Every so often, I see a financial show host (Suze Orman comes to mind) talk about living a totally debt-free life. Sure wish that were possible some days, but the reality is that we have to incur SOME debt to keep a roof over our heads, wheels in the driveway, etc. But I get the gist of what people like her are saying - get rid of all debt that is not absolutely necessary.

By the end of this year, the only debt I'll have is:

- the mortgage on my home (gotta have someplace to live after all)
- the mortgage on a rent house (which generates net income)
- the loan on my truck (expected to last a solid 5-7 years past payoff)
- student loans, with a graduated payment plan (low payments at first that get larger later on)

The credit cards are finally paid down to zero, and are going to STAY that way! The money that was going to interest can now get socked away in savings. The redhead and I have had to agree on basics - we don't go shopping for stuff without having cash in the bank to pay for it right away. Likewise with planning trips to Alaska, tuna trips in the Gulf, etc. This is forming the basis of our New Years Resolutions for 2019 (wow, I'll actually have those on the first of the year!!)

Great job for someone your age. My credit card debt was crazy through my 30's. NEVER carry credit card debt.

Here is where I sit:
- the mortgage on my home is less than $40K
- the mortgage on a rent house is less than $60K
- the loan on my truck is down to $12K
- we lease my wife's car to keep her in a new vehicle without ever having to buy tires or pay for oil changes.
- Credit cards are paid off every month ( and I buy everything I can with them for the airline miles) free flights every year.
- Taxes and property taxes seem to be my biggest concern.

and pay for vacations before you take them, never go on a vacation owing for it when you get home.

I have a little bit of medical debt that is almost gone, my car payment and a healthy credit card balance. That's all my debt. Student loans are paid off.

Hopefully I'll have a mortgage in the next year or 2.

One important thing that is not stressed in financial articles and advice is: If you must take on debt use it on things that will appreciate in value and use cash for everything else. You will be recovering some of the interest by the increased value of the asset.

Never use borrowed money to buy depreciating assets. Finally got to the point in my life where I have the cash to follow my own rule at the age of 36.

I'm in debt up to my eyeballs

Two valid points

Only have one item of debt. Bought a new house/property 4 years ago, but sitting on around 55% in equity (owed -vs- worth) so it's already more of an asset then a debt.

Back when I was a young dumb Airman, I got severely in credit card debt. Took years to pay it off, but I am a better financially now because of having gone through that period.

I dont owe a dime but come January when I pay property taxes I'm reminded that I guess the stuff really isn't mine cause the state charges 25k or so to let me use it.

Great job. Property taxes come due at the end of January. I hate that day.

Debt is not your enemy...foolish debt is.

Many wealthy people have gotten rich by using debt wisely. Many more have become poor by foolish use of debt.

I've been retired with no debt for several years....was able to pay my house off a few months after retirement and been able to pay cash for new cars and any other large expenditures we've had to make...we use an American express card for most of our purchases and pay off the balance each month....monthly rebates average$60-80.00 per month....

Only debt I have is a mortgage. Its 450 a month then I pay property taxes in January. Both cars paid and have been for 8 years. My daycare bill is outrageous but that ends after this year.

Sounds like you folks are doing well.

I have a pontoon boat payment...they financed at zero per cent.
Still have mortgage payment on lake property in Texas.

Everything else is free and clear...except for taxes.

Don't owe nobody nothing and been that way about 15 years.

Its doable.

Live well below your means
Save/invest everything you can; especially for your children�s education�no bigger scam than the cost of college tuition
Do not carry a debit card
Minimize credit cards to one or two

House paid off. Vehicles paid off. Boat paid off. Student loans paid off. No credit card debt. It took some sacrifices over the last few years to get there, but I'm really glad we did it now. I'm in sales and it definitely takes some of the pressure off. I sleep much better now.

Very nice. Both mine and my wife's vehicles are paid off and we pay off our credit cards every month. Only debt we carry at the moment is our mortgage. #blessed

Why do you recommend no debit?

Followed the Dave Ramsey plan, became debt free in 2016. On a business trip to Nashville went and listened to the show live in studio and signed the wall. Its amazing how much money you can stack when not paying CC's, truck notes, college loans, etc.

Set up your credit card to pay off in full at the end of the month

Debit cards are riskier if someone clones your debit card or gets the number, it�s more difficult to get the money back
Checking accounts have minimal interest rates
Credit cards usually have a cash back or points/miles benefit
The banks monitor credit card usage much closer than debit cards
Much easier to get fully refunded on credit card fraud

I�m so broke I can�t even pay attention

Yeah, but you have those sweet yeezy�s, huge TV, and those Gucci sweats of yours are legit AF.

I never have cash and use debit card exclusively. Only exception would be if I ring carp up somewhere and realize my debit card was left at home...etc. In those cases, I use my cc as a backup. I might just reverse this process. Thanks!

I'm going to throw this out there just for discussion and hope Zeek is not offended:

If you have other loans/debt and a rental house with a mtge. (an appreciating asset) that generates income and has some equity that could be used to retire most or all of your debt, would you sell it?

Please explain your decision.

Debt is a tool. It can be used to secure your future...or it can destroy you.

My house is paid for, my vehicles are paid for, my boat is paid for. I have about $6400 in debt on a heloc loan. That will be paid in less than two years. And now we are too old to borrow any more.

I went debt free for about 8 years. Had no credit cards and no loans.

Suddenly two of my three credit scores went from excellent to zero.

I now have a number of cards I use infrequently just to play the game.

Because I have never met the right woman, never been married and "0" kids, plus I've never bought a house, I am comply debt free. I do not owe $1 to anyone.

