"I actually know people who have no debt."

[StageLeft]

Wow, really? I heard this from a guy on Friday. He spoke as if he was shocked at it - maybe the same way I'd say I know of people who can fly. He went on to say that "These people have a different mindset than the rest of us. Their thoughts are that if you can't pay for something, then don't buy it. They don't use credit to buy things.". Man, is that ever sad to hear from a 35 year old father of 3, making at least $70k/year. I know that his savings is in the range of $0-2000.

This sort of attitude will guarantee that he never has much money to his name, because he spends at the limits of what he takes in.

 

[blackdogdeek]

is a mortgage considered part of debt?

is it only credit card debt?

if the latter then we have none. we never carry a balance.

 

[Scarpozzi]

I took a business strategy class. In the class we had a fake company and every week we got stock reports, etc. At the last week, my company placed 3rd. The only reason I didn't do any better was because I didn't have enough debt. Evidently, a little bit of debt helps your buying power and makes a company worth more...I'm sure this carries over to any situation.

 

I'll never understand what's so hard about figuring out how much you take in every month and spending enough below that to save some extra money. It's NOT difficult to live within your means.

Personally, I don't plan on having any debt besides a car loan and a mortgage.

 

[StageLeft]

is a mortgage considered part of debt?

It is debt, but I presume that he was talking in regards to consumer debt like a car, but more specifically a credit card. Being 35 without a mortgage (and actually living in a house) is almost unheard of...

 

[Orsorum]

Originally posted by: Skoorb
Wow, really? I heard this from a guy on Friday. He spoke as if he was shocked at it - maybe the same way I'd say I know of people who can fly. He went on to say that "These people have a different mindset than the rest of us. Their thoughts are that if you can't pay for something, then don't buy it. They don't use credit to buy things.". Man, is that ever sad to hear from a 35 year old father of 3, making at least $70k/year. I know that his savings is in the range of $0-2000.

This sort of attitude will guarantee that he never has much money to his name, because he spends at the limits of what he takes in.

I dated a girl in high school whose parents made $55k a year, yet had $2000 in savings. Their daughter insisted on going to a $22,000 a year university. When I broke up with her, I let her know exactly what I thought of her and her selfishness and her attitude towards her parents. This girl is racking up $100,000 in debt for undergrad, let alone the two extra years grad school will cost her - all to be a teacher. This girl's going to be in debt until she's 50.

This culture of "I want it now, I'll pay later" - it's revolting and irresponsible.

 

[blackdogdeek]

Originally posted by: Skoorb

is a mortgage considered part of debt?

It is debt, but I presume that he was talking in regards to consumer debt like a car, but more specifically a credit card. Being 35 without a mortgage (and actually living in a house) is almost unheard of...

our cars are paid off.

we never carry a cc balance.

we have 29.3 years left on our 30 years mortgage

we must be some of the freaky people that guy is referring to

 

[Gyrene]

Originally posted by: Skoorb

is a mortgage considered part of debt?

It is debt, but I presume that he was talking in regards to consumer debt like a car, but more specifically a credit card. Being 35 without a mortgage (and actually living in a house) is almost unheard of...

I know quite a few families, including my own, who don't have a mortgage, and live in a house.

 

[Red]

Debt = devil.

That is why I'm selling my $12k car for a $5k car. I owe about $3,000 on a credit card and have a $4,000 student loan.

I've found the best way for me to deal with finances is to do it by pay period. I get paid every friday, and I've figured out that it costs me $193 per week to pay all my bills (car, insurance, gas, cell, credit card) and I usually bring home $230 or so a week. That means I've got $35-$40 a week to spend on the weekend / my fiancee / myself. When I get the $5k car I'll be able to pay my credit card off much faster, and eventually be able to have about $75-100 week to save/spend.

 

[StageLeft]

Originally posted by: Orsorum

Originally posted by: Skoorb
Wow, really? I heard this from a guy on Friday. He spoke as if he was shocked at it - maybe the same way I'd say I know of people who can fly. He went on to say that "These people have a different mindset than the rest of us. Their thoughts are that if you can't pay for something, then don't buy it. They don't use credit to buy things.". Man, is that ever sad to hear from a 35 year old father of 3, making at least $70k/year. I know that his savings is in the range of $0-2000.

This sort of attitude will guarantee that he never has much money to his name, because he spends at the limits of what he takes in.

I dated a girl in high school whose parents made $55k a year, yet had $2000 in savings. Their daughter insisted on going to a $22,000 a year university. When I broke up with her, I let her know exactly what I thought of her and her selfishness and her attitude towards her parents. This girl is racking up $100,000 in debt for undergrad, let alone the two extra years grad school will cost her - all to be a teacher. This girl's going to be in debt until she's 50.

