Foo - Poll - how far in debt are you?

Definitely an anonymous poll. Don't include your mortgage. I'm just looking at bad debt (car, credit cards, general overall bad debt)

Not in debt...at all.

Not in debt...at all.

One of the lucky few.

Just getting out of debt, wasn't really bad debt, but I still didn't want to be in it. ;0)

I included my mortgage. Next time I'll read. No debt here. <-cc paid in full each month. I'm a $11.23/hr balla.

One of the lucky few.

Not being in debt is far more likely to being fiscally responsible than being lucky...unless you were born into money.

I almost own the john deere!

There's nothing wrong with car debt under the right circumstances. If you owe $10K on a car worth 20K, that's good debt. After you pay off the car, you have an asset with value.

Ridding myself of it - still have a bit more - but I doooooo have a clearing up ahead.

Starting from my ex-husband's business - it traveled to me and my wages (and yeah - I may not have been wise with my checking accounts as well) were garnished for several years - and that ended last year - nothing like getting back $400 more a month!!! Have a smallish school loan to go now and a $3300 hospital bill that I will tackle soon (from when I was bartending and was injured in a mtb accident - no ins) and then I will be clean. Yay!!!!!!

The IRS/NYS $15,000 garnishment really killed me though from the ex's plumbing company; made extra special because he was in the "Big House" for several years and it turned out he never paid any sales tax, etc. And let me tell you - what they deem as disposable income (meaning what they think you can live on) sucks. Living on that with a meager income just absolutely sucked for several years. They want their money and eff you on how you can live. Thank goodness that I had some (YAY - phooey NYS) minor cleaning jobs so I had some money to eat.

Gosh that man I married was a great guy.

But looking to the day of clean - and btw I have no credit cards, etc -- hehe - they wouldn't give me one anyway - I always giggle when the cashier person at the store tries to have me fill out a form so I can save 10% or whatever. No thank you.

Signed,

Reformed, cash only please


:D

I don't consider most of my debt bad debt. Most of it is the loan I got to start my business. $40K to start with, well under $10K now, so I'm on the home stretch. Once that's done, I'm gonna assume a home loan once I find the place of my dreams.

No car, student, CC debt, though.

Credit card is the only non-mortgage debt I have and it is low. paid cash for my car and other assets. paid of my student loan last year. On the flipside, I have little actual cash savings apart from my super fund. basically a nil all draw.:P

No debt, no mortgage.

I don't consider most of my debt bad debt. Most of it is the loan I got to start my business. $40K to start with, well under $10K now, so I'm on the home stretch. Once that's done, I'm gonna assume a home loan once I find the place of my dreams.

No car, student, CC debt, though.


I could definitely sleep with that. Good luck with your business!

[gnome sez: On the flipside, I have little actual cash savings apart from my super fund. Super Fund??? You get paid for making environmental disasters? ;)

edit - must have a different meaning in NZ.

There's nothing wrong with car debt under the right circumstances. If you owe $10K on a car worth 20K, that's good debt. After you pay off the car, you have an asset with value.

Most vehicle purchases are considered bad debt by traditional definition, however you're right that it can be considered good debt under the right circumstances. That includes buying a more fuel efficient car than your previous one. However, for the sake of this poll, add in the auto loans.

Ridding myself of it - still have a bit more - but I doooooo have a clearing up ahead.

Starting from my ex-husband's business - it traveled to me and my wages (and yeah - I may not have been wise with my checking accounts as well) were garnished for several years - and that ended last year - nothing like getting back $400 more a month!!! Have a smallish school loan to go now and a $3300 hospital bill that I will tackle soon (from when I was bartending and was injured in a mtb accident - no ins) and then I will be clean. Yay!!!!!!

The IRS/NYS $15,000 garnishment really killed me though from the ex's plumbing company; made extra special because he was in the "Big House" for several years and it turned out he never paid any sales tax, etc. And let me tell you - what they deem as disposable income (meaning what they think you can live on) sucks. Living on that with a meager income just absolutely sucked for several years. They want their money and eff you on how you can live. Thank goodness that I had some (YAY - phooey NYS) minor cleaning jobs so I had some money to eat.

Gosh that man I married was a great guy.

But looking to the day of clean - and btw I have no credit cards, etc -- hehe - they wouldn't give me one anyway - I always giggle when the cashier person at the store tries to have me fill out a form so I can save 10% or whatever. No thank you.

