Surviving Debt...

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I'm an extremist.
I worked 365 days a year for 12 years. Even caught and sold fish on Christmas day, many a time.
I was in the ornamental fish business.
I bought my first house in 1986. I put down 100 grand that I had saved over 13 years and financed 44 grand.
I paid that sucker off in 6 years and never financed a property again.
I never financed a vehicle.
I probably ate out 30 times in 23 years.
I never, ever, had a balance on a credit card. The only reason I ever had one was for renting a car, securing a plane ticket, or online purchases,etc.
The bastidz punish you for not having one.:mad:
Once I realized the idiocy going on in 2004 I waited for the right time and sold everything.
I mean EVERYTHING, ditched the dollar, and voted with my feet.

I moved here with a bulldog, 4 knives, digital camera,onehard drive,a backpack/BOB and 3 guns.

My advice to everyone. Plant a kickass garden, raise some small animals, and quit cutting grass.
The only thing I get from the store is paper goods, soap and crap like that.
 
Congrats TF. It's a wonderful thing to be debt free and always live within your means. :thumbup: If more folks lived that way, things might be a little different today.

Jeff
 
Just wanted to say, if your credit cards don't have a yearly fee or non usage fees, you're better off to cut them up and leave the account open. It will actually help your credit rating to have a credit card account that's 5 yrs old ( even if it hasn't been used in 4 and 1/2 years).

I'm also on this journey, I have 1 credit card ( which should be paid off this month) that we got for emergencies and had to use it last year. I also have 1 car payment, wife's car died and we had to have another vehicle so we had to finance, it'll be paid off in the next few months. After that it's just the house and the school loans.

As someone said before, pay one off and double up on another till they're all paid for.

David
 
Echo4V is correct if you are concerned with your future Credit Score.

My Wife and I (like the OP) have been on the Ramsey plan for about a year. We only owe for the house and rarely use the Credit Cards. We don't have 4 months worth of Income set aside (more like 2) but we are funding lots of different Savings type accounts (Christmas Club, Childrens College, etc).

Now, if I'm correct (as my Wife is the Guru on these matters) Mr. Ransey says to pay off the house before funding the College savings accounts - but I just can't seem to agree with that point.
 
I was taught in school that having 80-100k debt was the cost of a degree, but was OK. I was told that a 500k mortgage was the badge of "being responsible" and that as long as you could make the minimums, the bigger your credit cards the better. funny how we viewed debt just 10-15 years ago.
 
Right now I'm screwed.

Two years ago I was close to having my truck and credit cards paid off. After a major screwjob by family and having to take a month off the year before last and six weeks off last year for surgery, my cards are near max, had to trade the truck on a different vehicle or lose it, and at the beginning of the year, our company said wages were frozen and no more overtime for the forseeable future.

Oh yeah, just when I was poised for a real breakthrough this year, I got kicked down again, and get to play "Who gets paid this month?".
 
The only thing I would add to Echo is that I don't plan on using credit any time in the future - so they can kiss my debt free ass - as I don't care about my credit score! ;)

I can always get a loan personally underwritten if need be.

TF
 
I think that some of you are lucky to have been able to pay thing off early. I agree that it takes a plan and discipline. It also takes available money to start paying something extra on another bill. I don't have much extra cash after paying all the bill on my own.

I'm divorced, had to get a second mortgage to pay for all the crap I had to pay for in the divorce. Now, with the horrible housing market, I owe $24k more than my house is worth. I'm stuck until the market picks up. I only have $8k left of student loans to pay.

I do have a plan, though, I can't even start until I sell the dang house. I won't be in this situation again.
 
YO!

If you guys listen to Dave's Show today - you are going to here me on there!!!!

I got through on the first call, had Dave Click the button with me to pay of Sallie Mae and THEN he gave me two tickets to see him in Houston in a few weeks!!!!


I can't believe it!

TF
 
Bushman5 said:
Debt Killer letter
Click to expand...

I am a bit confused as to what this is supposed to achieve. If I have a credit card and use it to buy stuff then would I try to use those letters to get out of paying the CC debt? If so then that seems very wrong - if I owe money then I would work at paying that money, it seems wrong to get out of a legitimate debt.
 
Some people don't see things the way that you and I do Gadgetaholic. You agreed to the terms, got the card, then bought stuff on it. You are obligated to pay. Some people will always look to get out of their responsibilities. That's why you hear so much about credit counselors and negotiating your debt. "It's not my fault. I was tricked!"
 
Echo4v said:
Just wanted to say, if your credit cards don't have a yearly fee or non usage fees, you're better off to cut them up and leave the account open.
Click to expand...

