How many of us are 100% debt free?

[autoxer]

A mortgage is clearly debt. It's money that has been borrowed that must be repaid; that is the definition of debt.

If folks want to compute their net worth and list their house as an asset, that's fine. But the mortgage should also be listed as a liability.

There's no such thing as "good" debt, as I'm sure all the people that are underwater right now would attest to.

There is all different kinds of 'good' debt. Using a loan to buy something that appreciates gives you leverage with other peoples money. There are certainly risks, but you can come out ahead if done properly.

The value of my house did drop below what I owed, but I still consider it good debt. It would only be bad debt if I sold it at a lower price than what I paid, but I'm not moving any time soon.

[JoeP]

There is all different kinds of 'good' debt. Using a loan to buy something that appreciates gives you leverage with other peoples money. There are certainly risks, but you can come out ahead if done properly.

The value of my house did drop below what I owed, but I still consider it good debt. It would only be bad debt if I sold it at a lower price than what I paid, but I'm not moving any time soon.

All debt, even the kind that gives you financial leverage, requires you to make payments until you satisfy the terms and are released. I would not label this as "good debt," no matter what the anticipated projections look like.

[autoxer]

All debt, even the kind that gives you financial leverage, requires you to make payments until you satisfy the terms and are released. I would not label this as "good debt," no matter what the anticipated projections look like.

I guess I won't be able to convince anyone what good debt is, in a thread where everybody is debt averse.

For the record I have a mortgage and a car loan. My debt / asset ration is less than 50%, so in theory I could liquidate some assets and pay off my debt, but I choose not to. My assets can earn more than my debt costs me.

[UnknownXV]

There is all different kinds of 'good' debt. Using a loan to buy something that appreciates gives you leverage with other peoples money. There are certainly risks, but you can come out ahead if done properly.

The value of my house did drop below what I owed, but I still consider it good debt. It would only be bad debt if I sold it at a lower price than what I paid, but I'm not moving any time soon.

It's when too many people take these risks and it all comes crashing down that you have serious issues. Although it's not nearly as bad as debt without collateral (Credit card debt) or debt on depreciating assets like a car. Banks count CC debt as an asset which is accounting fraud but actually encouraged by the government. It's utter madness.

On a personal level, I hate most risk, or anything that ties me down. As I have no debt at all, I just feel unburdened. It's not necessarily from a practical view, but I like the notion that I owe absolutely nothing to anyone. It's freedom.

[scfr]

We own our home and cars outright, and pay off our credit cards in full each month. Our property taxes have been paid for the year.

All that we currently owe is what we have charged on our cards since our last statement, the water/electricity/gas we have used since our last meter readings, and the portion of our federal estimated tax payment that has accrued since the first of the year and won't be due until April 15.

My husband & I are about as close as an average couple in America can get to debt-free without living off the grid.

Please don't anyone bring up my share of the national debt. I want to enjoy my Saturday night.

[TheMom]

We're getting there, but aren't yet. We've got up to 3 more years on the house and we'll be done and debt free.

[weddingshoot]

I mean 100%, no house payment, no car payment etc.

[Jon Spiels]

Amazing

Amazing for those of you who are really debt free. Ever since I've started working I've never been debt free. lol. But glad to handle it in the best way I can.

[PrudentSaver]

Truly, I understand the world with more of a Rich Dad Poor Dad model. It's not really about having no debt; it's more about having more money indebted TO you than you owe in debt. Cashflow is a pretty powerful concept. Smart debt is good leverage to make money.

[marvholly]

Me! Me!
TOTALLY debt FREE

No mortgage - paid off in 2006
No student loans -WAAAY too old
No car loan-paid cash
No credit card debt-only charge what I can actually pay in real $$, all cards paid off monthly

[neatdesign]

As of December 28, 2012, I am TOTALLY, 100% DEBT-FREE.

I don't own a home, so no mortgage. My car is paid for. I don't have any personal loans.

Most importantly, I have no more credit card debt. ZERO. ZILCH. NADA. At one point I had over $22K in credit card debt. It took 12 years but I finally did it. If you look back at my older posts from several years ago you can read the gory details.

I'm relieved to be debt-free, but honestly it is a new feeling that I'm still adjusting to. I feel a bit like someone who was wrongfully convicted and thrown in prison for 12 years for just trying to survive, and I've suddenly been released back into society again and my sentence commuted. Okay, that's a bit of a stretch, but that's the best analogy I can come up with.

[syracusa]

We are 100% debt-free right now, theoretically speaking, but that is because we rent.

Having no mortgage yet having to throw money out the window every month on roof-over-your-head - that's hardly what I call debt-free. You owe to the landlord every month.

That being said, we are getting ready to buy a house in a few months and then hope to be almost debt-free in about 5-7 years by paying the house off.

[The_Wiz]

Hoping to be a part of that someday soon!

[Ant81]

I'm 100% debt free today...but within the next two years I will probably take on a mortgage loan. I've been debt free for the last 2 years!

[cascade11]

Been debt-free for about 4 years. It really is liberating!