is anyone here completely debt free meaning that you own the title on your car & house, no credit card debt and no student loans?

if so, how'd you do it?

if you're goal is to become some definition of debt free, how are you progressing towards that goal?

do you ever think there will be a time in your life when you have zero debt?

is being completely debt free one of your goals?

or is having debt like mortgage debt always okay?

let's just talk about how you feel about debt.

� � � � � �
www.alienatlien.wordpress.com

www.twitter.com/badassbrowngirl

i got soul.

and i'm super bad.

Personally I am 100% debt free (I don't own a house though), except I know that it's dumb to be this way. I should be taking advantage of certain opportunities I have to borrow funds for certain investments I am financing myself, then I should be investing the difference in commodities. But hey, I guess I am better at giving advice than taking it...

>is anyone here completely debt free meaning that you own the
>title on your car & house, no credit card debt and no student
>loans?

no.

>if so, how'd you do it?

N/A

>if you're goal is to become some definition of debt free, how
>are you progressing towards that goal?

I'm getting there. In the next two years, the only debt I EXPECT to have is my mortgage & law school loans. I don't currently have a car note. I have paid off most of my consumer debt and I am close to paying off the rest (under 1K). I do have one burdensome credit card debt. Most of that debt was for fixing problems on my old car. I have been paying off some things with tax return money, regular income earnings, and when I get some "spare change."


>do you ever think there will be a time in your life when you
>have zero debt?

I doubt it. I know a millionare with "good" debt, so depending on my business ventures it is likely that will have some kind of debt until I'm old and living in a room in my son's house.

>is being completely debt free one of your goals?

yes. bad debt anyway.

>or is having debt like mortgage debt always okay?

paying off your house is great, I can't wait to get there one day. Sometimes it just makes more sense to finance certain things.

****
"I'm a fly young man, check my wingspan."

****
R.I.P. Sean Taylor

i HATE debt.

even so called "good" debt.

i dislike long-term debt more than short term debt.

i know all the financial/tax advantages of mortgage debt. but i still hate it all.

there must be another way.

� � � � � �
www.alienatlien.wordpress.com

www.twitter.com/badassbrowngirl

i got soul.

and i'm super bad.

.

****
"I'm a fly young man, check my wingspan."

****
R.I.P. Sean Taylor

but i'm only 21 and don't own a home.

the oklahoma tax payers take care of me pretty nice.

i blame hip-hop.

and in the middle there's debt...at least that's my outlook on it.
Being completely debt free is a novel concept but I don't think it's attainable. Our whole social system (capitalism) is set up so that debt is an intrical part of it's functionality.

Having said that, i'd like to be as "debt free" as I possibly can (no student loans, no credit cards, no car notes, etc.). IMO mortgages serve a purpose, it's almost like your paying for future cash (an investment) so I see that as good debt...almost like an "in case of" fund that you'd tap in an extreme time of need (layoff, funeral, business venture)...also managing debt correctly and using it appropriately only helps you out.

>and in the middle there's debt...at least that's my outlook
>on it.
>Being completely debt free is a novel concept but I don't
>think it's attainable. Our whole social system (capitalism)
>is set up so that debt is an intrical part of it's
>functionality.
>
>Having said that, i'd like to be as "debt free" as I possibly
>can (no student loans, no credit cards, no car notes, etc.).
>IMO mortgages serve a purpose, it's almost like your paying
>for future cash (an investment) so I see that as good
>debt...almost like an "in case of" fund that you'd tap in an
>extreme time of need (layoff, funeral, business
>venture)...also managing debt correctly and using it
>appropriately only helps you out.

so how can you avoid being in so much debt?

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The key thing to understand is Good Debt vs. Bad Debt, you also need to look at your debt vs. your net worth.

Bad debt: High Interest Credit Cards, Collections, debts that just drag down your credit, drag you down financially and provide no value to you.

Low Interest credit cards, if managed well can build up your credit and qualify as good debt, but still, it's best to keep that debt low.

Good Debt: This is the kind of debt that not only builds your credit (Which is basically the currency to buy money with) - but enables to acquire assets whose value is in excess of your other assets and/or to better allocate your capital towards things that are more profitable.

Additionally, the interest rates are manageable so serving the debt isn't cost prohibitive.

Don't worry about Good Debt, unless you can pay it and it's benefitting you, it's not a big deal.

Finally - Net Worth: Net Worth = Assets - Debt. So if your Net Worth is Solid, your debt isn't as big of an issue.


Let's go back to good Debt:

Let's say you have $200k to buy a house, and you want a $150k house, do you buy the house cash or take out a Mortgage and invest the $200k?

You do the latter because the money you'd spend on interest (after the tax deduction) is probably far less than you'd make investing the money.

The same goes for Cars:

http://board.okayplayer.com/okp.php?az=show_topic&forum=10&topic_id=2811&mesg_id=2811&page=2

In these cases, taking on debt allows you to allocate your capital better so you can build more wealth.

With houses, you have the added benefit of being able to that house as colllateral to purchase other property or generate cash for Investments.

Building up a solid credit history by servicing debt successfully, will enable you to take out other loans later that you may need for a business.


In other words, try to be "Bad Debt" free and leverage good debt to your advantage.






Peace,








M2

The Blog: http://www.analyticalwealth.com/

An assassin’s life is never easy. Still, it beats being an assassin’s target.

Enjoy your money, but live below your means, lest you become a 70-yr old Wal-Mart Greeter.

but what i'm saying is that i don't like either option.

i'm developing a strong aversion to the credit game as it is.

i think i'm turning into my grandfather. he's damn wealthy and pays cash for everything. houses, cars, whatever. of course that means he has no credit score, but what does he care? he hsa enough cash to buy whatever he wants/needs. plus he still invests his access cash.

how plausible is that in today's economy, not very.

and i'll probably always keep some form of credit instrument, because i've been raised to know/believe that i need to remain in the system somehow.

but there is something to be said for "true" ownership.

i'm just flipping it all over in my head.

I at least now have a plan that allows me to see how long it will take me to get out of debt.

I don't count student loans towards my debt because that has the best interest rate of any debt I currently have. I see that more as an investment in my own future.

- - - - - - - - -
http://www.heavensundays.com/

>is anyone here completely debt free meaning that you own the
>title on your car & house, no credit card debt and no student
>loans?


I'm at the point where I don't want any more credit unless it's to finance a home. All of my cards are on ice and I'm working to pay all balances down. Once I pay my balances down, I want to let it sit there. I have a year left on my car and when that is done, I plan to keep it for a minimum of two years. During that time I want to buy a house. The goal is budgeting my current income and finding ways to supplement my income so that I'm not relying on credit. I hate that feeling.
>
>if so, how'd you do it?

A work in progress.
>
>if you're goal is to become some definition of debt free, how
>are you progressing towards that goal?

by eliminating debt and not acquiring new debt. living within my means.
>
>do you ever think there will be a time in your life when you
>have zero debt?

Yes!

>
>is being completely debt free one of your goals?

Yes!

>
>or is having debt like mortgage debt always okay?

There can be benefits to mortgaging out your house, so that would be fine.
>

>let's just talk about how you feel about debt.

I feel like debt can be a noose around your neck and will choke the life out of you. It aborsords. Sometimes at interest rates soaring past 17%. Debt is unnecessary.


__________
peace