Because I don't think it would be terribly reliable with 180k+ miles on it. I try to trade them in just before the 110-120k mile extended warranty expires.
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Would you? Be debt free vs. living in debt?
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Because I don't think it would be terribly reliable with 180k+ miles on it. I try to trade them in just before the 110-120k mile extended warranty expires.
I don't see what is the big deal with debt.
Mortgage, car payments, etc. are all debt that can enhance your quality of life.
For those of you that think debt free is the second coming of Jesus because you just paid off 30k of your CC debt. Well maybe you shouldn't be so financially irresponsible to get yourself in that position in the first place.
Spending other people's money > spending your own money, unless you are a dumbass about it and can't control yourself.
Mortgage, car payments, etc. are all debt that can enhance your quality of life.
For those of you that think debt free is the second coming of Jesus because you just paid off 30k of your CC debt. Well maybe you shouldn't be so financially irresponsible to get yourself in that position in the first place.
Spending other people's money > spending your own money, unless you are a dumbass about it and can't control yourself.
skyking
Lifer
Sometimes things happen. A good friend had a stroke and several mortgages. Luckily he is doing better, but it has been pretty rough on him and his family. Sometimes you can't make those payments.
Keep in mind how many cars and houses you could buy over a lifetime with just the interest you pay "spending other peoples money".
IronWing
No Lifer
Funny thing is that when you spend other people's money, they like to get something in return, usually quite a bit in return. Yes, yes, I know everyone at ATOT is smarter than the professional lenders and will always make a big pile of money by borrowing other people's money to buy stuff and investing their own savings elsewhere.
For me getting debt free never involved huge CC debt or other consumer debt, simply student loans and a mortgage. The student loans were paid before the mortgage began and I've refied twice to shorten the mortgage period and reduce the rate. Between the refinancing and pre-payments of principal, I'll have saved 113% of the value of the house in avoided interest payments.
Corporate Thug
Lifer
perfectly stated.
ebaycj
Diamond Member
Debt free for 6 years other than my mortgage. Total mandatory outflow (all bills + fairly inexpensive grocery store food to feed me decently well) is less than 1/5th of my after tax income.
It's really fucking nice, I promise.
The only way I could see someone not liking it, is if they were a materialistic corporatist whore through to the core of their being.
Closing escrow on a house in a month, so debt for me soon. Besides the house, my car and student loans are all paid off. Credit cards are paid off monthly, so no interest but I keep the perks like cash back.
So yeah, debts aren't necessarily a bad thing. I am gonna enjoy the house. 🙂
So yeah, debts aren't necessarily a bad thing. I am gonna enjoy the house. 🙂
lokiju
Lifer
Debt free mostly.
With the exception of a house and 1 car payment max. But ideally no car payments.
Which is how we pretty much are right now.
We only owe a few grand on one card that we're quickly paying down and then after that it's just my car and our house.
My wifes car has been paid for for the past 3 years and we owe on nothing else.
Getting closer and closer to being debt free minus the house.
With the exception of a house and 1 car payment max. But ideally no car payments.
Which is how we pretty much are right now.
We only owe a few grand on one card that we're quickly paying down and then after that it's just my car and our house.
My wifes car has been paid for for the past 3 years and we owe on nothing else.
Getting closer and closer to being debt free minus the house.
Hayabusa Rider
Admin Emeritus & Elite Member
Zebo
Elite Member
Your equation is fucked up, missing a variable, what's wrong with making more money?
33% of US homes are paid for. 20% are bought cash or inheritance.
TridenT
Lifer
Yes, because, in economics, everyone is capable of making what the typical ATOT'er makes... which is well over 100k/yr.
Where are these stats coming from? Source?
Zebo
Elite Member
Many do. Most have degrees in something besides basket weaving. And work.
Stats are from an article I read at marketticker but can't retrieve it ATM.
