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But he wasn't through. he was looking to redeem himself. He mentioned that at least property was going up in value. I asked him his age, he told me 30. I asked him how well he remembered early 1980's. He didn't.
I told him real estate doesn't go up in a straight line, and on occasion it goes down. I told him I bought a home in spring of 1980. Almost immediately real estate market went flat. 5 years later my wife and I were certain if we wanted to sell our house we would OWE money to bank at closing. It was 10 years before market started to move up again.
Just recently it hit another bump in road. In my area prices have dipped 3% in past year. With easy money and low down payments, many new buyers are finding themselves upside down in their mortgages. Many people, who have taken a home equity loan up to or even exceeding value of property, find themselves in same boat.
Did he understand moral? Yes, he did. Borrow as little as possible, pay it off as quickly as you can. The goal is living debt free... unless you want to give me a dollar for my 56 cents.
David Wilding http://www.debtattack.com Take Care Of Your Debt Before It Takes Care Of You
Mr. Wilding has, for the past ten years, been trying to help people rid their lives of debt. Through changing their attitudes towards, and their acceptance of, debt in their lives, he has help many to reach the goal : living debt free. Visit his website http://www.debtattack.com.