There are a few million mortgage defaulters in the U.S. who would probably beg to differ with your father-in-law. Just a thought.You can always sell your bike yourself. But really, as my father in law says "it's not about how much is your debt, it's all about how much you pay" if you fell comfortable with $200, why not?
But seriously, I hate seeing anyone get deeper into debt. Everything is good until you lose your job, or until your financial situation changes.