Does being debt free matter?

[Awesomesauce2005]

Im talking about morgages, loans, credit card debt, etc

Yes

No

Never been in debt

Updates

1 y

Persobally i have never been in debt

Updates

1 y

Personally*

[Crimsyjo]

Yes it matters. a lot. It's inevitable with mortgages but other debt? You really should be able to live within your means or you need to figure out why you can't and take steps to male sure you can. I've never been in debt off my own back. I had a ex boyfriend who got me into a lot of debt. But I have never needed to borrow for myself. I am a firm believer in saving up for what you want rather than the culture of buy now pay later.

[Awesomesauce2005]

Same here

[Anonymous]

Too bad that one account debtfree_oneyear isn't here to give advice, though he's on his third fake pink account now since date_a_snob and bralesswonder got deactivated. Now @notadumblonde is here to ask the same debt questions he used to ask.

As for the actual question, yes, it matters. Not having it hover over you constantly and pile up interest is a relief mentally.

[NaultD]

It's about moderation. Loans are a tool and so long as you're in control It's useful. It's when it's out of control it get bad.

Realistically you can't or even should have more then a years worth of income that's liquid. So if you want a car or a home you should get a loan that's lower then 6%. So avoid credit cards debt that's usually over 10%.

[Awesomesauce2005]

Never get a loan for a car because it will cost way more than buying a old car and fixing it up. New car quality has gone down and prices have gone up, parts for older cars are generally way cheaper than for newer cars too. Getting a loan to buy a car is just a really bad idea.

[andreasderjuengere]

To me it does matter.

Since decades I exclude banks from my life. This prevents me from being enslaved to ''the System''.

If I need a ''credit'' to buy stuff - then I rather won't have it. I miss nothing.

But I gain... FREEDOM (in its original meaning).

[Blueeyes81]

There is a song lyric that goes "Debt is a lot like prison but no hope of getting free."

Obviously a person would benefit by buying things outright but for most that is not an option on everything.

Keep debt to needs and not wants and you'll have a fighting chance of breaking free of it.

[OneViewpoint]

Depends what you're doing with the borrowed money. For instance, if you're sitting on a $500K mortgage @ 3%, why would you pay that off with available cash when you can earn a 15% return on equities where taxes are deferred and you pay a favorable capital gains tax rate or 5.5% in a high yield savings account?

[Yohenis]

Yes never been in debt so I don't know born with silver spoon but again I have seen some people in dire poverty must be hell man

[Awesomesauce2005]

I wasn ever really given anything except rides to work before i could drive and by that point i was able to have a car i bought and had my dad help me fix any serious issues with it. Ever since i have been on my own

[exitseven]

Yes, I recently paid off the mortgages on both of my houses. I feel like a big weight had been lifted from me and I have more money in my pocket at the end of the month.

[DrPepper12]

Congratulations!! That's a great accomplishment!! 18 mos more of that noose for me!!

[exitseven]

@DrPepper12 awesome, good job!

[Miristheiss]

Yes. If you want to live a life with less stress and more financial freedom. You can build wealth easier when you don't have debts.

[Dargil]

If you are out of debt and the Schiff hits the fan. You can get by on crumbs.

[jamesgoldman]

Yeah, you're richer with nothing and debt-free than a paper billionaire debted up to your neck

[DrPepper12]

Mortgage free is ez livin

[seeyounexttuesday]

It depends. Mortgage interest is a tax deduction.

[DrPepper12]

Yeah it would be a lot nicer if Congress change back so we can have the unlimited state and local tax deduction. $10K in state and local taxes is a joke and I'm not laughing!!

[seeyounexttuesday]

@DrPepper12 It'd be nicer still if there was a fairtax plan

[Anonymous]

Sometimes