DEBT FREE.... Is it really all that?
Joined: May 2001
Posts: 9,510
Likes: 478
From: Dallas
My only debt is my mortgage and it is a nice feeling having only deductible mortgage interest.
Debt will eat you alive, it's sad that the laws and our socialistic government tendencies favor the idiots who can't control their debt load.
Debt will eat you alive, it's sad that the laws and our socialistic government tendencies favor the idiots who can't control their debt load.
Joined: Jun 2002
Posts: 2,465
Likes: 30
From: NorCal
It feels different having 0 debt after selling my house last year and now living back with parent (waiting to buy another when the housing market goes down further). I like it actually. The downside is that I am spending a lot more on luxury items instead of saving the money for other stuff. I lost a lot of money in the stock market also. When I had some debt, I was more frugal with my spending. Go figure.
Registered User
Joined: Mar 2005
Posts: 2,421
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From: Raleigh, NC
I'll be coming out of school with 12k in student loans, about 1.5k in CC debt (I'd be at 0, but my brother was laid off earlier this year and I helped him pay his bills during that time), and my car loan. That's about all I'm willing to carry.
I'll pay off the CC debt in a few months (I have a job already) and work on the student loans and car over time. I won't be racking up any CC debt that can't be paid off within a few months with ease.
It's not so much a huge plus to be out of debt, but the security that if you run into hard times you can make it for a bit before you get back on your feet. Over time you'll be able to accumulate real wealth and will be able to afford more.
I'll pay off the CC debt in a few months (I have a job already) and work on the student loans and car over time. I won't be racking up any CC debt that can't be paid off within a few months with ease.
It's not so much a huge plus to be out of debt, but the security that if you run into hard times you can make it for a bit before you get back on your feet. Over time you'll be able to accumulate real wealth and will be able to afford more.
Registered User
Joined: Nov 2004
Posts: 1,560
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From: Albuquerque, NM
I think it comes down to one thing: is the interest you're paying with your debt greater than the interest you're earning on your savings? If it is, quit your savings until the debt is paid off. If not, then you should be my financial advisor. 
Joined: Jan 2007
Posts: 1,187
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From: Bay Area, CA
Originally Posted by Will,Apr 28 2008, 03:24 PM
I think it comes down to one thing: is the interest you're paying with your debt greater than the interest you're earning on your savings? If it is, quit your savings until the debt is paid off. If not, then you should be my financial advisor.
Can't believe it took so long for someone to post this.
Joined: Sep 2005
Posts: 3,668
Likes: 20
From: Arlington Heights, IL
Originally Posted by dyhppy,Apr 26 2008, 11:19 PM
this attitude is exactly why america is so irresponsible.
there is no big deal to being debt free besides a sense of honor. but who cares about honor if you can have a new z06 for 0% interest instead?
i think tim's job is secure
there is no big deal to being debt free besides a sense of honor. but who cares about honor if you can have a new z06 for 0% interest instead?
i think tim's job is secure
I'm working on paying down debt now, but let's not be stupid. I don't tie "honor" with "not having debt;" honor is "taking responsibility for the debts you have." And if you are so caught up with "honor" that you fail to capitalize on investment opportunities (like amortizing a depreciating asset at 0%) you are only screwing yourself.
*Or someone with so much money that $50k is pocket change
Former Moderator
Joined: Nov 2000
Posts: 25,439
Likes: 2
From: St. Louis, MO
Debt is relative.
Some folks are what you'd call "HOUSE POOR." They have mortgages that they barely can afford.
My wife and I have some debt that we've been working on paying down...but it seems to be a constant in life.
I'll tell you that it's a much more satisfying feeling when you save up the money and then make the purchase. But in today's society where we want it before we even knew we wanted it/needed it, LOL...it can make it tough to wait, save and then buy.
This reminds me of years ago when my parents saved for a new washer and dryer.
