How does it feel to be debt free?

[JanH]

Just wondered since I think I've had some debts forever. I remember in college working and having money saved and no debts. But that was a long time ago and for such a short while. We've always been paying for something. Would like to have the feeling of being totally debt free. What does that feel like?

[LuxLiving]

Re: How does it feel to be debt free?

Well, I don't owe money for cars anymore per se. We just recently paid cash for the two (2005 & 2001) we are driving. We also saved enough to purchase two 5 year CDs in order to have their replacements bought factoring in the estimated sales price we expect to get for them at that time.

Beyond that we are still currently saving for the car purchase after that. Third car down the road, so I don't know that you ever really stop 'paying' for things. I'm still so new to this method of doing financial business I can't really say, but I don't think you ever totally relax unless you are a bazillionaire or something.

It does feel great not to owe any loan debts or CCs. I'll let you know when I get the mortgage paid off what that feels like! Wish I could already tell ya!

[Ima saver]

Re: How does it feel to be debt free?

It feels great having the mortgage paid off. I pay off the credit cards every month. I don't really get upset about car payments. I treat them as a part of life, sort of like paying the electric bill every month. I am not going to go without electricity to save money and I am not going to go without a car.
We are car people, which means we will always have several cars.(4 right now) For years, my 1st husband and I lived with just one car and we both worked different places, so I know it can be done, I just don't want to do it right now.
The only debt I have that bothers me is my land payment. However, it is a payment on an asset that is already worth much more than I paid for it, so when it is paid off, I will be doing the dance of joy!

[Kris10Leigh]

Re: How does it feel to be debt free?

I want to know the answer to this!

I remember when I had my own apartment for one year, I was debt free and living well on so little! Then I got married....and put the honeymoon on the CC...and got my master's degree on the CC...and I'm still trying to get out.

I'm not convinced I want to pay the house off. I'm not ready to research that question yet, but I've heard pros and cons to doing so. Unlike you, Ima, I wish I did not have a car payment! My plan is to pay off the CC (which we are doing well) then pay off the car. From there, I can save all that money and pay cash for a car and that will feel good! I just know it will!

[Ima saver]

Re: How does it feel to be debt free?

Well, I don't wish I have a car payment. I just know my dh. We will never spend money on a hobby like golf, fishing, or guns, but his hobby is cars. so, that is just another bill to me. I know once we get this one paid for, he will want a new one! I tell him, he works to support his car habit!
I have started a car fund. I would like to pay this car off and save enough to pay cash for the next one. That might work if the next car was a "normal" car. (We have never had a normal car except the bronco we bought when we moved to the mountains.)

[savvy06]

Re: How does it feel to be debt free?

In my opinion, being dept free is wonderful. Money does not make you happy, but it gives you more choices to make your life easier and more pleasant. But to continue to stay debt free takes a great discipline.

[Gruntina]

Re: How does it feel to be debt free?

I have been debt free prior to my HUGE debts. I have to admit I took it for granted! Now I can not wait to see what it is like to be debt free in a few months after years being in debts. I am sure it will feel good but it might be a fight to keep it that way. (Especially with the chance of marriage (again)).

[creditcardfree]

Re: How does it feel to be debt free?

But to continue to stay debt free takes a great discipline.

I think that is the key to be able to stay debt free.

We've been debt free except the house for about 8 months. We recently added car debt to the tune of only $5k.

I think it is a wonderful feeling to be free of most of our debt. I definitely feel more stressed even with the new small car payment. The less debt I have the better I feel.

With a lack of payments it frees you to save for the future choices life brings. It also allows you to give your money and feel really good about it. There is nothing like it.

Again, I'm not all the way debt free, but I've had a taste to know it will be an amazing blessing.

[Personal Finance Daily]

Re: How does it feel to be debt free?

I believe it improves self confidence in addition to a feeling of self worth. No pun intended there. It's not easy with all the advertising out there to avoid spending on needless wants, instead of wantless needs.

Being classified as debt free includes continually paying monthly bills. It's the liabilities and the credit that is keeping the money on your back. Saving or investing isn't a liability and a choice one uses with disposable income.

I agree it does take a fair amount of discipline. It doesn't mean you have to hoard money, but to buget the money you have coming in, and not to exceed the money going out.