Debt free?

Question

Is anyone trying to live debt free? I mean really trying. No using credit cards, paying off your house early, etc. I'm not doing it but maybe I should. Is it even possible?

Answer 1

I have been living debt free for about 3 months now. I last used my credit card to pay for my state inspection and to buy my parent's anniversary gift. It's a great feeling because I can mainly use the money for me now and to save for the future. Believe me, it is possible. But I only use my card for emergencies. I know my parent's anniversary gift does not sound like an emergency, but I was on International Star Registry and named a star after them. It was a good price for everything you get, and I know they will love it. This gift will last FOREVER.

Answer 2

Try as we have, we are not debt free. We do not own credit cards, and did pay a home off before I was the age 21. It takes a lot of extra payments towards the principle, but it is possible to pay off any loans early. I will say use caution with too early of a pay off, because some banks actually look at that as a credit minus, since they will not gain 15-30 years worth of interest from you. This happened with a car loan, and I was disappointed. But that may have been specific to that banks transactions.

I do not look at it as living debt free, because I am a business owner, and there will always be monies needed to reinvest into the business, as well as payments for new equipment. But those are assets, and can be equalized in depreciation values at the end of the year.

But I am trying earnestly to stay ahead of the game when it comes to debt. I don't make any unreasonable purchases, and when it is time to splurge and spend for say vacation, or gift purchases, I have already placed money in an account ahead of time for those occasions.. such as a Christmas savings fund that is paid into over the year and close to the Holidays, there is an extra 2000.00 that wasn't frivolously spent through out the year.

Answer 3

It is certainly possible. You need to have a plan of action. Once you put your plan together, don't deviate from it. Only make purchases you absolutely need. Avoid eating out as much as possible. When you get extra money, put it toward reducing your debt. Attack your highest interest debts first. Once you pay off one, add that amount to your other debts. If you continue, you will be debt free before you know it. It will be gratifying once you see the fruits of your labor. Set up a time frame in which to pay off each debt. You can pay off your mortgage early by paying extra on your mortgage every month. If you only pay one more mortgage payment per year, you will greatly decrease the amount of interest paid. The cost of credit is great. You will pay double or even triple the purchase amount by financing your purchase. You will have much more money if you save and pay cash. When you are heavy laden with debt you are a slave to the debt master. Cash is always the best way to go.

Answer 4

Use credit wisely. Credit card debt s/b paid off asap. If you continue to allow outstanding debt, you'll find it hard to payoff the loans with the high rates of interest on credit cards. A home mortgage at a low rate of interest is wise use of credit.