It makes me a little ill reading some of the comments from conservatives on the necessity of personal debt (”but I get 2% cash back!”). I’m not going to check past posts to see if these same Freepers are complaining about government deficits, but I suspect some have.
We’ve been working the Total Money Makeover since late 2009 and will be debt free but the house next year. The house should be paid off 5-6 years after that.
I will never again owe a dime to a bank EVER.
“Weve been working the Total Money Makeover since late 2009”
I will hit my 5 year anny next month....
” and will be debt free but the house next year.”
You will love the peace that it brings to your life. However, be warned, for me there was a bit of a lull. I found that I was so excited watching the debt decrease that somehow I was not getting that same excitement watching my savings grow. It took a few months and finally the same level of excitement returned.
“The house should be paid off 5-6 years after that.”
I’m on pace to only have 21 more months. It is almost time for me to start planning my mortgage burning party.
;-)
Hmmm, maybe you are referring to another thread?
I did a quick check, and didn't see anyone advocating personal debt. But maybe I missed one.
Personal credit is a lot different from debt. Using credit responsibly can make life much simpler, and profitable.
For instance, we use credit card rewards to effectively discount every purchase by 1%. We have no debt, because we pay off the credit cards -- in full -- every month.
The interest rate doesn't matter, because we don't pay any. We pay no annual fees, except on one that gives me a free benefit every year that is worth up to double the annual fee.
Is there a temptation to over-spend? Sure. But, a little self-discipline goes a long way. Applications like Quicken to manage your personal finances really help, too... Once it is set up, you can look out a couple of months and instantly know whether you are charging more than you can pay when the bill is due.