Community Chat

[Qwackertoo]

Glad to hear you son is happy and his career is going great and your other son is hopefully happy with his choice too! As parents we all try to give our children a bright and even better future than what we had ourselves!

Take Care,

Qwacker

[winamac1]

On 1/3/2015 Kalli said:

We were debt free for a short time 6 years ago and hated the fact that we had no write-offs and had to pay more to Uncle Sam. So we went back in debt.

You have to spend money to make money. It's kind of like a Merry Go Round. Once you get on, you hate to get off because when you do, you're stagnant and not increasing your worth.

As long as DH is alive and feels well enough to continue working, we'll carry debt.

-Kalli

So you want to pay $1.00 and get .33 cents back?? I don't quite understand this? I'd rather have NO mortgage, no tax deduction and save my over .70 cents on the dollar.

[millieshops]

On 1/3/2015 NoelSeven said:

On 1/3/2015 lacey1 said:

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.

Not true. We haven't had any debt for a long time and we have a very high score.

I second that. I have no debt except the monthly bill on my credit card which is paid off each month.

My credit score is in the top category.

What's right about lacey's statement is that my credit score WOULD be high if I took out a mortgage or paid a car loan. BUT - a higher credit score is of no value to me because it can't change my category. FURTHER, getting that high score would cost me several thousand dollars in either mortgage interest or in a car loan.

Someone needs to tell me why that makes sense!

[winamac1]

On 1/4/2015 millieshops said:

On 1/3/2015 NoelSeven said:

On 1/3/2015 lacey1 said:

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.

Not true. We haven't had any debt for a long time and we have a very high score.

I second that. I have no debt except the monthly bill on my credit card which is paid off each month.

My credit score is in the top category.

What's right about lacey's statement is that my credit score WOULD be high if I took out a mortgage or paid a car loan. BUT - a higher credit score is of no value to me because it can't change my category. FURTHER, getting that high score would cost me several thousand dollars in either mortgage interest or in a car loan.

Someone needs to tell me why that makes sense!

I have a high credit score too, and I also have no debt. It's not 800, but it may be due to closing some credit cards awhile back. I've learned not to do that.

I don't need a high credit score anyway as I'll never take out another loan. If we ever move, we'll pay cash for our house. If we ever buy a car, we'll pay cash. I hate debt. That's one thing I did learn from my parents. As I said earlier, it's easier for us to be debt free not being blessed with children. We haven't had to save for colleges, etc.

[Lacey1]

I've had problems explaining this to other people. If you don't care about your credit score-fine. Go pay cash for everything. However, if you do EVER have to borrow money-be prepared to pay a higher interest rate. Or, if you apply for a job, apply for insurance, lease a car, or co-sign for one of your kids-you're going to pay more.

A high credit score will tell a lending institution, a potential employer, insurer, etc. that you have wisely managed credit in the past. Like it or not, you are judged by your credit score in some circles.

I am not saying go into debt, but shop around for no annual fee credit cards with rewards. Use them once in awhile and pay the balance off so you don't incur interest charges.

If someone is selling a new car, that you want to buy and they offer 0% financing. Take it. Leave your money in the bank to earn interest and contribute to your credit score.

[Qwackertoo]

On 1/4/2015 lacey1 said:

If someone is selling a new car, that you want to buy and they offer 0% financing. Take it. Leave your money in the bank to earn interest and contribute to your credit score.

Agree. 0% is a way to entice me to buy and finance. Leave my money in the bank.

NOW IF they would offer a cash price vs. a non-cash price . . . the cash price would win but I think some/many/or perhaps all states do NOT allow that practice.

Given that, with 0% . . . I negotiate the best price possible below MSRP AND take advantage of any and all rebates . . . sometimes you have to look a little harder for those, previous owner of that make of vehicle, or student college graduate, or military and seems there are a few other obscure ones . . . granted we don't qualify for many of those "extra 500.00 off" but I do search for them just in case I find one we do qualify for.

Same with my Belk Card, previously Parisian's, with their 6 month no interest . . . just spreads out splurges a little bit . . . even though these days "my money" stays in the bank longer and extremely low, almost nothing, interest rates.

But there are some people who CANNOT manage credit and their money. My aunt is one of them. My grandfather bailed her out TWICE before he died and to this day she still cannot manage money. Some people learn from their mistakes. Some never learn. Sad. But. True.

[WenGirl42]

Auto insurance won't manually underwrite anyone with a credit score showing "insufficient information," and you'll pay more for your insurance vs somebody with a better score. Granted, that's a tradeoff some are willing to make. I prefer the more middle-of-the-road approach of using credit wisely (paying in full each month) but everyone has to do what's right for them

[sgraham30]

I pay off my charge cards monthly so I have no issues there. I recently refinanced my mortgage & dropped cable for a savings of around $350 per month.That extra money initially will be going toward paying off my 2 air conditioners & 2 furnaces. When those are paid off, it will be going towards the mortgage for 10 months are extra principal payment.

[esmeraldagooch]

This is a great goal. Dave Ramsey helped me and I like having no outstanding bills.

[Financialgrl]

I have 18 years left on my mortgage and consider myself debt free. Many financial types consider mortgage "good debt" - - me I just figure no matter what - I'll need a roof over my head whether I'm buying or renting a place to live so to me, a mortgage is a "wash" in that sense. I realize that by paying off my mortgage over time I'm paying a lot more interest but I can also write that off taxes so rather than sending more toward principle each month to pay it sooner, I invest that money instead. Other than that I have no credit card, auto loan or any other type debt, not only that my mortgage loan is only 3.5%.

However change the subject from debt free to losing that same darn 30 pounds I talk about each year as my new year's resolution - that I can relate to.