Paying off debt

[VegasMichael]

Maintaining debt, to build a credit score, to apply for further debt is, in itself, a silly cycle. However, it's the American Way...

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But as long as you're efficient at paying cards off each month you aren't really accruing debt, you're just waiting a month to pay for today's purchase. The only way I was able to obtain a house and a car was having a good credit rating which was built up by using and paying off cards and other bills and not owing anything. I never had any student loans(thanks, Dad) so I wasn't able to do it like you did but I see how you're doing it.

 

[VegasMichael]

No credit rating? Go here... No Score Loan

Everyone chases the almighty credit score, just so the can go farther in debt, to get a better score, just to borrow more money....don't be slave to the lender.

I never went into debt to get a great credit score. I just dutifully paid my bills each month and was never late. I always paid the balance every month on my cards as well.

 

[ford fanatic]

I never went into debt to get a great credit score. I just dutifully paid my bills each month and was never late. I always paid the balance every month on my cards as well.

I get what you are saying, and this is always the mentality. I gave you a link to a no score mortgage lender, and you can save to buy a car with cash. You don't need a credit score.

 

[nickf2005]

But as long as you're efficient at paying cards off each month you aren't really accruing debt, you're just waiting a month to pay for today's purchase. The only way I was able to obtain a house and a car was having a good credit rating which was built up by using and paying off cards and other bills and not owing anything. I never had any student loans(thanks, Dad) so I wasn't able to do it like you did but I see how you're doing it.

I think staying up to date on utilities, cell phone, etc also feed into credit score. End of the day, one could walk into a local credit union and make a viable case to get a loan at a competitive rate with a "bad" credit score.

Debt:Income

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[FIVEHOE]

I go back and forth between what I consider a healthy balance of debt to income to investments. In my opinion, we're on this planet to enjoy our lives. Unfortunately for most, making money is a requirement to enjoy your life. BUT, whats the fun of saving every nickel of you ever earn if you could literally die at any minute?

Let's say for example you make over 200k a year in your early 30's. Very stable career (even during corona), nearly quarter mill in stocks (not including retirement), 200k equity in home. Do you NEED an 750k-900k home? No, but maybe you want to live in a nicer area closer to the beach. Do you NEED a 100k car? No, but if you're making nearly $20k a month, what does $5k a month in expenses really matter in the long run? So long as you have a healthy savings/investments/retirement, live it up. Everyone's situations different, but thats how I look at it.

 

[CompOrange04GT]

I go back and forth between what I consider a healthy balance of debt to income to investments. In my opinion, we're on this planet to enjoy our lives. Unfortunately for most, making money is a requirement to enjoy your life. BUT, whats the fun of saving every nickel of you ever earn if you could literally die at any minute?

Let's say for example you make over 200k a year in your early 30's. Very stable career (even during corona), nearly quarter mill in stocks (not including retirement), 200k equity in home. Do you NEED an 750k-900k home? No, but maybe you want to live in a nicer area closer to the beach. Do you NEED a 100k car? No, but if you're making nearly $20k a month, what does $5k a month in expenses really matter in the long run? So long as you have a healthy savings/investments/retirement, live it up. Everyone's situations different, but thats how I look at it.

That’s why I put my house on the market and bought a gt500

a house is a house. I don’t enjoy a house. I sit in it and sleep in it.. as long as it’s mediocre I’m good. I thought I needed the nice house and built one 3 years ago... wasn’t worth it AT ALL


Now a car.. I want to enjoy that.

 

[nickf2005]

I go back and forth between what I consider a healthy balance of debt to income to investments. In my opinion, we're on this planet to enjoy our lives. Unfortunately for most, making money is a requirement to enjoy your life. BUT, whats the fun of saving every nickel of you ever earn if you could literally die at any minute?

Let's say for example you make over 200k a year in your early 30's. Very stable career (even during corona), nearly quarter mill in stocks (not including retirement), 200k equity in home. Do you NEED an 750k-900k home? No, but maybe you want to live in a nicer area closer to the beach. Do you NEED a 100k car? No, but if you're making nearly $20k a month, what does $5k a month in expenses really matter in the long run? So long as you have a healthy savings/investments/retirement, live it up. Everyone's situations different, but thats how I look at it.

