use so deductible, though still a depreciating debt.
Also have a credit card with a 1k limit. Reason for us having minimal bad debt is because we did stuff up our credit rating years ago and learnt a valuable lesson about getting bad debt (crap on interest free etc). We now would only buy material stuff outright, makes us really consider if we need it or not. This sounds daggy but I like lay buy too for bigger material stuff. I actually lay-buyed my dyson vacuum since I couldn't warrant forking out for it in one go. I did have a 25k car loan for my car aswell, though I just finished paying that off. I feel so free not having a car repayment anymore, makes me not want to splash out for a new car every time I think I want one

 

Data is data, how you use it is upto you. I wanted to know this and people chipped in. I am sure others have found this info useful otherwise there wouldn't be so many responses. Ta.