Doesn't Anyone Here Want to Be Debt Free???

[vsjhoc]

... Dad could remarry later ... anyone remember Anna Nicole Smith?

[disneysteve]

My mother speaks frankly about leaving money to my brother and me.

There is a big difference between discussing it and expecting it. I know every detail of my mother's finances and I'm involved in pretty much all of her investing decisions. I also hold a copy of her will. I know that I'm pretty much the sole beneficiary. My cousin gets a small portion of her estate.

But in no way am I counting on that money or including it in any of my retirement planning. I'm 43. A lot could happen between now and then. Most likely scenario, my mother could require extended care. She has LTC insurance, but it won't cover all costs if she ends up in a nursing home. Her sister has been in a home for many years. I'm quite sure any savings she had are long gone. At $60,000/year or so, it doesn't take long to burn through a big chunk of change.

[mariogreymist]

Very true. It does figure into some levels of decision making, but not those that affect long-term financial stability. She could live to be 100 or die next week. In the former instance, not only will I be 70 when she kicks, she'll probably have spent every dime for long-term care. Either way, I don't want to wait until I am 70 to realize my financial goals.

I was really just pointing out that some families don't consider this discussion ghoulish. My mother is in fairly poor health and she has talked to me about whether I would take her condo if she died. A lot of people would be offended at that story, but she was really just trying to figure out whether to renovate both the bathrooms or to just do the one she uses. She figured if my bro and I were selling, she should just do the one.

[Joan.of.the.Arch]

FinWhiz, is it ALL types of debt that you are opposed to, or is it only credit card debt? If ALL debt angers or disgusts you, did your aversion occur after you took on your mortgage debt? If before, why did you compromise to incur that much debt.? A mortgage debt is usually very large.

Do you prepay your your utilities expenses, or do you wait until the bill arrives? If you wait until the bill arrives to pay for your electricity, oil, natural gas, and water, haven't you been in debt over that month?

If debt truly bothers you, I bet these utilities would be happy to accept your money before you use their product. They might not even mind if you pay them daily. Go to their office eveyday with cash and pay. But if you used their product on October 5 and it is now October 31 and a bill is soon due, then you have been in debt all that time!

My credit card is the same way. I get the product one day, I send in all the money a few weeks later. I don't turn on more lights just because I don't pay at the gas meter daily on the side of the house but wait for a bill. Likewise, I don't buy excess food, clothing, cleaning supplies, toiletries, etc just because I'm using a credit card. The ability to pay later does not make me consume more electricity or potatoes. Get it?

If you do not wish to consider your utility bills debt because you always, always pay them as soon as the bill comes, then that is okay with me. After all, I do not consider my credit card to be debt since I pay for it as soon as the bill comes. I am just as able and responsible about paying the credit card bill as I am able and responsible about paying for my electricity, natural gas, and water.

Further, I would like to know if you have ever had credit card debt. How did you get to the point where you feel so strongly about it that you would carry the prejudice that the posters here act like suicidal lemmings?

You are implying that we use credit cards because everybody else does. (Well, no. Before I had a rebate CC, I hardly ever used my CC. Now I have a reason to use it for as many of my expenses as I can. It is a rational decision. If the rebate feature goes away, I will stop using it like this as the negative aspect of CC use will have become a relatively larger factor. For instance, I don't actually like the ability of a bank to track my every expenditure.)

And-- Finwhiz, do you see no difference between A) using a credit card to purchase what one has the money in the bank to pay for and then paying off the credit card at the end of the month and B) using a credit card to make purchases for which one has not planned by having the money in the bank?

[Broken Arrow]

I was really just pointing out that some families don't consider this discussion ghoulish. My mother is in fairly poor health and she has talked to me about whether I would take her condo if she died. A lot of people would be offended at that story, but she was really just trying to figure out whether to renovate both the bathrooms or to just do the one she uses. She figured if my bro and I were selling, she should just do the one.

I think there's just a subtle distinction that bears clarification here.

Your mother is in poor health. She's consulting you in matters regarding estate. I think that makes perfect sense.

To clarify, I think what bothered me was that I had interpreted some sense of entitlement in the original comment. The exact quote was "and will also have a sizeable inheritance if something were to happen to my father." It's as though, if nothing else, he expects his father's money to be there later on to provide some kind of financial cushion, or, "My daddy's money will protect me."