Don't be surprised if they close it for you. Last summer my "extra" card that I hadn't used in over 2 years, did.

Sent me a nice letter about how they were cleaning house so to speak and closing down "non-profitable" accounts.

Being called "non-profitable" by a credit card company is kinda fun! :D
 
Why all the hate for credit cards? Please tell me if I'm missing something, but I have 2 that I use- one gives me between 1-3% rebate and the other gives me flying "miles". I use them for all my normal spending from the grocery store to the gas station and even use them where possible to pay bills. Neither one has any annual fee and I pay them off every month so I don't even know what the interest rate is. This seems like all to the good for me, plus it's convenient- what would I gain by getting rid of these?

BTW, Congrats TF! I still owe more than I like on my house (but less than it's worth) and only have 3 months savings, but everything else is paid off. The only way to live in my book, though it did take a while and some discipline to get there.

Is that guy really trying to say that Christ died for my credit card bill? Plus I believe that your signed credit card application + a signed credit card slip from when you charged merchandise pretty much demonstrates your liability. And then there's just the fact that it's the right thing to do!

Really trying to wrap my head around how someone can quote scripture to advocate not paying your debts!!!
 
MVF said:
Why all the hate for credit cards?
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The people that dislike them, which includes me, recognize that one is more likely to spend more with a cc than when using cash or debit, because there is less "pain" to the transaction. Its as if one is not spending real money. The opportunity for fraud is there too, which many of us have experienced when an unauthorized charge appears on the account. Plus, cc companies have a well earned reputation of being slimewads in the customer service area.

But mostly, I think its that when one has a strong aversion to debt, one will shun the means by which debt is accumulated.

Mrs. Powernoodle and I have done the Dave Ramsey thing, though informally and not via a class. We have zero debt, including the house and cars and everything else. I'm about to buy a new or like new vehicle, and we'll pay cash for it.

Once you get debt free, you don't want to go back, which is why some folks avoid credit cards. Every time you use one, you are borrowing money.

JMO. :thumbup:

Really trying to wrap my head around how someone can quote scripture to advocate not paying your debts!!!
Click to expand...

Who did that?
 
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MVF,

Thanks.

Two points.

1) Credit Cards are not evil IF (and this is the if most humans cannot control) you use them in a way they hate you to use them. If you NEVER carry a balance and simply use them in the way that makes sense - you can do it.

Most humans SAY they will do it this way - but do not. They say they do - and never check what they pay in fees and interest. It is just better for the vast majority of people not to start.

2) I think you really missed the point somehow on his religious message. He talks ALL THE TIME about NOT claiming bankruptcy and paying off what you owe. Again, I don't believe what he believes - but if you look at what Jesus says about money - he even says you can either worship God, or money - not both. I tend to agree - money tends to control the human - and not the other way around. His whole point, from what I can see is this:

Proverbs 22:7 The rich rule over the poor, and the borrower is servant to the lender.

Just don't get into debt - there is no reason to. The right thing to do is to live debt free, help others, and be happy. How is that a message I can't get behind.

TF
 
Congratulations! We've pretty much always lived debt free except for a mortgage, which will be hopefully history soon. I married a low maintenance woman, and I am too, so it's really easy for us to live way below our means, which is what we're accustomed to. We don't even think about it. Our neighbors have lots of toys, I'm glad I don't... Except knives, of course! :)

I forgot to say, I love credit cards! Saves me a TON of money in postage every month. I just pay them off every month instead of having to send checks everywhere.
 
I use the cc for EVERYTHING !! I don't owe anyone- own my homes - cars and everything. Plus- I get paid to use my cards. Pay them off monthly ( zero fees) - put all my biz expenses on them and get cash. I was on vacation traveling over 130 days last year and used the cards worldwide while I traveled. Don't belive in debt- love to spend- am 58 years old and semi retired. Just don't spend what ya don't have. Pretty simple- if ya don't have it- don't spend it. Avoids lots of problems. Life is good-Thanks
 
The reason I make little kits, leather goods, and things to sell is to fund my little habit.

I sell what I don't use and buy more!

TF
 
i've been in and out of debt a couple times.

it's okay to be out of debt, but IMHO most times you don't make big leaps ahead without risk, especially when you are in business for yourself.

vec
 
Congrats on paying off the debt. You will now be able to really accumulate wealth. Just don't fall for any complex investing strategies.

I equate money with freedom - I retired at 50. I always hated debt and only have had mortgages.

For some, credit cards can be like alcohol to an alcoholic. They can not drink/buy in moderation. Generally, it is true that people do spend more when they have a credit card. It is similar to what is done in Las Vegas. They do everything they can to make money not seem like money.
 
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