IronWing
No Lifer
The 33% is in the ballpark. The last year I found census data, 2003, (haven't looked lately for more recent data) put free and clear ownership at 34%. The trend since 1985, the first year for which I could find data, has been downward from 43% in 1985.
Overall home equity ownership for folks who "own" their homes has been dropping since 1973 and was at 56% in 2003. Since the bubble popped I suspect that equity ownership has plunged but I haven't seen more recent data. The equity data is from here: http://www.lendingtree.com/livingwithdebt/
ModerateRepZero
Golden Member
contrary to what most people are saying, "living in debt" is fine IF and only if....
1) there's a long-term purpose ie having a mortgage with the eventual goal of paying it off and owning your house outright.
and/or
2) you're not living significantly above your means, and you have some emergency funds.
it's a myth that all debt is "bad"....esp if you're fully debt free but have zero emergency/rainy day funds. If that's the case, then you're just one disaster away from "being in debt"....car accident, wife/kids/yourself has a medical condition or disorder, etc.
I would rather be debt free than 'living in debt' all things considered, but 'a little debt' at least as far as mortgage or student loans is fine as long as you have the ability to pay it back.
1) there's a long-term purpose ie having a mortgage with the eventual goal of paying it off and owning your house outright.
and/or
2) you're not living significantly above your means, and you have some emergency funds.
it's a myth that all debt is "bad"....esp if you're fully debt free but have zero emergency/rainy day funds. If that's the case, then you're just one disaster away from "being in debt"....car accident, wife/kids/yourself has a medical condition or disorder, etc.
I would rather be debt free than 'living in debt' all things considered, but 'a little debt' at least as far as mortgage or student loans is fine as long as you have the ability to pay it back.
Corporate Thug
Lifer
so that means a majority of house sales are mortgaged, does it not?
As far as making more money, great. It's something that I strive to do everyday but the truth of the matter is that it is still unrealistic for me to buy a house in cash.
kalrith
Diamond Member
I think it depends on a lot of things. Some people think that being totally debt free and paying cash for everything is superior in every way to having any sort of debt, but I disagree. If I have a debt like my 2.5%-interest-rate student loans with tax-deductible interest and I can invest money in other ventures at a higher rate of return, then I'm better served in other areas than with paying off my low-interest, tax-deductible loans. Mortgages can sometimes fall under this category as well, but you need a much higher rate of return to compensate for the higher interest rate.
Also, I pay for everything with a credit card for the great returns, protection, extended warranties, etc. that I couldn't get with cash. I pay off my cards in full every month, so I never have to pay interest on those purchases.
I will say that I shy away from all debt besides mortgages and student loans. I would rather drive an inexpensive vehicle that I could pay cash for in lieu of having a large car payment and having to pay more for full-coverage insurance. Also, financing things like TVs and furniture is done by a lot of people. This can be a good thing (i.e. I have the $1500 but instead choose to invest it for 2 years and then pay my 0% financing off in full right before that rate runs out). Or it can be a bad thing (i.e. you buy a $2,000 TV that you can't afford and wind up paying $5,000 for said TV over the course of the next 6 years).
Debt can be good, but it can also be very bad. Because of that, I don't think there's a clear-cut answer to the OP's question.
Also, I pay for everything with a credit card for the great returns, protection, extended warranties, etc. that I couldn't get with cash. I pay off my cards in full every month, so I never have to pay interest on those purchases.
I will say that I shy away from all debt besides mortgages and student loans. I would rather drive an inexpensive vehicle that I could pay cash for in lieu of having a large car payment and having to pay more for full-coverage insurance. Also, financing things like TVs and furniture is done by a lot of people. This can be a good thing (i.e. I have the $1500 but instead choose to invest it for 2 years and then pay my 0% financing off in full right before that rate runs out). Or it can be a bad thing (i.e. you buy a $2,000 TV that you can't afford and wind up paying $5,000 for said TV over the course of the next 6 years).
Debt can be good, but it can also be very bad. Because of that, I don't think there's a clear-cut answer to the OP's question.
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