Signed,

Reformed, cash only please


:D

Ouch, that just sounds painful. Glad you're digging yourself out of debt.

Not in debt...at all.

Dito.

No debt, no mortgage, I pay cash at all times and if I use the Visa, it gets paid off that month, automatically.

Nada, except the mortgage.

Nada, except the mortgage.

+1

Man, I'm so far in debt, I'm gonna have to take another job soon just to make ends meet.

None except for the mortgage.

I live with my parents, Should i say more?

I owe $12.95 on my credit card for a monthly website fee.

Plus the mortgage.

I'm thinking of buying a new car this winter so I might take out a loan.

Don't do it, GP!!!! Car loans generally suck!

Don't do it, GP!!!! Car loans generally suck!Yeah, you're right. My car is an '02 Toyota Tacoma with about 80,000 miles so there's not really a good reason to sell it.

I could definitely sleep with that. Good luck with your business!

Thank you. It's been going well. For the first year I was up about 20%. Then for the second I was down about 30% from two years prior, so about a 10% loss in revenue over two years. I've heard other folks getting hit harder from the economic downturn.

I'm pretty well settled in to the way things are now. I'm pretty sure things can only get better.

No mortgages on the buildings, no car payments. The only thing I owe is for utility bills.

It took a lot of struggling and high risks but it can be done. It really can. Just have to be really tight on yourself and limit things. Every little thing that you cut back on helps. All the times that I've passed on steak and settled for ground beef instead all contributed.

For those of you in bad debt, just have to settle it one at a time, consolidate if you can, and don't spend unless it's necessary to survive. After the bills are paid, then you can enjoy the fruits of your labor.

Happened to my best friend recently. We bought our houses at the same time, right next door to each other. She lost hers 2 years after I paid mine off. All she had was three more years and it would have been hers. But while she spent wildly I was frugal and put away for emergencies. When she got laid off, she had hardly anything to back her up. She lost it all. Everything. All that time and money of investment and she has nothing. And she was in the middle of remodeling it too. So she owes others for a house she doesn't have. And every time I look at that house I feel bad for her.

So please, be careful!!

Good words, Siu.

Pace yourselves everybody.

It's kinda funny. Back when times were pretty good, we had Clark Howard on in the morning and then Dave Ramsey on two different stations. About the time things got really crappy we had nothing but BS politicos on the radio in my market during the day.

I guess they have other things going on, but from an AM talk radio standpoint, my local programming seems to be the inverse of what it should be around here.

student loans will get ya

Super Fund??? You get paid for making environmental disasters? ;)

edit - must have a different meaning in NZ.

It does indeed. It's short for superannuation fund. I've chosen a reasonably conservative managed fund that comes out of my wages with my taxes and I can draw on when I turn 65.

here's my story:

1980s: in my early 20s, I got a few credit cards, made purchases within my means and paid off balances every month. I had a teensy salary and bought nice things, but paced myself, as Siu said. One thing I did NOT do is save for retirement or emergencies.

1989: started college, which involved a long commute by car...unfortunately my older car fell apart (literally) the first semester, which required a hefty repair bill I had no choice but to charge (see above about no savings).

1992: graduated with a combined debt of nearly $30K in school loans and little teensy purchases here and there....yes, they do add up. I blame myself for all of this but at that time I was naive enough not to realize I was a statistic of Credit Cards targeting college students and their deferred payment mentality.

2000: Whittled it all down slowly but surely, sold off stuff (often at a profit), was within a few Thousand dollars of being clean. I also started saving for emergencies and retirement with a great employer match. Yes, it took me till my mid-30s to start saving.

2001: after 9/11 I said F-it and splurged on a lot of stuff. I had just landed a great-paying job and wasn't worried about paying stuff off.

2003: was laid off when office closed, due to 9-11...so paying stuff off was slow going...

2010: down to just one card, which was a recent gift given for a landmark occasion. Under $5k. Should be gone in six months. I'm glad I at least have some savings now, though it's never enough, is it?


Epilogue: If I could change only one thing about my financial history it would not have been the debt and spending. Yes, I have had stress from debt but also enjoyed the things I've bought. What I wish most is that I had started saving right from day one. For emergencies, but also for long term goals and retirement.

