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Biggest debt you've been in?

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    #152
    jonny99
    Registered Users Posts: 117 ✭✭jonny99


    Berserker wrote: »
    Rent for most of it but I'll have enough savings put aside to buy myself a nice one bed apartment in the countryside or abroad when I retire. I could afford one now but I wouldn't be comfortable buying the rubbish that's available now, i.e. the dregs of the boom, given that I would be living there for the next 35+ years, looking at the average life expectancy. Also, I think that renting and saving is a better option for me, as it allows me the freedom to move, if work dries up here. If you own a house or apartment, you are largely tied to the location.



    I disagree. I think a most Irish people, not all, buy property for use as a form of wealth, as opposed to a home. If they didn't, the term 'negative equity' wouldn't be used so frequently, as the individual/family would have no interest in the value of the home. It would solely be a place of residency and the value of the home in relation to the current market value would be of little relevance. There is an unhealthy obsession with property in this country. Take a look at the news and the pending property bubble as proof. It's only a matter of time before I have the "You need to get on the ladder or you never will/Rent money is dead money/House prices are only going one way and that's up" conversations.

    Not sure it'll be easy to find a one-bed apartment in the countryside:D


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    #153
    howtomake
    Registered Users Posts: 1,023 ✭✭✭howtomake


    See now this is why I think the best "mathematical" education ANYONE in the world (well developing world, I presume) can get is the power of compound interest. How so little can work for you and so MUCH can F*CKING work against you. I am going forth to teach the thankless and ungracious youth...


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    #154
    FURET
    Closed Accounts Posts: 685 ✭✭✭FURET


    howtomake wrote: »
    See now this is why I think the best "mathematical" education ANYONE in the world (well developing world, I presume) can get is the power of compound interest. How so little can work for you and so MUCH can F*CKING work against you. I am going forth to teach the thankless and ungracious youth...

    I fully agree with this. I think compound interest was touched upon all too briefly in, like, 4th class way back in primary school. I honestly think personal finance should be made a subject in secondary schools, focusing on budgeting, consumerism, debt management, saving, investing, and asset management. This guy taught a personal finance course to kids in his secondary school in Singapore. Admirable stuff.


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    #155
    AlanS181824
    Banned (with Prison Access) Posts: 5,575 ✭✭✭AlanS181824


    I once owned a fiver to a man named Joe....


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    #156
    coffee_cake
    Moderators, Category Moderators, Politics Moderators, Recreation & Hobbies Moderators, Society & Culture Moderators Posts: 81,310 CMod ✭✭✭✭coffee_cake


    FURET wrote: »
    I fully agree with this. I think compound interest was touched upon all too briefly in, like, 4th class way back in primary school. I honestly think personal finance should be made a subject in secondary schools, focusing on budgeting, consumerism, debt management, saving, investing, and asset management. This guy taught a personal finance course to kids in his secondary school in Singapore. Admirable stuff.

    The best thing they can teach as well as that is a real life example of just how much you pay back in total on a mortgage and how it varies with the term


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    #157
    Menas
    Closed Accounts Posts: 12,318 ✭✭✭✭Menas


    bluewolf wrote: »
    The best thing they can teach as well as that is a real life example of just how much you pay back in total on a mortgage and how it varies with the term

    And to teach them how to weigh up pros and cons of any significant life decision.
    Getting a mortgage works for some, renting for life works for other.

    What does not work is getting a mortgage you cannot afford to pay with ease...or renting with no plan for how you will pay rent once you retire and have no pension other than the state one.


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    #158
    Berserker
    Closed Accounts Posts: 9,046 ✭✭✭Berserker


    Trigger Happy wrote: »
    And to teach them how to weigh up pros and cons of any significant life decision.
    Getting a mortgage works for some, renting for life works for other.

    What does not work is getting a mortgage you cannot afford to pay with ease...or renting with no plan for how you will pay rent once you retire and have no pension other than the state one.

    I can only speak for myself but I was thought about financial planning at home. It would be fantastic if it was thought in school but I am not sure that financial prudence is genuinely desired. Those who have been financially negligent, in terms of personal finance, have been portrayed as victims of the 'big bad' banks and the credit card companies. We all know that the banks have been guilty of incompetence but individuals who failed to sit down and trash out the full impact of their financial commitments are equally incompetent, in my eyes.

    How many of the current first year students entering our universities in the coming weeks are capable of balancing a personal budget? Very few I'd imagine.


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    #159
    The One Doctor
    Registered Users Posts: 2,339 ✭✭✭The One Doctor


    pickarooney wrote: »
    Are you sure you understand how debt works?

    Yes I do. Do you understand how saving works?


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    #160
    pickarooney
    Moderators, Arts Moderators Posts: 35,093 Mod ✭✭✭✭pickarooney


    The One Doctor wrote: »
    Yes I do. Do you understand how saving works?

