This is a great post about the question “Do you have any more debt than you need to have?”.
I’m going to go out on a limb and say it’s probably the last one.
I think the most important thing to consider about debt is that it is the difference between “having no money” and “having $1,000 in debt.” I know this because I’ve recently been in a situation where I had just bought a house and I had $1,000 in debt on the house.
I am a very optimistic person. Over the years I have had the good fortune to have a number of debt. The most memorable of these was when I decided to buy a house at 40k a square foot. I had zero money, so I decided to just borrow the money for the down payment. That turned out to be a very wise move and I now have a house with 2.25 square foot living space that i would gladly pay for a month.
You have a lot of debt (and a house on the market) so you should probably be careful with your spending.
the other two statements are wrong. If I were to pay the down payment for my house, I would then pay a mortgage on the house. This is not very logical and is a little silly, but I don’t think it’s appropriate for me in this situation.
The truth is that the vast majority of people who buy into debt do so because they want to build a house. Sure, some people build houses for the wrong reasons but the majority of people who buy a new house are buying it for the right reasons. When it comes to buying a home, it is a good idea to be extra careful.
If you are buying a new home, you will need some money down. That money would be used to pay for the down payment. Then, if you decide you want to put the down payment toward a mortgage, the mortgage company would require that you take out a second mortgage. The amount you would pay for the second mortgage would then determine the monthly payment. The down payment also needs to be low enough that there is enough money left to pay the mortgage.