This is something that, if I ever have children, will be drummed into their heads the second they are old enough to comprehend.

Buried up to my ears thanks to my ex. I am responsible for some of the debt. Slowly working at fixing it.

Nada, except the mortgage.

ditto

Besides the mortgage, just student loans.

No dept except mortgage. Shredded my credit cards years ago... They always got me in trouble.

Car's paid off.
No mortgage.
No credit cards.
Last payment on the education loan is next month.

My frame of mind is that if I cannot pay it in cash then I don't deserve it, on sale or not. Because if you don't pay off the credit card balance, you are essentially paying MORE for an item that you had to have now because it was ON SALE. Granted, there are things that must be paid using credit, such as emergency car repairs but that is when you take your emergency fund and use it, to pay off the bill in full.

Saving for emergencies is not too hard. This is how I managed:

Back when I first moved out of my parent's house I was able to put a down on a purchase of a new home. When I signed the papers, there's a clause saying that I promise to stay in it for the first six months, because of the first time buyer loan that I got. As soon as that six months was up, I moved out into a place where the rent was cheaper than the mortgage of the house. I rented the house out to my cousin and his friends. That house was now a write off not only in the sense because I owned it but even more so because it is a rental and any work done or money spent on the place is eligible.

I know it sounds silly that I would rent another place when I own my own but if you figure paying $1800 per month for a 2 bedroom house with inlaw vs. $850 per month for a one bedroom, I'm saving. It was hard living in a tiny space but other people were paying my mortgage. I also sub-rented the apt to my co-worker for $425 and we shared the room (man she was messy!) So in essence, I was owning a home for only $425 per month. Plus with renter's allowance on taxes, that too was beneficial!

The funny part was, my friends didn't believe that I actually bought the house because here I was living in a one bedroom apt with my co worker in a cramped space. :lol:

It can be done, really.

My cars a lease
I have a mortgage but 80% equity
Credit cards get paid off each month
Do pay alimony does that count?

MY own credit history may or may not be unusual, in that I have rarely paid any interest - this is not counting my student loans which were very low interest, and my one new car (purchased during school when the old repaired one fell apart for good). Meaning I either have paid off stuff every month in full, or had a revolving balance at 0% (oh , those tempting balance transfer offers). I did pay transfer transaction fees, of course, but that probably averaged out to a hundred dollars per year at most. That is less than what I'd pay for a month's finance charges with the balances I've carried.

My point is not that my debt was 'okay.' I definitely have issues with shopping/etc. but from a purely numbers perspective I have worked the credit card game about as well as anyone who is a wage slave consumer can. The big damage done over my lifetime (besides the pure stress of knowing that monkey is on your back) is that it encouraged spending way beyond my means, and just making my monthly payments meant I had very little left over for savings. So I violated that one important rule of paying myself first, and did what all spendaholics do: I paid everyone else first (and last, and everything in between).

So, point being, you can spend spend spend, 'outsmart' the lenders/interest rates to a degree, but still come out a loser. I don't believe in scrimping too much - life is to be lived, after all. But moderation and putting away some money all along would have helped me avoid debt. I have noticed that the more I've owed, the more likely I was to not even second-guess another charge purchase (what's another few grand on top of $20/30k?).

I still have a long way to go (not just paying off the money i still owe; I mean psychologically/emotionally - it's like a recovering alcoholic, I guess), but I am proud of how far I've come. One day at a time. In six months it will feel pdg to have nothing but 0s on those credit cards.

I owe $12.95 on my credit card for a monthly website fee.

Plus the mortgage.

I'm thinking of buying a new car this winter so I might take out a loan.

only get the loan if you can get 0% int. Otherwise pay cash.

Two other points:

1. Debt is such a national epidemic now - I had friends back around 2000 who, when I told Them I still owed $4000 were shocked. When I told them it had been nearly $30k a few years before their eyes bugged out. Those same friends now all owe $20-30k themselves. they make under six figures and do not own homes; it's just all the little doo-dads we all charge now - vacas, stuff for the home, DVDs, clothes, eating out, expensive toys, etc. What was once shocking to people is now becoming more commonplace, based on what I've observed.

