Were you ever in debt?

**Broken Arrow** · 06-28-2009, 04:04 PM

Oh yes, I was most definitely in debt once. Back when I was married. I admit I had that same attitude as your friend there. What's another X amount? My ex had the same attitude too. Still does I think.

But it all changes when you seriously try to pay it back, and realize just how tough it is to climb back out, as opposed to sliding down.

What's another X amount? An easy way to stay poor for much longer.

**GREENBACK** · 06-28-2009, 05:25 PM

An old saying with politicians goes: "a billion here, a billion there and soon you're talking about real money"(joke). I think the mindset of few more dollars gets exponential with the amount described.

**maat55** · 06-28-2009, 05:28 PM

At my worst I had:

A car note 14k
HEL 8k
CC 5k
Bus,CL 5k
Acc. settlement 7k

After beginning to listen to DR, I paid down these debts to about 28k, sold my house getting 40k in equity, paid off all debt and used the rest to get in my existing home.

Instead of doing the right thing I financed my truck. After coming to my senses, I quickly paid off the truck, built my EF and have been debtfree since(other than my mortgage).

**Seeker** · 06-28-2009, 05:56 PM

Most people are in "debt" at one point or another. Especially if you count a mortgage.

I understand education debts, medical debts, auto debts, and mortgage debts. These are usually non-reoccurring debts that many of us take on according to our needs at the time.

If your question is about CC debts, then my answer would be "no." I pay my total complete balance due each and every month. I've never not done otherwise.

If I don't have the money already in the bank, then I am not supposed to have that item (whatever it is). It's that simple for me.

**disneysteve** · 06-28-2009, 05:57 PM

I've absolutely been in debt, but never CC debt. I graduated med school with about $102,000 in student loans. When we got married, my wife still owed on her car. I don't remember the amount but it was probably about $5,000. We had a loan on our 2000 van but when it got wrecked in 2002, we used the insurance check and cash to buy another one outright. My car was paid for with part of a home equity loan that also paid off some student loan debt.

I'm one of the folks on that other thread who said I can't comprehend the debt mindset. To me, there is a big difference between borrowing money to complete your education and borrowing money to buy a new handbag or bigger TV.
Today, we are debt-free except a 5-figure mortgage and we make extra principal payments on that.

**kork13** · 06-28-2009, 06:38 PM

Never been in CC debt, thankfully... but I've had as much as $41k in debt at one point... A $11k car loan (gone for almost 6 months now), and $30k in a personal loan that I'm still slowly chipping away at (currently $25k, but I'm intentionally paying it slowly... the interest rate is only 1%).

I definitely understand HOW people write off getting into massive/uncontrolled debt..... But I just can't imagine allowing myself to do it. I'm impulsively against owing anybody anything, and I don't think I'll ever be totally comfortable with holding debts.

**Tree0164** · 06-29-2009, 02:03 AM

Yes...

Here is a thread from 2004 when I was still in debt we got everything paid off in Nov 2004.

Saving Advice Forums

http://www.savingadvice.com/forums/personal-finance/509-payoff-news.html

I haven't had a revolving credit card balance since

**happygirl** · 06-29-2009, 04:08 AM

I don't carry CC debt. I pay it in full every month. I've had car loans a few times, but I buy rather modest cars so they weren't huge. Now I prefer to save up and buy with cash. I've had student loan debt, but never anything like what you're describing and I worked hard to double up payments and pay it off early. Honestly, I can't understand going into debt that deeply for any degree, but that's just me and my deep aversion to debt.

One day I was with a group of ladies and someone asked about emergency funds. Most people had 3-6 months or more. One lady said her savings account was so shameful she wouldn't even tell us how little was in there. She fussed about the money her husband wastes on lunches at work as if that was the reason they had no savings. A few days later she brought in a new designer purse she just got. I don't know how much it cost, but it had to have been at least 125$. That is foolish spending in my mind. They also go on really nice vacations and shopping day trips regularly. I try not to judge, but sometimes that's a challenge.

