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How much money would it take for you to be 100% debt free?

beaverretriever

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This thread proves what I've been telling RD for years now. RDP is not a realistic view of normal life. It's rich white guys with boats. Look how many people have their house paid for. You can look online and see how many of your neighbors have a loan on their house. :rolleyes:


My parents don't have any debt, no money either and in general are pretty broke. Some of the poorest people I know have zero debt.

Management of debt is the most important; meaning does your debt have liquidity? Can your debt be sold, traded or moved into equity or positive cash flow? Unfortunately most people with debt are screwed as their debt are not investments such as their primary residence, boats, new cars (not 65 Shelbys that seem to gain value even in rough economies).

I made the joke earlier in the thread about 2006 when everyone had a 20 year zero down loan on a Magic 28 foot deck. Now that is debt that is probably not the best to have.

I'll never forget when I lived in Manhattan Beach in the late 90s and started seeing 310 Motoring lic plate frames. They started out leasing or renting high dollar chrome wheels to people who couldn't afford to pay cash for them. Now that is debt that should probably be illegal :D
 

LargeOrangeFont

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My parents don't have any debt, no money either and in general are pretty broke. Some of the poorest people I know have zero debt.

Management of debt is the most important; meaning does your debt have liquidity? Can your debt be sold, traded or moved into equity or positive cash flow? Unfortunately most people with debt are screwed as their debt are not investments such as their primary residence, boats, new cars (not 65 Shelbys that seem to gain value even in rough economies).

I made the joke earlier in the thread about 2006 when everyone had a 20 year zero down loan on a Magic 28 foot deck. Now that is debt that is probably not the best to have.

I'll never forget when I lived in Manhattan Beach in the late 90s and started seeing 310 Motoring lic plate frames. They started out leasing or renting high dollar chrome wheels to people who couldn't afford to pay cash for them. Now that is debt that should probably be illegal :D


When you have debt on something you put no money down on I’d argue you effectively have 0 debt on it as well. You already have negative equity the moment you take possession (even RE as the asset costs money to sell) and you can walk away from it with minimal consequence and no financial consequence at any time.
 

beaverretriever

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When you have debt on something you put no money down on I’d argue you effectively have 0 debt on it as well. You already have negative equity the moment you take possession (even RE as the asset costs money to sell) and you can walk away from it with minimal consequence and no financial consequence at any time.

Absolutely, but again reinforces my comment about some of the poorest people I know have zero debt. The saying goes, it takes money (or debt) to make money.

I am not condoning getting in to debt; but I guess it depends on what you are spending your money on.

If you are getting 0% financing on a large purchase, it usually doesn't make sense to pay cash for it.
 
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GRADS

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I'll never forget when I lived in Manhattan Beach in the late 90s and started seeing 310 Motoring lic plate frames. They started out leasing or renting high dollar chrome wheels to people who couldn't afford to pay cash for them. Now that is debt that should probably be illegal :D
Ha! I had a 310 Motoring t-shirt! Loved that shirt, wore it into the ground.
 

LargeOrangeFont

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Ha! I had a 310 Motoring t-shirt! Loved that shirt, wore it into the ground.

You don’t wear a 310 Motoring shirt.. it wears you!

Looked a lot better than “Rent A Wheel” T shirts lol.
 

LargeOrangeFont

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Absolutely, but again reinforces my comment about some of the poorest people I know have zero debt. The saying goes, it takes money (or debt) to make money.

I am not condoning getting in to debt; but I guess it depends on what you are spending your money on.

If you are getting 0% financing on a large purchase, it usually doesn't make sense to pay cash for it.

Agreed 100%
 

RCDave

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When you have debt on something you put no money down on I’d argue you effectively have 0 debt on it as well. You already have negative equity the moment you take possession (even RE as the asset costs money to sell) and you can walk away from it with minimal consequence and no financial consequence at any time.

That position is perhaps ethically suspect. Both the lender providing 100% financing with no skin in the game for the borrower and a borrower that would take on such debt with the half baked intent to walk away and let the lender foreclose....
 

