Do You Count Mortgage sec. Loans as Debt?

Little_Miss_Winner

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nelly_2

Its money thats been borrowd init!

tattooed_lady

Personally, I wouldn't class my mortgage as 'bad' debt as such and therefore wouldn't use it in my debt total. I think I would include a secured loan though.

Ember999

A secured loan on your home is debt isn't it? A debt that can enforce the sale of your house if you do not pay it. You don't get a worse debt than than!

I would never touch a secured loan. I don't consider a mortgage a 'debt' as such as we all need one to buy a home to live it. I call it a necessary expense. Rather that then rent in someone else's pocket, paying off their mortgage to make them rich!

ceegee

Ember999 wrote:

Rather that then rent in someone else's pocket, paying off their mortgage to make them rich!

I know exactly where you are coming from! I once had to rent for a year and even though the rent was reasonable, every Friday evening I handed my cash to my landlord and watched it disappear into his pocket. I had to take a deep breath each time to stop me from crying! He was quite comfortably off and I was really struggling.

Now, I absolutely lurrrrve my beautiful mortgage, because in 8 years' time this house will be mine,all mine!!! :j

ceegee

In reply to Pot'o'Gold's original question....... I would class anything other than a mortgage as debt. If you extend your mortgage for things such as vitally needed new windows (for example) then I don't consider that to be debt....because it is to do with the fabric of your home and is necessary (if your windows were so rotten that you had creepy crawlies living in them like we did :eek:).

But if you withdraw equity to fund lifestyle things like holidays and replacing things that don't need replacing or just to live the high life, then I class that as debt.

Loans secured on your home are definitely debt in my view.

jamesp_3

The way i see it, of course your Mortgage is a debt but shouldn't be treated as one which need killing off as soon as possible. Like our utilities and taxes, its something most of us need to live and over the term of our Mortgages we should see out investments increase in value regardless of any interest we pay.

However, basic money saving rules apply. Find the cheapest mortgage available, don't overstretch yourself and try to live within your means. When the time is right and you are on top of your finances you can then start looking at paying more off on your mortgage. If you do this you can potentially save huge amounts of interest but there is only any sense in doing this if you are on top of your finances.

So, include it in your dailing incomings/outgoings but don't treat the total as a bad debt

robnye

funnily enough , i had the same discussion with my wife the other day..... mainly about the programs on tv about peoples debts....... none of them seem to take into account mortgages (mainly i suppose because they dont have them)

i have 4 mortgages......1 main, 1 advance and 2 flexiloans (1 for loft and the other for a car), i dont class them as loans/debts (the car one i am paying 200% extra on top of the monthly payment to clear it within 5 years - long story but it was cheaper than a loan with Northern b@rds Rock )

Xbigman

Everything except your first mortgage is debt.

Your first mortgage is credit.

Your first mortgage should go down and not up.

If you buy a property that needs renovating either get a big enough mortgage to start with or save up what you need. The DHSS agree's with me, if you were long term unemployed they will nly pay the first mortgage.
Regards


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