This culture of "I want it now, I'll pay later" - it's revolting and irresponsible.

A few weeks ago on MSN I was reading about a guy who wrote in about his wife and how she's 55 (?) and will have over $100k in debt by the time she's done school and how he was glad that it was't his debt. The responder notified him of the fact that of course it will be his debt. But, more importantly this woman wasn't going to be making much anyway, and since retirement was on the horizon, she'd never in fact get her school debt paid off. Sad!

 

[StageLeft]

Originally posted by: dtyn

Originally posted by: Skoorb

is a mortgage considered part of debt?

It is debt, but I presume that he was talking in regards to consumer debt like a car, but more specifically a credit card. Being 35 without a mortgage (and actually living in a house) is almost unheard of...

I know quite a few families, including my own, who don't have a mortgage, and live in a house.

You don't know many families where the head of the household is 35 living in a house without a mortgage

 

[Viper GTS]

Originally posted by: dtyn

Originally posted by: Skoorb

is a mortgage considered part of debt?

It is debt, but I presume that he was talking in regards to consumer debt like a car, but more specifically a credit card. Being 35 without a mortgage (and actually living in a house) is almost unheard of...

I know quite a few families, including my own, who don't have a mortgage, and live in a house.

Renting? Or do they actually own it?

Viper GTS

 

[allisolm]

I have no debt. Mortgage is paid off, cars are paid for, and credit cards get paid off every month. When I did have a mortgage I still had cars that were paid for and no other debt. I sent two children through college (master's degrees for both) and have money saved. All on a military salary - now military retirement. It wasn't that hard and , fortunately, both of my children seem to have the picked up the financial responsibility ideas that we practiced.

He went on to say that "These people have a different mindset than the rest of us. Their thoughts are that if you can't pay for something, then don't buy it.

That works!

 

[SP33Demon]

Yup, I was turned down for a car loan for not having a credit card with at least $1500 limit... I purposefully don't have alot of credit so it doesn't get me into trouble, and then I'm penalized for it? How annoying.

Like someone mentioned earlier, if you're running a business, it's hard to become successful without credit/debt. My college accounting class taught that a 50/50 ratio of cash to debt was healthy.

 

[Red]

Originally posted by: Skoorb

Originally posted by: dtyn

Originally posted by: Skoorb

is a mortgage considered part of debt?

It is debt, but I presume that he was talking in regards to consumer debt like a car, but more specifically a credit card. Being 35 without a mortgage (and actually living in a house) is almost unheard of...

I know quite a few families, including my own, who don't have a mortgage, and live in a house.

You don't know many families where the head of the household is 35 living in a house without a mortgage

If you figure a couple who is smart/great with there money and leads a typical lifestyle... both get a bachelors degree at age 22. Make $30k/year each. $60k/year total. Get a 15 year mortgage on a $125k house. That's like a $1100/month. They pay $1800 month instead and get the thing paid off when they are low-to-mid 30s. I've always been told to get a 15 year mortage because the payment is usually only 25% higher than a 30 year mortgage but you save so much money with interest.

 

[SP33Demon]

Originally posted by: allisolm
I have no debt. Mortgage is paid off, cars are paid for, and credit cards get paid off every month. When I did have a mortgage I still had cars that were paid for and no other debt. I sent two children through college (master's degrees for both) and have money saved. All on a military salary - now military retirement. It wasn't that hard and , fortunately, both of my children seem to have the picked up the financial responsibility ideas that we practiced.

He went on to say that "These people have a different mindset than the rest of us. Their thoughts are that if you can't pay for something, then don't buy it.

That works!

How old were you when you paid off your mortgage, and how much was it (if you don't mind me asking)?

 

[blackdogdeek]

Originally posted by: Skoorb
Wow, really? I heard this from a guy on Friday. He spoke as if he was shocked at it - maybe the same way I'd say I know of people who can fly. He went on to say that "These people have a different mindset than the rest of us. Their thoughts are that if you can't pay for something, then don't buy it. They don't use credit to buy things.". Man, is that ever sad to hear from a 35 year old father of 3, making at least $70k/year. I know that his savings is in the range of $0-2000.

This sort of attitude will guarantee that he never has much money to his name, because he spends at the limits of what he takes in.

i'm very interested to find out if the guy plans on ever paying off his debt.

i guess you could argue that you should live your life as if each day is your last and that saving money is a waste.

i just hope he never has an emergency.

 

[ultimatebob]

Originally posted by: Redhotjrm

Originally posted by: Skoorb

Originally posted by: dtyn

Originally posted by: Skoorb

is a mortgage considered part of debt?

It is debt, but I presume that he was talking in regards to consumer debt like a car, but more specifically a credit card. Being 35 without a mortgage (and actually living in a house) is almost unheard of...

