this post was submitted on 20 Oct 2023
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Hear about how much debt everyone in the US has all the time, curious about some of your stories!

My bad debt is 10k left on a school loan from a for profit school that is now out of business.

Only other debt is house.

So how are you all doing with debt management?

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[–] GissaMittJobb@lemmy.ml 5 points 1 year ago (1 children)

I guess my mortgage could be considered bad debt on account of being adjustable interest rate - this is however the most common type of mortgage arrangement in Sweden where I live. This has led to my interest rate costs going up an eye watering 400% in about a year.

I've got ~130k in loans on it. I'm in the privileged position of being able to pay it off fully if the interest rate costs start exceeding the expected returns from the stock market, though, so feel no need to shed even a single tear for me.

The Swedish housing market is a classic zero interest trap story - low interest rates combined with tax incentives and housing availability rates leading to ownership being significantly more lucrative - has led to prices skyrocketing and debt to income ratios spiraling out of control. With adjustable rates being the most common arrangement - again, due to some truly psychotic public policy - now the population that lent money to buy homes are stuck with sickening monthly payments and no way to get out of the debt, since the prices have dropped below purchase price. Not too much though, because of how crazy scarce the housing is.

Everyone loses but the banks.

[–] JasSmith@sh.itjust.works 2 points 1 year ago* (last edited 1 year ago)

I guess my mortgage could be considered bad debt on account of being adjustable interest rate - this is however the most common type of mortgage arrangement in Sweden where I live. This has led to my interest rate costs going up an eye watering 400% in about a year.

As a Dane am I envious of some of your systems like investeringssparkonto, but we have the better mortgage system. My home loan is locked in at 1% for 30 years.

You guys have had ENORMOUS immigration over the last eight years without building homes at commensurate rates. No wonder it placed pressure on housing. I don’t think your government had a realistic housing and immigration plan. I guess that’s why they were voted out. I hope things improve.