What's the average age that people are debt free in America?

[Vdubchaos]

B/c you give me a good laugh that someone can be as stupid as you yet posts like an expert on every subject. It's hilarious how someone can be so stupid. Every time I see you post in L&R, I know it's going to be a gem of stupidity.

If you were to tell me that I'm smart, I would question my intelligence. Based on the source it's coming from (read:you).

You are not the only one that deals with fiction and pretty painted pictures around here. Don't worry.

I simply see things for what they are.

Debt has always been debt to me, but here you are arguing, name calling because you feel that's not the case.

Let me make you happy.

Debt = gold

There

You must be one of those guys that thinks they are debt free and calls Ramsey ehh?

 

[ControlD]

Bad debt...me owing someone.
Good debt...someone owing me and paying regularly.

Debt free by the time I was 44 (51 now) but that's only because I opened my own place. Otherwise, I'd still be in debt. I do have a 14y.o. so we'll see what college brings.

Oh shit, now you have opened up the "a college education is worthless" discussion.

 

[B-Riz]

Just to throw some gasoline on the fire:

In 2010 we bought an ~800 sq ft house for ($10k to secure loan through local credit union) $40k, 5.5% over 30 years and it will be paid off early.

I pay $379 (currently) a month for mortgage payment, property tax and good home insurance.

This is a way better deal than renting some POS in the area; I could not get what I have (2 car attached garage, basement, half story walk up attic) for $379 a month. Utilities would be the same about anywhere around here.

We splurge on a fancy uVerse package that is locked in a 12 month contract.

Most if not all large consumer purchases we use 6 or 12 months no interest PIF and setup with automatic monthly payments.

We contribute 11.5%+ pre-tax income to 401k.

As the wife and I's income goes up, we keep our expenses the same, and roll the extra into 401k / savings or other investments.

Money is just a tool; a means of exchange.

Frivolous consumer debt is bad (short term high interest revolving) but fixed rate loans paid off early pay dividends on the credit report. (I am hovering around 780 right now)

We also bought a new car 3 years ago, not due to want, but because we plan on keeping it for the long haul (2012 Skyactiv Mazda3 Hatchback).

Again using a low interest fixed rate loan (secured with cash up front) through the credit union that will be paid back early.

There is no magic to money, it is akin to managing your minerals and vespene gas in Starcraft.

 

[Vdubchaos]

Bad debt...me owing someone.
.

I suggest you put your flame suit on now.

:biggrin:

You are NOT an obedient citizen if you don't feel that mortgage debt is "great/good"....or better yet, I've also learned from our fellow members "best"

:biggrin:

 

[brianmanahan]

apparently vdub has never run a business

 

[s0me0nesmind1]

I keep hearing people say they're debt free on Dave Ramsey's show... I remember hearing this one lady that was in her late 20s call in bragging about how she had her house paid off and had about $20k in liquid assets...and pays cash for everything. I think it's absurd unless they are making $200k a year and living a moderate lifestyle.


I've got 2 kids in daycare, a mortgage, 2 car payments and living paycheck to paycheck (but still saving for retirement)...It just sucks to work as much as I and my wife do to see all of our cash go right out the door each month. Anyone else in that boat? (or is it everyone else?) I'm almost tempted to look for a second job, but don't want to be away from my family anymore than I have to. 🙁

Mortgage aside, I'm debt free.

Dave Ramsey followers are for the financially retarded. You DO. NOT. PAY. OFF YOUR FUCKING MORTGAGE. It is FINANCIALLY RETARDED to pay off your 2-3.5% mortgage extra early. It's one thing to put SOME extra principal into the picture, it's another thing to toss your entire wallet at it until it's gone. I haven't even gotten into the tax benefits of the mortgage either.

Ask any stupid retarded Dave Ramsey follower if they max out their 401k and IRA. Ever. They don't. They are stupid. 6% (and thats being nice) market returns is always going to trump 2-3% on your mortgage. As I said, by all means toss a little extra into your principal, that's fine. It's a good way to diversify a little instead of putting all your eggs in one basket. I do it too. But to pay it off that early is monkey retarded.

I'll be honest, my wife is that way. She sees debt and starts seeing demons or something. I don't understand why, but she just wants to kill our mortgage with fire or something. In reality, it's not a big deal.



Also, if you pay cash for everything, you're retarded. I milk my credit cards for cashback and EASILY make ~$2k by end of year. Plus you keep your cash an extra month, so there is more time for it to grow interest as well. You can go on and on and on but these people are too stupid to understand. It's like a cult almost for people that get raging hardon's for Dave Ramsey.

 

[B-Riz]

Having a mortgage means you more than likely have a full time job with a good work history, and decided to put roots down in an area and stay, raise your kids, etc.

A mortgage does not have to be 6 figures.

A populace that has property and cares about it, is more vested in fostering good community for everyone living there.

