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4/18/2021 9:59:29 PM
Posted: 10/4/2012 3:47:13 PM EDT
This week my wife and I paid off all our debt with the exception of our mortgage which is very small and our daughters car. The car is a 2011 Ford Focus we bought used for 3k under blue book and paid one third down so the note is tiny. She is 17 and a senior in high school. I couldn't put her in a hooptie for college.
Total monthly debt is under $500.00.

It took us three years and we didnt stop prepping during that time frame. I am so happy I could explode.
We will pay off the car within the year.

Jim

ETA: We had three car notes and 26k in credit card debt. We sold the cars and bought cheap ones, we both got second jobs and got busy paying it down.
Link Posted: 10/4/2012 4:06:00 PM EDT
Dave Ramsey?
Link Posted: 10/4/2012 4:21:45 PM EDT
Great work Buck!!!

Be sure not to pay off too much of your $$$ -hold some [a LOT] as a safety cushion, very important.

And don't spend any of it!  

Link Posted: 10/4/2012 4:57:08 PM EDT
Good job !! We need to do the same thing here .
Link Posted: 10/4/2012 5:17:27 PM EDT
Quoted:
Dave Ramsey?


Yes. We listened on the radio, didnt buy books or go to seminars. We modified his plan a bit. Instead of the debt snowball we actually saved enough money to pay one of the medium debts with a large payment first and then we attacked them from smallest to largest.
We have an emergency fund and now are attacking the daughters car payment. Then we save for downpayment on a new home on what is now our BOL. We plan to retire at our BOL.

Jim
Link Posted: 10/4/2012 5:35:00 PM EDT
Debt-Lite?
Link Posted: 10/4/2012 5:39:44 PM EDT
Congrats!

The only money I owe anyone is on my Mortgage.  It’s a great feeling.  I've never had any real debt to speak of.  I hear people talking about having huge debt and I just can’t relate. But I drive a 27 year old car, and don’t have nearly as many toys as I’d like.  I guess that’s the price I pay.
Link Posted: 10/4/2012 6:06:16 PM EDT
We paid off our house earlier this year.  Both our vehicles are paid for.  We have no cc debt and no contracts.  We have zero debt and a nice cushion in the bank.  Now my wife wants a new house and I need a new truck and various other toys.  Staying debt free is going to be tough.
Link Posted: 10/4/2012 6:14:22 PM EDT
I'll be in your boat in December. Only debt will be mortgage. But that's a 20-25 more year ride.
Link Posted: 10/5/2012 2:15:50 AM EDT
We are in the middle of his class. After doing a written budget for the first time ever it really opens your eyes.
Link Posted: 10/5/2012 4:40:15 AM EDT
debt free here to



no mortgage, no car payments, and no credit cards

just property taxes, insurance, and other monthly bills




 
Link Posted: 10/5/2012 5:07:11 AM EDT
NIce Job OP!!!!

yep, another modified DR plan.  Well not really Dave Ramsey as I was doing this before I heard the show.

- debt free (totally but I rent)
- only have month to month bills; electric, cable and cell phone, insurances
- student loans knocked out within a couple years of graduation

it certainly takes the stress out of life to know you live well below your means and you have no one knocking on your door for payments.

I do use a CC but very sparingly, I learned my lesson in college when my minimum payment was just a couple bucks over the interest.  
I do get car loans but they're generally pretty small and keep me with emergency cash in the bank.  That said my car is going on 8 years old now.  Long since paid off the 2 year note on it.  

keep some cash in the bank!  Shit always happens to you when you're broke!
Link Posted: 10/5/2012 5:12:40 AM EDT
It would interesting to know the ages of the debt free guys. Being sixty and debt free is great but being twenty seven owning a house debt free would be better.
For the record I'm forty seven and owe seventy thousand on our house. I owe thirteen grand in other debt but I'm working on that.

Posted Via AR15.Com Mobile
Link Posted: 10/5/2012 5:24:38 AM EDT
Quoted:
It would interesting to know the ages of the debt free guys. Being sixty and debt free is great but being twenty seven owning a house debt free would be better.
For the record I'm forty seven and owe seventy thousand on our house. I owe thirteen grand in other debt but I'm working on that.

Posted Via AR15.Com Mobile


Good point on relativity.  I'd hate to be 200k in debt at 55.

ETA- I'm in my early 40's and am well positioned and that's about all I will say.  I did it through discretion not a huge income.  I'm a bit overly conservative though.
Link Posted: 10/5/2012 5:37:10 AM EDT
We have no mortgage on our house, but we have about 14K in personal loans we took out when I lost my job 3 years ago and refused to get on the .gov unemployment/welfare Kool-Aid. Now I own my own business and we are attacking those loans!