I remember it quite well because the dryer went out and my mother "air-dried" our clothes for a few weeks...all this while my parents had talks about saving up for a new dryer and washer. What seemed like a good 2 months later, my parents went to Sears and bought a brand new washer and dryer...they saved up the money for the purchase and had a BUDGET on what to buy.
Nowadays...it's a different scenario all together.
We visit Sears and take advantage of 90 Days Same as Cash or NO INTEREST for 12 months.
Not that those are bad purchase options...the problem I believe is that we fool ourselves into buying MORE than we need...that $600 Washer turns into an $1,100 washer because, "hell...I'll just make payments." And we get so engrossed on features and blah, blah...
That being said...when my wife and I bought a new washer and dryer last year...we shopped around and found Lowe's (Home Improvement Warehouse) to have a 12 months same as cash (no interest) and we took advantage of that plan...paying for about 10 months and then we paid the balance before any interest hit. But we had a budget in mind before hand and made sure to stick with it.
I think that's the biggest issue nowadays...people rarely budget anymore.
Some folks are what you'd call "HOUSE POOR." They have mortgages that they barely can afford.
My wife and I have some debt that we've been working on paying down...but it seems to be a constant in life.
I'll tell you that it's a much more satisfying feeling when you save up the money and then make the purchase. But in today's society where we want it before we even knew we wanted it/needed it, LOL...it can make it tough to wait, save and then buy.
This reminds me of years ago when my parents saved for a new washer and dryer.
I remember it quite well because the dryer went out and my mother "air-dried" our clothes for a few weeks...all this while my parents had talks about saving up for a new dryer and washer. What seemed like a good 2 months later, my parents went to Sears and bought a brand new washer and dryer...they saved up the money for the purchase and had a BUDGET on what to buy.
Nowadays...it's a different scenario all together.
We visit Sears and take advantage of 90 Days Same as Cash or NO INTEREST for 12 months.
Not that those are bad purchase options...the problem I believe is that we fool ourselves into buying MORE than we need...that $600 Washer turns into an $1,100 washer because, "hell...I'll just make payments." And we get so engrossed on features and blah, blah...
That being said...when my wife and I bought a new washer and dryer last year...we shopped around and found Lowe's (Home Improvement Warehouse) to have a 12 months same as cash (no interest) and we took advantage of that plan...paying for about 10 months and then we paid the balance before any interest hit. But we had a budget in mind before hand and made sure to stick with it.
I think that's the biggest issue nowadays...people rarely budget anymore.
Joined: Sep 2005
Posts: 3,668
Likes: 20
From: Arlington Heights, IL
And that sort of brings me to two other issues:
First, last year when my wife and I got married, we bought a whole bunch of furniture (bedroom set, dining room set, living room stuff) all at once, since we were just starting out. We financed it all, and we'll be done paying for it next month. We could have paid cash for all of it, but who wants to lay out $4k+ all at once? However, now we are moving to a house, and the only big things we need are a fridge and a sofa, so we are paying cash for both. When you need to get a bunch of stuff all at once, it lessens the sting to stretch it out a little. But when you only need one thing (like your parents' dryer,) it makes sense to pay cash.
However, this brings me to point 2. We also needed a washer and dryer, which my parents graciously decided to buy for us as a housewarming present. They said, pick it out, we'll send you a check. So we go in planning to pay cash, but the W/D we picked out at Sears has some $400 of rebates which you are only eligible for if you pay with a Sears charge. So now we have this $1k check, and a new $6k revolving Sears account we didn't need or want, but have to have to get the $400 in rebates. We'll pay it off as soon as the W/D is delivered, and close the account, but it sure is annoying to have to take on that much debt (or potential debt) in order to get the best deal.
First, last year when my wife and I got married, we bought a whole bunch of furniture (bedroom set, dining room set, living room stuff) all at once, since we were just starting out. We financed it all, and we'll be done paying for it next month. We could have paid cash for all of it, but who wants to lay out $4k+ all at once? However, now we are moving to a house, and the only big things we need are a fridge and a sofa, so we are paying cash for both. When you need to get a bunch of stuff all at once, it lessens the sting to stretch it out a little. But when you only need one thing (like your parents' dryer,) it makes sense to pay cash.