LargeOrangeFont

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That position is perhaps ethically suspect. Both the lender providing 100% financing with no skin in the game for the borrower and a borrower that would take on such debt with the half baked intent to walk away and let the lender foreclose....

It is a bad decision all around, but people are going to look out for number 1 (themselves) when the light gets turned on and they have to scatter.

Just like stealing bread to feed your family.
 

calkid

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0-zero.....everything is paid off. We have lived pretty conservatively most of our 41 years together and business has been good.
 

supernick

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360k between my wife and myself with student loans and a mortgage.
 

GRADS

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Unfortunately we're about to find out who was telling the truth in this thread. This was post #161...let's see how many get deleted.
 

rivrrts429

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Unfortunately we're about to find out who was telling the truth in this thread. This was post #161...let's see how many get deleted.


You’re continuing to root for terrible things upon people...
 

Icky

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Post #12, I was telling the truth 🙂
 

stoker

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Unfortunately we're about to find out who was telling the truth in this thread. This was post #161...let's see how many get deleted.

Sounds like a smart car might be for sale here pretty soon. I am a cash buyer for $1300.00
 

havasujeeper

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Sounds like a smart car might be for sale here pretty soon. I am a cash buyer for $1300.00
It would cost more than that to steam clean the slime and demoshit from the interior of that thing.
 

crzy2bealive

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32 yrs old. 409k home loan. Some credit card debt.

Building a river house soon so prob in debt by another 250k next year even after 30% down.

Had a toy hauler I paid cash for, sold it.

Had a Polaris XP4 I put half down and financed the rest, paid it off, and sold it.

Still have my dually that has barely 50k miles on it.....selling it also. Buying a used truck cash after this one sells.

This allows me to have cash in reserve and build my river house.

Have a boat that I bought cash for 9k 5 years ago, put 9k in maintenance and new thinds, plus 9k in storage.....fuck. Still not selling it.

Probably get back into the desert life a few years from now.

Sent from my SM-G960U using Tapatalk

Almost 3 years later!

Built the river house owe 280k…built it for 360k. Crazy at the time I wrote 250k that’s what I was quoted. Still went through with it since I got a 2.75% interest rate. Make about 12k a year from rental income.

Dually is sold

Still have the same boat, but no longer pay 180 a month in storage.

Bought a new to me trailer cash and another Polaris. So true to my word I did get back into the desert life.

So I need roughly 700k to pay off both houses and some credit card debt.
 

v6toy4x

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outside of property taxes, insurances etc,

We owe uncle sam 80K +/- this april otherwise we are paid off, cars, boats, house.
Hopefully 15 good years left to enjoy, another 10 to sit around and if anything is left the kids can go have fun!
 

LuauLounge

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My wife and I talked about building a new home about 20 years ago. At the time, we had lived in our current home for 15 years. For grins, started making triple payments on our current place to see what it felt like. Long story short, still in the same place, did a major remodel and landscape redo. Amazing how fast the mortgage balance drops when you double or triple the payment.
 

YeahYeah01

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My wife and I talked about building a new home about 20 years ago. At the time, we had lived in our current home for 15 years. For grins, started making triple payments on our current place to see what it felt like. Long story short, still in the same place, did a major remodel and landscape redo. Amazing how fast the mortgage balance drops when you double or triple the payment.
Funny this came up. I pay extra each month to turn my 30 year loan into a 15 without the obligation, but I was doing the math on Doubling the payments. I think I am going to shift some things around and try to do the rest of the year. I am over this house payment thing lol.
 

rivermobster

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Almost 3 years later!

Built the river house owe 280k…built it for 360k. Crazy at the time I wrote 250k that’s what I was quoted. Still went through with it since I got a 2.75% interest rate. Make about 12k a year from rental income.

Dually is sold

Still have the same boat, but no longer pay 180 a month in storage.

Bought a new to me trailer cash and another Polaris. So true to my word I did get back into the desert life.

So I need roughly 700k to pay off both houses and some credit card debt.

You decided to revive one of Greg's old threads!?!?!? 😱

Now you've Really stepped over the line! Watch your back. I predict death threats in your inbox Any minute now!!!

