How much debt do you have?

• 27 March 2007

• #1

numbercruncher

Beware of Dropbears

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It seems we are a debt driven society, whats your share ?

(hopefully i can work out how to post a poll)

 

• 27 March 2007

• #2

YOUNG_TRADER

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Re: How Much Debt do you Have ?

Too much for my age

 

• 28 March 2007

• #3

Kimosabi

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My only debt is for the car which is nothing if I had to get out of it...

 

• 28 March 2007

• #4

wayneL

VIVA LA LIBERTAD, CARAJO!

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You haven't got an option for nada/zip/zero.

 

• 28 March 2007

• #5

J

Judd

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Depends on your definition of debt, ie margin loan v credit card.

 

• 28 March 2007

• #6

tech/a

No Ordinary Duck

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Wouldnt gearing be more helpful.

One could have massive debt but still be geared very low relative to cashed up nett worth.

 

• 28 March 2007

• #7

N

nizar

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wayneL said:

You haven't got an option for nada/zip/zero.

Click to expand...

Im with you Wayne.

 

• 28 March 2007

• #8

Bronte

Trading The SPI for 20+ years

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We are in the: "Over 500k debt"
Appreciating assets, recently refinanced.
Fixed at 6.47% Interest only Loan
Presently returning well over 10%
We class this as "Good debt"

 

• 28 March 2007

• #9

P

Pager

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Question is a bit loose, i have a debt but assets that far exceed that debt should i cash up.

Would guess this applies to alot of investors/traders.

Cheers

Pager

 

• 28 March 2007

• #10

J

jammin

the amp's turned up to 11

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I don't think you can draw the conclusion "we are a debt driven society" without considering the use of the debt, as a number of members have already stated.
If the majority of debt is used to finance assets, the conclusion would be "we are a capital driven society".
I have debt in the 300K to 500K catagory used to purchase investment property and shares. A small part of that debt also goes to financing my wife and she is definately an asset.

 

• 28 March 2007

• #11

M

Mumbank

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Well over 500k, in fact well over $1m which is very scary at this age, however, if we cashed it all up, we would be well in the black, so I only worry when the cash flow slows up (usually around BAS time) and then the repayments become really scary !!!

 

• 28 March 2007

• #12

dj_420

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i borrowed ten grand to start investing last year, in addition to my 15 k to start my portfolio. when i first borrowed it i thought it was very risky, however my whole portfolio has returned 140% since getting the loan so i think it has paid itself off.

 

• 28 March 2007

• #13

YOUNG_TRADER

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jammin said:

A small part of that debt also goes to financing my wife and she is definately an asset.

Click to expand...

LOL same here, except I'm not married yet so I guess you could say I'm on a lease plan with the option to buy at the end of the standard lease period, then again I can always just go for a newer model :

 

• 28 March 2007

• #14

T

tybutler

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For those with a margin loan: What LSR (Loan to Security Ratio) do you aim for? I've had a margin loan for about a year and seem to be comfortable with about 50%, although at the moment I'm around 55%. Thoughts? Comments?

 

• 28 March 2007

• #15

The Y-man

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tybutler said:

For those with a margin loan: What LSR (Loan to Security Ratio) do you aim for? I've had a margin loan for about a year and seem to be comfortable with about 50%, although at the moment I'm around 55%. Thoughts? Comments?

Click to expand...

50 is "safe level" IMHO. My account varies from 30% to 70% depending on the state of the market....

Cheers,

The Y-man

 

• 28 March 2007

• #16

J

Judd

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Just crunched some numbers. Excluding the home (no debt) and credit card (Paye'd tomorrow), the debt to equity is less than 2%. So with a family of 5 in a 3 bedroom home and no pay-tv, mobiles, plasma screen, a 1 ten year-old young car, somebody somewhere is obviously chewing up our share of the outstanding debt. What have we done wrong?!