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Finally 100% out of debt since I was 22

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  • dave44dave44 Posts: 11,549 AG
    How does that saying go? 
    “Rich people use credit to buy assets, poor people use credit to buy crap.”
       Sounds close.
  • cadmancadman Home of the Gators Posts: 32,691 AG
    I have used credit for many reasons over the years. when I was younger, it was usually for stupid reasons.  The last time was during the recession of 2009. Still had some of that out there I had not been able to pay off. The selling of the house just allowed me, at 61 to get to the point I have zero monthly bills other than Electric, internet, and insurance. Makes it a lot easier to retire in the future if you don't have a mortgage to pay and other debt to service. Also, puts a little more money in the bank. Also, if another recession hits, I won't have to borrow to keep going and worry about paying ti off afterward. I have had a few times where I had no credit card debt, But there was always a mortgage.

    I know a guy at 70 who still works due to paying a mortgage, don't want to be that guy. He could retire other than that and he gets a nice pension, but when you got $12,0000 to $18,000 or more for some people being eaten up by house payments, taxes, and insurance a year, it takes a big chunk out of your money

    Mini Mart Magnate

    I am just here for my amusement. 

  • King_MeKing_Me Delray Beach, FLPosts: 6,552 Admiral
    cadman said:
    I have used credit for many reasons over the years. when I was younger, it was usually for stupid reasons.  The last time was during the recession of 2009. Still had some of that out there I had not been able to pay off. The selling of the house just allowed me, at 61 to get to the point I have zero monthly bills other than Electric, internet, and insurance. Makes it a lot easier to retire in the future if you don't have a mortgage to pay and other debt to service. Also, puts a little more money in the bank. Also, if another recession hits, I won't have to borrow to keep going and worry about paying ti off afterward. I have had a few times where I had no credit card debt, But there was always a mortgage.

    I know a guy at 70 who still works due to paying a mortgage, don't want to be that guy. He could retire other than that and he gets a nice pension, but when you got $12,0000 to $18,000 or more for some people being eaten up by house payments, taxes, and insurance a year, it takes a big chunk out of your money

    Just curious, what are your source(s) of income today to pay for basic needs?
  • cadmancadman Home of the Gators Posts: 32,691 AG
    edited March 2019 #65
    I own 2 convenience stores. Thought everyone knew that

    Mini Mart Magnate

    I am just here for my amusement. 

  • King_MeKing_Me Delray Beach, FLPosts: 6,552 Admiral
    I remember now, thought you only had one.
  • Gary SGary S Posts: 2,263 Captain
    My big hit is health insurance. Mine is in the neighborhood of $700 a month with wifes being $800. I will get medicare in November so that will be a raise in its self. The next June wife gets hers. Might have to buy a new truck and try the payment thing. Haven't had any since 2007.
  • dave44dave44 Posts: 11,549 AG
    Gary S said:
    My big hit is health insurance. Mine is in the neighborhood of $700 a month with wifes being $800. I will get medicare in November so that will be a raise in its self. The next June wife gets hers. Might have to buy a new truck and try the payment thing. Haven't had any since 2007.
    This is a huge impediment to retiring early. 
       I’m so glad someone was around to help bring wide spread super high prices in the insurance markets.
       Making everything soooo affordable.
  • TarponatorTarponator Under a BridgePosts: 17,010 AG
    edited March 2019 #69
    If you're investing in a business, debt makes a lot of sense.  Personally, not so much...at least to me.

    But to each his own, and there are certainly a lot more debtors than those like Cad who are debt free.
  • treemanjohntreemanjohn Posts: 5,033 Admiral
    Gary S said:
    My big hit is health insurance. Mine is in the neighborhood of $700 a month with wifes being $800. I will get medicare in November so that will be a raise in its self. The next June wife gets hers. Might have to buy a new truck and try the payment thing. Haven't had any since 2007.
    HAHA You're getting off cheap. Healthcare is a crime

    Stay debt free in every scenario. I've never seen an advantage to carrying debt. 
    We’re like the piggy bank that everybody is robbing, and that ends
  • Soda PopinskiSoda Popinski GrovelandPosts: 13,293 AG
    agreed @treemanjohn if and when i have the opportunity to get out of debt i.e car/truck payments/mortgage i will do it and never look back.   

    Like is like a Helicopter.  I do not know how to operate a Helicopter  
  • cadmancadman Home of the Gators Posts: 32,691 AG
    Well my score did jump up slightly. The weird thing is, it now says I have no installment loans which is affecting my score. According to it, I need a car loan to get my score higher. 

    Mini Mart Magnate

    I am just here for my amusement. 