    My understanding of saving is that you collect money until you have enough to buy a thing. Who are you paying half of it back to? :confused:


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    #161
    The One Doctor
    Registered Users Posts: 2,339 ✭✭✭The One Doctor


    pickarooney wrote: »
    My understanding of saving is that you collect money until you have enough to buy a thing. Who are you paying half of it back to? :confused:

    Myself.


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    #162
    The_Kew_Tour
    Registered Users Posts: 34,044 ✭✭✭✭The_Kew_Tour


    Never been in debt and never had borrow money.

    What I earn is either saved or is spent wisely these days.


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    #163
    pickarooney
    Moderators, Arts Moderators Posts: 35,093 Mod ✭✭✭✭pickarooney


    The One Doctor wrote: »
    Myself.

    Are you charging yourself much interest?


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    #164
    The One Doctor
    Registered Users Posts: 2,339 ✭✭✭The One Doctor


    pickarooney wrote: »
    Are you charging yourself much interest?

    Grow up.


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    #165
    bear1
    Registered Users Posts: 12,811 ✭✭✭✭bear1


    pickarooney wrote: »
    Are you charging yourself much interest?

    LOL hahahah


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    #166
    Alf Veedersane
    Registered Users Posts: 24,552 ✭✭✭✭Alf Veedersane


    Maximus Alexander wrote: »
    I must look at things in a warped way because my thinking is that if it's going to take me 25+ years to pay for something, I can't afford it.

    That's true.

    But for me, it's cheaper than renting was, so I can afford renting less than the house.


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    #167
    pickarooney
    Moderators, Arts Moderators Posts: 35,093 Mod ✭✭✭✭pickarooney


    The One Doctor wrote: »
    Grow up.

    Make some sense


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    #168
    coffee_cake
    Moderators, Category Moderators, Politics Moderators, Recreation & Hobbies Moderators, Society & Culture Moderators Posts: 81,310 CMod ✭✭✭✭coffee_cake


    Does he mean he used up his savings to buy the car and has saved up "paid back into the savings account" half the money since the purchase?


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    #169
    Alf Veedersane
    Registered Users Posts: 24,552 ✭✭✭✭Alf Veedersane


    bluewolf wrote: »
    The best thing they can teach as well as that is a real life example of just how much you pay back in total on a mortgage and how it varies with the term

    You'll have the people who'll go "95% mortgage? I've never got 95% in my life. I'm so happy riught now I'll cry!! SOLD! To me!"


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    #170
    Larbre34
    Registered Users Posts: 23,797 ✭✭✭✭Larbre34


    The_Kew_Tour wrote: »
    Never been in debt and never had borrow money.

    What I earn is either saved or is spent wisely these days.

    That may sound wise or carefree, but not having a credit history can count badly against you if you needed to borrow money all of a sudden for something unforeseen, maybe a medical bill or a big cost that slipped through insurance protection.

    I would always advise people to start borrowing small amounts at a young age, perhaps holiday loans with a credit union etc. There is a practical happy medium between having no borrowings and excessive debt.


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    #171
    Alf Veedersane
    Registered Users Posts: 24,552 ✭✭✭✭Alf Veedersane


    Larbre34 wrote: »
    That may sound wise or carefree, but not having a credit history can count badly against you if you needed to borrow money all of a sudden for something unforeseen, maybe a medical bill or a big cost that slipped through insurance protection.

    I would always advise people to start borrowing small amounts at a young age, perhaps holiday loans with a credit union etc. There is a practical happy medium between having no borrowings and excessive debt.

    Sorry, what?

    Your credit rating isn't based solely on what loans you've had.

    There's no problem with having no loans once saving doesn't involve stuffing money under a mattress.


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    #172
    Columbia
    Registered Users Posts: 1,494 ✭✭✭Columbia


    bluewolf wrote: »
    Does he mean he used up his savings to buy the car and has saved up "paid back into the savings account" half the money since the purchase?

    This is exactly what he means. The poster could have made it a little clearer, but the inability of some people to join the simplest dots is astonishing sometimes.


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    #173
    Thargor
    Registered Users Posts: 17,866 ✭✭✭✭Thargor


    Larbre34 wrote: »
    That may sound wise or carefree, but not having a credit history can count badly against you if you needed to borrow money all of a sudden for something unforeseen, maybe a medical bill or a big cost that slipped through insurance protection.

    I would always advise people to start borrowing small amounts at a young age, perhaps holiday loans with a credit union etc. There is a practical happy medium between having no borrowings and excessive debt.
    Alf Veedersane wrote: »
    Sorry, what?

