Debt: How do you stack up?

Posted:
in General Discussion edited January 2014
Holy Cow!



Ok, now I know I am a che... frugal person. I know some people carry debts of various sorts but do you think the numbers from this article are accurate? I mean those are HUGE debt loads they are showing the average family having. I figured that the average might not apple to all families or might have trade offs from family to family. Example, one family might have two car loans and another one car loan and credit card debt.



I just had a lot of trouble believing the very LARGE figures they quoted for people taking on and accepting debt loads.



It said for example the average household has almost $9000 worth of credit card debt and has them on 16.7 cards. The average undergrade has over $16,000 worth of loans. The average car loan is 49 months or longer and for almost $22,000.



Those figures just sound crazy to me.



Nick
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Comments

  • Reply 1 of 45
    groveratgroverat Posts: 10,872member
    I have no CC debt or car debt. All my debt is from student loans.



    But the fianceé is interviewing with big law firms over the next two weeks, so no worries for me, baby! YEAH!
  • Reply 2 of 45
    trumptmantrumptman Posts: 16,455member
    Quote:

    Originally posted by groverat

    I have no CC debt or car debt. All my debt is from student loans.



    But the fianceé is interviewing with big law firms over the next two weeks, so no worries for me, baby! YEAH!




    Nothing like having a sugah' mamma...



    You do realize that said average Grove. So since you and I have none, that means someone else has DOUBLE that amount. That means there are alot of folks out there carring $18-20 grand in credit card debt for example.



    Nick
  • Reply 3 of 45
    Quote:

    Originally posted by trumptman

    Nothing like having a sugah' mamma...



    You do realize that said average Grove. So since you and I have none, that means someone else has DOUBLE that amount. That means there are alot of folks out there carring $18-20 grand in credit card debt for example.



    Nick




    I have none, too. Some poor soul now has TRIPLE that amount!
  • Reply 4 of 45
    cakecake Posts: 1,010member
    Quote:

    Originally posted by groverat

    I have no CC debt or car debt. All my debt is from student loans.



    Me too!

    My problem is that I waste way too much money eating out in restaurants - which I do all the time since I don't cook at all.



    I'll spent 100's a week, so I'm outfitting the kitchen, learning to cook and finally getting the gas turned on in the apartment where I've lived for two years so I can use the stove. (heh, I'm so lazy!}



    Since I paid off my car a couple of months ago, I'm applying that money towards my student loans and once those are knocked out I can then apply that money to savings/investments.



    Being relatively debt free is a very good feeling. I don't know how some of my friends sleep at night!
  • Reply 5 of 45
    giantgiant Posts: 6,041member
    I have zero debt.



    Well, we have loans, but we can more than pay for them. We just have them to keep our credit solid. We keep the full amount to be paid for each loan seperate from anything else. Because of that, it's like it's already paid off to me.
  • Reply 6 of 45
    bungebunge Posts: 7,329member
    I have more liquid than debt and my debt (not including mortgage) is interest free.



    But this might have some to do with the numbers you've posted.



    Quote:

    A sluggish recovery has failed to create new jobs for the 3.3 million private sector employees who have been thrown out of work since Bush took office in January 2001.



    The report said the real median income fell 1.1 percent last year to $42,409. The percentage of the population living in poverty grew for the second year in a row to 12.1 percent, from 11.7 percent in 2001.



    It shouldn't come as a surprise that people have to go into debt to survive. With a population of roughly 300 million, 34.6 million people living below the poverty line is over 10%.
  • Reply 7 of 45
    I have a little debt, but it is no where near those numbers.



    Funny you said double though, my sister is over 30k in debt!!! (I think I mentioned that in another thread).



    So yeah, there are definitely people out there like her who are making the average figure really high. I'm not sure how many cards she has it spread out over though.



    I just have 1 card and the balance is kinda low.
  • Reply 8 of 45
    Quote:

    Originally posted by bunge

    I have more liquid than debt and my debt (not including mortgage) is interest free.



    But this might have some to do with the numbers you've posted.







    It shouldn't come as a surprise that people have to go into debt to survive. With a population of roughly 300 million, 34.6 million people living below the poverty line is over 10%.




    Yes but do impoverished people fuel record home sales with sales prices at $202k?



