topic Re: Resolution -- debt-free, anyone? in Community Chat

Resolution -- debt-free, anyone?

SnowPink — Sat, 03 Jan 2015 17:30:15 GMT

Anyone have a resolution this year to become debt-free? I won't be able to pay off my house this year, but definitely my credit card which I stupidly got after I paid off my student loans.

Re: Resolution -- debt-free, anyone?

Mominohio — Sat, 03 Jan 2015 17:38:42 GMT

I have been a little sloppy with finances this past couple of years, and resolve to tie up some things as well.

We are way too far out from paying off the house, but we currently owe nothing on cars or any other large item. Just a couple of credit cards to pay off.

More than getting 'out of debt' (cause who ever really is, if you think about it) I want to redirect my spending. More savings, less stuff. Less impulse buying, even if I miss a great deal or something I could have used.

I'm opting to carry more cash, and not used checks and credit where it is easier to overspend. The shrinking stack in the wallet is a great reminder and more real picture of exactly what you are spending.

Re: Resolution -- debt-free, anyone?

Qwackertoo — Sat, 03 Jan 2015 17:44:25 GMT

Debt free is great. We've only had the house paid off a few years so that is nice. Never did credit card debt except right out of high school and college.

But with two in college come this fall, only one now . .. we still manage to spend a good amount of money! Thank goodness for all the savings and the 529 accounts . . . reaping the benefits of prior sacrifices when we originally saved that money. They are the ones who truly benefit as they will graduate from college debt free and we've taught them the meaning and value of money since they were very young . . . they save most all money they receive either from working or Christmas & bday gifts with very few splurges with "their" money.

Re: Resolution -- debt-free, anyone?

september — Sat, 03 Jan 2015 17:50:25 GMT

I don't have any credit card debt and won't be able to pay off the mortgage for a long time!

But I bought a new SUV this past summer, and financed half of it. It's a 4 year loan, but I've been making extra payments on it and hope to get it paid off before the vehicle is a year old.

Re: Resolution -- debt-free, anyone?

croemer — Sat, 03 Jan 2015 17:50:34 GMT

We are debt free except for my husbands vehicle which is almost pd. off. We made this decision several years ago...made extra payment on cars and our home and paid them off.

Re: Resolution -- debt-free, anyone?

FrostyBabe — Sat, 03 Jan 2015 17:59:21 GMT

I've been debt free for 8 years and it's wonderful. Prior to that, the only debt I had was mortgage payments and I once financed a car over 12 months because they were offering 0% financing. I've never had any other type of debt.

Re: Resolution -- debt-free, anyone?

Snowpuppy — Sat, 03 Jan 2015 18:12:11 GMT

Debt free doesn't mean bill free. You still have utilities, etc.

I only have one cc that has a small balance from the holidays, that will be paid off shortly. Vehicle is paid for. Do have a mortgage and looking for another home that I want to retire in.

Hope to find that and pay it off before I retire.

Re: Resolution -- debt-free, anyone?

FUTURE — Sat, 03 Jan 2015 18:22:46 GMT

Yes! We have no CC debt, paid off my car after having it for 5 months this year, and I told hubby that for my birthday, I don't want a mortgage anymore. That is the plan. I will be 34 this year, and will be beside myself having no mortgage. My parents and his parents still have one, so I never imagined at my age I wouldn't! We've been extremely blessed, and will hunker down tight for the next 6-8 months and try to get this thing paid off! We will have been here for 5 years, which I think is a great accomplishment. Now I'm just saying my prayers that we stay to the plan and are healthy and wise. We will still have hubby's school loans (not too much), and his car payment (0% interest, so it doesn't matter to us), and those will be next. After a VACATION!!!

Re: Resolution -- debt-free, anyone?

MarthaStewardess — Sat, 03 Jan 2015 19:11:28 GMT

The only debt I have is a small mortgage. I do intend to pay that off early though. Twelve years ago when I thought I was going to lose my job I paid off whatever credit cards I had. Never really had a problem with credit cards, but when you sit and think about how much interest you pay with them, there really is an incentive to not carry a balance. Since then when I have used them, I have paid them off each month. My car is over thirteen years old, so no payment there either. It's nice just having a small mortgage (which is a lot less than what I would have to pay out if I rented an apartment) and just basic living expenses to pay. Glad I don't have credit card debt hanging around my neck. I feel very lucky and I know things can happen in life that can change all that, especially when you're single and you're the only one to depend on for paying bills.

Re: Resolution -- debt-free, anyone?

Peaches McPhee — Sat, 03 Jan 2015 19:48:09 GMT

It is one thing to be debt free, but you have to recognize the need for a mortgage.

Re: Resolution -- debt-free, anyone?

RedTop — Sat, 03 Jan 2015 19:51:44 GMT

We only have our monthly expenses; paid our mortgage off 20 years ago, and have been debt free for many years.

Re: Resolution -- debt-free, anyone?

