How many of us are 100% debt free?

[Folio Explorer]

Is 100% debt-free always important?

Can I pose a similar question: Is 100% debt-free always the highest priority, or is some debt (mortgage, student loan) reasonable and prudent?

For instance, I would not advise a 18 year old to *never* go into debt. Instead, I would advise them on responsible and irresponsible debt.

[Blessed]

Can I pose a similar question: Is 100% debt-free always the highest priority, or is some debt (mortgage, student loan) reasonable and prudent?

For instance, I would not advise a 18 year old to *never* go into debt. Instead, I would advise them on responsible and irresponsible debt.

I guess it depends on your goals and priorities. At my age of 43 as we are looking towards retirement no debt is a high priority. I told my kids to never go into debt for depreciating items.

[sam042013]

Still not debt-free here.

[phantom]

Can I pose a similar question: Is 100% debt-free always the highest priority, or is some debt (mortgage, student loan) reasonable and prudent?

For instance, I would not advise a 18 year old to *never* go into debt. Instead, I would advise them on responsible and irresponsible debt.

Personally, I think that some types of debt can be reasonable and maybe even prudent. As long as the person taking the debt has a reasonable expectation of being able to pay it back and is getting something of value for it, debt has the potential to be okay in my book. I wouldn't tell an 18 year old never to take on debt, but I would definitely caution him to limit how much debt he takes and to always consider other options.

To me, what makes being 100% debt free cool is that it's never really a bad position to be in. Sure there are times when people can decide they'd rather have debt and whatever it buys them than not. They might even figure that they are likely to come out ahead in the long run by taking on debt. But, it's hard to say that not having debt is ever a bad thing.

I'm not 100% debt free myself yet since I still have a mortgage. If being 100% debt free was my highest priority, I'd sell my house and buy something less expensive or rent. But, while I would love for my mortgage to be gone, I love the idea of keeping my house even more.

[JoeP]

When you're 18, cash flow is generally low. For that person, buying a car with cash would probably mean having to deal with poor reliability, poor mileage, possible safety risks, etc. That 18 year old taking out a car loan gives a form of "insurance" in that those issues would be lessened.

Hopefully, that first car purchased with a loan can be paid off fairly quickly to minimize interest paid, was maintained, and has enough residual value to be used in conjunction with saved cash to purchase a good replacement.

[Blessed]

When you're 18, cash flow is generally low. For that person, buying a car with cash would probably mean having to deal with poor reliability, poor mileage, possible safety risks, etc. That 18 year old taking out a car loan gives a form of "insurance" in that those issues would be lessened.

Hopefully, that first car purchased with a loan can be paid off fairly quickly to minimize interest paid, was maintained, and has enough residual value to be used in conjunction with saved cash to purchase a good replacement.

Our kids used our cars in high school and worked their buns off to save for their cars and they were decent. My 20 year old drives a paid in full 2008 Eclipse he bought gently used this year. It is a sweet little car. (insurance is high but it is his $) He traded in his first car and added the cash he saved in the couple years he drove the first one. Voila paid in full. It can be done but it certainly is not the easy road.

Ideally like you said one should be able to save up cash and trade in their car. I think that is much harder when you already have a car payment. Too many people get on the car payment merry go round and never get off.

[MoneyTips4U]

Disregarding the fact that America is $17 trillion in debt, according to a debt resource, more than half of Americans are in debt because of mortgages, while about %70 of Americans are in debt because of credits cards.

If you disregard the fact that our taxes try to pay off America's debt, then there are definitely people who are 100% debt free.

I know I am (Did I mention America is $17 trillion in debt already?).

[shaggy]

Disregarding the fact that America is $17 trillion in debt, according to a debt resource, more than half of Americans are in debt because of mortgages, while about %70 of Americans are in debt because of credits cards.

If you disregard the fact that our taxes try to pay off America's debt, then there are definitely people who are 100% debt free.

I know I am (Did I mention America is $17 trillion in debt already?).

I read that a big percentage were in debt from medical bills as well.