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Originally Posted by niki_the_tiger
Do you have to have $0 debt to be in the black? Because if you have a balance on your credit card, even if you are paying more than the minimum each month (but not the full balance), and have money "leftover" from your check, aren't you still in the red because of that balance?
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No, you don't have to have zero debt. No one would ever be in the black. It depends on what you're looking at. Running in the black just means that you're taking in more than you're spending. It has nothing to do with net worth. Most people and companies measure running in the black on a monthly basis or even quarterly. Running in the black also means you're not digging a bigger hole (into debt).
Like my mortgage. Because I owe a large amount my networth is negative. But since I'm able to pay my mortgage and other bills and have some money left over every month, I'm in the black.