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.