What could your family dynamics be if you were to be totally debt free? Would it be worth 2/3/5 years of working hard (1st and 2nd job) if you could really be debt free at the end?
2006-11-17 04:48:26 · 6 answers · asked by Anonymous in Business & Finance ➔ Credit
Absolutely, most people could wipe out their consumer debt (though not their mortgage) in 2-3 years if they were willing to sacrifice for those 2-3 years. Reduce expenses, increase your income and put it all towards paying off your debt.
Many people of modest means are even able to pay off their mortgage in 5-7 years of hard work.
By completely eliminating their debt many people would find that they have an additional $1000-3000 or more of free cash flow to spend or save. By reducing their interest expenses they can often retire many years earlier than their peers.
2006-11-17 05:44:59 · answer #1 · answered by DebtWillEatYouAlive 2 · 0⤊ 0⤋
I am debt free, have been for 8 years, I own 5 houses and a car, no mortgage, no bank loan, no credit card debt, no overdraft and no HP.
If I were not debt free I would be a lot richer. eg. Say you buy a house for 100,000 pounds and borrow 90%. Say the house appreciates 20% (more than reasonable since houses in the uk trebled in price in the last 6 years).
You sell after a year and make 20,000 pounds and you paid mortgage of 6,000 pounds.
Your investment was the 10% deposit, that is 0,000 pounds and your return was 14,000 pounds, 140% return even after deducting your mortgage which you would have to pay one way or the other even if you rented.
So what is so good about being out of debt?
2006-11-17 13:03:19 · answer #2 · answered by Anonymous · 0⤊ 1⤋
If both parties fully understand the commitment & consequences, it could be very well worth it.
However, if one person tends to need lots of day to day contact and presense of the other person, then it will not work (or if the other person is by nature a slacker who would rather hang out in the park). There is nothing wrong with being a day to day or slacker person but for the debt free plan to work >
BOTH PERSONS MUST BE ON THE SAME PAGE. Otherwise one person gets 'used' as the work horse, and the other one is either resentfull about the missed personal time or a goof off.
2006-11-17 13:00:39 · answer #3 · answered by kate 7 · 0⤊ 0⤋
If I was totally debt free, I would just be able to enjoy a few simple things in life. I am not a person who needs materialistic things to define who I am.But if I had to work 2 jobs for awhile I would do it..
2006-11-17 12:54:29 · answer #4 · answered by dreamgirl_deb 2 · 0⤊ 0⤋
I think 5 years is very reasonable....even 10 years if it included a home.
2006-11-17 13:03:27 · answer #5 · answered by Anonymous · 0⤊ 0⤋
it will be marvelous
2006-11-17 12:58:08 · answer #6 · answered by vijay v 2 · 0⤊ 0⤋