Debt free?

7,686 Views | 90 Replies | Last: 6 yr ago by The Fife
V8Aggie
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AG
Who here is debt free and at what age did it begin?
(Credit card debt doesn't count if you pay the balance every month.)

Interested after seeing all of the salary threads.

Sadly I am not but we are shooting to be within 5 years. I am currently 30 w/ law school loan, mortgage and two car payments.
752bro4
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Debt is a tool. Use it accordingly.
V8Aggie
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752bro4 said:

Debt is a tool. Use it accordingly.
Do elaborate.
Madaman
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752bro4 said:

Debt is a tool. Use it accordingly.
this
FriendlyAg
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V8Aggie said:

752bro4 said:

Debt is a tool. Use it accordingly.
Do elaborate.


If you borrow at 5% but can make 15%, you just made 10% on money you don't even own.
Stive
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752bro4 said:

Debt is a tool. Use it accordingly.
This X 2



And if you need that elaborated you'd likely have trouble using it accordingly so carry on with your original plan.
mrad85
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FriendlyAg said:

V8Aggie said:

752bro4 said:

Debt is a tool. Use it accordingly.
Do elaborate.


If you borrow at 5% but can make 15%, you just made 10% on money you don't even own.
But, if you borrow at 15%, and don't pay it off, you're a tool.
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V8Aggie
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FriendlyAg said:

V8Aggie said:

752bro4 said:

Debt is a tool. Use it accordingly.
Do elaborate.


If you borrow at 5% but can make 15%, you just made 10% on money you don't even own.
I should have thought this one through a little more before posting. Great point guys. So let's exclude this from counting as debt. I'd say it really isn't a debt if you're netting positive.
FriendlyAg
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mrad85 said:

FriendlyAg said:

V8Aggie said:

752bro4 said:

Debt is a tool. Use it accordingly.
Do elaborate.


If you borrow at 5% but can make 15%, you just made 10% on money you don't even own.
But, if you borrow at 15%, and don't pay it off, you're a tool.



BUT BRO! I gots the new 79 inch curved led
752bro4
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V8Aggie said:

752bro4 said:

Debt is a tool. Use it accordingly.
Do elaborate.
If you have to ask, you're not likely to be someone who capable of using it correctly.

I invite you to click the top of your browser and type in "DAVE RAMSEY".
titanmaster_race
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26 and debt free. Got a few scholarships to A&M and my parents covered the rest (something they decided to do when they started having kids; I am incredibly thankful and blessed). Got a fully funded fellowship for grad school right after.

My car is dying though, so there is an auto loan on the horizon.
cupofjoe04
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I am 34, and debt free, with 3 kids, 2 cars, and a home in the mountains that suits us well. I work full time, my wife works part time.

I am fortunate to have never had debt, aside from a house note. Worked like a dog to get through A&M and grad school completely debt free, and have done everything in my power to keep that going ever since. I believe that is the primary reason my family is able to do far more than many others, while we make less than many people. We make a lot of sacrifices for our kids, but we put our $ in things that last and things that matter. I prefer knowing that my money is earning money, instead of having things on loan that cost me interest.

Sadly, I think that debt is taught to our society as a "norm" or unavoidable fact of life. IT IS NOT. It is avoidable, and it can be overcome. And yes, just like everyone else we have had life rear its ugly head several times, with massive unexpected medical expenses, tax complications, etc... However, because we do without the instant gratification many people seek, and we save up instead of pay off; we have always been able to stay afloat and overcome.

I commend you on your efforts to get out of debt. Keep working at it, it will open up a future you never dreamed could be!
V8Aggie
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Stive said:

752bro4 said:

Debt is a tool. Use it accordingly.
This X 2



And if you need that elaborated you'd likely have trouble using it accordingly so carry on with your original plan.
Haha fair enough. It's Friday and work is dragging...
FriendlyAg
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V8Aggie said:

FriendlyAg said:

V8Aggie said:

752bro4 said:

Debt is a tool. Use it accordingly.
Do elaborate.


If you borrow at 5% but can make 15%, you just made 10% on money you don't even own.
I should have thought this one through a little more before posting. Great point guys. So let's exclude this from counting as debt. I'd say it really isn't a debt if your netting positive.


But it is. I don't think I'll ever be debt free because of the above scenario. It makes a lot of since to finance certain assets as opposed to saving up and paying cash.
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HC
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I've learned more about good debt with rental houses. I've loan that is $2.2k/month, but the properties rent for $5k, so I consider my loan debt as a positive
V8Aggie
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Lightly gone through Ramsey. Already covered Boggleheads.