I know quite a few families, including my own, who don't have a mortgage, and live in a house.

You don't know many families where the head of the household is 35 living in a house without a mortgage

If you figure a couple who is smart/great with there money and leads a typical lifestyle... both get a bachelors degree at age 22. Make $30k/year each. $60k/year total. Get a 15 year mortgage on a $125k house. That's like a $1100/month. They pay $1800 month instead and get the thing paid off when they are low-to-mid 30s. I've always been told to get a 15 year mortage because the payment is usually only 25% higher than a 30 year mortgage but you save so much money with interest.

Heh, I'd LOVE to know where I can get a $125k house in this area! Most of the decent ones START at $275k

 

[StageLeft]

Originally posted by: blackdogdeek

i'm very interested to find out if the guy plans on ever paying off his debt.

i guess you could argue that you should live your life as if each day is your last and that saving money is a waste.

i just hope he never has an emergency.

Well he says that he is now paying off his CC, and when he gets his tax return he will put it towards it. His car is nearly paid off (old one, which may need repairs), but he's already expressed interest in a new pda/cellphone combo unit (which he doesn't need). He'll never retire rich unless he does a 180 and actually hashes out things on a piece of paper to see where he'll be in 20 years at his current pace.

Yup, I was turned down for a car loan for not having a credit card with at least $1500 limit...

Credit is very valuable. I have a credit card which i use for everything but aim to pay it off every month. YOu definitely do want a credit card for credit worthiness building, just don't use it with a balance! We got mrsskoorb one a couple of months ago and have put about $200 on it only. We're basically just using it to build her credit.

 

[Papagayo]

I think you have to be in debt to build credit..

We're in good shape also..

2002 GTI -- paid in full
2002 Sporttrac -- 1.5 years left

House -- 13 years left (15 year mortgage)

no CC debt...

 

[rmrf]

Originally posted by: Skoorb

Originally posted by: dtyn

Originally posted by: Skoorb

is a mortgage considered part of debt?

It is debt, but I presume that he was talking in regards to consumer debt like a car, but more specifically a credit card. Being 35 without a mortgage (and actually living in a house) is almost unheard of...

I know quite a few families, including my own, who don't have a mortgage, and live in a house.

You don't know many families where the head of the household is 35 living in a house without a mortgage

Right now with how my wife and I are paying our mortgage, we will have the loan payed off in 12-15 years. We are in the save mode right now and don't spend our money on anything but what we need. I would recommend this method to anyone who can afford it. we pay roughly 25% more on our loan each month and apply it directly to the principal. I wasn't exactly sure of how this was going to pan out until we did our taxes this year. With our mortgage company, when we pay extra it is applied directly to the loan, and moves our payment farther along on the ammortization schedule and skips the interest we would have payed.

edit: btw, I'm 21 years old.

 

[Shockwave]

No car payment, dont even OWn a CC. Only debt I have is student loans and mortgage. Not bad for a 25 y/o father of 3 I guess.

 

[MustISO]

We have no CC debt, only one car loan and a mortgage.

 

[Red]

Originally posted by: ultimatebob

Originally posted by: Redhotjrm

Originally posted by: Skoorb

Originally posted by: dtyn

Originally posted by: Skoorb

is a mortgage considered part of debt?

It is debt, but I presume that he was talking in regards to consumer debt like a car, but more specifically a credit card. Being 35 without a mortgage (and actually living in a house) is almost unheard of...

I know quite a few families, including my own, who don't have a mortgage, and live in a house.

You don't know many families where the head of the household is 35 living in a house without a mortgage

If you figure a couple who is smart/great with there money and leads a typical lifestyle... both get a bachelors degree at age 22. Make $30k/year each. $60k/year total. Get a 15 year mortgage on a $125k house. That's like a $1100/month. They pay $1800 month instead and get the thing paid off when they are low-to-mid 30s. I've always been told to get a 15 year mortage because the payment is usually only 25% higher than a 30 year mortgage but you save so much money with interest.

Heh, I'd LOVE to know where I can get a $125k house in this area! Most of the decent ones START at $275k

That's just rediculous =( When you say decent, do you mean size / location / quality or what? $275k goes a looooong way here in Northern Kentucky / Greater Cincinnati area. Here is an example:
Off the Northern Kentucky MLS .. custom built for $275k

 

[Gyrene]

Originally posted by: Viper GTS

Originally posted by: dtyn

Originally posted by: Skoorb

is a mortgage considered part of debt?

It is debt, but I presume that he was talking in regards to consumer debt like a car, but more specifically a credit card. Being 35 without a mortgage (and actually living in a house) is almost unheard of...

I know quite a few families, including my own, who don't have a mortgage, and live in a house.

Renting? Or do they actually own it?

Viper GTS

They own it. They're all between 28-32. Excluding my own family.