Anonymous
12/10/2013 22:01
Subject: If you had ZERO debt?
We have a lot of student loan and credit card debt. If we didn't, I would take a lower paying job somewhere I like more than DC.
Anonymous
12/10/2013 21:55
Subject: If you had ZERO debt?
My only debt is mortgage. It's about $25k/year (not including escrow). Not having this debt would not make any real difference in my life. I would spend some of it on vacations or more household help, and save most.
Anonymous
12/10/2013 21:49
Subject: If you had ZERO debt?
If I had zero debt I would probably work less (75% time ) for a few years while DS is young. We would also probably buy a house/condo. I eventually want to be able to make improvements/changes to our living space so that it works better for us. As renters, we put up with old windows, carpet, etc. that I'd love to change.
While buying a house with a mortgage is debt, you can do it in a way that minimizes risk/cost.
-Buy much less than the banks tell you you can "afford"
-Put at least 10% down (refinance when you hit 20% equity to get rid of PMI)
-Take out no more than a 15 year mortgage (this will save you tons on interest and you will be able to get rid of PMI much more quickly
While buying a house with a mortgage is debt, you can do it in a way that minimizes risk/cost.
-Buy much less than the banks tell you you can "afford"
-Put at least 10% down (refinance when you hit 20% equity to get rid of PMI)
-Take out no more than a 15 year mortgage (this will save you tons on interest and you will be able to get rid of PMI much more quickly
Anonymous
12/10/2013 21:27
Subject: Re:If you had ZERO debt?
Yes, I can see that too. But aren't you just keeping the landlord warm?
I dunno, I see both sides. Is moving somewhere with a better housing market an option?
I dunno, I see both sides. Is moving somewhere with a better housing market an option?
Anonymous
12/10/2013 21:26
Subject: If you had ZERO debt?
Op again... its like I would be buying the bank a house that I would just happen to keep warm!
Anonymous
12/10/2013 21:24
Subject: If you had ZERO debt?
Op here. PP I get that its not an apples to apples comparison but the fact is that we dont have a ton saved up for a down payment. So to get a house it would cost a ton in PMI and interest which makes me gag to think about. Or we could save forever but its hard to see how we can get ahead of the curve in this crazy sellers market.
Anonymous
12/10/2013 20:37
Subject: Re:If you had ZERO debt?
Op here. Rent is $2200/mo.
So OP. You talk about moving into your relative's house in 30 years. you have 30 years -- why not get a house that cost same as rent? You can build wealth that way also.
This is coming from someone who loved to rent and didn't see it as "throwing away money on rent" the way some people do. But on the other side now I can see the benefits of owning.
While I can see you as debt-free, you still are running at a high cost-of-living. Most of the PPs here who are debt-free have paid off their mortgages. I don't think it is a true comparison.
Anonymous
12/10/2013 20:28
Subject: Re:If you had ZERO debt?
Anonymous wrote:I am debt free. My life isn't any different from when I had a mortgage. I've always been a fiscally conservative person.
This about says it for me.
We have not had a mortgage for years (we are in our mid fifties) and buy cars without taking on loans. We invest quite a bit each month. We provide for a special needs child (he will be able to earn a decent living when he grows up, but we do a lot of tutoring, special school, etc now).
Anonymous
12/10/2013 20:23
Subject: If you had ZERO debt?
We paid off 2 of our rental properties. We still have a mortgage on our primary home but that is at 3% so it is pretty low. We decided not to pay it off early (currently on 15 year loan) since I think the money can be better used in investment accounts. That is the only debt that we have currently. We make approximately 300k a year but our mortgage is about 3300.
Anonymous
12/10/2013 19:53
Subject: Re:If you had ZERO debt?
We are debt free and we are about to add on to our house. Even if we didn't we wouldn't really be able to retire that early or work part time. In this uncertain economy we wouldn't think it was wise to downshift too much and make less money. We don't want to be a financial burden for our kids when we're older and working allows us to invest for retirement, college, etc
Not being in debt is great, but in our case it doesn't exactly equal financial independence if you know what I mean. I'd be afraid to quit work, even though I'd kind of like to.
Not being in debt is great, but in our case it doesn't exactly equal financial independence if you know what I mean. I'd be afraid to quit work, even though I'd kind of like to.
Anonymous
12/10/2013 18:05
Subject: Re:If you had ZERO debt?
I am debt free. My life isn't any different from when I had a mortgage. I've always been a fiscally conservative person.
Anonymous
12/10/2013 16:23
Subject: If you had ZERO debt?
Anonymous wrote:Anonymous wrote:No debt and have been that way for a number of years. There's a tremendous freedom that comes from this. DH has retired young, but works if something interests him. I'm still working bc I like what I do. We also do consider the price of things.
Wow, impressive. What kind of job can you do only when it interests you? Artist? Architect?[/quote
Consultant in an area he spent his work life doing. With no debt, he doesn't have to work was my point.
Anonymous
12/10/2013 16:16
Subject: If you had ZERO debt?
Op here. Rent is $2200/mo.
Anonymous
12/10/2013 16:11
Subject: If you had ZERO debt?
Anonymous wrote:No debt and have been that way for a number of years. There's a tremendous freedom that comes from this. DH has retired young, but works if something interests him. I'm still working bc I like what I do. We also do consider the price of things.
Wow, impressive. What kind of job can you do only when it interests you? Artist? Architect?
Anonymous
12/10/2013 16:08
Subject: Re:If you had ZERO debt?
What do you pay in rent, OP?