However, this brings me to point 2. We also needed a washer and dryer, which my parents graciously decided to buy for us as a housewarming present. They said, pick it out, we'll send you a check. So we go in planning to pay cash, but the W/D we picked out at Sears has some $400 of rebates which you are only eligible for if you pay with a Sears charge. So now we have this $1k check, and a new $6k revolving Sears account we didn't need or want, but have to have to get the $400 in rebates. We'll pay it off as soon as the W/D is delivered, and close the account, but it sure is annoying to have to take on that much debt (or potential debt) in order to get the best deal.
Registered User
Joined: Jul 2005
Posts: 847
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Originally Posted by Chris Stack,Apr 29 2008, 06:33 AM
And that sort of brings me to two other issues:
First, last year when my wife and I got married, we bought a whole bunch of furniture (bedroom set, dining room set, living room stuff) all at once, since we were just starting out. We financed it all, and we'll be done paying for it next month. We could have paid cash for all of it, but who wants to lay out $4k+ all at once? However, now we are moving to a house, and the only big things we need are a fridge and a sofa, so we are paying cash for both. When you need to get a bunch of stuff all at once, it lessens the sting to stretch it out a little. But when you only need one thing (like your parents' dryer,) it makes sense to pay cash.
However, this brings me to point 2. We also needed a washer and dryer, which my parents graciously decided to buy for us as a housewarming present. They said, pick it out, we'll send you a check. So we go in planning to pay cash, but the W/D we picked out at Sears has some $400 of rebates which you are only eligible for if you pay with a Sears charge. So now we have this $1k check, and a new $6k revolving Sears account we didn't need or want, but have to have to get the $400 in rebates. We'll pay it off as soon as the W/D is delivered, and close the account, but it sure is annoying to have to take on that much debt (or potential debt) in order to get the best deal.
First, last year when my wife and I got married, we bought a whole bunch of furniture (bedroom set, dining room set, living room stuff) all at once, since we were just starting out. We financed it all, and we'll be done paying for it next month. We could have paid cash for all of it, but who wants to lay out $4k+ all at once? However, now we are moving to a house, and the only big things we need are a fridge and a sofa, so we are paying cash for both. When you need to get a bunch of stuff all at once, it lessens the sting to stretch it out a little. But when you only need one thing (like your parents' dryer,) it makes sense to pay cash.
However, this brings me to point 2. We also needed a washer and dryer, which my parents graciously decided to buy for us as a housewarming present. They said, pick it out, we'll send you a check. So we go in planning to pay cash, but the W/D we picked out at Sears has some $400 of rebates which you are only eligible for if you pay with a Sears charge. So now we have this $1k check, and a new $6k revolving Sears account we didn't need or want, but have to have to get the $400 in rebates. We'll pay it off as soon as the W/D is delivered, and close the account, but it sure is annoying to have to take on that much debt (or potential debt) in order to get the best deal.
Right now I have around 1700 in credit debt and my car loan. I'm gonna pay off the credit cards but keep the car loan for now.
I have more than enough in savings to pay down the car, but I figured that why pay off the car loan when 1. I already paid a majority of the interest. 2. I could make more money investing. 3. I like having a lot of cash on hand. 4. I might buy a new (used) car within the year. 5. the payment is pretty low as it is. 6. the car is worth more than I owe...
So, for me my car debt isn't that big of a deal. Sure I'd rather not have it, but if I stay on track with my investments it should be paid off within the year.
I don't buy a lot of stuff. Family and friends buy most of my clothes. I probably spent about $100 on clothes the past 4 years.
I spent maybe $100 the last year on personal entertainment.
My main expense is food. I spend an obscene amount on it.
So, for me, I know where my money goes. I just have to curtail the spending of it.
