Carnival of Debt Reduction #125

Broke Grad Student hosted the 125th Carnival of Debt Reduction today, calling it the Superbowl XLII edition. My post about commitment was included. Other posts I enjoyed…

  • I have zero debt. Am I weird? over at Squawkfox. This Canadian woman has zero debt, six-figure savings, and still has nice things. How did she do it? Read the post to find out.
  • Don’t use your house to pay for your life at Rocket Finance. “Rocketc” relates the story of how he bought a home and then refinanced the mortgage four times in six years. Oh, and he got two HELOC’s during that time too. It’s a cautionary tale with a good list of lessons at the end of it. Definitely worth reading before buying a house and before refinancing a mortgage.

This second post struck a chord with me for a few reasons.

1. When my wife and I bought our first condo, we took out a second mortgage to fund a vending business, which ultimately failed. We lost $30,000 after we discovered how quickly vending machines depreciate in value. Fortunately, we were able to sell the condo for a price that covered both mortgages. We “only” had to bring $1,500 to the closing table to get out. (It could have been much worse.)

2. In the Denver area, I’ve seen all kinds of shenanigans in the housing market. I remember when my wife and I were still looking for a home. One neighborhood was particularly attractive to us because the homes were new and the location was good. I remember the sales person pressuring us to buy saying, “If you don’t sign the contract now, the prices will be going up by $15,000 in two weeks or less. Lately, they’ve been going up $10,000 to $15,000 every three weeks. If you wait, you may have to pay a lot more.”

Of course, the price increases were completely absurd, built on nothing but mass hysteria. I resented the high-pressure sales tactics and we left. We never bought a home there.

Anyway, definitely read Rocketc’s post if you’re in the home buying market.

Enjoy! And look for more posts about debt reduction soon.

If you enjoyed this post, make sure you subscribe to my RSS feed!

2 thoughts on “Carnival of Debt Reduction #125”

  1. Thank you for the link Ryan! I too really enjoyed the second article. Due to the housing market craziness in the last 5 or so years I made the decision to continue renting. In the city where I live, housing prices just went bonkers and I couldn’t rationalize paying more mortgage interest per month than rent. I’ve run the “Rent Vs. Own” numbers HUNDREDS of times and still get ahead by renting as long as I save my money and don’t consume it.

  2. You’re welcome, Squawkfox.

    We’re currently renting, too. We got a bigger house for less money than we were paying on our mortgage.

    For a long time, when interest rates were low, it made more sense to buy. But there’s been a lot of downward pressure on rental rates in the last couple of years, which makes it better to rent in my area.

Comments are closed.