Jakarta, Armfalcon.com – After going viral because of her action to pay off mortgage debt (KPR) when she had no income, this artist who graduated from GADIS Cover 1995 ago shared a story that she now lives debt-free.
“There is no (debt anymore), the car used to be paid in installments but it was paid off, my credit card didn’t close but it was zero (in installments) four years ago. My annual limit is also small because I don’t dare to take big,” said Andhara in the Cuap Cuap Podcast Cuan (5/5).
Andhara also said that he had never liked being in debt in the past. He also taught his son to always pay anything in cash.
Financial Expert Ayyi Achmad Hidayah who also appeared on the podcast said that debt is a disease that can bankrupt people and become a source of household division.
The following is Ayyi’s view of Andhara’s action to repay the mortgage debt.
Debt must be repaid
“Reflecting from Early’s case, incidentally income is irregular and savings are running low, the decision to close the mortgage is very appropriate because even a little late is dangerous because we never know when Early and her husband will return to income, especially when bank interest is rising (mortgage installments can go up) ),” said Ayu.
Ayyi added that if the debt was not paid off, Andhara’s household finances could become more problematic because when mortgage repayments went up, savings were drained, he still had to meet his daily needs.
Andhara has also done careful calculations, how much expenses must be paid when he decides to continue in installments. As a result, the total installments and interest expense are quite large, even equivalent to the price of a new house.
In financial planning, the maximum debt installment that can be taken is a maximum of 30% of monthly income. Meanwhile, total debt is considered reasonable if the value does not exceed 50% of the total assets owned.
Given that debt will cause passive spending and erode net worth, it is very important for all of us to pay off all consumer debt if there are assets left.
You Must Read This Before You Apply for a Mortgage Apart from the Bank!