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Old 08-29-2011, 11:22 AM   #11
Rathji
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Of course any debt, by definition is debt, so you can't be debt free until you don't have any debt!

Quote:
Originally Posted by Cowboy89 View Post
Exactly, tell a Calgary buyer from '07-'08, who bought a house for 5% down. The amount they are underwater is most certainly 'debt.'
Everything you owe is debt, but some debt isn't "bad debt".

Clearly if you owe more than it is worth, or have rolled a bunch of other debt into your mortgage, then that is bad debt.

If you simply owe money towards your home, especially if your monthly cost of ownership is lower than your monthly cost of renting would be, then how could it be considered bad debt?

Quote:
Originally Posted by Phanuthier View Post
You GOT to be kidding me...
Historically, housing costs increase more than they decrease, which means statistically speaking, you are more likely to gain value in your home rather than lose it. How is that confusing? He is not claiming that you are immune to losing value.
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Last edited by Rathji; 08-29-2011 at 11:26 AM. Reason: spelling
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