She shouldn't have so much debt but the mortgage is not the part which is the problem. The car is the problem.
I agree that the mortgage isn't the problem, and on the surface it does seem like the car is an issue, but I am not willing to pass judgment based on the article alone.
FTR, when I bought my house I put 10% down and paid PMI for a while, I renovated it on credit cards, and had some personal interest free loans to help me. I obviously didn't have the life experience back then that I have now, and while I do regret certain things (mostly the renovations I did at the time, before actually living in a house, and while piling on lots of CC debt), I can't say that some of those moves weren't right for their time.
I can definitely relate to the following quote from the article:
After the down payment and closing costs, “I only had about $2,000 left at that time to furnish the home,” she says. “I wish that I would have saved an additional $10,000 before moving in.”
Throughout the process, she also encountered a few unexpected upfront costs: For construction to begin on her home, she spent $3,000 on a deposit. Then, she spent $1,500 to move her belongings and car. And although some appliances, like the microwave, dishwasher and stove, were included in the price of the home, she paid an additional $2,060 for a washer, dryer and refrigerator.
I find it so common that people ignore or overlook the actual cost of things, which goes beyond the purchase price and the financing cost.
Given her income level and seemingly excessive lifestyle (bases solely on the car debt), it should be rather easy for her to get onto a solid footing using the DR plan or other methods.
@CountValentine do you think some racial profiling might be involved in passing judgment on this young lady, without actually hearing the full story?