What would you do to become debt free?

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bowl
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Re: What would you do to become debt free?

Postby bowl » Wed Jul 11, 2018 2:45 pm

Mattblack wrote:
Brett wrote:
bowl wrote::a_goodjob:
rb85 wrote:http://mobile.abc.net.au/news/2018-07-11/up-to-1-million-households-may-go-into-mortgage-default-by-sept/9976268

Talk about people over committed on their loans.

So who's fault is it, banks for lending the money or people streching to themself to much on a loan.



It’s not like the old days where people save up for things.

The amount of younger people that are in debt and have financed everything they own(well technically the bank owns) is absolutely absurd.

We have 18 and 19yr olds driving round in 60 and 70 thousand dollar cars, with jet skis or boats in tow. Which have also been heavily financed.

It’s been to easy for ppl to get loans for way to long, I’m certainly not going to bail my kids out if they over commit, which I hope they don’t, but you never know.


Totally agree. A lot of people have been refinancing their mortgages as the property value goes up as well...fine if you are adding value to the property, but most do it to buy a new car or go on holidays. Trade wars, inflation, low wage growth, rising interest rates....batten down the hatches, it's going to be a rough ride!

Never refinanced ...

Looking at buying block of land /investment property for my kids.....as prices could be any in 15 years time.

In any generation there certain amount people who want it now n over borrow.

Lately people can't save as quick as prices go up....



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frozenpod
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Re: What would you do to become debt free?

Postby frozenpod » Wed Jul 11, 2018 4:08 pm

rb85 wrote:http://mobile.abc.net.au/news/2018-07-11/up-to-1-million-households-may-go-into-mortgage-default-by-sept/9976268



Massively over hyped facts.

$60 extra per month will not have people defaulting on their loans.

ango
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Re: What would you do to become debt free?

Postby ango » Wed Jul 11, 2018 5:33 pm

My 2 bobs worth, there are many ways to make a quid, unless you win Tattslotto (still trying) they involve hard work & smart thinking. Selling up and moving to the country can be a one way trip because if it does not work out country house prices do not grow like in the cities & after a few years you may not be able to afford to move back to town. I retired early after going to too many funerals and thinking, life is not all about work, better make hay while the sun shines.
Cheers
Ango.

barra mick
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Re: What would you do to become debt free?

Postby barra mick » Thu Jul 12, 2018 11:15 am

ango wrote:My 2 bobs worth, there are many ways to make a quid, unless you win Tattslotto (still trying) they involve hard work & smart thinking. Selling up and moving to the country can be a one way trip because if it does not work out country house prices do not grow like in the cities & after a few years you may not be able to afford to move back to town. I retired early after going to too many funerals and thinking, life is not all about work, better make hay while the sun shines.
Cheers
Ango.


And that's exactly why you try to jam in as many exciting fishing trips away as you can

Cause lifestyle not a rehersal

smile0784
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Re: What would you do to become debt free?

Postby smile0784 » Thu Jul 12, 2018 3:49 pm

Another question is when do you cash in your investments.

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4liters
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Re: What would you do to become debt free?

Postby 4liters » Thu Jul 12, 2018 6:00 pm

frozenpod wrote:
rb85 wrote:http://mobile.abc.net.au/news/2018-07-11/up-to-1-million-households-may-go-into-mortgage-default-by-sept/9976268



Massively over hyped facts.

$60 extra per month will not have people defaulting on their loans.

'May' being the key word. What they're saying is that for the million or so households experiencing high levels of mortgage stress the $60 could be the straw that breaks the camels back.

Not such an issue if the value of their property is higher than their loan. But if house prices start to fall while repayments are going up and they end up with negative equity and a mortgage they can't afford then those people will be turbofucked. If it is widespread enough the rest of the economy will be too.

Fortunately our banks were pretty diligent with who they loaned money to and that scenario is unli - oh, wait...
http://www.abc.net.au/news/2017-09-11/5 ... bs/8892030
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rb85
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Re: What would you do to become debt free?

Postby rb85 » Thu Jul 12, 2018 8:08 pm

4liters wrote:
frozenpod wrote:
rb85 wrote:http://mobile.abc.net.au/news/2018-07-11/up-to-1-million-households-may-go-into-mortgage-default-by-sept/9976268



Massively over hyped facts.

$60 extra per month will not have people defaulting on their loans.

'May' being the key word. What they're saying is that for the million or so households experiencing high levels of mortgage stress the $60 could be the straw that breaks the camels back.

