Is anyone here debt free?

[Kroze]

Originally posted by: Barack Obama

Originally posted by: Kroze
It is going to be forever for me to be debt free at this rate. This sucks

Cheer up, it looks like you've got a steady head on your shoulders and don't have too much debt 🙂 How old are you btw?

I turned 26 not too long ago

 

[Kroze]

Originally posted by: bctbct
open a HELOC for your rainy day fund...pay off the car.

I don't think that's a good idea. It's the same gambling idea as borrowing money at 4% to investat 6%


Sorry I'm on my iPhone.

 

[ponyo]

Originally posted by: Kroze
It is going to be forever for me to be debt free at this rate. This sucks

You're doing great. Car wasn't the best purchase if you wanted to be debt free but that's done. Paying off debt is like grinding. Just don't lose sight of the goal.

I'm so close to being debt free I can taste it. My only debt is the toy car note and I've 10 payments left. It's at 0% so I can't cheat and just pay it off. I paid off my house 17 months ago.

 

[bctbct]

Originally posted by: Kroze

Originally posted by: bctbct
open a HELOC for your rainy day fund...pay off the car.

I don't think that's a good idea. It's the same gambling idea as borrowing money at 4% to investat 6%


Sorry I'm on my iPhone.

I think you are confused what a LOC is...if you need the money then write a check...if and only then do you pay interest.

 

[Dirigible]

Originally posted by: Kroze

Originally posted by: bctbct
open a HELOC for your rainy day fund...pay off the car.

I don't think that's a good idea. It's the same gambling idea as borrowing money at 4% to investat 6%


Sorry I'm on my iPhone.

Some people use a LOC as a rainy day fund. I'm not comfortable with it, especially with banks cutting people's credit lines left and right these days. bctbct is right, you don't pay interest until you use the money, but I still wouldn't be comfortable with this plan. Given your aversion to debt, I bet you wouldn't be comfortable with it either.

Originally posted by: Barack Obama

Originally posted by: Kroze
95k in Midwest will buy you a very nice house with 2 car garage.

As others have said,


* keep your rainy-day funds in case the shit hits the fan
* pay the minimum towards your house and try and pay off your car because its costing you more in interest
* keep the car and don't downgrade because over the long run it will be cheaper (lower gas costs/less maintainence) - BTW I have a Honda Fit 09 as well - GREAT CAR!

Look all of us are going to be in debt cause of our mortgage - that's okay because at the end of the day you will have a house fully paid off - thats the biggest investment we make in our lives. Just pay off the car and you're good to go :thumbsup:

I would follow our president's plan. Keep rainy day fund. Increase car payoff instead of mortgage payoff.

You're young and seem to be doing great. Time passes before you know it, and if you keep it up you'll be completely debt free in no time.

 

[Kelemvor]

A mortgage is fine to have. We're debt free except for that. As long as you don't have credit card payments and things like that, you're doing great.

I highly recommend Dave Ramsey and what he teaches. You can check to see if any churches in your area are putting on his seminars. They are called Financial Peace University.

http://www.daveramsey.com/fpu/home/

 

[skyking]

Car first, then hit the mortgage as others have said. You'll still be driving that car when the house is paid off, if you take care of it.

 

[wiredspider]

Originally posted by: Kroze
95k in Midwest will buy you a very nice house with 2 car garage.

😱

 

[Dr. Detroit]

I would suggest you keep a cash fund for a minimum of 8-months of expenses on hand before you pay off or pay any extra on your debt.

After you have established that 8-months pay down the car first then pay off the house.

 

[Red Squirrel]

I have zero debt and 31k in the bank, and about 4-5k of shares but I try to not think of it in terms of money as shares can change drastically, but it's on the back burner and it's potential money as long as they don't crash or something. I have an old car which I paid cash for and I just get it fixed when something goes wrong, so far no major issues, I may of put 1k on it so far. I'm actively looking for a house and the bank will give me up to 200k. The bank actually told me I could have a house paid in less then 10 years if I maxout my payments on a 150k or so house. That's pretty much my plan. I will save up money for pleasure/buying stuff I don't need, but the rest will be to pay off the house faster.

When my current car is in dire need of replacement, I might actually go with a used one again. I find it's great to buy a car with cash and not have any payments.

I also plan to continuously set money aside for emergencies, or if I loose my job.

But yeah pay off the car first, or just buy cash if you find something decent. Even smaller new cars can be had for 15k or so, which is not all too much when you think about it, if you save up first.

So now my main concern is FINDING a house. It's nice to live with parents and all and have no debts, but I want my own Independence. 😛

 

[Bignate603]

Go after the car first. Pay the minimum on the house and dump all your extra cash into the car.

 

[JJChicken]

Originally posted by: Fmr12B
I would suggest you keep a cash fund for a minimum of 8-months of expenses on hand before you pay off or pay any extra on your debt.

After you have established that 8-months pay down the car first then pay off the house.

Why so much? 1 month/2 months is the general rule?

 

[xgsound]

Originally posted by: bctbct
open a HELOC for your rainy day fund...pay off the car.

A lot of people feel this way. I think of a HELOC as more of a "cloudy day" fund. It's not much different (just better interest) than a credit card you usually pay off. A credit card debt can't take your house either.

If times get really bad you can't beat cash; either in the bank or in hand.


Jim

 

[thomsbrain]

Jesus, with that little debt compared to income, I'd hardly be worried about having it hanging over your head. You should be using your extra cash to invest in the stock market while things are still comparatively cheap. This is a buying market. When stock prices are high again, then put your extra income into paying down your debt.

FWIW, my income level is similar to yours, but my expenses are much higher due to location. I carry less debt, but I rent. I pour most of my extra cash into savings and stocks/funds/ETFs/401k/Roth IRA. Over time they will return far more than I'd save by paying off my toy-car loan.

 

[ric0chet06]

No debt here. I own my truck, have my living situation worked out with my parents as I manage the apartment building and pay the utilities, and save for anything I want. I find it stupid to do payment plans for everything you buy, if you don't have the money then don't get it. Just started a construction job that pays really well for my age, so that's a major plus.

 

[Bignate603]

Originally posted by: Barack Obama

Originally posted by: Fmr12B
I would suggest you keep a cash fund for a minimum of 8-months of expenses on hand before you pay off or pay any extra on your debt.

After you have established that 8-months pay down the car first then pay off the house.

Why so much? 1 month/2 months is the general rule?

2 months doesn't get you that far when you get laid off and can't find a job. I've got 4 months right now in savings and another 2 in my checking account. I'm still trying to push that up a little more over the summer.

 

[Dacalo]

Originally posted by: Barack Obama

Originally posted by: Fmr12B
I would suggest you keep a cash fund for a minimum of 8-months of expenses on hand before you pay off or pay any extra on your debt.

After you have established that 8-months pay down the car first then pay off the house.

Why so much? 1 month/2 months is the general rule?

Jobs aren't exactly in abundance if you read the news. I think 8 months is pretty safe, but myself personally would save to 1 year.

Like others said, keep the car and pay it off. Once paid off, go for the mortgage. You are doing better than 90% of Americans.