So how much debt is "acceptable"?

stoke1863 · 20 Jan 2011 at 18:19

Defcon5 said:
You earn 100k between you but had to borrow 9k to buy a car?

He already said 50k BETWEEN them

[TW]Fox · 20 Jan 2011 at 18:32

My only 'debt' is my student loan. The inverted commas are because I don't consider it conventional debt.

Not that I'm against properly planned and managed loans - I intend to take out a loan for about 40% of the value of my next car, for example. Provided you don't spend more than about 10-15% of your income paying stuff off I'm not sure there is an issue.

A.N.Other · 20 Jan 2011 at 18:35

I've got ~£20k of student loan, but as I'm doing a PhD now and not paying it off the interest is growing steadily.

Aside from that, I don't have any debt and don't own a credit card. At some point in the relatively near future I suppose I will be getting a mortgage.

[TW]Fox · 20 Jan 2011 at 18:36

A.N.Other said:
I've got nearly £20k of student loan, and still being in education and not paying it off, the interest is growing steadily.

It's actually reducing in value in real terms.

A.N.Other · 20 Jan 2011 at 18:38

[TW]Fox;18275387 said:
It's actually reducing in value in real terms.

How so?

[TW]Fox · 20 Jan 2011 at 18:40

A.N.Other said:
How so?

Because the interest rate on your student loan is lower than the current rate of inflation. Therefore in real terms, the value of your loan is decreasing.

Vonhelmet · 20 Jan 2011 at 18:48

Less than whatever they will offer. That is what is acceptable.