Young couple with $783k debt (shows how poorly people manage their own finances)

Patrick.Net ^ | 08/30/2011 | Quant HF Manager

[oldbrowser]

And why did they have to buy a house? (a condo) And then another house? (a townhouse) This is a great example of the real estate pathology that many people still have today.

Many people became wealthy doing exactly the same thing, 20 or 30 years ago.

[ScottinVA]

Anywhere in Virginia, for that matter?

That's more in the north. Many good deals on nice, conventional homes can be had here in Hampton Roads at great prices.

[freeangel]

“Why do you have to have a kid if you cannot afford it?”

Good question. Why do welfare single moms have multiple children when they can’t afford it?

[ScottinVA]

A condo, then a townhouse. Mistake x 2, especially in this market. Also, Leesburg is one of the most expensive locales here in VA.

[cripplecreek]

When the husband from the young couple was murdered on Falcon lake, some pointed to them living the high life as evidence of them being involved in criminal activity.

What I saw was evidence of a young couple playing the debt game.

[douginthearmy]

We need a federal agency to regulate and manage personal finances. wait for it.. it’s coming.. the same excuses they use for regulating fast foods.. costs to taxpayers..

[oh8eleven]

These young kids ...
Young kids? At 32 I had three years in the service, a year in combat, a college grad, married ten years, had two kids, bought & sold three new cars and two houses.
The last thing I considered myself was a young kid.

[SMARTY]

People, especially young people, forgot how to do without or to wait until you can afford a thing before they buy it.

People need to de program W A N T I N G!

That means, step away from the TV... it is a devise made to serve ONE purpose... to create NEED.

Sponsors are what the TV is about, so you can de program the whole ‘I WANT’ thing by just tuning it out.... it is worlds better to live without all that VISUAL and MATERIAL racket (that is TV) in your life ... . The worst possible thing adults can do is to plant their kid in front of the TV..the kid never has a chance. So, instead of using the TV for a babysitter, spend some quality time with your kid and he will be better off, and so will you.

[oh8eleven]

Why do welfare single moms have multiple children when they can’t afford it?
Sure THEY can afford it - because YOU pay for it.

[Thunder90]

My advice:
Sell everything at a loss (Liquidation). Go to a Chapter 13 BK plan to pay off the rest of the debts. Use the student loans after the chapter 13 plan is over to reestablish credit.

[pgkdan]

What are you doing buying a $410,000 townhouse in Leesburg, Virginia? Anywhere in Virginia, for that matter? That's bubble pricing if I've ever heard it.

The author should refrain from offering others financial advise until he learns what he's talking about.

[Texas resident]

$783,000 in debt with a $93,000 income.
Sounds like the next appointee to the baraq regime.

[Presbyterian Reporter]

“”This 31 and 32 year old couple have $783,000 in debt!””

---

I beg to disagree with the author. Mortgage interest rates today are 4%. They should have no problem paying the bank.

[listenhillary]

Sounds like our current government’s income to debt ratio.

[listenhillary]

If they are at 4%. It is very hard to refinance if they are already in this situation.

[MrB]

That begs the question as to why, when they were at, say, $500k in debt, did someone else loan them the next 10k, 20k, etc?

[org.whodat]

You be correct. It is really a silly comment, young kids. LOL.

[SeekAndFind]

RE: Mortgage interest rates today are 4%. They should have no problem paying the bank.

I used this mortgage calculator based on 4% interest for a 30 year loan. Here is the result...

Year	Beginning Balance	Interest	Annual Payment	Ending Balance
1	$783000	$31069	$44858	$769211
2	769211	30507	44858	754860
3	754860	29923	44858	739925
4	739925	29314	44858	724381
5	724381	28681	44858	708204
6	708204	28022	44858	691368
7	691368	27336	44858	673846
8	673846	26622	44858	655610
9	655610	25879	44858	636631
10	636631	25106	44858	616878
11	616878	24301	44858	596321
12	596321	23463	44858	574927
13	574927	22592	44858	552661
14	552661	21685	44858	529488
15	529488	20741	44858	505370
16	505370	19758	44858	480270
17	480270	18735	44858	454148
18	454148	17671	44858	426961
19	426961	16563	44858	398666
20	398666	15411	44858	369219
21	369219	14211	44858	338572
22	338572	12962	44858	306676
23	306676	11663	44858	273481
24	273481	10310	44858	238934
25	238934	8903	44858	202979
26	202979	7438	44858	165559
27	165559	5914	44858	126614
28	126614	4327	44858	86083
29	86083	2676	44858	43901
30	43901	957	44858	0

Close to half of their income goes to pay off the houses/condos they are mortgaging on.

That of course is ASSUMING one or both of them don't get laid off. If this happens, they are royally screwed.

[chris_bdba]

You are exactly right.They didn’t see that Mom and Dad started out in a “starter” home that was probably less than 1200sf and need work.Most feel that is beneath them.It is no wonder so many will end up bankrupt.