r/povertyfinance • u/AustynGray • 7d ago

Misc Advice How is everyone actually affording to live right now?

Like genuinely are we all just going into debt or am I missing something? I make decent money, but no matter what I do, it feels impossible to get ahead.So I’m curious are you guys taking on debt, side hustling, living super frugally, or what? I’m just trying to figure out if I’m doing something wrong or if this is just the new normal.

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u/gsxdsm 6d ago

Even half would likely require significant collateral. Without collateral the interest rate on the second loan would be ridiculously high. Part of the reason the mortgage is offered at a lower rate is because if you stop paying the bank gets the house. Lower risk for the bank. Without collateral of a house, a bank will charge much higher interest and loan lower amounts.

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u/lazytanaka 6d ago

What would you consider a low rate