|02-23-2012 03:12 PM|
I am working on a debt reduction plan myself...and if all goes smoothly, I may be debt free in 2-3 years. That includes Jeep paid off, all credit cards paid off, IRS paid off (perks of being 1099'd and not being responsible enough to take out money to cover taxes).
My reason isn't because I feel I must live debt free...but my debt to income ratio is terrible and because of that it's killed my credit. I want to be able to rent/buy my own place whether I have a roommate/girlfriend/wife or not before I'm 40...and if I'm gonna buy I'm gonna need to fix my credit and have lower payments so I'm not struggling to make a mortgage payment.
Not everyone has the option of being debt free all their life...and not everyone makes enough money to afford the things they dream of owning without taking out loans/credit cards. We only live once...if you want to own a lifted Jeep and take it out mudding every weekend before you settle down and get married (because face it...not everyone is lucky enough to have a wife that is supportive of dumping tons of money into a vehicle so it'll go through the mud easier and get worse gas mileage in the process), what's wrong with incurring a little debt to live that dream. For many people, if they don't, they never will get that opportunity later in life. And that's the crappy part about life...you can't go backwards, only forward. Once your opportunity is gone, it's gone.
Of course you gotta be reasonable with your debt...if you can't afford to make the payments on it, then you certainly shouldn't take that debt on. Bankruptcy isn't the right way to deal with it. And while paying all that interest is bad for you, it's helping the financial institutions out...and whether you agree with the bank bailouts or not (I don't), any time a business is bringing in money, that's a good thing for the economy. I know, I know...we can get real political and argue a million different exceptions, but OVERALL, it's a good thing for business and as long as you can afford the payments, it's not going to destroy your life.
|02-23-2012 05:31 AM|
|denisbaldwin||kozmos - I've moved to that way of thinking over the last few years. All of my vehicles are paid off. My wife's 2010 Mazda3 is at 0% and will be paid off in the next 11 months. Our house should be paid off in the next 2-3 years (and is at a really low rate). I don't like keeping credit debt either.. no sense lining someone else's pockets when I could be using that money to line my Jeep's tub with plasticoat|
|02-22-2012 10:32 PM|
|kozmos||Don't understand America's fascination with debt. Wife and I ate a lot of ramen & beans to payoff her student loans and my cc debt. That was 14 years ago now we only owe a small bit of 0% loan on the Jeep & Subaru and that is it!. Our ultimate goal was the house, paid the house off end of last year. If I don't have the money, I save then buy it.|
|02-20-2012 07:44 PM|
|Kevinm2467||I owe nobody a penny. Except for all the normal bills like rent, power, water, cable and cell phone and damn if groceries aren't expensive as heck. That's like more then my rent|
|02-20-2012 07:39 PM|
|02-20-2012 07:31 PM|
|desertgoose||Guess I'm kinda lucky then. No debt since I got divorced. Maybe that's why I'm so much happier now...|
|02-20-2012 07:31 PM|
|nick50471||To each his own. I will continue to live within my means.|
|02-20-2012 06:39 PM|
I was the other member who did it...overall, I don't regret the decision. Was it the smartest thing I've ever done? Certainly not. But IMO it's smarter than taking out a ton of money in student loans only to graduate and realize there are few good jobs available right now that pay more to college grads. And that's what almost every parent is pushing their kids to do these days.
My best friend is dealing with it now. His wife just spent the last 5 years in college full-time. She finished and now is still working the same factory job because there are few openings in her field and those openings that are aren't paying much more than she's making in the factory. So now she's making the exact same amount of money as before, but she's paying an extra $481/mo for the last 5 years of knowledge she obtained and hasn't been able to put to use. My friend was forced to change jobs. He was managing a detail shop making decent money with tons of growth opportunity that is about to grow considerably in size once their investment deal they're working on is finalized. Due to the bills still needing paid, he had to go back to selling cars at his old job even though the money isn't as steady but as long as he busts his ass, he makes more than he currently does at the detail shop. Unfortunately, he has limited growth potential selling cars, but at the detail shop, he was already guaranteed a large raise as well as being put in charge of all the shops in the area once their investment deal went through. That deal was in the final stages and wasn't just one of those, "IF we get this guy to invest, we'll give you a raise!" type of deals. He was also forced to relocate to a cheaper home because they can't afford their rent at their current place anymore with the student loans beginning to come out.
My debt... $50/mo currently until this summer at which point it'll be closer to $100/mo. That's about 1/3 of most people's car payments. And that's not too bad considering I've put half the financed cost of my Jeep onto that credit card. I'd say it's no more dumb than most other people's decisions.
Plus going to college never got his wife laid...I can't say the same about my Jeep (even if she was a little crazy...lol).
|02-20-2012 05:31 PM|
|02-20-2012 05:15 PM|
|mfaas88||The majority is student loans. So I'm not pit there spending money everyday. Just sharing|
|02-20-2012 04:38 PM|
I am sorry I do not see the humor in this. Call me a buzz killer or whatever. Another member on this forum maxed out his credit card to lift his rig and didn't care what anyone thinks.
IMHO. This cavalier attitude about spending money freely without regard is how our economy ended up in the position it is.
|02-20-2012 04:27 PM|
|mfaas88||That's right. That's including every dime of debt i have. Less than half is my jeep|
|02-20-2012 04:24 PM|
|02-20-2012 04:21 PM|
|PTWarrior66||I hope that 85k is for everything not just your Jeep.|
|02-20-2012 02:17 PM|
I figured go big or go home. Still have student loans and credit cards to pay off but hell, how often can you make it work to drive a brand new special edition wrangler off the lot with 24 miles on the odometer? "
|02-20-2012 02:15 PM|
|greenjeepgurl87||I'm still a good 15k in debt. I think|
|02-20-2012 02:14 PM|
|denisbaldwin||I'm not in debt yet.. thankfully mine is paid off. Then again, if I go nuts on an engine build for it...|
|02-20-2012 02:12 PM|
|02-20-2012 02:10 PM|
I have found that out. If I add everything up.....I'm in for 85K of debt. ..
|02-20-2012 02:01 PM|
Absolutely. You didn't know jeep stands for Just Empty Every Pocket?
Well now ya do!
|02-20-2012 02:00 PM|
In Debt up to the eyeballs but loving it
Anyone else have an insanely high amount of debt due to their jeep and a few other factors but don't care because keeps rock!