iaink

Presumably if the home is worth that much its relatively easy to refinance and free up some capital to pay off other debts, thus avoiding the whole court thing?

Almost Canadian

I agree. I just find the whole "I don't want secured credit as I don't want to lose my house" argument a little strange. Secured credit is, usually, cheaper than unsecured and, if you have assets, they will be seized anyway (subject to any secured creditor's interest).

Alan2005

Does a lien on the house require you to sell it? I thought only cities could force you to sell due to unpaid taxes.

Almost Canadian

As with most things, it depends upon the enforcement provisions available in each Province. In Alberta, any creditor can apply to have the debtor's home sold and the proceeds used to satisfy any Judgment obtained. Of course, the decision of the Court will be fact dependant, but one should not assume that one's home is safe from sale.

Alan2005

Ok. Not sure it's the same here or not.

Honestly, my view is that there is really no such thing as good debt. You can't say that using a line of credit for something is sensible whereas using a credit card is not. Or that having a mortgage is better - it's not, it's still all debt. Secured, not secured - it makes no difference, it's borrowed money that is being paid back with interest.

Of course, if you have to go into debt, the cheapest option can be best, but sometimes the time-scale and urgency of the debt needs to be considered.
Carrying a credit card balance for one or two months is not a stupid thing to do in all circumstances, it might be more expensive than a LOC, but it might also be a lot more convenient and unless you are talking multiples of $10,000's it's not actually that much more in absolute terms. I wouldn't call somebody a moron for paying $50 more in interest over the term of the debt myself.

And I also don't like blaming people for the circumstances they are in when I know nothing about how they got there. It's obnoxiously right wing and a bit septic-ish.

Almost Canadian

OK, although I don't believe I've blamed anyone. As for being right wing, I believe that the re-election of President Obama is a good thing for America. Let's hope he chooses to close Gitmo before he finishes his second term. I appreciate that, to date, he hasn't had sufficient time to do so during his first term, what with seeking out and killing OSB and all that

I'll leave it for you to determine where that places me on the political spectrum.

Former Lancastrian

I think most of us have to go into some form of debt at some stage be it a mortgage or car loan as those 2 items are the more costlier ones.
I dont know of too many who can plonk down 300 grand in cash or more for a house or even 20 grand for a vehicle.
Its how you manage the debt that is important. Years ago I subscribed to a few of the buy now pay in 2 or 3 years for furniture when I was going through a divorce. I was happy to pay the 50 to $100 admin fee but made sure I divided the amount into monthly payments and made them so no interest was incurred.
Not saying its the best thing to do but its what I chose to do.

ultrarunner

On a lighter note....just off the mint, anyone got their paws on it yet?

Alan2005

Apart from the first sentence the post wasn't directed at you. Sorry if that wasn't clear.

jericho

+1

iaink

Im not saying all debt is bad, but the system is set up to get poor people, or people whose circumstances change into the trap of paying interest, and nothing is going to convince me that paying credit card, or worse still, payday loan interest rates is anything but a mugs game. Personally, based on what I know the credit companies are happy to approve me for and what I am comfortable to pay back, I think people have way too much credit available to them, and that its much too easy to overextend yourself if you dont exercise any self control.

Im not sure how that makes me right wing, it may well be the first time Ive been accused of that. Personally I think that protecting the vulnerable from being put in a position where they can be trapped into a long stretches of high interest payments is probably the opposite of right wing, but what do I know.

Aviator

It comes down to how financially astute an individual is. Debt is no problem when you make it work for you.

dbd33

Rather like the nags really. If your one comes home ahead you can look down on all those not astute enough to have picked it.

iaink

Or more like the bookie is the only one winning on a consistent basis.

Aviator

Not at all, some educate themselves on finances and understand it, others don't. Some have self control and others don't. Regrettably some are naive and believe everything they are told.

Financial acumen is not a matter of luck.