i think its important to try and have as little debt as possible...

3 years ago when i worked right out of college i had about 14k in credit card debt just from living outside of my means...

the payments werent killer or anything but i wanted no debt so i started paying 500 bucks every month, on top of regular bills, insurance, and whatnot, and it really was a huge amount of money...

now im in law school and borrowed 50k last year, im trying to get a full ride on academics for 2nd and 3rd year, but will still have to borrow money for living, i know when im talking about 100k, 14k isnt much more, but the interest you pay is what makes debt so bad...

a 2k flat screen paid over a long period of time ends up costing so much more...

i say down with debt

 

there's nothing wrong with being in debt as long as you have enough money to make the monthly payments, and you don't mind the fact of having to pay the cost of interest to have what you want today as opposed to the future when you have saved up enough money to buy it. it really depends on the individual. i personally have been debt free for at least 5 years, and have been loving it. of course i anticipate on being in debt again sometime in the future, cuz i don't think i can cash a house at this point in my life.

 

as long as the interest/return you are getting from your investment is higher than the interest you are paying to your debt, then you are better off continuing to do what you are doing. if it is the other way around, then pay off your debt ASAP.

 

 

imo, you are missing the point. what is the downside of being in debt? it's not like someone comes knocking down your door to cut off your fingers?

 

Being debt free is wonderful!!!

When you are in debt, If you skip a month or two, no they will not come cut off your fingers.... But when you are debt free you don't ever have to make payments... you can skip more than just two payments.

I have recently started a family (my second son will be here in a few months). I guess I have grown up alot in the last few years... and I am more resoponsible especially with my money. I have been debt free for a little over a year now and my business has been debt free for three years.

When I became debt free the stress in my life disapeared.

When I was in debt I bought crap I didn't need.
Now that I don't have debt, I use my money to invest... my money is working for me instead of me working for more money.

 

You need to ask? Unfortunately too many Americans don't see the downside to being in debt.

 

Try writing a cheque for a $25K car and walking out the door, knowing that you don't have any payments for the next three, four, five, or even six years.

Believe me, it's all its cracked up to be. Some short term sacrifices will invariably lead to a much better lifestyle. You'll appreciate your "things" more, you'll buy better quality products, and you'll never be a slave to your weaknesses. Cash is king.

Am I debt free? No but I'm close to it. You'd be surprised how much you spend on debt and interest in a year if you're not zeroing your credit cards every month, not to mention the interest you're paying on your vehicles. Reducing consumer debt (cars and credit cards, basically) is a huge step to financial freedom.

Chances are, because you have no real debt (mortgage aside), you'll be able to buy things more quickly and easily as you move on in life. That $2K TV that you'd normally have to finance for 12 or 18 months can now be purchased in cash in two or three months, thanks to no debt.

My wife and I have been as aggressive as possible in knocking out my school debt especially. An extra $500 a month adds up in a hurry.

 

You don't make sense. America is irresponsible because we have accumulated so much debt. The economy is going down the shitter because we have accumulated too much debt.

 

I use my credit cards heavily, but don't carry a balance. Pay it off every month but I am totally anal about budgeting.

I have a spreadsheet that has my projected budget out two years. Its ridiculous. It has mortgage payments, estimated utilities, estimated expenses for pocket money, groceries, and entries for when insurance, tags, and property tax are due.

It also shows my running mortgage balance, car balance, and retirement accounts. I probably adjust things in it once a week. Its kind of silly.

Its kind of a sickness but being detailed has helped me live way beyond my means because when you look at your expenxes in detail you instantly analyze frivolous crap and eliminate it fast. ANd it makes you stay away from debt because you look at the recurring payments and how much it takes out of your fun money every month.