You're right, it is a balance. However, I'd lean towards the possibility of leaving my boy a fat stack of cash if something happens within in the next 15 years and burning money like it's my new job in retirement at 55/60. Versus, incremental gains now. I get what you're saying though.

I feel like we play the game well. Nice house, adequate toys, moderate vacations, etc. However, we'll (hopefully) enjoy that 2k or so a month surplus much more later down the road when it's double in size.

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[FIVEHOE]

You're right, it is a balance. However, I'd lean towards the possibility of leaving my boy a fat stack of cash if something happens within in the next 15 years and burning money like it's my new job in retirement at 55/60. Versus, incremental gains now. I get what you're saying though.

I feel like we play the game well. Nice house, adequate toys, moderate vacations, etc. However, we'll (hopefully) enjoy that 2k or so a month surplus much more later down the road when it's double in size.

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ahhh yeah I definitely see that. Me and my girlfriend don't plan on kids so thats probably why I lean more of the way I do. I ain't got anyone to leave it to when I'm gone, so might as well enjoy it.

 

[nickf2005]

ahhh yeah I definitely see that. Me and my girlfriend don't plan on kids so thats probably why I lean more of the way I do. I ain't got anyone to leave it to when I'm gone, so might as well enjoy it.

End of the day, you have to save/invest or work until the day you die (whether that's 40 or 90) We choose save it heavily, in hopes that we'll remain safe and healthy and can retire at 55ish.

Thats 20 years away and anything can happen. We'll see.

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[C2tuck]

I agree cash is king and buying outright is the way to go, but I still use credit cards and pay them off in full every month. Main reason is it’s easier for me to split business and personal expenses for my CPA at the end of the year, plus you generally get much better purchase protection with a CC verses a debit card. I’ve had my debit cards and credit cards get hacked before...when it’s a debit card it’s my money missing...when it’s a CC it’s their money missing.

I’ve also had hotels and rental agencies that MADE you use a credit card.

 

[ford fanatic]

I go back and forth between what I consider a healthy balance of debt to income to investments. In my opinion, we're on this planet to enjoy our lives. Unfortunately for most, making money is a requirement to enjoy your life. BUT, whats the fun of saving every nickel of you ever earn if you could literally die at any minute?

Let's say for example you make over 200k a year in your early 30's. Very stable career (even during corona), nearly quarter mill in stocks (not including retirement), 200k equity in home. Do you NEED an 750k-900k home? No, but maybe you want to live in a nicer area closer to the beach. Do you NEED a 100k car? No, but if you're making nearly $20k a month, what does $5k a month in expenses really matter in the long run? So long as you have a healthy savings/investments/retirement, live it up. Everyone's situations different, but thats how I look at it.

The struggle is real...

 

[rborden]

IMO Ramsey is full of horse shit. He had to file BK on bad decisions. Therefore, I won't listen to his dumb ass.

Well, your opinion is unfounded because it is apparent you don’t know the whole story of what happened that caused him to file bankruptcy. If you bother to listen to the show he tells you what happened and he also owns it. He’s very humble about what happened.


The Tax Reform Act of 1986 played a huge part in his financial downfall as did Black Monday of 1987. That’s what led to banks calling notes early. They got jumpy about home values and the instability of the market. Not anything Dave Ramsey did or didn’t do.

Would it be fair for someone to say you’re full of shit if your bank called your house note tomorrow for no reason? How about your car note? Your credit card? And then if you had to file bankruptcy. But from the sounds of it you must be PERFECT or something. Maybe you’re Jesus Christ reincarnated.


Dave Ramsey had been up to date on EVERY one of his payments. He made $250K a year, He had real estate loans of $4 million that was current and on time, but the bank was purchased by someone else who called in the note without any warning whatsoever and as a result he lost everything. That could happen to anyone.

Where was the bad decision? He wasn’t late on any payments. He never defaulted on his loan or payments.

Dave used his situation to start over and help people avoid debt. In the process he made money doing it.

