Reply to FA shouldn't go to people with 1 million dollar houses

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[quote=Anonymous]re having debt that offsets assets.  No doubt they did -- does it matter how incurred the debt was incurred or is it just considered a fact that establishes need?

I know lots of people for whom debt is, essentially, credit card debt (partially transformed into a home equity loan) that reflects continual decisions to consume more than they can afford.  So if debt is the Mercedes, the summer camps, the designer clothes, the big house in the chi-chi zipcode is/should that be treated differently than college loans or medical expenses or borrowing during a period of unemployment?

Then what do you do with cases where instead of paying down debt as soon as possible, people stretch it out as long as possible so it doesn't cut into their lifestyle/consumption?

I think it's easier to treat debt as a fact (and that's probably what's done), but that can lead to the kinds of scenarios OP is describing.   I'd probably be more inclined to focus on income (and maybe earning history) in making these decisions -- i.e. if you earn that and you can't afford private school without financial assistance, then it clearly wasn't much a priority for you, and so it'd take a damn good reason to explain why others should fund your kids' educational expenses.  [/quote]

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