No. of Recommendations: 7
One of the things I've been noticing (with alarm) is the exponential rise in mortgaging their future for stuff now. Credit cards, car loans, and refinancing their homes "with cash out" every single time the newspaper reports a surge in home prices in our area.

My fiancee's sister and her husband just bought their first condo. They got a good deal as it was previously his grandmother's before she passed away. Something like 20% below market value. What's the first thing they did? Home equity loan, vacation, new furniture, and a new car. The money comes too easy, and people don't think of the consequences!

My fiancee wants to know how we can get a "home equity free" as she calls it!

I'm not sure how to educate people, I think what I need is the starting point, as I often try to start at a level that is too high for them. This is the same person who last year only paid $400 in taxes, and this year didn't have to pay any taxes at all (got $500 back). She honestly thinks she hasn't paid any taxes.

Fiancee: "What about what they take out of your paycheck each month?"
Her Sister: "But I did my taxes and I didn't have to pay anything..."

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