We are debt free!!

trouts mom · Feb 22, 2010

Well for now that is

I just had to share my excitement!! I have had a credit line with a balance for about 5 years, and it is now paid off!

Also, we don't carry credit card debt at all, which is a far cry from my college days of maxing them out.

I am very proud of us

Now to buy a new car and a house in the next year

Here we come debt

mysterycat · Feb 22, 2010

Nice! Sounds great!

russian blue · Feb 22, 2010

Good for you!

Rob and I hope to pay off the renovation debt in the next 1.5 years and we also never carry any credit card debt. It's too easy to rack it up. We just finished paying the last of the wedding/vacation bills off last week.

Enjoy your debt free status now while you can! Once you get a house, there will always be something to spend your money on. As you can tell, I'm talking from experience. We've owned our home for 6 years and we still have projects to sap our cash.

ldg · Feb 22, 2010

CONGRATULATIONS!!!!!!!!!!!!!!!!!!!!!! Isn't it a wonderful feeling? Of course there's always something that comes next.... but it is rewarding for all your hard work!!!!!!!!!!!!

natalie_ca · Feb 22, 2010

Originally Posted by Trouts mom

Well for now that is

I just had to share my excitement!! I have had a credit line with a balance for about 5 years, and it is now paid off!

Also, we don't carry credit card debt at all, which is a far cry from my college days of maxing them out.

I am very proud of us

Now to buy a new car and a house in the next year

Here we come debt

Feels good doesn't it?!!

Unfortunately I ended up debt free due to the fact that I was on disability and unable to pay my bills with the income I had at the time, so I had to declare bankruptcy. But..... it got me out of debt and now that I'm back to work I'm in a much better place financially than I have been for years.

I'm currently working on rebuilding my credit (I can't believe how easy it is to get credit!! I practically have people knocking my door down offering it to me). I did cave and got myself a credit card with a very low limit, and I use it for a repeat monthly expense (to purchase my bus pass) and pay it off every month. I tell you when I got that card I was sweating buckets when I saw that there was a charge on it! I had to stop myself from paying it off instantly as soon as I saw it appear!

Check out Gail Vaz Oxlade's site "Til Debt Do Us Part" for some excellent tips on saving. Don't forget to put money into retirement funds. You need some for rainy day funds too. She has an excellent site with great advice and can help you come up with a workable budget that will see you achieve your goals of a house or car.

One word of caution. Don't buy a new car. Buy one that is a couple of years old. A new car is a complete waste of money because it devalues itself by almost 1/2 as soon as the tires take one spin around the parking lot! Yes, you get a warranty, but you also get a warranty when you buy a good used car from a reputable dealer. My cousin is a sales manager at a Honda dealership. He told me that when and if I want to buy a car, to go with a newer used one because of the above...... and if he tells me that when he's in the business to make money off of new cars, I tend to believe what he says.

nurseangel · Feb 22, 2010

That's great!

kailie · Feb 22, 2010

Congrats hun! Must be a huge weight off of your shoulders.

Dana and I are both trying to rebuild our credit as well due to stupidity when we were younger.

trouts mom · Feb 22, 2010

Originally Posted by Natalie_ca

Feels good doesn't it?!!

Unfortunately I ended up debt free due to the fact that I was on disability and unable to pay my bills with the income I had at the time, so I had to declare bankruptcy. But..... it got me out of debt and now that I'm back to work I'm in a much better place financially than I have been for years.

I'm currently working on rebuilding my credit (I can't believe how easy it is to get credit!! I practically have people knocking my door down offering it to me). I did cave and got myself a credit card with a very low limit, and I use it for a repeat monthly expense (to purchase my bus pass) and pay it off every month. I tell you when I got that card I was sweating buckets when I saw that there was a charge on it! I had to stop myself from paying it off instantly as soon as I saw it appear!

Check out Gail Vaz Oxlade's site "Til Debt Do Us Part" for some excellent tips on saving. Don't forget to put money into retirement funds. You need some for rainy day funds too. She has an excellent site with great advice and can help you come up with a workable budget that will see you achieve your goals of a house or car.

One word of caution. Don't buy a new car. Buy one that is a couple of years old. A new car is a complete waste of money because it devalues itself by almost 1/2 as soon as the tires take one spin around the parking lot! Yes, you get a warranty, but you also get a warranty when you buy a good used car from a reputable dealer. My cousin is a sales manager at a Honda dealership. He told me that when and if I want to buy a car, to go with a newer used one because of the above...... and if he tells me that when he's in the business to make money off of new cars, I tend to believe what he says.