    Obviously the recession might be part of it. However people also just get easy credit terms and live beyond their means. Also automakers for example have been extending the term of loans which allows people to buy what they normally couldn't afford. (read monster SUV's )



    Lastly higher education costs have outpaced inflation for as long as I can remember. I have even read letters from the Secretary of Education (Riley under Clinton) asking them to please not automatically raise their tuition the amount that government guaranteed loans are increased.



    So yes there are multiple variables and I guess to stay on topic, you believe the numbers valid.



    Nick
  • Reply 9 of 45
    I started using a check card several years ago, and I love it. They are basically interest-free credit cards, because they just deduct from your bank account. They are also your ATM card. But most important I think it makes you think differently about purchases - rather than paying for it later, you only buy if you can cover it with what you have in the bank. I haven't used a regular credit card in years.
  • Reply 10 of 45
    shawnjshawnj Posts: 6,656member
    no debt....yet.



    I assume law school is going to change that.
  • Reply 11 of 45
    Quote:

    Originally posted by BRussell

    I started using a check card several years ago, and I love it. They are basically interest-free credit cards, because they just deduct from your bank account. They are also your ATM card. But most important I think it makes you think differently about purchases - rather than paying for it later, you only buy if you can cover it with what you have in the bank. I haven't used a regular credit card in years.



    I have two of these and they are fantastically convenient and helpful for budgeting. They are truly scary in someone elses hands though since they link to your checking accounts.



    I have written on both of mine in black permanent marker, "Please ask for photo I.D." on the front and also on the back in the signature line. (I'm not going to give someone my signature to forge.)



    I still seldom get asked for I.D. when using them, I would say about 15% of the time. Scary.



    Nick
  • Reply 12 of 45
    powerdocpowerdoc Posts: 8,123member
    I have many loans. I would happy if it was only 30 000 $ ...

    Anyway i prefer to pay loan for my house rather to locate it. In 14 years it will be mine.
  • Reply 13 of 45
    giantgiant Posts: 6,041member
    Of course, you could just put a block on it as soon as you lose it, trumptman.
  • Reply 14 of 45
    boy, i feel bad now. no credit card debt, but we just bought a house ($200k) have student loans left over ($50k) and have a car that still has some left to be paid off ($5k).



    still better than average, but i know for a fact if it weren't for low interest rates, we'd still be renting instead of buying a house, so i'm quite happy with things the way they are.
  • Reply 15 of 45
    cosmonutcosmonut Posts: 4,872member
    Student Loans: $16,000

    Car Loan: $14,000

    Credit Card (only one): $4,000



    Not having 16.7 Credit Cards: Priceless
  • Reply 16 of 45
    powerdocpowerdoc Posts: 8,123member
    Quote:

    Originally posted by alcimedes

    boy, i feel bad now. no credit card debt, but we just bought a house ($200k) have student loans left over ($50k) and have a car that still has some left to be paid off ($5k).



    still better than average, but i know for a fact if it weren't for low interest rates, we'd still be renting instead of buying a house, so i'm quite happy with things the way they are.




    I am amazed by your wisdom (by wisdom i mean each man who think like my self ... ) , i will sent you a cookie. Perhaps i should get a loan in order to pay this cookie
  • Reply 17 of 45
    powerdocpowerdoc Posts: 8,123member
    Quote:

    Originally posted by groverat

    I have no CC debt or car debt. All my debt is from student loans.



    But the fianceé is interviewing with big law firms over the next two weeks, so no worries for me, baby! YEAH!




    It's seems that you will have soon a giant debt, the one you will not be able to payback : the eternal debt you will owe to your wife ...
  • Reply 18 of 45
    Quote:

    payback : the eternal debt you will owe to your wife ...



    nah, that can be paid back with nightly installments of liquid assests deposited directly into her account.
  • Reply 19 of 45
    Quote:

    Originally posted by alcimedes

    nah, that can be paid back with nightly installments of liquid assests deposited directly into her account.



    The only problem with that are the balloon payments that start coming due after about 9 months!
  • Reply 20 of 45
    powerdocpowerdoc Posts: 8,123member
    Quote:

    Originally posted by alcimedes

    nah, that can be paid back with nightly installments of liquid assests deposited directly into her account.



    Yes but it's the best way to increase your loans ...
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