Comment by devoutsalsa | Hacker News Reader

Comment by devoutsalsa | Hacker News Reader

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I was massively broke for a long time, and I can speak to my experience in the USA. I was over 200K USD in debt at one point. [1] I was behind on everything, and then declared bankruptcy. The only time I would have needed to worry about it was if I wanted to get a securities license (e.g. become a financial advisor), or if I needed a security clearance (e.g. work on top secret project). The real risk I faced was the threat of making rent & feeding myself.

Just 5 years ago I was making 6000 USD per month and with almost 250K in debt, and ~50% of my income going to debt payments. Now I’ll be debt free in a couple months, and I have 12 months of savings in the bank & a rapidly growing retirement account! It’s super nice to feel this way, and it’s only been possible with a lot of hard work and even more luck.

[1] I lived way beyond my means, overestimated the value of my expensive education, and had an expensive bicycle accident.

This sounds so sad:

> and had an expensive bicycle accident.

I mean, the health aspect was probably bad, but the financial implication is even worse :-(

It was a period of many depressing thoughts for sure. I wouldn't wish that struggle on anyone.

> Just 5 years ago I was making 6000 USD per month and with almost 250K in debt, and ~50%

I really don’t know what it’s like in other places, but the first few years of a mortgage are like this, but with a larger debt. It’s grim.

Except at the end you own a house and maybe some land. Usually people with a mortgage they planned for don't describe themselves this way.

Yeah, that does sound hard. I’ve never had a mortgage myself, but the thought of owing tons of money on an underwater mortgage is not appealing is not appealing.

It beats paying rent. If at the end of my mortgage payments, if my house was worth half of what it was today, and my rent had never increased, I'd come out ahead. And both of the above are incredibly unlikely.

Owing money on a mortgage does not mean it's underwater.

Except your mortgage is secured by an asset, the sale of which removes most, or all, of the debt. It's a desperate option, but it's there, no bankruptcy needed. Medical debt and unsecured debt have no such option -- and student loans can't be discharged even in bankruptcy. It's not the same situation.

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