That being said I definitely need to continue educating myself as I am still young (30) and want to put myself in the best position possible. Right now current focus is getting law school loan paid off by next March ($173k), which means we will have paid it off in less than a 6 year period. Mortgage will be the last thing we pay off as it has the best interest rate.
DaveRamsey
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Debt free here.
FriendlyAg
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jake2011 said:

FriendlyAg said:

V8Aggie said:

FriendlyAg said:

V8Aggie said:

752bro4 said:

Debt is a tool. Use it accordingly.
Do elaborate.


If you borrow at 5% but can make 15%, you just made 10% on money you don't even own.
I should have thought this one through a little more before posting. Great point guys. So let's exclude this from counting as debt. I'd say it really isn't a debt if your netting positive.


But it is. I don't think I'll ever be debt free because of the above scenario. It makes a lot of since to finance certain assets as opposed to saving up and paying cash.


Yes and when you get overleveraged and your assets go down 50% you are screwed. See last recession for details.


All hypothetical man. I'm in finance. I have zero personal debt other than what I have borrowed to buy into companies which is really me using monthly cash flow plus interest to space out payments on assets that will be worth more than the interest I paid for a 1 year full pay out note.

reddog90
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Yall don't like Ramsey? What's not to like about his baby steps or not having payments on normal life expenses?

Don't think im going to cut up my credit card yet, but I like what I see in some of his videos.
The Wonderer
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752bro4 said:

Debt is a tool. Use it accordingly.
House money
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titanmaster_race
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reddog90 said:

Yall don't like Ramsey? What's not to like about his baby steps or not having payments on normal life expenses?

Don't think im going to cut up my credit card yet, but I like what I see in some of his videos.


Yeah I don't get the hate. He may have some things that I don't agree with (like all credit cards are bad: he's speaking to a crowd that's deeply in debt, likely because they haven't been responsible and have been buying things they can't afford, so of course he's going to go full anti-credit card, but if you pay your credit card bills as soon as they pop up, you lose nothing while gaining the free miles/cash back.) but generally, he has sound advice.
V8Aggie
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titanmaster_race said:

reddog90 said:

Yall don't like Ramsey? What's not to like about his baby steps or not having payments on normal life expenses?

Don't think im going to cut up my credit card yet, but I like what I see in some of his videos.


Yeah I don't get the hate. He may have some things that I don't agree with (like all credit cards are bad: he's speaking to a crowd that's deeply in debt, likely because they can't be responsible and not buy things they can't afford, so of course he's going to go full anti-credit card, but if you pay your credit card bills as soon as they pop up, you lose nothing while gaining the free miles/cash back.) but generally, he has sound advice.
All of our monthly expenses go on our CC. Pay it off every month and don't carry a balance. It's free money.
DaveRamsey
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Debt Snowball Really Works
gigemags-99
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Been in debt before...never again. I don't care if it is a tool. The borrower is slave to the lender.

You don't have to borrow to invest.
GMM
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Paid off all my credit cards last year. Only debt I have left is my car payment. Still have 66 months left on it. But the monthly payment is under $500 so not too bad
HC
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gigemags-99 said:

Been in debt before...never again. I don't care if it is a tool. The borrower is slave to the lender.

You don't have to borrow to invest.
what we're you lending that caused your problem?
Bondag
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I still have a few years left on the mortgage, but at 2.875% I am not in a hurry to pay it off.
gigemags-99
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HC said:

gigemags-99 said:

Been in debt before...never again. I don't care if it is a tool. The borrower is slave to the lender.

You don't have to borrow to invest.
what we're you lending that caused your problem?


I had credit cards I was paying off every month; ya know...getting travel points and what not. Then one day I felt a lump on my right testicle. Had good insurance but rounds of chemo tend to cut in to the old budget. Been in remission for 6 years now.
V8Aggie
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Bondag said:

I still have a few years left on the mortgage, but at 2.875% I am not in a hurry to pay it off.
I'm with you. Ours is at ~3.2% while law school loan is at 7.25%. Can't get it paid off fast enough!
permabull
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Stive
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hypeiv said:

I have a mortgage, but i could pay it off today if I sold some investments... Ramsey heads tell me I should do it but I prefer 6-15% returns than erasing my 3% debt
Ramsey heads that tell you to do that are stupid and should be punched in the face.
titanmaster_race
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6 years and hopefully many more to come!
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