Again, at least that's how I interpreted it. As Steve said earlier, it's one thing to plan for these contingencies, but it's another to expect it as though it's some form of entitlement. And to me, that's not only financially fool-hardy, but also rude.

[mariogreymist]

Most people who have relatively sizeable inheritances coming know it. Some consider it some kind of entitlement, and most who do will blow through their inheritance like they just won the lotto. Some of us think of it more as a likely safety valve financially speaking. The basic difference is whether or not we have a plan beyond, "I'm gonna buy a house and a cool car and all these toys!" Those of us that can expect an inheritance would be well advised to know how to handle a large cash influx ahead of time. Half the people that get big inheritances blow them within 5 years. One key to not doing that is to have made the decisions now, rather than when in the distress of just having lost a loved one.

My mother learned this the hard way. My dad died in 2000, and she went on a spending spree involving a brand new Jaguar and several cruises over the next year. After that, 9/11 happened and the stock market was in bad shape. Her response? Fire the finanacial manager that had built my dad's portfolio from several hundred thousand into ~3m over 15 years and hire some guy who promised the stars. Now she's back with the original guy and over 1m poorer for her lack of planning and penchant for making big decisions while in a bad state of mind.

[LivingAlmostLarge]

Guess if we're talking millions. But personally I find that counting on money is weird. I understand financial planning for the future, but counting on money, it's crazy.

I commented because FinWhiz sounded very assured a nice retirement. It's tough call nowadays considering how much long term nursing care can cost.

[mariogreymist]

Guess if we're talking millions. But personally I find that counting on money is weird. I understand financial planning for the future, but counting on money, it's crazy.

I commented because FinWhiz sounded very assured a nice retirement. It's tough call nowadays considering how much long term nursing care can cost.

I guess the way I look at it is: I prepare through my own actions to have a comfortable retirement. I hope to have a very comfortable retirement, and a failure to do that will not be a result of bad planning of what to do with my (very likely) inheritance. I actually had a talk with my Mom on this last night, spurred by this very discussion. She actually has certain eventualities covered (long-term nursing insurance) that I did not entirely expect. (I thought her poor health would have disqualified her)

[FinWhiz]

What I think you ought to find more interesting is that almost all posters here think you are an arrogant, self-righteous twit.

Why thank you!

[Joan.of.the.Arch]

Quote:
Originally Posted by mariogreymist View Post
What I think you ought to find more interesting is that almost all posters here think you are an arrogant, self-righteous twit.

Why thank you!

Actually FinWhiz, I would prefer if you would be more conversational --participate in the give-and-take discussion, both answering & asking questions within this thread, pointing out nuances, setting out reasons, and answering objections. When one has a point to make or something to teach it works better if you explain rather than shoot arrows, or blurt out declarations.

[debtfreecb]

I am responding to the original posting in this thread of exchanges. . . I am to date not debt free and and one of the folks you refer to as steeped in some debt. I take some offense to the sort indignant tone of your posting. We're human and make mistakes. I made mine and now I'm working hard to pay off my debt. My mistakes managing my credit have given me a new perspective about what is precious and matters. Fortunately for me, with determination and a consistent snowball reduction plan, I will be out of debt in 4 years. Please be careful not to pity me or pat yourself on the back here for not having debt.

I believe this community forum is extremely supportive and mostly wise about their use of money. For some of us, this site is where we come to receive ongoing support and stay focused on what we need to do so be careful not to JUDGE.

[loanstar]

am sure everybody would love to live debt free but some things are really essential and credit or loans is sometimes the only solution..

[finsub]

payday loans

what is a payday loans? and is it good for people with bad credit?
please pm

[disneysteve]

what is a payday loans?

Payday loans are predatory lending scams that prey on folks with no bank accounts and poor credit. Basically, it is a cash advance against your next paycheck. You pay a fee plus interest, perhaps $10/$100 borrowed up to 14 days. If you don't repay the loan after 14 days, you can roll it over for another fee. Do this 3 or 4 times and you can pay $40 to borrow $100. The interest rate is typically 300% or more!


Here's what the FTC has to say about these "deals":

http://www.ftc.gov/bcp/conline/pubs/alerts/pdayalrt.shtm

[Ima saver]

Payday loans are one of the worst things anyone can get. Please don't ever consider it!