Are you debt free or not?

[Anonymous]

I think people are posting about their mortgages to indicate that they have RESPONSIBLE debt.

Me, I have $20k in credit card debt. I'm paying it off about $1000 a month, so expect to be debt free in about 2 years. No more student loans. No mortgage.

The guy who manages my IRAs was pleased to let me know that I have a positive net worth as a result of my retirement savings. Currently, I am diverting my retirement savings into paying down the cards on his advice.

I'm 33.

[Anonymous]

Anonymous wrote:If you are debt free at what age did you become so? If you arent how much debt are you in?

Yes, I am. Debt free at 46.

[Anonymous]

Me too. At 47.

[Anonymous]

Just the mortgage. Which we hope to pay off in the next ten years. At which point we'll be 44.

[Anonymous]

We are not in DC and so poor by DCUM standards but....take home household pay of about $82,000, house purchased 15 years ago for $75K (value now about $125K 1,300 sf on little over an acre) we have about 25K left on it, mortgage is $604 a month, and car payment of $247 with about 24 months left, no other credit card or other debts.

[Anonymous]

Not. 29 and fine with our small payments.

[Anonymous]

728k mortgage primary
400k mortgage and 47k heloc for rental
20k in student loans
9 k in car loan
48k loan from retirement but still have 300k in there
No emergency fund
6k in 529 for 2 kids under 3
HHI 350k and not worried at all. I won't be debt free til after 20 years but I don't plan to retire til 30+ years. I may die before that so I'm going to enjoy my house and my life while we're paying for childcare.

[Anonymous]

Anonymous wrote:728k mortgage primary
400k mortgage and 47k heloc for rental
20k in student loans
9 k in car loan
48k loan from retirement but still have 300k in there
No emergency fund
6k in 529 for 2 kids under 3
HHI 350k and not worried at all. I won't be debt free til after 20 years but I don't plan to retire til 30+ years. I may die before that so I'm going to enjoy my house and my life while we're paying for childcare.

That's brave!
You're not alone
645K - primary
332K - rental
25K car loan
50k emergency fund
200K in retirement funds
HHI - 200K
I am worried a bit, but still slip tight. I enjoy life now, and will think about retirement later.

[Anonymous]

Anonymous wrote:If you are debt free at what age did you become so? If you arent how much debt are you in?

No, we still owe slightly less than $200k on mortgage. No other debt.

[Anonymous]

Anonymous wrote:I think people are posting about their mortgages to indicate that they have RESPONSIBLE debt.

What is responsible debt? Debt is debt, the idea of "good debt" vs. "poor debt" is how we have achieved housing and education bubbles in this nation.

And your idea of mortgages being some ridiculous sort of "responsible" debt should have drowned underwater in 2007.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think people are posting about their mortgages to indicate that they have RESPONSIBLE debt.

What is responsible debt? Debt is debt, the idea of "good debt" vs. "poor debt" is how we have achieved housing and education bubbles in this nation.

And your idea of mortgages being some ridiculous sort of "responsible" debt should have drowned underwater in 2007.

How about "responsible" = reasonable level of risk given your particular situations? While housing markets can implode (as we've seen), mortgages are debt that is backed by a tangible asset that can be sold, and reasonable/responsible people can choose to carry debt on that asset for responsible reasons. And I would argue this is materially different than debt taken on to purchase a consumable item.

This of course does not give folks license to acquire a debt load they can't service, even for a house or education. But it can be the reasonable path to carry debt on these items, particularly if it allows you to invest those funds for higher returns.

[Anonymous]

No debt. it feels great. have emergency fund and plenty of savings and in retirement. but we are renting and getting killed on taxes bc of higher HHI. we are looking to buy but like the flexibility of renting as we are having a baby soon. hoping the only debt we ever have is a mortgage and i think that will inevitably come soon.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have a mortgage but only because I choose to invest the loan amount in the stock market for a net positive return. My net worth is several times the loan amount and I could pay it off if I wanted to. So, virtually, I'm debt free.

+1

Why the hell not carry 2.5% interest when I can get multiples of that?

I'm not saying that you shouldn't have a mortgage but if there were an investment with a guaranteed 2.5%+ return, then banks wouldn't loan you money for your mortgage because they would put all of their resources in that investment instead.

[Anonymous]

Anonymous wrote:"It is kind of weird to me that people are posting stuff like, "Yes I'm debt free except for my (huge) mortgage and student loans." You aren't debt free. You aren't even close.

I'm not debt free either. I owe $200k on my mortgage. Don't kid yourself into thinking that a mortgage isn't debt."

Well, the question isn't that useful for those of us who live in the DMV. Sure, I have a mortgage. But if I sold my house, I could take the equity and buy one outright in many other places around the country and be "debt free."

That doesn't make you debt free. That means you have some equity in your house.

[Anonymous]

We have a ton if debt.

$375k mortgage
$20k student loans
$30k credit cards
$15k (give or take) car loan
$5k (give or take) boat

Doesn't bother me. You only live once and I'd rather enjoy my money now than save it for when I'm 70. I plan to mooch off my kids then anyway. They owe me for all the dough I spend on their sports and school.