do you have any debt?

leadsupplier

leadsupplier

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Aug 11, 2009
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I just paid off my student loans this month and damn proud of it. It took me a little over a year from graduating to pay back close to 30k.

To me debt is evil, I hate it, and when I have it I feel like I can't spend money on anything else.knowing that I owe money.

I still have a 9-5 but I ask you guys if you have debt. My co workers are astonished that I paid off my loans but while im proud, it seemed like the rational, logical thing to do. Just as an example a guy I work with who's 40 has 2500a of loans left and wont pay it off bc he doesn't feel like it even tho he could ...wtf? Another co worker told.me after 5 years he just paid off his Porsche. Before he bought it, he said he was saving for a house then the market tanked and he bought a porches instead. What are these people thinking?

I just want to hear it from a group of like minded fellows here on wf about how much and what type of debt they have. Most ppl I meet are far too comfortable with piling it on themselves thus enslaving them for years to come.

One final example of another 9-5er. He and the fiance take in 7k a month, they're ready to buy a 300k house. Damn, to methe that's like signing your life away.
 


Institutional debt free for almost 15 years, private debt free for a decade.

Debt is a tax on your future production. Some people happily trade away their future for the now because they have low impulse control. Then they live at a lower standard of living for the rest of their lives and get trapped in using more debt to compensate for the taxing effect of the first debt they took on, in a vicious circle of surrendering all chance of future wealth,

Eventually, they go bankrupt or get a government bailout.

Not all debt is bad, productive debt (self liquidating debt) used for capital is a form of investment. That is what my private debt was a decade ago. It paid itself off in a year.

Buying a car or a TV with debt is almost totally consumptive and will cost more in future diminished earnings.
 
No school loans, and only 1900 on my CC which i pay off every month. I use my CC for everything then pay it off at the end of the month (following a budget of course, not just aimlessly spending).
 
I love dept, good dept is good.

I take out personal loans of 10k at a time, use it to start
a business, earn the money back pay off loan. Now Im stuck with
a business that returns me money every month and is dept free.

take out another loan and repeat.
 
LegitAM said:
No school loans, and only 1900 on my CC which i pay off every month. I use my CC for everything then pay it off at the end of the month (following a budget of course, some aimlessly spending).
Click to expand...


I do this too. It amazes me how some ppl can throw a few K on a cc w no funds to back it up

And can we ban the retards like flashmob who can't even speak engrish
 
leadsupplier said:
I do this too. It amazes me how some ppl can throw a few K on a cc w no funds to back it up

And can we ban the retards like flashmob who can't even speak engrish
Click to expand...

Oops, where it says some should say "not just"... no clue what I was thinking unless that was a sly mod edit haha.

But yeah, it works great. As long as I follow my outlined budget (which I do) I rack up nice reward points for free pretty much. I always pay minimum +10 the day my statement gets released so that if something does happen I am safe, but each month the rest is paid off towards the end.
 
I've never had debt ever. Paid for college in cash. And for cars/house, even if I were to take financing, I would only do so if I had cash (or liquid assets) of the same value of the car/house I was financing.
 
Debt = Slavery

Been debt free for several years now.. it is the great American lie/dream...

Homes/Cars/Toys paid off at time of purchase..
 
I was raised in a family that tried constantly to keep up with the joneses and thought that if you didn't have half a million in debt yet, you simply haven't achieved enough in life!

My youth was spent talking about which credit cards are best for surfing the balance on... Seriously, 16 years old and I had an MBNA card that I knew would only be temporary... So I'm exactly opposite of the OP; I feel no pressure whatsoever for being in huge debt to banks.

I'm debt free nowadays of course; CCCS helped me get out of over 100K of debt last decade. It was just a smart thing to do; I paid it off far cheaper than I would have otherwise, all without any debt "reductions" or other credit-record hits.

Most of American can't or won't do that though, they're either too busy keeping up with the joneses or they just won't make enough cash to pay it all down. Usually both.

Hence the bailout cycle continues...
 
makethatgreen said:
So how do you build credit without debt?
Click to expand...

There are pros and cons to this, for some there is good debt that is paid off by the month, and bad debt that rides during the year, the only problem is you always have someone watching over your shoulder if things go bad...there is no such thing as a good credit card company..
 
I only owe my house. But it's really not that much.

I think debt is great if you need a large sum of money to invest in yourself.

If the business your building will easily make you more than you owe then it's well worth it IMHO.
 
Today's mortgage rates are actually a steal (in the US). As long as we continue to get the tax write off on mortgage interest paid you would be silly to not borrow to buy a home (As long as you follow the rules and stay within your means along with 20% down that is).

That said, back to original topic, I am paying off $10k in CC bills this month and it feels great! I will be debt free by January - February of this month. No more stupid mistakes that I made in the past.
 
No current debt. Properties paid for, kids college in another 10+ years taken care of, descent cushion, and operating cash. But we don't live like ballers and have no desire to.

Would I borrow again? In a heartbeat. Just waiting for the next distressed sale to come along where the borrowing cost is a fraction of current investment return.
 
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