Would you take on a large debt in this economic/political climate?

2 points·canaus··7 comments

I considered carefully refinancing my home mortgage recently because of low interest rates. Weighing the closing costs of refinancing I wasn't excited about losing the 4k in liquidity for a net savings of 20k over the next 15 years.

I would consider the impact of defaulting carefully before taking on a new debt today.

Debt is only good if you will benefit from it long term. If after you repay the debt you have more than what you started with then go for it. If on the other hand you have less, most loans, then don't do it now.

I would never take on any debt, in any climate. I don't have credit cards. I don't have a car loan. I don't have a mortgage. I don't care what my credit score is.

Peace of mind is priceless to me.

That's interesting. How much do you make a year, if you don't mind me asking? Have you ever tried to purchase a large asset such as a house?

It varies. I work for myself. Recently when I was working at my startup and took a salary I made ~$120k/year. When I was contracting I made $150k-200k/year. Recently I moved from San Francisco to Yangon, Myanmar and haven't been working much. So far this year I've only made $12k (which is enough here to live for a year).

If I wanted to purchase a house I would pay for it in cash, so I don't need a loan. I don't buy things I haven't earned (crazy! I know). I don't use debt. I don't have to worry about what a lender thinks of me.

As far as mortgages go, I know someone else who doesn't have a credit score and got 3.5% using a manual underwriter. If you have good finances you can get good rates without a credit score.

Yes, but I feel my job is safe.

What for?

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