Fifi1 — Sat, 03 Jan 2015 19:57:49 GMT

We only have insurance, taxes and utilities, charity. We paid off our home early, bought my new vehicle with cash in October. Have an Am X so must be paid in full monthly. I do have two CC, but pay the balance when I purchase but maintain benefits of rewards with the cards. We both have always had solid careers, so are fortunate that way. We paid our sons college as he attended so he'd have no debt. I love to shop and decorate, travel, but will cut back as dh is taking early retirement at 58. Honestly living debt free, if you are able is wonderful. We never over spent, and that was key, with two incomes. I see others way in debt, that never should be!

Re: Resolution -- debt-free, anyone?

lulu2 — Sat, 03 Jan 2015 20:00:16 GMT

We do live debt free. If only we could live property tax and insurance free. (thank you NJ)

Re: Resolution -- debt-free, anyone?

dobiesrule — Sat, 03 Jan 2015 20:03:26 GMT

Future, that is awesome! At any age, but at 34, it is tremendous. I am much older than you, but am debt free which is such a great feeling.

Re: Resolution -- debt-free, anyone?

SnowPink — Sat, 03 Jan 2015 20:05:28 GMT

On 1/3/2015 FUTURE said: Yes! We have no CC debt, paid off my car after having it for 5 months this year, and I told hubby that for my birthday, I don't want a mortgage anymore. That is the plan. I will be 34 this year, and will be beside myself having no mortgage. My parents and his parents still have one, so I never imagined at my age I wouldn't! We've been extremely blessed, and will hunker down tight for the next 6-8 months and try to get this thing paid off! We will have been here for 5 years, which I think is a great accomplishment. Now I'm just saying my prayers that we stay to the plan and are healthy and wise. We will still have hubby's school loans (not too much), and his car payment (0% interest, so it doesn't matter to us), and those will be next. After a VACATION!!!

Wooohoooo!

Re: Resolution -- debt-free, anyone?

minkbunny — Sat, 03 Jan 2015 20:06:21 GMT

Yes, we are debt free, have been for many, many years.

As others said, other ongoing bills such as insurances, utilities, routine home and vehicle maintenance, food, etc. are expenses enough. I cannot imagine have a mortgage and vehicle payments as well.

Best to those of you on the debt free journey. It is a good feeling indeed.

Re: Resolution -- debt-free, anyone?

Lacey1 — Sat, 03 Jan 2015 20:17:22 GMT

Be aware, that being debt-free will not give you a good credit score. Managing your debt and not missing payments will give you a high score.

People that pay cash for everything will be surprised when they check their credit scores. I tried to explain this to a co-worker. She had saved enough money to pay her daughter's first year, college tuition. I told her she should get a no annual fee, credit card that offers points/rewards and use that to pay the tuition bill. She said, 'Oh, no. I don't want to owe on a credit card'. I explained to her that if she had the money, already-she could pay off the credit card amount with the first payment, and enjoy the rewards. She just didn't understand how credit works.

Re: Resolution -- debt-free, anyone?

Irshgrl31201 — Sat, 03 Jan 2015 20:21:58 GMT

My husband and I became completely debt free a little over 2 yrs ago. The only debt we had at that time was our house which we had lived in for almost 2 yrs. We put down a big down payment and then paid it off in a lump sum just shy of our 2nd anniversary there. We worked really hard to do that. It feels good having no debt at 44 yrs old. A lot of blood sweat and tears went into that. We both grew up in families where debt was a bad word. My father drilled that into me at a very young age. We do have credit cards but pay the balance at the end of each month.

I have an girl I used to work long ago that took a picture of her monthly truck payment which is almost $700 a month. It was a brand new truck that probably cost around $29-$30k. They have bad credit so their interest rate on their loan is ridiculous. She took a pic of the of her car payment from her car payment book. It was like she was bragging about it. She doesn't work and her husband can't make more than $35k a year yet they have a car payment like that. I thought to myself, what a stupid woman. They could have saved that for 4 months and bought a nice used car. I don't understand this kind of thinking about finances yet it seems to be perfectly acceptable in the US. No wonder we are in such a mess. Paying off credit with credit.

Congrats to everyone who is working to be debt free. I love to listen to Dave Ramsey each night and I think he is helping so many people and getting Americans to wise up to being debt free. I have some of his books in my book case in my office of my rental properties. Quite a few of my employees have asked about them so I bought them for all of the employees and sent them to seminars of his if they expressed an interest. I try not to push it on people because it is a personal decision but the people who have expressed an interest have all gotten them. I got my daughter and her husband one a couple of years ago and at 25 and 27 they only have one debt, his student loan but he has put a lot of money towards it and only owes $75 each month. He will be paying that off in full at the end of January when he gets his commission check she just told me the other day.

Re: Resolution -- debt-free, anyone?

Margo Channing — Sat, 03 Jan 2015 20:28:07 GMT

We are totally debt free. It is a wonderful feeling.

Re: Resolution -- debt-free, anyone?

Chalcedony — Sat, 03 Jan 2015 20:55:22 GMT

My only debt is my mortgage, and I will take on a new one when I buy a new house in the next few months. I believe carrying a mortgage is a good decision from a personal finance POV, so I will likely always carry one.