I know all about the buying a new car thing and how they depreciate off the lot, but the fact of the matter is...I grew up deprived and never thought I would own a new car, so I am buying one damn it. Besides, my Honda won't depreciate in a way that it actually affects me negatively. If I bought another brand...maybe.

gailc · Feb 22, 2010

Buy a Ford!! though i'm biased as i worked for Ford for 20 years!!

i agree on the house-sometimes it can be a money pit-always remodeling or replacing stuff but its fun!!

catkiki · Feb 22, 2010

Originally Posted by GailC

Buy a Ford!! though i'm biased as i worked for Ford for 20 years!!

LOL If/when DH gets his disability, he wants me to buy a new car. I have been seriously considering a 2010 Ford Focus. I drove a 2008 Focus when I went on vacation in Sept 08 and absolutely loved it. I will be paying cash for it though, no debt for me!

goldenkitty45 · Feb 22, 2010

Congrats

We are still working on one to get it paid off. The only one I'll keep and use is the gas cred card and pay that off each month once this is done.

However, I do want to keep it just to make reservations in hotels when we go to cat shows - then pay cash when we check in.

ut0pia · Feb 22, 2010

Congrats!! I'd hate to have any sort of debt, mostly because it makes me mad that I have to pay it with interest. I am kinda cheap (well, not really I buy expensive things I just like getting them at the best possible price price) so being this type of person, paying interest would really, really hurt

All it really takes to avoid credit card debt is better planning ahead and having enough savings to cover anything unexpected. I know that's easier said than done, but knowing what you're saving in interest, it is totally worth any effort to avoid credit card debt.

pushylady · Feb 22, 2010

Congrats!

snake_lady · Feb 23, 2010

I didn't read the thread but just the initial posting.

and

Someday I hope to be that way....we're working on it

I wanted to say you have every right to be darn proud..... In this day n' age, that is amazing.

otto · Feb 23, 2010

Congratulations! I knowhow that feels. When I was divorced I was stuck with a ton of debt, none of it my own. My ex husband left me with astronomical credit card debt and tax debt. It took 11 years to pay it all off, the total in dollar amount when I was done was just over $30,000.

I was debt free for less than a month when my car died, haha. I hadn't had a car payment in years, but, hey have to have a reliable car. That car was meant to last me another year, but just couldn't manage it.

I buy program cars. Good as new, still under manufacturer warranty, low miles (less than 20,000), I got everything I wanted at half the price of new.

.

Winchester · Feb 23, 2010

Kudos! It's truly a great feeling!

We have no credit card debt; we never had that much anyway, but got that all paid back in 2009 and we've been keeping up with it. I take a compound drug that has to be renewed every month and we put that on the card, but then always pay it right away.

Our mortgage will be paid next year, so we'll do some big celebrating then. But having a house also means upkeep, maintenance, and re-dos. We're in the process of renovating our basement (family room, fireplace, extra bath, laundry room, etc.) and it's been challenging not to use the cards, but so far we've done well. After the basement is finished, we plan to start on the bathroom on the main floor. And then, finally!! the kitchen. (And boy, do I have ideas for my kitchen!)

I'm getting to the point where I'm going to have to replace my car and I simply do not want to go there. I have a PT Cruiser and it's been one of the absolute best vehicles I've ever had, other than not being a particularly good winter car. We're looking at the new Buick LaCrosse (in red

), but again, I hate the idea of going back into debt for a car.

otto · Feb 23, 2010

Yeah, I was devastated when I found out I was going to have to get a new car right after finishing that debt.

I use my credit card for everything. I don't pay cash or checks at all. I pay the card off every month.

Using the card helps me budget as I can keep track of all spending. Cash has a way of disappearing with no record. My credit card statement has it all there for me to look over and figure out where to cut back.

In addition, my card has "rewards" in the way of cash back, so it all adds up pretty fast.

blueyedgirl5946 · Feb 23, 2010

Congratulations. In this economy today, people need to aim toward being debt free. As for the car, if I were going to buy a new one, I think I would definitely buy one who from one of these companies that didn't accept the government bailout. Maybe a Ford or Toyota.

momofmany · Feb 23, 2010

Congrats!!!!

My advice to anyone that wants to remain credit card debt free: Only buy what you can afford to pay off each month, and if for some month you can't meet that goal, put the credit card away and do not use it until it is paid off. I've never racked up credit card debt in my life using this method.

larussa · Feb 23, 2010

"We are debt free!!"

That must be a great feeling. I had my credit card paid off but then I moved and had to buy all new furniture so I owe again. Today tho I paid a good chunk of it off, I hate paying those monthly payments with the high interest altho there are times when that's all I can afford to pay. I'll get there eventually.

We are debt free!!

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In the kitchen with my cookies

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