Anonymous
Anonymous asked in Business & FinancePersonal Finance · 1 decade ago

What’s it like living debt-free?

Last week I repaid all my consumer debt. Only my mortgage will remain. Frugality is probably just as important to remaining debt-free as it is to reaching that goal in the first place.

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  • Anonymous
    1 decade ago
    Favorite Answer

    Congratulations! That's a big step. I'm working towards being debt-free, but it's going to take awhile. Frugality is a MUST and I hope I can achieve what you have achieved.

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  • 4 years ago

    Well it depends on what kind of debt it is. If it's credit card debt then by all means get rid of it, the sooner the better. If it means cashing out a portfolio, sometimes it's worth. However there can be heafty monentary penalties, look before you leap. If however it's a school loan, relax, keep the investment, because the school loan was an investment and you should not view it as a negative. If it's a 401K plan you're cashing the penalties are vast, tred carefully there. But after all that, the simple truth is, yes, it is better to be debt free.

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  • 1 decade ago

    It's nice not to be drowning in debt. I only have a Lowes credit card and I have a small balance on that which I am paying on faithfully to continue good credit. My car is paid off, I have no outstanding credit cards, although I do have a mortgage, does that count as debt, I'm assuming you mean unsecured debt like CC.

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  • 1 decade ago

    I believe it depends on your perception of debt. If you're knowledgeable in finance and money management you may love debt. Not the consumer debt that the masses complain about, but debt that is working for you. I regularly transfer credit card balances off of cards that I don't have a balance on and go into thousands of dollars worth of debt, but that debt is on favorable terms, ie. 0% balance transfers. Then I take the account with a negative balance and request a check from the credit card company. I essentially go into debt for about $10,000 and then have $10,000 to invest for 12 months interest free. A savy investor/trader can return 20% on this over the year generating $2000 in income or about $1600 after taxes. That is just one way debt can work for you...debt is not bad in itself...ones perception reflects ones own reality.

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  • 1 decade ago

    Its like being homer simpson in the land of chocolate. You get to run and dance without a care in the world.

    I've only got the mortgage to worry about

    My mom always used to say there's a difference between needs and wants. Each of these leads to a different path along the road to financial freedom.

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  • Anonymous
    1 decade ago

    It will be boring. Because all your friends will be spending money like crazy expecting that they will be able to pay their debts in a few years when they win the lottery. You will have to tell them you can not afford to go out to dinner and a movie because you have thrown away your credit cards.

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  • 1 decade ago

    It's great! And you're right about frugality.

    You don't say how many credit cards you have, but get rid of most of them to cut down on temptation.

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  • Anonymous
    1 decade ago

    You don't get everything you want, when you want it, but it's good to know that you don't have to worry about the next bill

    in your mail box.

    People should do it more often, then they wouldn't have as much to worry about.

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  • Greg S
    Lv 5
    1 decade ago

    It feels great and opens so many doors that would have been closed before.

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  • 1 decade ago

    Debt-Free is a myth. No one has actually ever achieved it.

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