On ezbtr's debt free...whats your defitnion of "debt free"

[Limited-Time]

Not wanting to hi-jack ezbtr's good news debt free thread. Just what do you consider "debt free" to mean? Totally free of any interest bearing loans. or just unsecured loans? Do you consider your home mortgage a Debt or investment. For instance if your home is appreciating at a higher rate than your mortgage rate can it be viewed as an investment.

 

[veilside180sx]

Re: On ezbtr's debt free...whats your defitnion of "debt free"

My view is being in debt is to be "indebted" to any outside source, including a mortgage. With how much the economy is in the tank at the moment, I would imagine that most would agree that their home is not appreciating faster than what their mortgage rate is. With how much property values have tanked in the last 5 years, I don't know that anyone is. (unless they got an absolute bang up deal)

 

[rbh]

Re: On ezbtr's debt free...whats your defitnion of "debt free"

Dept free for me would be to pay just the basic utilities, insurance, property tax, and fuel and food staples each month.

 

[tommays]

Re: On ezbtr's debt free...whats your defitnion of "debt free"

I could be but prefer to have some things like auto loans as i feel better with the money in the bank earning should something unexpected happen like when i jacked up my left shoulder 14 yeas ago and was out of work two months

 

[DJ]

Re: On ezbtr's debt free...whats your defitnion of "debt free"

Dept free for me would be to pay just the basic utilities, insurance, property tax, and fuel and food staples each month.

I agree.

I use credit cards for several reasons:

1. Convenience.

2. A record of transactions.

3. Security.

4. Buyer Protection.

I DO NOT carry a balance on any of them though. They don't like me for that reason.

 

[Fly Rod]

Re: On ezbtr's debt free...whats your defitnion of "debt free"

Not wanting to hi-jack ezbtr's good news debt free thread. Just what do you consider "debt free" to mean? Totally free of any interest bearing loans. or just unsecured loans? Do you consider your home mortgage a Debt or investment. For instance if your home is appreciating at a higher rate than your mortgage rate can it be viewed as an investment.

Apparently you did Hi-Jack

 

[jkust]

Re: On ezbtr's debt free...whats your defitnion of "debt free"

I suppose the strictest definition of debt free. No debt of any kind. I don't believe in good debt and am old school on the paying cash for everything even if money is cheap to borrow. I don't want anyone in my business. I don't have a problem with mortgages or student loans since I would never rent and unfortunatly it was a necessity to go to college but still debt is debt. There was a day when I'd do the 0 percent offer then pay it off when it came due but I just don't have time for that level of management these days. Sure a few k in credit card debt racked up in December for Xmas because of convenience that you will pay off in January could still be considered debt free I suppose. Sounded like exbtr is debt free in the strictest sense. Now it's time for ez to start building some wealth.

 

[JRJ]

Re: On ezbtr's debt free...whats your defitnion of "debt free"

Is anyone really debt free? Our things are free and clear but we still have substantial monthly overhead.
When I hit 70, I think I'll buy a 40' motor-home and a new boat, and finance them for 20 years

 

[rbh]

Re: On ezbtr's debt free...whats your defitnion of "debt free"

I am at that age (mid 40's), and I am really starting to think about what I will need to retire once I hit 75, 0r 85.
If I make it that far.

Best work my butt off for the next 20-30 years or so.

 

[xxxflhrci]

Re: On ezbtr's debt free...whats your defitnion of "debt free"

I consider myself debt free, I owe nothing to anyone. (Other than the annual tax man of course.)

Me, too....

 

[642mx]

Re: On ezbtr's debt free...whats your defitnion of "debt free"

Debt Free means not owing anything to anyone (in my mind). I'm not there yet as I only owe on my house, but I can see the light at the end of the tunnel. I'm close!

 

[Huron Angler]

Re: On ezbtr's debt free...whats your defitnion of "debt free"

Personal debt is one issue, we are all certainly able to be debt-free with good management and income.