    Your credit rating isn't based solely on what loans you've had.
    Does paying off a credit card promptly count as a good credit card history? Had it for 5 years and never missed a payment, theres usually something on there to pay off, never had any other kind of loan or anything like that...


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    #174
    caolfx
    Closed Accounts Posts: 161 ✭✭caolfx


    Alf Veedersane wrote: »
    That's true.

    But for me, it's cheaper than renting was, so I can afford renting less than the house.

    That all depends on the house though. I can't afford (yet) to buy where I want.

    Most people my age left the area for some of those horrible Celtic Tiger estates. They all want to come back, but are stuck now.

    A lot of people just bought to 'get on the ladder'. Fools.


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    #175
    Alf Veedersane
    Registered Users Posts: 24,552 ✭✭✭✭Alf Veedersane


    SuperOito wrote: »
    That all depends on the house though. I can't afford (yet) to buy where I want.

    Oh, I know, and I consider myself lucky. Very lucky. Especially with timing and the house. I'd have rented until I could get somewhere I wanted to live that I could afford because I quite liked where I lived, the rent was manageable and we were pretty secure there as far as we could tell.


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    #176
    Alf Veedersane
    Registered Users Posts: 24,552 ✭✭✭✭Alf Veedersane


    Thargor wrote: »
    Does paying off a credit card promptly count as a good credit card history? Had it for 5 years and never missed a payment, theres usually something on there to pay off, never had any other kind of loan or anything like that...

    It wouldn't refelct badly on you anyway when they're compiling your credit history.


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    #177
    Maximus Alexander
    Registered Users Posts: 13,080 ✭✭✭✭Maximus Alexander


    Alf Veedersane wrote: »
    That's true.

    But for me, it's cheaper than renting was, so I can afford renting less than the house.

    Yeah that's valid. I'm just extremely debt averse. If I ever find I can't afford my rent, I know I can move somewhere cheaper. I can see why buying makes sense to people, I just don't like the idea of owing that sort of money.


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    #178
    RobertKK
    Registered Users Posts: 33,727 ✭✭✭✭RobertKK


    Maximus Alexander wrote: »
    I must look at things in a warped way because my thinking is that if it's going to take me 25+ years to pay for something, I can't afford it.

    The way to think is, you only pay so much per year which you can afford and a sensible lender will only lend if your incomes can support the repayment of the debt.
    Economic activity in business would grind to a halt if it relied on buying something they could afford to pay for as in the whole amount in one go if making a big purchase.
    People who borrow should be debt adverse so they only borrow what they can afford, not like before the crash when banks basically gave what you asked for.
    I borrowed to expand my farm, land and better buildings, it will pay for itself, but only possible by borrowing the money, and for a business, you get the interest paid as an expense on your accounts. So debt should have more positives than negatives, otherwise one should ask themselves, why did I get myself this debt for?
    Thargor wrote: »
    Do most of the people in debt in this thread have no savings in their thirties then? Or do you get in debt but keep a savings regimen going on the side for rainy days etc?

    In my thirties, have savings as you need something to fall back on if needed, plus a pension plan as one wants a nice retirement, presuming one makes it that far.
    I think one needs a balance of everything, if they do have debt.


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    #179
    Thargor
    Registered Users Posts: 17,866 ✭✭✭✭Thargor


    Yeah a pension plan is one thing I need to look into, still haven't ever seen a convincing offer from any of the sales people who set up booths in the canteen at work sometimes though, what they're selling never seems to make sense when you factor in inflation, they seem to be just holding it for you at a sh1tty rate then giving it back to you, might as well leave it in Prize bonds for 30 years. I know my brothers office match his payments so thats definitely worth doing as its free money but it only seems to be solicitors and public servants and the like that get deals like that anymore, private sector you're screwed.


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    #180
    Zubeneschamali
    Registered Users Posts: 16,686 ✭✭✭✭Zubeneschamali


    Thargor wrote: »
    they seem to be just holding it for you at a sh1tty rate then giving it back to you, might as well leave it in Prize bonds for 30 years.

    The point of a pension plan is that the money comes out of your pay before tax. Even if they just hold it in a shoebox, the taxman's usual slice is in there, too.


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    #181
    RobertKK
    Registered Users Posts: 33,727 ✭✭✭✭RobertKK


    Thargor wrote: »
    Yeah a pension plan is one thing I need to look into, still haven't ever seen a convincing offer from any of the sales people who set up booths in the canteen at work sometimes though, what they're selling never seems to make sense when you factor in inflation, they seem to be just holding it for you at a sh1tty rate then giving it back to you, might as well leave it in Prize bonds for 30 years. I know my brothers office match his payments so thats definitely worth doing as its free money but it only seems to be solicitors and public servants and the like that get deals like that anymore, private sector you're screwed.

    Being private sector, I am doing a self invest pension, at least I know what exactly my money is invested in.


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