The title “We are the prisoners of our debts” is an interesting quote from an article in The Telegraph.
Other quotes include:
“most sensible thing might be to borrow no money, to rent a place to live”
“how, short of living for 20 years in a tent, we could ever save enough money to buy a house outright”
“we screw up our courage to the sticking point and embark on a reckless gamble”
“if our income falls, and house prices fall, what then? We lose everything”
“one has taken out an excessively large mortgage, one finds oneself condemned to earn an income to match”
“Excessive debt is the mighty engine which has kept the British economy going”
“no choice because most of them were up to their eyeballs in debt. To go on strike was not an option”
We have friends (a couple with their second child on the way). They have never had a mortgage, he just worked hard and long and they now own (outright) two houses. It may not seem possible now, with house prices so high at the moment, but it is possible.
If you do take on debt it is always very sensible to remember that it is a speculative gamble. Nobody knows the future. Nobody knows whether they will be able to continue earning, nobody knows whether what they borrowed for will hold its value. Be prudent give yourself room for a fairly bad case scenario.
If your house is respossessed the lender can still come after you for the outstanding debt.
I don’t think that it is outright and always wrong to take on debt. I don’t think that we can put God in a box like that – but we must be sensitive to His will and do what we believe He is asking of us. Remember that debt can force you to carry on earning when maybe God is calling us to something else that might mean giving up our well paid jobs.