I would argue that no Americans are anywhere near being debt-free since we owe about 14 trillion dollars to various entities as a nation. About 44k each.

Maybe this is too obvious to mention but I think it's relevant to the discussion.

 

[dingbat]

Re: On ezbtr's debt free...whats your defitnion of "debt free"

Being debt free is a meaningless measure of health. I?ll take a 7 figure net worth over being debt free in a heartbeat.

 

[skargo]

Re: On ezbtr's debt free...whats your defitnion of "debt free"

Apparently you did Hi-Jack

Huh, he started a new thread, how is that a Hijack?
_________________________________________________________________



MANY people think their house is an asset. they are wrong if they have a mortgage. If they use a HELOC to make investments that pay above and beyond their mortgage and all fees and commissions, then, and only then will your house be considered an asset. Only people I see doing that personally are real estate investors.
Even when you pay your primarily residence off, it is not an asset by it's definition.
An asset puts money in your pocket, a liability, even a paid off house, takes money out of your pocket.

 

[DJ]

Re: On ezbtr's debt free...whats your defitnion of "debt free"

No there is no such thing as "debt free" if you live in the civilized world.

I have a gas bill. I have an electric bill. I have a water, sewage and garbage bill.

We are, in their minds: "beholding".

I don't live in the "country" because I don't want to. I could, but don't.

I like my conveniences.

Plus, "Oh Heavens" I like my HOA. The HOA keeps me from looking at: Garbage cans, junk cars, junk boats, junk in general, in the FRONT YARD. I don't care about the back.

Call me whatever you want but I DON'T like seeing junk. If I want to see that, I go to a salvage yard. I'm known to frequent them.

 

[JasonB]

Re: On ezbtr's debt free...whats your defitnion of "debt free"

I will respectfully submit that being debt free is meaningful. In a country where we spend a large percentage of our income on "creature comforts" and "luxuries" in the name of enjoying life more, I get great enjoyment and sense of peace from not having debt on anything but the house, and Lord willing, that will be paid off in the next year or two at most.

I know of a few folks with large incomes concerned that the recession is going to cost them their homes that are mortgaged to the hilt. People tend to spend/borrow in similar proportions to their income. The folks with large 6-7 figure incomes just buy more expensive stuff.

 

[Dunaruna]

Re: On ezbtr's debt free...whats your defitnion of "debt free"

I see it as a state of mind. I am debt free, I only owe what my savings can cover.

IMO, there is no better feeling that making that last mortgage payment. it makes very little financial sense, but it certainly gives peace of mind knowing that you own a little slice of land that the bank cannot touch.

 

[j_martin]

Re: On ezbtr's debt free...whats your defitnion of "debt free"

Some of my friends, and even one of my kids refinanced their real estate during the bubble to "use the equity". Now they're losing the homesteads and have nothing to show for it.

I got the 20 acre hobby farm paid off 20 years ago and have refused to use it for anything like that. "Fair market" value has gone from 20G to 225G and back down to 150G in that time.

I plan to plant about 6 acres of it in vegies for the community next spring. I suspect we'll need it with the way things are going. I'm also going to put several acres in food plots for deer and upland game, to be harvested as meat next fall.

 

[PGFISHER]

Re: On ezbtr's debt free...whats your defitnion of "debt free"

My idea of debt free is to owe nothing. House, cars, truck, motorcycle, everything I have is paid for. Put in for social security, so I won't need a job soon, but last week I had my will notorized and bought suplimental insurance, so I bet against myself and (eventually) gave away everything I own. Wish I could give away taxes and utilities. I do, now and then run up a grand or so on a credit card, but pay it off right away to avoid interest, and be debt free again.

 

[Summer Fun]

Re: On ezbtr's debt free...whats your defitnion of "debt free"

Debt free is when you can lay in bed all day & Not worry about anything and have these. $$$$$.