I don't know how some people do things that to me seem so risky. Maybe I'm just way too conservative.

A friend and spouse recently purchased a home twice the price of ours and took additional amount of loan on top "for paying off other debt." They make less than half what we make and owe three times as much in other stuff (car loans, cc, irs, etc). I'd be so stressed and likely wouldn't have taken such a loan (5.8%) for an even smaller home than ours. Just thinking about it stresses me out tbh.

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It's an interesting scenario, but it would depends heavily on the absolute numbers. For instance, if you are making 750k and they are making 350k, it is a lifestyle choice which both parties can afford vs, say, you at 100k and them at 40k in HCOL cities. Not to mention the possibility of legacy money.

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We're at 250k, they're at ~100k. They have three car loans, irs debt, and credit card debt for small stuff and student loans. We have zero debt outside of mortgage. We considered getting a larger home and a luxury car, but payments are ridiculous nowadays.

Paying double what we pay with their salary seems bonkers to me but they didn't listen. Another friend of theirs told them they could refinance for half the interest in 6-12 months. So they went with it.

I've seen a lot of people who do that. They will took loans and another subsequent loan this time to cover up for the first loan. So far, neither of these people are bankrupt. I think it's how you really manage your expenses and how much you have thought about it first before taking the risk.

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For me, the most luxurious car is the one that’s paid off.

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There are zero consequences for debt as it’s how the economy operates. We have friends that do the exact same thing.

For the record, I’m with you. We are in a position now where we don’t have to really question if we can afford something small if we want it. I’m talking new iPad, new phone, new car, etc.. But if we were in a house that is double what we are now, I would be stressed to the max.

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Maybe, they have generational wealth.

They're average Joes.

Similar background to mine. Just a tad less successful earnings wise.

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More info needed to render an on-point opinion. I agree, though, that higher fixed costs equals higher stress.

It is. We were definitely stressed when we were making way less but with nearly similar expenses as we have now.

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