Debt Free!

[eriksat1]

Originally Posted by Wade B AKA: Ruger2506

Is it? That used to be the old way of thinking. Not sure if that is still current.

Congrats Seedtree. It is an awesome feeling.

We still have the student loans and mortgage before we can say we are debt free.

I guess it depends on what you are buying vs rent. I could never rent a place like I have now for the same price as the mortgage including taxes and insurance. Plus no landlord to answer to or kiss @ss.

[ohiojmj]

Loans are not necessarily the greatest evil, unless overdone. Imagine how many would be able to own a house, car, or get a medical operation if there were none. Why would you wait to buy something worthy to save cash? In my twenties with two kids and wife and some down payment money, was I supposed to tell the family to wait 20 years until we could buy the modest house while dumping money into rent tiny apartment for that period? When I went out recently and bought my first TV in 15+ years, should I have paid cash unstead of 3 yrs same as cash? Tell the kids there is no college until the cash heap is tall enough? With stable employment, income, and saving for retirement, reasonable debt allows us great freedom to enjoy the material things in life, but not if your debt is choking your budget and filling your mind with worry. A financially conservative person can and will live with and handle debt just fine. Many can't control it or handle it. Banks, credit card companies, car dealers, etc. promote the buy buy borrow borrow beyond reasonable limits.

Congratulations on being debt free. You are obviously blessed with the income (many lack in this post Great Recession era) and discipline (not exactly mainstream thinking by those with the overzealous, unmanageable "want it now" mentality).

[grizzley]

Originally Posted by Prince of Worms

Debt free?
So..........who can escape Income, sales, or the worst of all:::::> property taxes. Once your house is paid --- you'll reflect on the mega 100's each month that you pay as extortion to live in your own house!!!

Oh......and do you pay for
house insurance, health insurance, etc.?

You are never your own 'man' until you die or become independently wealthy. Till then, like most of us, you're a wage slave.

first of all: congrats on being debt free! BUT! > I never thought about the above quote. HOW TRUE!!!
And "extortion" may be the proper term.
they can do almost anything they want to, and than raise your property taxes to pay for it.

[yarcraft91]

Originally Posted by grizzley

first of all: congrats on being debt free! BUT! > I never thought about the above quote. HOW TRUE!!!
And "extortion" may be the proper term.
they can do almost anything they want to, and than raise your property taxes to pay for it.

Dunno about Pennsylvania, but here, we have a constitutional amendment that forbids raising property tax millage rates without a vote by the people. Since property taxes are calculated based on home resale value, gov't could try inflating assessed values, but I have good evidence that the assessed value appeal process works (I've been successful in reducing my assessment in 15 of 17 appeals). These things keep property taxes under control 'round here. And, yes, it is really putting the squeeze on local gov't budgets.

[BW]

Originally Posted by ohiojmj

Loans are not necessarily the greatest evil, unless overdone. Imagine how many would be able to own a house, car, or get a medical operation if there were none. Why would you wait to buy something worthy to save cash? In my twenties with two kids and wife and some down payment money, was I supposed to tell the family to wait 20 years until we could buy the modest house while dumping money into rent tiny apartment for that period? When I went out recently and bought my first TV in 15+ years, should I have paid cash unstead of 3 yrs same as cash? Tell the kids there is no college until the cash heap is tall enough? With stable employment, income, and saving for retirement, reasonable debt allows us great freedom to enjoy the material things in life, but not if your debt is choking your budget and filling your mind with worry. A financially conservative person can and will live with and handle debt just fine. Many can't control it or handle it. Banks, credit card companies, car dealers, etc. promote the buy buy borrow borrow beyond reasonable limits.

Congratulations on being debt free. You are obviously blessed with the income (many lack in this post Great Recession era) and discipline (not exactly mainstream thinking by those with the overzealous, unmanageable "want it now" mentality).

Very well put. Although I envy those who are debt free, you make a good point about being able to borrow for reasonable things..........

Congratulations!

I've been out of debt for about 15 yrs and have put the same $ amount as the mortgage payment into retirement plans instead.

I must admit, though, that I recently bought a new car and was going to pay cash but they had 0.9% interest rate and they paid the first payment. My first thought... I wonder if they have a one-month loan? Shortest term was 36 months but I still did it.

I'd be crazy to take money out of investments making a very easy 6-7% when I can borrow at 0.9%. Nothing wrong with having debt as long as you can make more money keeping your cash.

First monthly payment in a long time but the total interest amount over the 3 year period is about $300. I'll make at least $1,500 profit by using their money. There is good debt and bad debt; avoid the bad.

[Dacotah Eye]

I have been debt free since I paid my mortgage off in 2005. I hadn't borrowed money for any reason for quite a few years before that. It does give you that warm and fuzzy feeling.

[fishnutbob]

Seedtree good for you. Ive been dept free also and it does give you a warm and fuzzy feeling. I did buy a new truck on credit but will pay it off in three months. Happy days.

[rwl]

First of all good for you! An awesome accomplishment not many ever do these days.

A previous post:

"I'd be crazy to take money out of investments making a very easy 6-7% when I can borrow at 0.9%. Nothing wrong with having debt as long as you can make more money keeping your cash.

First monthly payment in a long time but the total interest amount over the 3 year period is about $300. I'll make at least $1,500 profit by using their money. There is good debt and bad debt; avoid the bad. "

These are wise words. I could pay everything off, and it was a great feeling when I got to that point. I didn't do it just because sometimes borrowing is a wise thing to do, I have a rediculous low interest rate on my house, 3.625 % went from 10 year mortgage to 30. I put my boat on the refinance, could have paid cash, but instead put the cash in a few other investments. It's a good feeling to know today I could write a check and be done, but it wouldn't neccesarily be a wise move, but I would sleep a bit better, maybe. Cash on hand is always a good thing, although I had to make it harder to get to than my debit card LOL.

The last three words, "avoid the bad", are the key here. Our country would be rocking if it weren't for bad debt.

[Morton]

Being debt free there are strategies you need to consider to insure your credit rating is maintained ... just in case you need to borrow for some emergency.
Even keeping a line of credit against your home equity can help. Buying your groceries against a credit card and paying it off monthly will help you maintain a great rating.
Talk to a professional to insure you do it right. It is a tricky formula but maintaining the correct amount of credit and payment record could affect you down the road when you least expect it.

Morton