Quote:
Originally Posted by BluPhire
(I only say that because of the mentality of many upper socio, other times they are upper by salary and not upper by wealth so do we really consider them upper?).
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Technically, no.
Socioeconomic status and social class rankings are based on qualitative economic distinctions of the source of the income rather than the amount of the income.
If someone has no wealth and their income is only based on salary--meaning, if they went jobless, they'd immediately be shit out of luck--their membership in the upper class club is fleeting.
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Also, if someone has a salary of $150K before taxes and debts of $140K, especially with no wealth accumulation, their debt-income ratio is comparable to someone with a salary of $40K. If the $40K salary is matched with a debt of $10K, the debt-income ratio can be better than the $150K person.
On that note, a lot of people with $150K salaries would not qualify for certain 30 year fixed rate mortgages based on their payment-to-income-ratio. They would have to get a different type of mortgage loan (like the dangerous ARMs) and some (more considerate) lenders would either advise them to get a cheaper house or wait until their debt has lessened.
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