2. Debt - like anything else that major and smothering - can define you. When I had carried a hefty $20k+ balance for several years after college, I ran into an old buddy I knew in my early twenties. We were yakking, catching up and I mentioned the debt and he was shocked - not at the numbers, but at the fact that I had sunk so deeply in. He quickly reminded me that in my early twenties, I had argued with him that debt was evil and completely avoidable (he was a bit older and starting to make more $ but also spending way more than he should have). I had gotten so used to feeling trapped at that point that being reminded of my past self-discipline was a real wake up call.

I made lots of progress quickly after that and almost paid off my debts until I backslid again after 9-11. There is a lot of unavoidable stuff that goes into debt accrual (illnesses, economy, etc.), but just as wise and frugal planning can help you stay out of it, emotional and psychological issues can really foster it as well...I am glad to be heading down a healthier road again, although it will never be easy for me.

No debt what so ever. I have a strict "don't buy with money you don't own" policy. Not having a credit card helps alot. The only problem I have now is the inability to save which I'm starting to improve.

p.s: My monthly gas cost is less than $20 a month (motorcycle, scooter and bicycle which I commute to work every day with). :p

Pgoat, It's good to see that you are getting out of debt, and so far your plan is working out for you, and that's a plus!

But as everyone can see, we all handle things differently. You said "I don't believe in scrimping too much - life is to be lived, after all." and man, I wish I could have seen that way too. It was dang hard to scrimp as badly as I did and sometimes I get mad at myself for NOT taking advantage of offers I had...such as a stay in NY for a few months when I graduated. But because of that I am now able to appreciate what I have now (not sure if I would have when I was younger) because I DO know what I had to go through to finally have all of this.

The poll title seems to allow offsetting debt w/ asset values but the question doesn't seem to

I didn't even think about my assets. Dang.

Don't take assets into account. I'm not looking for net worth. Just interested in how much debt one carries.

I find it fascinating that the majority of people so far do not carry any bad debt. Looks like Foo people buck the overall trend in America. I also do not have any debt, however I have to constantly fight the urge to impulse buy. I often get mesmorized by the sparklies. The most recent almost-purchase was the new handheld GPS from Garmin (62ST). But I'm glad to report that I won the battle with the simple question "Do I really need it, and will I use it often enough to justify the price". The answer was a resounding no.

Pgoat, It's good to see that you are getting out of debt, and so far your plan is working out for you, and that's a plus!

But as everyone can see, we all handle things differently. You said "I don't believe in scrimping too much - life is to be lived, after all." and man, I wish I could have seen that way too. It was dang hard to scrimp as badly as I did and sometimes I get mad at myself for NOT taking advantage of offers I had...such as a stay in NY for a few months when I graduated. But because of that I am now able to appreciate what I have now (not sure if I would have when I was younger) because I DO know what I had to go through to finally have all of this.

Absolutely, Siu. Life is full of trade-offs and compromises. I am in no way rationalizing or trying to delude myself when I say I've done this for 0% or worked that deal. It is what is. I have loads of great toys, and I've enjoyed them. I also have have debt since I was 25 (more than half my life) and as I approach zero debt now I have some assets but far less than someone approaching 50 really should. So I am happy to have had the things I did (not to mention good health and other more important things) but totally do regret not having had more self-discipline and made better choices to put myself in a better position now.

One final funny thought - when i put my mind to saving, I get compulsive about that too. I don't want to become obsessive or miserly, but the same dogged dedication from my shopping gene seems to allow for exceptional savings efforts...if I can just make myself work for good instead of evil...It's like a recovering substance abuser turning into a exercise fanatic. Could be a good thing if the lesson of moderation is truly learned.

I do look at deferred spending and debt accumulation as a national epidemic, just like obesity. Not sure if it's education or family values that has led us down this road (probably both, with a dollop or two of human frailty thrown in). I am glad to see that many here at BF have had much better fiscal sense than me and many friends of mine.

Looks like Foo people buck the overall trend in America.

yup, what i said.


I have to constantly fight the urge to impulse buy. I often get mesmorized by the sparklies. ... But I'm glad to report that I won the battle with the simple question "Do I really need it, and will I use it often enough to justify the price". The answer was a resounding no.

ditto. I've gotten much much better at this. It's still very hard.

NO DEBT! Worked very hard to get that way and I hope I can stay that way. Now I save money first (novel concept) and then buy... yes I know its ruining the economy to be that way but I don't care. It's all about me!