🤣🤣🤣
 

was thatguy

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You decided to revive one of Greg's old threads!?!?!? 😱

Now you've Really stepped over the line! Watch your back. I predict death threats in your inbox Any minute now!!!

🤣🤣🤣
I’m actually thinking of reviving the one from Greg asking for everyone’s mothers maiden names.
It fucking blows me away what members share with 8 billion people.
 

4Waters

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You decided to revive one of Greg's old threads!?!?!? 😱

Now you've Really stepped over the line! Watch your back. I predict death threats in your inbox Any minute now!!!

🤣🤣🤣
It's crazy that he posted this 6 days before the lockdowns, due to the lockdowns and bidenflation I'm still working on it
 

Jimmyv

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Damn, got hoodwinked by a 3 yr old thread!

There was a lot of free and clear homes and relatively low debt positions three years ago.

I wonder how many folks have paid the debt down from there, versus those who may have taken on additional debt.

..
 

was thatguy

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I know @Gelcoater pin....
Fuckoff no space🤣
60B3D972-D030-4178-8F14-21BB35382906.gif
 

Aces & Eights

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Only debt is the 440k on the mortgage, house is worth 950. Both cars are paid off, put all of the monthly expenses on the credit card and pay off the entire cc bill at the end of the month. I’m about a year away from retirement, looking at a decent (for me) pension of about 12k a month with cost of living adjustments and an investment portfolio of just over a 1m. Mortgage is on 2.5 percent interest rate so it doesn’t make sense to pay it off early. Wife became a stay at home mom 20 years ago, we didn’t want no one else baby sitting or raising our little one. We’ve been doing it all on one income, never got anything gifted or handed out to us. Funny thing is that we always seem to be living paycheck to paycheck.
 

Drew

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I never had a mortgage to be honest . I started out when I was 20 years old I bought a house to rent out for 40k . I sold it 6 years later after renting it for 278k. I picked up two more houses with that and some other cash invested. Right now I’m in my house debt free roughly 800k value and another house rented with about 650k values and no note. I started at the best possible time with houses in the mid 90’s. Sold at the height then bought at the bottom again. A lot of luck and a ton of labor working around the clock . But it’s a nice place to be. The only down side to no mortgage is coming up with the tax money every year. The two houses cost me 27k a year . Fucking New York sucks. And now I can only write off 15k of it. So I pay on income tax I spent on tax.
 

BingerFang

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I love my mortgage debt. 30yr fixed at 2.375%. I can make more than that in my saving account so I’m not really even paying for it. Only wish I leveraged more of my house at this point.

Dam I'm on a 30 at 2.875% and I thought I was in tall cotton... You're 50 bps below me!! Lol
 

CLdrinker

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I love my mortgage debt. 30yr fixed at 2.375%. I can make more than that in my saving account so I’m not really even paying for it. Only wish I leveraged more of my house at this point.
We contemplated pulling every ounce of equity out early last year. But we decided not to screw with a good thing. Kinda wish we would have.

Wish we would have been in a position to keep our rental in 2012. But I was having tenants problems and couldn’t afford 2 mortgages at the time. We could be zero debt and couple 100k in the bank.

Hindsight is a bitch.
 

LargeOrangeFont

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Are we talking net debt or gross debt?

GRADS is not here to ask. Maybe we can catch him when he’s let back on April
Fools Day, Arbor Day, Pride Month, or the next Election Day. :)

For me it does not matter. My net and gross debt is the same number. I have the cash to pay it off. It is just mortgages so there is no need. It’s been reduced since this thread started because I relocated.
 

monkeyswrench

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3 years later, same cars and houses that were paid off. Same old jet bote and stuff too. Only "extravagant" stuff I buy comes from Snap-on, but I pay cash, and he cuts me a break. Credit card is used for groceries, but paid off every month...needed to build some sort of credit. Expenses got a bit higher, both food as well as kids in HS sports and one in college. Some medical stuff, but keeping up on that.

Never going to be a baller, but still feel pretty blessed with what I own. Not a bad life most days;)
 
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