I don't own a lot property, but own "my current" stuff.

I live in a nice townhouse in a very nice area near Collin Creek Mall/190 area.

I'm not saying being "alone' is the way to go, but it's been my way of staying debt free...so far.

My last gf was the closest I came to finding the girl I was going to marry, but it didn't work out.

If I ever do get married, I doubt I'll become a dad at my age, but I'd surmise she and I would probably buy a home near the mountains or near the ocean, but who knows.

I've got fantastic credit, and several business ideas. I will not be an educator/teacher after this year. I'll probably get some debt coming up dependent upon what I choose to do with the rest of my life.

I hope I make the right choices!

...wisdom?

Doesn't offend me in the least, and it's a good question.

Rather than sell the house, it would probably make more sense (in most cases) to take out a home equity loan, assuming that the interest rate & monthly payment made sense. Even though the interest on the new loan would probably not be deductible, it would still allow one to payoff the debt much faster, and you would keep the appreciating asset as it increased in value. Eventually, the house would be paid off and worth much more.

*edit* BUT, if the monthly debt service was so high that you couldn't meet the monthly payments anyways, then yes, selling would make more sense.

In my experience, Debit cards are protected from fraud just like credit cards. Your risk is being broke until you are refunded. I experienced this last year.

I always had a decent job I enjoyed, but never really made 'big bucks'.
Except during 'the first wife' years, I always spent less than what I earned.

That, and being able to build, rebuild or repair our cars or house myself-
I've saved a gazillion dollars by not taking a car to the shop since I was in High School, or buying one for much over $1500-
then driving it for 10 years.

Except the first wife's credit cards, the only debt I've ever had was $1,000 at $100 a month to pay the other half of a new 1977 Yamaha 750.
And $30,000 for a old house in 1983 that was paid off in 1988 when I tore it down and built the new one 'out of pocket' for my life's savings of $50,000.

Moving through to the present, we've paid cash for everything. But we seldom eat out, buy a lot of fancy stuff, or travel much either.

getting close to being debt free and I can't wait. So sick of owing other people

I save plenty and owe plenty of reasonable debt. However I can't imagine being so worried about becoming debt free that I sacrificed living. We love experiences and making them. When my time comes I hope my last check bounces!

I just can't seem to get myself in debt, I have so much money, I can't spend it faster than it comes in.

I know a lot of debt free broke people.

House paid off in 2006 , we live on about a third of what we make.

Ok Sturgil.

My wife owns our home out right. Well, maybe. Plumber just left. There was a leak in the wall, leak is fixed but now we get to deal with the mold and sheet rock issues that may devolve into a minor remodel of the kitchen..

One thing about house construction, sheetrock, wiring, tile sort of projects- the more of them you do, the faster you get.

You never know, some broke people aren�t broke and some out of debt people aren�t out of dept.

Wiring, tile, plumbing all above my pay grade. Besides, I can't take the time off of work and the Wife wan't is done.

I don�t owe, I am owed!

I think that nearly everyone would jump at the chance to buy into an investment that returned a guaranteed 12% - 20% annual percentage rate, yet many will carry a credit card balance and incur interest rates in this range. Sad.

No such thing............

Not True^

THIS^

i own this dump, paid off in 2016,
and a couple toyotas paid off for 6 years
I do have a truck payment now,

Our house in Plano and our lake house are both paid off, as well as my truck and the wife's car. We pay all bills in full each mouth,so I guess all our hard work has been worth it.

Zero debt other than house payments but rental income covers all of that plus some. It's nice to know that so many of you aren't going into debt especially at Christmas. I have two sisters that don't handle money well. They made to many bad choices over the years and that's what got them where they are today.

I work with people that just don't understand how it makes sense to take out a loan to buy a rent house. They think it makes better sense to save up the money and pay cash. I showed them the math (curse word for some). If I can borrow at 5% and make 15-20% off that money, it makes more sense to use the banks money instead of my own.

Property Taxes are out of hand in Texas

No state income tax. Gotta come from somewhere.

True but I am beginning to think the state income tax with reasonable property taxes would be a better system. At least from the descriptions from those living in other states it sounds like overall dollar wise it is better. They have other taxes but more on the consumption level where you have control. Here you have no control unless you want to live in a dump to pay lower property taxes.

Exactly, If I wanted to live in an old city, in an old small house then property tax based system would be good.

I enjoy living in Frisco, I have bathrooms I have never used before upstairs

I just hate getting bent over on property taxes, but if I had to choose between Irving and low property taxes, and Frisco with High Property taxes, as long as I am working I am staying in Frisco.

Congrats, I enjoy reading and hearing about success stories...............

My monthly expenses = my take home pay + $50.

Having the knowledge and skills to repair and maintain your car and house yourself is a huge benefit.

I can tell you that since we moved to Georgia in June it's costs about a third to live here than in Texas. I actually cringe now looking back on the money wasted in Texas. We have already paid our new home off and all cars paid for. No cc debt so retirement has been great so far. Thanks to my dad for teaching me how to save and manage money since my first job at 12 I was able to retire at 60. I highly recommend it.

You missed my point. Whenever a coworker or friend would ask me for my thoughts on various investments my first question was always about whether or not they carried a credit card balance. If the answer was yes, then the best possible investment they could make from a risk/return standpoint would be to pay off the credit card balance. Equivalent to finding an investment that paid a very high, guaranteed, tax-free rate of return.

Having moved to Wisconsin I cringe about how much money we are spending here as compared to Texas. All things are retaliative.

Just interested can you explain why?