My concern at this point isn't debt as much as it is retirement. I'm far from where I want to be and feel like I can't keep my head buried in the sand any longer on this issue, thus I'm reading financial forums and trying to get a plan.

**creditcardfree** · 06-29-2009, 05:30 AM

Yep. I've been in debt.

In my early years I didn't pay off my cc every month. I did pay interest. However, I did have an aversion to 'too much' credit card debt. I don't think I ever actually owed more than $1000 at any one time. However, I wasn't able to pay it off every month at certain points.

When I married DH, he brought about $10K in credit card debt from a failed business. We quickly took out a personal loan to pay off the credit cards as well as other creditors. We paid that debt off fast!!

I've had student loan debt as well. I think I owed only about $3K. My parents took some of the loans as well as had saved cash for my education. We've also had student loans for DH, too. However, most of his education was paid by the military or his private employer.

Today we have a mortgage, a home equity loan, and one auto loan. Zero credit card debt. Right now we are working paying off the home equity loan.

I do hope our next vehicle can be paid with cash. I dont' like auto loans. DH doesn't mind...hense the auto loan.

**Radiance** · 06-29-2009, 06:08 AM

In my case, it was the wrong mindset.

Not wanting to wait to have things, not planning how to pay them back, not understanding how much was I really paying for the stuff I bought in credit (price+interest+the ocassional late fees+anual fees)

I have not used credit for over 8 months with the exception of medical bills which I pay back in 3 payments or less.
I have reduced my cc debt from 25K to currently at 8k and I continue to take them down. Any bonus, any tax return, even my "money found on the laundry stash" goes into paying that debt down.

I started with 4 cc and 25k and I have 1 cc with 2000 in debt and a 3 year signature loan for 6000 I used to consolidate the other 3. I did not close the other three but they have zero balance.

I am Christian and I learned in a biblical-based finance class that being in debt is wrong even from that perspective.

Most Christians do make an exception for mortgage. Even cars are bought in cash, that is my long term objective.

I plan to pass this lesson down to my son and to involve him on finance planning with age appropiate tasks. He already has a savings account (he is 16 months old)

**croland** · 06-29-2009, 06:42 AM

I think I'm at the max debt amount that I am comfortable with right now, even though it's less than a couple years ago. This includes home loan, school loan, etc. I'm looking forward to the debt being paid off this year and being debt free eventually.

**reptile411** · 06-29-2009, 06:47 AM

I flip my lid when I see the gas bill lol. I was tens of thousands of dollars in debt just a few years ago. I paid it all off. Worked very very very hard and life has been grand sence. I do have $130,000 in mortgage debt and about $10,000 in auto debt "for a car that's worth 6 LOL" I really don't count these debts though as everyone seems to have a car payment and house payment. I however will never have another car payment again. We have enough money put away finally to pay cash for the next car and get one twice as nice so from now on cash it is, someday I hope to say the same about the house.

**simpleyme** · 06-29-2009, 07:01 AM

yes everytime i have paid off a mortgage I have ran out and bought another house(keeping the old one) i am getting close to paying off this house and i have decided no more debt,if i buy another house I am just going to buy it
putting out a chunk of change like that all at one feels different
if I would not splash down the cash and just buy it tells me I should not "charge" another house
I am this close to paying no interest on anything ever again;-)
when we were young we did finance a car which was stupid and carried a few small balances ,but only because we just did not have it figured out yet

**parafly** · 06-29-2009, 07:21 AM

Yes, I have been and still am in debt.

The only time I was in CC debt was when I graduated from college and needed to buy furniture for my new apartment. I charged a few thousand dollars and had it all paid off within four months. I've been paying my CC balances in full each month ever since.

My wife and I have a combined 20K in student loans. This debt doesn't really bother me as our monthly payments and interest rates are low, and the interest paid on these student loans is tax deductible.

We had two car loans recently, but have cut that down to one in the past month. We plan to pay the other one off within the next month, which would leave us with absolutely no debt other than student loans.

Were you ever in debt?