Not such an issue if the value of their property is higher than their loan. But if house prices start to fall while repayments are going up and they end up with negative equity and a mortgage they can't afford then those people will be turbofucked. If it is widespread enough the rest of the economy will be too.

Fortunately our banks were pretty diligent with who they loaned money to and that scenario is unli - oh, wait...
http://www.abc.net.au/news/2017-09-11/5 ... bs/8892030


Its surprising how many people live hand to mouth who have barely scraped enough together to secure loans or had a broker forge documents to secure a loan for a nice kickback like the article from 4liters. The $60 a week will be the first hit if it increases by $100 a week or $200 lookout.

cobby
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Re: What would you do to become debt free?

Postby cobby » Thu Jul 12, 2018 8:53 pm

rb85 wrote:
4liters wrote:
frozenpod wrote:
rb85 wrote:http://mobile.abc.net.au/news/2018-07-11/up-to-1-million-households-may-go-into-mortgage-default-by-sept/9976268



Massively over hyped facts.

$60 extra per month will not have people defaulting on their loans.

'May' being the key word. What they're saying is that for the million or so households experiencing high levels of mortgage stress the $60 could be the straw that breaks the camels back.

Not such an issue if the value of their property is higher than their loan. But if house prices start to fall while repayments are going up and they end up with negative equity and a mortgage they can't afford then those people will be turbofucked. If it is widespread enough the rest of the economy will be too.

Fortunately our banks were pretty diligent with who they loaned money to and that scenario is unli - oh, wait...
http://www.abc.net.au/news/2017-09-11/5 ... bs/8892030


Its surprising how many people live hand to mouth who have barely scraped enough together to secure loans or had a broker forge documents to secure a loan for a nice kickback like the article from 4liters. The $60 a week will be the first hit if it increases by $100 a week or $200 lookout.


It will. Historical average rates at retail level is just over 7% or thereabouts. It's at what? 3.5-5% depending on the type of mortgage currently. I've got mates who bit the bullet instead of using their brains who won't last more than 2 months if the RBA jump rates any higher than 50 basis points. I missed a house by mere thousands because I factored in rates of 8% instead of 4.25% at the time to be safe 3 years ago. Within 3 months prices had gone up by 50k+, I'd been left for dead trying to compete with the 95% odd that was selling to the investment market. Ironically, quite a few of those purchased in that time have been vacant, with signs up and inspections happening some nearing 3 months now and prices that have more than doubled in that time are stagnant or falling...

rb85
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Re: What would you do to become debt free?

Postby rb85 » Thu Jul 12, 2018 9:10 pm

cobby wrote:
rb85 wrote:
4liters wrote:
frozenpod wrote:
rb85 wrote:http://mobile.abc.net.au/news/2018-07-11/up-to-1-million-households-may-go-into-mortgage-default-by-sept/9976268



Massively over hyped facts.

$60 extra per month will not have people defaulting on their loans.

'May' being the key word. What they're saying is that for the million or so households experiencing high levels of mortgage stress the $60 could be the straw that breaks the camels back.

Not such an issue if the value of their property is higher than their loan. But if house prices start to fall while repayments are going up and they end up with negative equity and a mortgage they can't afford then those people will be turbofucked. If it is widespread enough the rest of the economy will be too.

Fortunately our banks were pretty diligent with who they loaned money to and that scenario is unli - oh, wait...
http://www.abc.net.au/news/2017-09-11/5 ... bs/8892030


Its surprising how many people live hand to mouth who have barely scraped enough together to secure loans or had a broker forge documents to secure a loan for a nice kickback like the article from 4liters. The $60 a week will be the first hit if it increases by $100 a week or $200 lookout.


It will. Historical average rates at retail level is just over 7% or thereabouts. It's at what? 3.5-5% depending on the type of mortgage currently. I've got mates who bit the bullet instead of using their brains who won't last more than 2 months if the RBA jump rates any higher than 50 basis points. I missed a house by mere thousands because I factored in rates of 8% instead of 4.25% at the time to be safe 3 years ago. Within 3 months prices had gone up by 50k+, I'd been left for dead trying to compete with the 95% odd that was selling to the investment market. Ironically, quite a few of those purchased in that time have been vacant, with signs up and inspections happening some nearing 3 months now and prices that have more than doubled in that time are stagnant or falling...


So what do you do keep saving and wait for the firesale?

cobby
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Re: What would you do to become debt free?

Postby cobby » Thu Jul 12, 2018 10:31 pm

Basically yes. Although I enjoyed life more than I should have in that time unless all gains since are eradicated in a bit of a **** you to the inequalities of the whole ordeal.



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