Overheard an interesting conversation at work today. No, not eavesdropping, they were standing next to my low wall cube talking. Seems this person just got divorced. His wife got the house (in a fancy/expensive neighborhood) and he moved into a $1,700/month condo in that area. That alone startled me as being in my area of finance I know everyone’s salaries and he makes about what I do. The mortgage I can afford, and was happy with, is $308.89/month for a small doublewide on 1.5 acres of land, 35 minute commute. Anyway, he just got through furnishing his new place, furniture, front-load washer/dryer, big plasma TV and so forth. He ‘needed’ to get that apartment as it is close to his wife and children’s place. I do not know if she works but I would think she would have to to pay a mortgage in that particular golf neighborhood. So, how the heck can he afford all that? CREDIT CARDS! What startled me? Their original mortgage was an interest only and came due BEFORE he got his apartment. The house is worth $200,000 less than when they first got it (therefore what they still owe). He is going to walk away but his wife really likes the place so wants to stay. I got a phone call and the last I heard was he is over $100,000 in debit on his credit cards. Now, this man is in finance himself so should be at least a tad bit savvy about money and credit. What the heck do folks think? Maybe they don’t and that is the problem. I had sympathy for folks who got swindled into the interest only loans, blaming the banks for pushing these on people who did not know better. But here is a guy who knew better, or should have and took it anyway. THEN as his house is ready for foreclosure he gets an apartment he cannot afford and uses a credit card to furnish it. I just wanted to share; I think there might be a few folks here who can relate. Not to the guy but to my being amazed at what supposedly intelligent people will and can do.