They asked me at the bank when I took out the signature loans: "I see you own your own home. Why not take out money against it? We can give you more with a much better interest rate?" My response: "Because, I own my house free and clear. Nobody can ever take it away. If I default on a mortgage, you take my home. I can stop paying these signature loans and all you can do is lower my credit!"




Banker kind of looked at me like




Gave me the money, though. (P.S. It helps having good credit)
Link Posted: 10/5/2012 5:51:05 AM EDT
Congrats to the OP. I own my house and am down to 1 credit card been out of work for 4 months now , still surviving been selling off a few extra things I am trying to improve things
Link Posted: 10/5/2012 6:39:08 AM EDT
Congratulations!

As cheap as mortgages are right now, look into investing wisely as opposed to working until you're dead to pay that off. It's not hard to make 6-10% return on your money, and with some practice you can do better than that. When considering a mortgage, at 3-5%, you can come out ahead investing money as opposed to paying off a low interest loan.

Either way is a better choice than blowing your money, and either route you take, hats off to you!
Link Posted: 10/5/2012 9:26:58 AM EDT
Congrats!  I just did the same thing.  My year in Afghanistan gave me the resources to not only pay everything off, but invest in a few things as well.  It's a great feeling and I'll never be in debt again.  Best of luck to you.
Link Posted: 10/5/2012 10:54:42 AM EDT
Quoted:
Congratulations!

As cheap as mortgages are right now, look into investing wisely as opposed to working until you're dead to pay that off. It's not hard to make 6-10% return on your money, and with some practice you can do better than that. When considering a mortgage, at 3-5%, you can come out ahead investing money as opposed to paying off a low interest loan.

Either way is a better choice than blowing your money, and either route you take, hats off to you!


True and it makes sense but there is a lot to be said for owing nothing on your house, even a small house payment could be too much if you have very little income.

Link Posted: 10/5/2012 11:11:39 AM EDT
Congrats! I've got a few years to go.
Link Posted: 10/5/2012 11:32:05 AM EDT
Quoted:
Congratulations!

As cheap as mortgages are right now, look into investing wisely as opposed to working until you're dead to pay that off. It's not hard to make 6-10% return on your money, and with some practice you can do better than that. When considering a mortgage, at 3-5%, you can come out ahead investing money as opposed to paying off a low interest loan.

Either way is a better choice than blowing your money, and either route you take, hats off to you!



Where are you making 6-10%?  Mutual funds?
Link Posted: 10/5/2012 12:03:52 PM EDT
Congrats!!!

I just paid off my student loan and a credit card my wife ran up before my divorce (she was hiding the statements from me).  Now, it's extra payments on my vehicle.  That should be paid off in less than 2 years now.  I'm getting there, just like you.
Link Posted: 10/5/2012 12:13:21 PM EDT
Quoted:
We have no mortgage on our house, but we have about 14K in personal loans we took out when I lost my job 3 years ago and refused to get on the .gov unemployment/welfare Kool-Aid.


Not claiming an insurance benefit that has been paid for i.e. unemployment insurance is nothing to be proud of. It is rather comparable to having someone crash into your car doing substantial damage and not bothering to file a claim with their insurance company. I'm not sure where so many people get the idea that unemployment insurance is some sort of welfare, it is not. Employers pay unemployment insurance premiums on your behalf, if you qualify take advantage of that insurance benefit.

Link Posted: 10/5/2012 12:37:53 PM EDT
Quoted:
Where are you making 6-10%?  Mutual funds?

I've been able to do that and then some simply playing high yield bond funds and dividend paying stocks, and trying to time the market by getting in and out of some index etf's as the markets move up and down.  No strategy you choose is without risk when you seek above average returns, but where there is no risk, there is no reward.



Just an aside, but for those saying they are debt free, what do you consider "debt free"?  If you own a house and/or car, at a minimum, you have some fairly consistent and recurring "debts" in the form of taxes, insurance, utilities/gas, maintenance, etc...  There is no such thing as being truly "debt free" in America...
Link Posted: 10/5/2012 12:49:17 PM EDT
Quoted:
Just an aside, but for those saying they are debt free, what do you consider "debt free"?  If you own a house and/or car, at a minimum, you have some fairly consistent and recurring "debts" in the form of taxes, insurance, utilities/gas, maintenance, etc...  There is no such thing as being truly "debt free" in America...