Living debt free is a concept I never thought possible until I started following his 7 Baby Steps program and his debt snowball program. His Financial Peace University class was very eye opening and it showed me how to live my life without debt and monthly payments. His program is phenomenal. It works. It is 100% a game changer and a life changer.

For the first time in my life I don’t owe anyone a dime and I wouldn’t hesitate to recommend it to anyone looking to get control of their financial situation.

 

[rborden]

It is possible for SOME woman to handle bills and financial aspects. But honestly IMO the men should handle most things. I see too many women blowing cash on real STUPID bullshit.

Wrong again.

In a marriage, both the husband and the wife should be included in the finances and financial decision making processes.

There should be open communication between husband and wife, there should be a budget followed by both together and any other financial decisions are talked about and agreed upon.

Marriage is a “TEAM EFFORT”, not this chauvinistic caveman view of the world you like to project with this “Well the men should handle most things” crap.

When you have that approach all you do is handicap your spouse. When you die earlier than expected, she has no idea where the money is going, who gets paid what or what the money is going for.

If you don’t have proper life insurance, you further ****ed her because now she’s burdened with selling everything and hoping to survive and she has no place to live.

So maybe just stop talking out your ass. You archaic worldly views are asinine and incompetent at best.

 

[rborden]

How do you get by not having a credit card? How would you rent a car or a hotel room?

Debit cards
Avoid debt, save cash.

You can manually have a mortgage underwritten by Churchill mortgage without a debt score.

You’ll need 2 years of stable job history and income and 2 year’s of on time rent payments and 20% down.

They’ll want your checking account statements to look at your spending habits. The interest rates are a little higher too but it can be done.

Also, a credit score is actually just a debt score.

 

[mikecobra01]

Debit cards
Avoid debt, save cash.

You can manually have a mortgage underwritten by Churchill mortgage without a debt score.

You’ll need 2 years of stable job history and income and 2 year’s of on time rent payments and 20% down.

They’ll want your checking account statements to look at your spending habits. The interest rates are a little higher too but it can be done.

Also, a credit score is actually just a debt score.

As Dave Ramsey says, a credit score is just a score that shows how great you are at giving your money to other people.

I’m slowly working on our finances, so we can have a much better life in our 30’s than what we experienced in our 20’s. It’s a tough concept to grasp, but totally worth it.

 

[MG0h3]

Don’t understand the CC hate.

I get all kinds of points and it’s just stuff I’d buy anyways.

They get paid in full every month.


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[2000GTSTANG]

A CC is a necessity now-a-days. I’m done using my debit card for everyday purchases just so the number can get stolen and used by god knows who.

 

[BlckBox04]

Don’t understand the CC hate.

I get all kinds of points and it’s just stuff I’d buy anyways.

They get paid in full every month.


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people who get jammed up in cc debt don’t understand how to use them. And you guys can say anything you want about cash is king, when reality is unless you have millions in the bank, you need credit to get credit.

 

[nxhappy]

Wrong again.

In a marriage, both the husband and the wife should be included in the finances and financial decision making processes.

There should be open communication between husband and wife, there should be a budget followed by both together and any other financial decisions are talked about and agreed upon.

Marriage is a “TEAM EFFORT”, not this chauvinistic caveman view of the world you like to project with this “Well the men should handle most things” crap.

When you have that approach all you do is handicap your spouse. When you die earlier than expected, she has no idea where the money is going, who gets paid what or what the money is going for.

If you don’t have proper life insurance, you further ****ed her because now she’s burdened with selling everything and hoping to survive and she has no place to live.

So maybe just stop talking out your ass. You archaic worldly views are asinine and incompetent at best.

I'm sorry who the **** are you? I've never even seen you here?

Obviously you don't know how to handle the money, or a business for that matter. So go **** yourself.

 

[nxhappy]

As Dave Ramsey says, a credit score is just a score that shows how great you are at giving your money to other people.

I’m slowly working on our finances, so we can have a much better life in our 30’s than what we experienced in our 20’s. It’s a tough concept to grasp, but totally worth it.

I don't listen to Ramsey. that ****er went BK pretty early in life.