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What if we alter that analogy to a person who makes 100k/yr with a 110k mortgage, and next year they make 101k with a 115k mortgage, and next year they make 102
by isoskeles 7y ago
What if we alter that analogy to a person who makes 100k/yr with a 110k mortgage, and next year they make 101k with a 115k mortgage, and next year they make 102k with a 120k mortgage, and so on?
- freeone3000 7y agoThen I think we should rename it from "mortgage" to "student loans". As long as they keep making minimum payments, this is technically fine.
- isoskeles 7y agoMisses the point, but sure, "student loans" is a fair comparison. The name doesn't matter to me, it's all debt. I don't see it as "technically" fine that the rate at which the debt grows consistently exceeds the rate at which the income grows. There comes a point in time in which the principal of the debt is large enough that minimum payments exceed income.