Is anyone completely debt free?

[pyotr]

Re: Is anyone completely debt free?

I agree with poster above - it makes sense to keep a mortgage both as a long-term investment and to act as a partial tax shelter. I have now only a mortgage debt which is shrinking a bit too rapidly (we had a 15yr loan) - we are in the market for a bigger house so I can roll over the equity of our current house into a larger investment home so I could benefit from the mortgage interest deductions off our taxes as well as hopefully enjoying the rising housing market values in our current town over the next couple of decades.

[shelbylovesmelby]

Re: Is anyone completely debt free?

Not me! I probably won't ever be til atleast the kids are out of the house & I'm working full time again.

Though the IL's & my Aunt are.... *sigh* must be nice!

[disneysteve]

Re: Is anyone completely debt free?

to act as a partial tax shelter.

benefit from the mortgage interest deductions off our taxes.

It does not make sense to keep a mortgage just to take the deduction. Why pay $1,000 interest to deduct $250 on your taxes? That deduction isn't saving you anything. It is COSTING you $750.

The reason I keep my mortgage is because my interest is 5.875% and several of my mutual fund accounts are earning 15-25% annual returns. It would be senseless to pull money out of those accounts to prepay the mortgage.

[MonkeyMama]

Re: Is anyone completely debt free?

No, not 100% debt free, but I have never had much debt to speak of. Have gotten through without auto loans or school loans, credit card debt, etc. I have a pretty debt-free philosophy. My first debt was a mortgage at 22, and I have a small loan now, but interest is only 2% and the cash in the bank is making more. I had the cash to pay it, just chose not to, otherwise wouldn't have made the purchase. I just don't really look at debt as an option.

I have no interest in keeping the mortgage longer than 15 years. That is about my comfort level... But barring the unforeseen and catastrophic of course... IF my investments start doing better than I may change my tune, but I Am working on that. : ) In the meantime I do not mind the substantial tax write-offs and the $200k+ equity I have today.

[MonkeyMama]

Re: Is anyone completely debt free?

P.S. Kudos to those entirely debt-free. What an accomplishment!!

[savvy06]

Re: Is anyone completely debt free?

We are completely debt free. Our house is paid off, our cars are paid off, never carried cc debt, use the cc a lot, but always pay them in full. We've always been frugal, tried to save as much as we can, even before we got married. We found out exactly how much each was worth on our 2nd date, which turned out to be like an interview of our lives that lasted 5 hrs. We married 10 months later, paid for our own wedding and paid off the house 2 yrs later.

[wannabefree]

Re: Is anyone completely debt free?

Not yet but that is a long-term goal. We owe about 18k on our stupid SUV & then at least we will be debt-free except the mortgage.

[markio26]

Re: Is anyone completely debt free?

no!!!!!!!!!!!!!!!

[Ima saver]

Re: Is anyone completely debt free?

I agree with Disneysteve and I am mortgage free! I don't like paying all that interest to the bank!

[cashqueen]

Re: Is anyone completely debt free?

Sadly, no. We have our sizeable mortgage and about $14000 in student loans. I'm really hoping the student loans will be paid off by July 06. Unless we sell our house and downsize we will not be mortgage fee for quite a long time.

[scfr]

Re: Is anyone completely debt free?

Yes, we are completely debt free at age 42. When we paid off the mortgage, it was a real feeling of freedom.
What is our secret, besides living below our means? No kids!

[Ima saver]

Re: Is anyone completely debt free?

scfr, that is great!! Kids can really be expensive, even more so when they become irresponsible adults! I supported my child for about 33 years! I guess I would have saved a bundle!

[Reldon]

Re: Is anyone completely debt free?

The only debt I currently have to worry about is my mortgage. Other than that, I am ok.

[shengmei]

Re: Is anyone completely debt free?

I used to be until a month ago, when I borrowed $10,000 in the form of student loans.

I hate debt. Ever since then I feel kinda sad. I was so proud of being debt-free for so long, but there really wasn't enough money for tuition and fees.

[JanH]

Re: Is anyone completely debt free?

I used to be until a month ago, when I borrowed $10,000 in the form of student loans.

I hate debt. Ever since then I feel kinda sad. I was so proud of being debt-free for so long, but there really wasn't enough money for tuition and fees.

Maybe you can try to see the loans as an investment--in your education and future earnings.