It is possible to eliminate just about all of that but the taxes, and you can get those quite low if you try (correct area, ag or similar exemption, nothing fancy, etc.). People survived long before insurance and utilities were invented and they did all maintenance themselves.
Link Posted: 10/5/2012 1:48:01 PM EDT
Quoted:
Quoted:
Just an aside, but for those saying they are debt free, what do you consider "debt free"?  If you own a house and/or car, at a minimum, you have some fairly consistent and recurring "debts" in the form of taxes, insurance, utilities/gas, maintenance, etc...  There is no such thing as being truly "debt free" in America...


It is possible to eliminate just about all of that but the taxes, and you can get those quite low if you try (correct area, ag or similar exemption, nothing fancy, etc.). People survived long before insurance and utilities were invented and they did all maintenance themselves.

I was more or less referring to posts like the ones below, not the amish or subsistence farmer lifestyle you seem to be referencing...  For the record, I do understand that it's also possible to live on the streets and be nearly debt free, but I'm not sure how many will purposely choose that lifestyle...

Quoted:
debt free here to

no mortgage, no car payments, and no credit cards
just property taxes, insurance, and other monthly bills


Quoted:
We paid off our house earlier this year.  Both our vehicles are paid for.  We have no cc debt and no contracts.  We have zero debt and a nice cushion in the bank.  Now my wife wants a new house and I need a new truck and various other toys.  Staying debt free is going to be tough.


Quoted:
Congrats!

The only money I owe anyone is on my Mortgage.  It’s a great feeling.  I've never had any real debt to speak of.  I hear people talking about having huge debt and I just can’t relate. But I drive a 27 year old car, and don’t have nearly as many toys as I’d like.  I guess that’s the price I pay.

Link Posted: 10/5/2012 2:14:53 PM EDT
Quoted:
Quoted:
Where are you making 6-10%?  Mutual funds?

I've been able to do that and then some simply playing high yield bond funds and dividend paying stocks, and trying to time the market by getting in and out of some index etf's as the markets move up and down.  No strategy you choose is without risk when you seek above average returns, but where there is no risk, there is no reward.



Just an aside, but for those saying they are debt free, what do you consider "debt free"?  If you own a house and/or car, at a minimum, you have some fairly consistent and recurring "debts" in the form of taxes, insurance, utilities/gas, maintenance, etc...  There is no such thing as being truly "debt free" in America...


You are only REQUIRED to have homeowners insurance if you are still paying for your home (bank owns it). Once you actually OWN the home free and clear the bank can't 'require' you to have that insurance...

Auto insurace is NOT required if you have the money to meet the minimum state liability requirements.... That is not required at all if you are not using the public roads/highways... (you are NOT required to insure a car that you OWN that just sits in your garage or only gets used on YOUR property or other private property)
Link Posted: 10/5/2012 2:46:44 PM EDT
Good job op,

Holey shit I am almost out of beer.

After this case here and that case over there, I only got one case left!!!!!!!
Link Posted: 10/5/2012 3:00:44 PM EDT
Link Posted: 10/5/2012 4:11:14 PM EDT
Quoted:
Quoted:
Quoted:
Just an aside, but for those saying they are debt free, what do you consider "debt free"?  If you own a house and/or car, at a minimum, you have some fairly consistent and recurring "debts" in the form of taxes, insurance, utilities/gas, maintenance, etc...  There is no such thing as being truly "debt free" in America...


It is possible to eliminate just about all of that but the taxes, and you can get those quite low if you try (correct area, ag or similar exemption, nothing fancy, etc.). People survived long before insurance and utilities were invented and they did all maintenance themselves.

I was more or less referring to posts like the ones below, not the amish or subsistence farmer lifestyle you seem to be referencing...  For the record, I do understand that it's also possible to live on the streets and be nearly debt free, but I'm not sure how many will purposely choose that lifestyle...

Quoted:
debt free here to

no mortgage, no car payments, and no credit cards
just property taxes, insurance, and other monthly bills


Quoted:
We paid off our house earlier this year.  Both our vehicles are paid for.  We have no cc debt and no contracts.  We have zero debt and a nice cushion in the bank.  Now my wife wants a new house and I need a new truck and various other toys.  Staying debt free is going to be tough.


Quoted:
Congrats!

The only money I owe anyone is on my Mortgage.  It’s a great feeling.  I've never had any real debt to speak of.  I hear people talking about having huge debt and I just can’t relate. But I drive a 27 year old car, and don’t have nearly as many toys as I’d like.  I guess that’s the price I pay.




I don't consider paying taxes, buying gasoline for my car, car maintenance, power, water, internet, etc. debt.  I call those "expenses".  
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