  • Gary SGary S Posts: 2,263 Captain
    I would rather have a lower score than a car loan. Keep doing what your doing if it is going up.
  • MRichardsonMRichardson Posts: 10,438 AG
    Funny how credit score doesn't seem to matter so much when you have 6 figures in several checking accounts.
    I have never seen live bones, but I know that they are often used by rich people to decorate the interior.
  • Soda PopinskiSoda Popinski GrovelandPosts: 13,293 AG
    Funny how credit score doesn't seem to matter so much when you have 6 figures in several checking accounts.
    The only thing it really matters for anymore is your interest rate, got a bad score you pay more in interest, got a great score you pay very little.   But they just about finance everyone these days. 
    Like is like a Helicopter.  I do not know how to operate a Helicopter  
  • MRichardsonMRichardson Posts: 10,438 AG
    And interest rates are so low right now that even a "bad" one is good, historically perspectified.
    I have never seen live bones, but I know that they are often used by rich people to decorate the interior.
  • Soda PopinskiSoda Popinski GrovelandPosts: 13,293 AG
    And interest rates are so low right now that even a "bad" one is good, historically perspectified.
    My wife just refinanced a loan for a coworker of mine who was paying 19% on her car.   I don't know how far she brought it down but the coworker was super stoked, she brought me breakfast the next day.  I'm amazed at how people even with sketchy credit are paying anything over 7-8%.   But i think she bought the car at one of those tent sales.    
    Like is like a Helicopter.  I do not know how to operate a Helicopter  
  • MRichardsonMRichardson Posts: 10,438 AG
    edited April 2019 #78
    Lol.  I guess back in the old days, she just flat out wouldn't have gotten a loan.  But 19%??? That's incredible. How can anyone accept that deal?  It's amazing to what lengths people will go to maintain appearances.  

    In fact, I think 90% of our domestic economy is based on people maintaining appearances.  




    I have never seen live bones, but I know that they are often used by rich people to decorate the interior.
  • MRichardsonMRichardson Posts: 10,438 AG
    Disclaimer - I will loan money at rates far beyond 19% APR.
    I have never seen live bones, but I know that they are often used by rich people to decorate the interior.
  • Soda PopinskiSoda Popinski GrovelandPosts: 13,293 AG
    Lol.  I guess back in the old days, she just flat out wouldn't have gotten a loan.  But 19%??? That's incredible. How can anyone accept that deal?  It's amazing to what lengths people will go to maintain appearances.  

    In fact, I think 90% of our domestic economy is based on people maintaining appearances.  




    She had no idea what she was paying, i'm sure they plopped down the paperwork and said "sign here, you'll have the car for $300 a month" or god knows what payment she had but that's all that mattered I guess,she needed a car and that was her budget.   I think the wife knocked like 60 bucks off her payment so she was ecstatic. 
    Like is like a Helicopter.  I do not know how to operate a Helicopter  
  • cadmancadman Home of the Gators Posts: 32,691 AG
    Lol.  I guess back in the old days, she just flat out wouldn't have gotten a loan.  But 19%??? That's incredible. How can anyone accept that deal?  It's amazing to what lengths people will go to maintain appearances.  

    In fact, I think 90% of our domestic economy is based on people maintaining appearances.  




    She had no idea what she was paying, i'm sure they plopped down the paperwork and said "sign here, you'll have the car for $300 a month" or god knows what payment she had but that's all that mattered I guess,she needed a car and that was her budget.   I think the wife knocked like 60 bucks off her payment so she was ecstatic. 
    It was likely one of those buy here pay here lots that use private money to finance bad credit customers. They were around in the old days as well. I used to know a guy who did private money mortgage financing for those who couldn't get normal financing. He was getting 5% over the going rate at the time and 3 to 5 points off the top that went to him. He had plenty of clients. He also financed a few used car lots and back then they got 25% or more back in the 80s for used car loans. 

    Mini Mart Magnate

    I am just here for my amusement. 

  • MRichardsonMRichardson Posts: 10,438 AG
    Now that's what I'm talking about. 
    I need to look into that.
    I have never seen live bones, but I know that they are often used by rich people to decorate the interior.
  • stc1993stc1993 Albany, GA Carrabelle, FLPosts: 7,552 Admiral
    Yeah & if you miss a payment they'll come get it & resell it.  They don't play.
  • MRichardsonMRichardson Posts: 10,438 AG
    I'm talking about being "they."
    I have never seen live bones, but I know that they are often used by rich people to decorate the interior.
  • evernic1evernic1 NMBPosts: 155 Deckhand
    cadman said:
    This marks the first time I am 100% out of debt since I was 22 and bought my first condo. My house is sold, no mortgages, no car loan, no credit cards. It feels great!!
    I'm with ya except for 1 car lease...that will be over in 2 years...but no other debt is fantastic...congrats
  • cadmancadman Home of the Gators Posts: 32,691 AG
    This thread is over a year old. but since some newbie brought i back up, still debt free. I also found out some interesting stuff about credit scores. i have several credit cards and one dedicated to business purchases. I pay off every card I use every month, never a balance left

    I check my free FICO score occasionally and noticed one month it dropped 20 points from the average it had ran and a blurb said I had a balance too high. took me a while to figure out the card I used for business did not have a large credit limit. I switched to another card that has a huge limit and my score shot up 40 points. 

    So, what I am saying is, even if you pay it off every month, be careful the amounts you charge don't go over 255 of the cards limit, 

    Mini Mart Magnate

    I am just here for my amusement. 

  • MikeGonzMikeGonz South BahiaPosts: 346 Deckhand
    If I had a credit card, I would shoot myself. I only pay cash. Period.
  • L8RBRAL8RBRA St. LouisPosts: 698 Officer
    I live on a credit card. Paid off every month. 835 credit score. About to refinance this house to a 15 yr due to these rates. Hope that puts me in Florida sooner. 
  • bottom feederbottom feeder Posts: 1,335 Officer

    My business credit cards don't show up on my credit score.

    Leaving Florida... take a developer with you!

  • anglerplusanglerplus MiccoPosts: 789 Officer
    2% cash back high limit card. Put all expenses on it, pay it off every month. With no mortgage, My score was high 7’s. Pulled a mortgage in a large land deal that had 50% equity at the time of closing and the score shot up to low 8’s 
    Otherwise, debt free is the way to be. 
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