Thank you.

Re: Thank you.

• bleve0821 member

  

  January 2017

  My definition of "debt-free" is living within my means.
  
  I don't think it needs to be any more complicated than that.

  
  

  "And when they use our atoms to make new lives, they won’t just be able to take one, they’ll have to take two, one of you and one of me..."
  

  --Philip Pullman

  
  

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• cowgirl8238 member

  

  January 2017

  charlotte989875 said:

  ScottishSarah said:

  OP, do you want a medal?

  Same.
  
  Good for you OP, but why does it matter what other people call debt-free. We're not debt free; student loans, mortgage, and yes shockingly we have a car loan, and not because we're keeping up with the Jones (whoever insultingly implied that's why people have car loans) but because my car from grad school died two months we closed on our house.
  
  We pay everything on time each month, but even if we didn't it doesn't make us better (or worse) than anyone else. The assumption in here that anyone with debt (especially bad debt) is irresponsible reads pretty judgy to me. 

  I don't consider myself someone who lives outside their means but we do have "debts" outside of our monthly mortgage payments (including student loans and car payments).  I think it is difficult for many to be debt free especially when both people are already working full time jobs.  And while I agree that carrying large amounts of consumer credit card debt is not the best idea I do think Sh*t Happens.

  For instance growing up my family always had some amount of that "bad" debt.  I would love to know how a family with 2 children that makes under $80,000 a year on Long Island is supposed to become debt free...I mean my folks were never $1,000's in the hole but they couldn't exactly buy a used car for cash either...and no they didn't live high and mighty beyond their means.
  

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• banana468 member

  

  January 2017

  charlotte989875 said:

  ScottishSarah said:

  OP, do you want a medal?

  Same.
  
  Good for you OP, but why does it matter what other people call debt-free. We're not debt free; student loans, mortgage, and yes shockingly we have a car loan, and not because we're keeping up with the Jones (whoever insultingly implied that's why people have car loans) but because my car from grad school died two months we closed on our house.
  
  We pay everything on time each month, but even if we didn't it doesn't make us better (or worse) than anyone else. The assumption in here that anyone with debt (especially bad debt) is irresponsible reads pretty judgy to me. 

  I worded my previous statement poorly.   I don't think all car loans are to "keep up with the joneses".   However it's a problem when car loans are getting longer (it used to be hard to find a 7 year loan) and the average income does not support the average cost of a new car.  That doesn't mean that ALL car loans are bad - but they're evidence of over-spending in some areas.
  
  A car loan has its place and I think a lot of the members on this board are evidence that they're needed.  
  

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• Ro041 member

  

  January 2017

  I do think that the OP came off a bit braggadocious.  I would guess the vast majority of people on these boards have some form of debt.  
  
  I have a mortgage (I bought my house in 2012 for $111,000 and the house next door sold last month for $130,000.  Their sale price allows me to estimate that we have about $40k in equity in the house).  I also have a sh*tload of student loans (but I also got a law degree so I consider it a pretty good investment).  I don't carry credit card debt, but my savings account could be bigger.  I also bought a new car last year because I wanted more cargo space, a remote starter, heated seats and a sun roof.  I have a 5 year car loan and I don't care because that damn car makes me so happy (especially when it's toasty warm when I get in on cold winter mornings).
  
  My point is, I don't try to find my self worth (or definition of financial stability) on the internet from some random people with no financial background.  There are way too many variables in each of our lives.  I know I have made decisions that are good financially (like the house) and some that are good emotionally (like the car).  Regardless, none of my decisions make me better (or worse) than my friends who decided to spend more on a house, spend more on vacation, live at (not below) their means etc.
  
  Opinions on the internet are like buttholes - we all have one, but only you can decide how much you look at them.

  
  

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• TheMostHappy15 member

  

  January 2017

  I hope OP comes back to respond or at least thank people for getting through her novel of a post, lol.

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• abl13 member

  

  January 2017

  There's nothing wrong with having a loan for a car - unless at any point you owe more than your car is worth. Cars and houses are considered "good" debt because if you are experiencing a hardship you should be able to sell either one of them and not owe anything out of pocket (in fact you should end up with some additional cash). Just because cars depreciate in value does not mean you shouldn't get a car loan. Also I have one with a 0% rate, so the time value of money is important here. I should be able to take the money I would have initially spent and put it in investments with a higher rate of return.

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• CMGragain member

  

  January 2017 edited January 2017

  My son-in-law came from a Chinese-American family.  They saved money and paid cash for everything, including cars.  No credit cards.
  
  When he and my daughter went to a mortgage lender to prequalify, they were told that they could not qualify for any loan!  No credit history!
  
  In today's world, your credit rating may be more important than being debt free.
  
  Son-in-law went out and got a Kohl's card and charged a few items.  After a few months, VISA gave him an account.  (They wouldn't at first.)  They now have a nice house in a great neighborhood, not because they were debt free, but because they have an excellent credit rating.
  

  

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• short+sassy member

  

  January 2017

  TheMostHappy15 said:

  I hope OP comes back to respond or at least thank people for getting through her novel of a post, lol.

  
  I'm surprised she hasn't.  I recognized her username after I posted my first reply.  She doesn't post often but, when she does, they are long posts and she'll frequently pop back in to give more info.  And those posts are long also.  I'm not throwing any stones, though.  I know I'm super long winded also, lol.  Plus, English isn't her first language, so I'm sure that is more challenging with posting also.

  

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