Mortgages are not "bad", there is way more to them than just "debt".

 

[Grooveriding]

The only debt worth carrying is a mortgage and student loan, and the former only if you are buying a property with a good chance of appreciating well. You'll inevitably end up carrying more debt in the form of finance or lease terms on vehicles and education debt is unavoidable unless your parents were able to cover all of it for you. Vehicle debt is for most necessary unless you want to confine yourself to public transportation or a bicycle. Not exactly ideal.

The only debt we carry is our mortgage and my student loans. My wife is back in university again and we are paying the tuition outright. Credit cards get paid for monthly and no balances are carried. If you are responsible you can be debt free reasonably by the time you pay down your mortgage. You can even come out ahead if you buy a good property. For example; my parents who live in the same city I do - they paid $240K for their second home, they sold it for 1.1M a few years ago. Covered the principal and all the interest they had paid on their mortgage with additional money to spare. It won't always work out that way, but if you live in a thriving real estate market you can come out ahead even accounting for inflation. We hope for our current home to have a worth of about 2.5M-3M by the time we are their age. It gives you something to leave for your children when you check out that they can put towards their futures.

I think paying rent is likely one of the worst use cases of your money ever. Pissing it away with nothing to show for it. You're better off buying a cheap ass condo with low maintenance fees than pissing your money down the toilet as rent.

Being debt free is wholly down to personal responsibility regardless of your income bracket. You either choose to live within your means or a slave to the interest rate on your credit cards/line of credit, forever getting slowly chiseled away at.

Being wholly debt free early in life is going to be pretty challenging unless you work in finance or other similar fields with the potential for huge income quickly that can cover the costs of a home outright.

 

[Genx87]

Actually a lot of AMerican's are already doing it. Maybe not cardboard boxes but there is plenty of tent towns and Tiny house movement is pretty big.....

Inflation shouldn't even be on the table for discussion here. It's been way beyond people's raises and expense costs for years.......so most Americans lose each year regardless.

What % of people in this country do you believe live in cardboard boxes?

Inflation is always on the table.

He did put it in the market.

So tell me, who is worst.

The guy that buys a house and takes on debt and pays 200k in interest.

Or the guy that lives "in moms basement" and saves to buy the house outright.

Is the "debt" still "great/best debt" in that case?

It's all about perspective.

Did mom take out a mortgage for this house he is living within? Or did she pay in cash after living with her parents or in a tent city? Nothing is free. And people need to live somewhere. I dont think you understand that mortgage debt is not typically "bad" debt.

 

[purbeast0]

You are just like Alke

First you state bunch of ignorant BS, then when you get cornered and have nothing mature/relevant to say on the subject and no answers.....you lower your standards to name calling and bunch of made up BS you pull out of your ass.

At least you are not the only one here.

I understand, you don't like to deal with realities or be wrong. Human nature.

there is absolutely no point to reply to the majority of your posts with thought out substance. it's literally not worth the time because you are the most closeminded ignorant person on this forum in general and it will be falling on deaf ears either way. i rather read them and then ignore them instead of replying to them.

but i'll laugh at you instead of with you.

 

[Capt Caveman]

If you were to tell me that I'm smart, I would question my intelligence. Based on the source it's coming from (read:you).

You are not the only one that deals with fiction and pretty painted pictures around here. Don't worry.

I simply see things for what they are.

Debt has always been debt to me, but here you are arguing, name calling because you feel that's not the case.

Let me make you happy.

Debt = gold

There

You must be one of those guys that thinks they are debt free and calls Ramsey ehh?

Yawn. Yes, you are stupid. Not all debt is bad. And I'm currently generating more income for my decision to have debt than if I didn't. When you can tell us how I'm not making more money from having debt, please let us know. You see things from an ignorant, uneducated view. If you had a clue, you'd realize you were stupid.

 

[skyking]

We are in the group who paid off a moderate interest mortgage early. Back in the day when we did it, rates were about 5% and there was not that much left to go. It had fallen below the tax deductible range many years prior.
Then again, it a very modest home out in the country, totally atypical in value even compared to the homes around us. It has been a nice place to live, and never viewed as an investment. We see ourselves staying here into retirement, so having a lower valued property has tremendous benefits for tax cost, etc when looking at a fixed income later on.

 

[highland145]

Oh shit, now you have opened up the "a college education is worthless" discussion.

😳

 

[z1ggy]

Has anyone started a scroll for vdub? The things vdub does not understand...

I concur. Who shall we nominate the scribe for "Dumb things Vdub says".

Could we make a show kind of like Kids Say The Darndest Things, but of idiotic stuff Vdubby does on here?

 

[ControlD]

We are in the group who paid off a moderate interest mortgage early. Back in the day when we did it, rates were about 5% and there was not that much left to go. It had fallen below the tax deductible range many years prior.

