<prompt> Human: So, my SO and I have a mountain of student loan debt. If all goes according to plan, well be debt free in a maximum of 5 years. By doing this, were pretty much living like broke college students despite being professionals in the workforce for several years now. Its not terrible, but its not the best either. Now, with all of that said, while Im excited that well probably be paying off our loans before were both 30, Im absolutely terrified of incurring more debt in the future via a mortgage, and things of that sort. My SO and I have discussed paying for a home in cash by saving up for like...10 years, but hell, is that even doable? We make good salaries, but theyre probably not good enough for something like that, especially in NYC where our jobs are. Has anyone here paid for a home outright? What was it like? How did you do it? How are you staying debt free, and is a mortgage really all that bad?Were paying 2k a month in student loans we doubled our payment to bring it down fast, but Im feeling suffocated and it has made me fear debt, even good debt.Edit: wow! I didnt expect this to blow up like it has. I really do appreciate all the advice! If we stay in nyc, renting may be smarter. I have a lot to think about in the next several years. Id like a place of my own to do with what I wish, but who knows. Im going to continue focusing on my loans, and then Ill think about my living situation. Assistant: Try to understand how a mortgage is different from student loans.Student loans are unsecured debt. You owe money, and the only way to get rid of that is to pay for it. Otherwise, it follows you more or less forever, a drain on your finances. While you got something in exchange for that debt, you got it in the past -- at this point, you pay money and dont get anything in return. Its understandable to be afraid of debt at this point.A mortgage is secured debt. Rather than a promise against your ability to repay, its a promise guaranteed by an asset -- the house you bought with it. Its just a substitute for rent -- you pay money each month, you get a place to live each month. Instead of an extra payment the way a student loan is, its a payment that replaces a bill you already have rent. If the payment becomes overwhelming, you can get out of it at any time by selling the house. Well, almost any time -- right after, say, 2008 would have been very difficult. In some states Alaska, Arizona, California, Hawaii, Minnesota, Montana, Nevada, North Dakota, Oklahoma, Oregon, Washington its even nonrecourse debt, meaning that if you tell the bank you can have the house, Im done paying they cant even sue you, even if the house is worth a lot less than you owe.While its possible to pay for a house in cash, its not advisable. The problem is the time value of money. You save for 10 years, then buy a house -- at which point all that savings is gone and earning no interest. With a mortgage, you borrow money at pretty much the lowest interest rate an individual can borrow it, and buy the house with it, so that you still have an emergency fund, and you can still invest the money youd be paying for the house with and hopefully make a lot more than the interest youre paying on the debt.I would advise you not to try to buy with cash, but do pay off the student loans first, and buy a house where you feel the payment isnt a stretch for you. Real estate agents will encourage banks will offer you far larger loans than you should really take on with your income.Another way to think about it -- with a student loan, you have a liability for 50,000 or whatever. With a mortgage, you simultaneously acquire a liability for 250,000 and an asset worth 250,000. Your personal balance sheet isnt changed by the mortgage.Human: Thank you very much! Your post really made me feel better about a potential mortgage. For some ridiculous reason, I never thought of a mortgage just replacing rent. I feel like an idiot. A mortgage would be infinitely less stressful than these loans I have. Thank you again for helping me understand everything a bit better.  <response>: You can rent a house or rent the money to buy a house. You just need to see which you like best. 