Is this really as bad as my friend thinks?

suburbanwifey

harrys_dad wrote: »

These interest rates are at least double the currently available best buys (even if they are not tax free). Where do you invest? Maybe you could share it with Martin for the weekly e-mail.

Its tax free for me, we hold all our money in my name as I am a non-tax payer now I'm not sure what I did would have been worthwhile had I been a tax payer, maybe would have worked out the same as just spending the cash instead, so maybe it wouldn't be such a good deal for a tax payer.

Trajal

Hi Suburbanwifey - I think that you should probably consider the question a little better.

Yes it would be great if everyone owned lots of houses and could brag about having pots of cash to use to leverage debt at cheaper rates etc etc. However quite often, particularly given the current macroeconomic situation, people get into debt.

The OP has made great strides towards clearing debt and is evidently on the right path already. No further scare tactics needed just a 'you're doing great, keep it up, soon be able to save' pat on the back and strengthening of resolve.

I don't think that preaching or nagging is the right approach in this instance. Encouragement.

Furthermore, I would strongly suggest talking to an accountant. I'm making an assumption that the income generated from your property empire and interest combined could easily lead to you falling into the taxable non-earned income bracket.

suburbanwifey

Trajal wrote: »

Hi Suburbanwifey - I think that you should probably consider the question a little better.

Yes it would be great if everyone owned lots of houses and could brag about having pots of cash to use to leverage debt at cheaper rates etc etc. However quite often, particularly given the current macroeconomic situation, people get into debt.

The OP has made great strides towards clearing debt and is evidently on the right path already. No further scare tactics needed just a 'you're doing great, keep it up, soon be able to save' pat on the back and strengthening of resolve.

I don't think that preaching or nagging is the right approach in this instance. Encouragement.

Furthermore, I would strongly suggest talking to an accountant. I'm making an assumption that the income generated from your property empire and interest combined could easily lead to you falling into the taxable non-earned income bracket.

Yeah, you make some good points and I like the positive responses that the OP has made and I am sure they will continue to reduce that debt and get rid of it. Property empire? no such thing here, we don't rent our homes out, we just live in them so as we don't earn income from our homes its not an issue here, but great advice if that was the case. I've often thought of renting out but couldn't do it, didn't want to so maybe not so savvy with money as losing rental income others would capitalise on, but we don't want other people in our home nor the hassle.

matttye

Terrible is subjective. What's terrible to your friend isn't terrible to you and neither of you are likely to convince the other.

Let it slide

shortcrust

suburbanwifey wrote: »

Removed my post as one later poster has the wrong impression that I was bragging. Not so, sorry you felt that, was merely trying to show an example of how debt can work in your favour if its the right sort of debt.

Apologies it upset anyone.

Disappointing that you removed the post. I like to reply to things that end with "Your opinion sucks!".

suburbanwifey

shortcrust wrote: »

Disappointing that you removed the post. I like to reply to things that end with "Your opinion sucks!".

*smiles* you and me both soz

bobmonkeydog

Thanks for all of the replies guys... I appreciate all of them, even the ones that have sparked discussion!!

The comments have given me even more determination to pay it all off asap.

Hopelessly_Hopeful

Sounds like you are paying it off and over 3 times the min payment so well done. Hopefully the two years will fly by.

Good luck with it.

HHx

bobmonkeydog

Thanks HH, we are doing our best!!

quantic

I think it all boils down to whatever situation you are comfortable in, I personally do not like to have any debt what so ever, except the unavoidable (mortgage) and even that I am overpaying because I don't want it over my head forever. My friends however, have massive mortgages on interest only, car finance and debt off their weddings still...

Whatever lets you sleep at night is usually my benchmark.