Yeah, our mortgage in 1997 was at 8.75%. I suppose with the insanely low rates these days the finances are a little different.

 

[skyking]

Yeah, our mortgage in 1997 was at 8.75%. I suppose with the insanely low rates these days the finances are a little different.

5% was what we could get. I think we were at 6-ish. We paid off in '03.
If we were to sell this place and buy another, for sure we would take advantage of good rates and borrow to my eyeballs 😀

 

[kranky]

Ours began at 7.5% and after a couple refis over the years ended up at 4.5% before we eliminated it.

 

[Vdubchaos]

Yawn. Yes, you are stupid. Not all debt is bad. And I'm currently generating more income for my decision to have debt than if I didn't. When you can tell us how I'm not making more money from having debt, please let us know. You see things from an ignorant, uneducated view. If you had a clue, you'd realize you were stupid.

Is that another illusion that's been pounded into your head and sold to you?

"you need more money?"

:biggrin:

You seem rather angry and immature for a boy that claims to be "smart". For starters, adult mature male doesn't act like a child and calls people's names.

Also, adult doesn't engage with what you describe as "stupid" to begin with.....

So rather than throw out your name calling and generalization, how about you start acting like a "smart man" that you claim to be.

Your user name is a clue what you need to do. Access your caveman instincts that you lack as a "modern man".

 

[NetWareHead]

Yawn. Another ignorant post from you.

Not all debt is bad. And a mortgage is one of the best types of debt to own.

I'd rather have a mortgage at 3.5% and utilizing the 100,00s of money I could have used to pay off the mortgage in investments bringing me $8% plus returns. Then we adjust the actual mortgage rate with the tax benefits. I'm enjoying life better than you.

This. I have a 3% mortgage rate that I refinanced 2 years ago down to 15 years. Less than 13 years remaining!

And:

My mortgage interest rate is barely higher than inflation. That effectively means I am borrowing money for free. Add to that the fact that renting my house would cost me about $350/mo more than I pay for mortgage, taxes, insurance, etc. combined, I think I'm doing just fine.

:thumbsup:

Buy a house and rent it out. Getting the tenant to pay your mortgage for you is a great plan too. Sure you cant deduct the mortgage interest (since this is not your primary residence) but now you can expense all kinds of purchases, mileage etc... in the name of your investment property.

 

[Capt Caveman]

Is that another illusion that's been pounded into your head and sold to you?

"you need more money?"

:biggrin:

You seem rather angry and immature for a boy that claims to be "smart". For starters, adult mature male doesn't act like a child and calls people's names.

Also, adult doesn't engage with what you describe as "stupid" to begin with.....

So rather than throw out your name calling and generalization, how about you start acting like a "smart man" that you claim to be.

Your user name is a clue what you need to do. Access your caveman instincts that you lack as a "modern man".

:biggrin: That's all you got for being proven ignorant and stupid. Go back to L&R, so we can laugh at you more.

 

[jlee]

Is that another illusion that's been pounded into your head and sold to you?

"you need more money?"

:biggrin:

You seem rather angry and immature for a boy that claims to be "smart". For starters, adult mature male doesn't act like a child and calls people's names.

Also, adult doesn't engage with what you describe as "stupid" to begin with.....

So rather than throw out your name calling and generalization, how about you start acting like a "smart man" that you claim to be.

Your user name is a clue what you need to do. Access your caveman instincts that you lack as a "modern man".

Sure we do. We're bored.

 

[WaTaGuMp]

Death.

 

[highland145]

Death.

Inevitable.

 

[Fingolfin269]

Fortunate to say that we are debt free other than the house. The house is very reasonably priced relative to what society would deem us to be able to afford as well. We do live in a relatively inexpensive part of the country (Nashville, TN area) but frankly I would not call this BFE. One of our cars is also approaching 200k miles and is over 10 years old.

One thing I found most interesting when becoming debt free was the sense of freedom I suddenly had. I realized even if I lost my job it was ok because I didn't owe anyone anything and the house would not be a concern for quite some time due to emergency funds. It just puts a whole new perspective on life when there is one less stress to be concerned with.

(I'm in my mid-30s)

An additional caveat. We do use credit cards but pay it off each month. The primary purpose is for protection but of course the secondary benefit is racking up Southwest miles. We travel a lot and when people ask how we are able to afford it I just mention how diligent we are at looking for deals, maximizing benefits like CC miles, and frankly just not having any debt frees up a lot of cash for us to use to sweep up those good deals the instant they pop.

 

[Fingolfin269]

Even though your house MIGHT be earning you equity (not happening now days)......remember, most people pay pay 2x the house price in interest.

You do realize this is a regional statement, right? Houses are appreciating just fine in the Nashville area. To be honest I'm actually concerned that they're appreciating too quickly. Based on recent neighborhood sales our house has appreciated approximately 25% in 3 years.