Author Topic: How much debt do you have? Are you out of debt?  (Read 19172 times)

P938LVR

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How much debt do you have? Are you out of debt?
« on: July 10, 2014, 06:43:31 PM »
I'm just curious...

Are you out of debt?

How long did it take you to get out of debt?

How much do you make?

Hold old are you?

What is your occupation?

« Last Edit: July 10, 2014, 07:27:33 PM by P938LVR »

sleepyguy

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Re: Are you out of debt?
« Reply #1 on: July 10, 2014, 06:55:31 PM »
Sure, I'll play

Are you out of debt?
- Was never really 'IN' debt.  My GF paid off her University while attending school (part-time job), while I skipped university altogether.  Our only debt right now is our mortgage on 2 properties, and leveraged investment account.  It's a substantial amount but nothing too crazy.  Actually I think I had $3000 or so student loans which I paid off super quick... I gave college a try to please my parents.

Mortgage (for 2 properties) ~ 300k @ 2.9%
Investment leverage ~ 100k @ 3% or 4% have to double check.

How long did it take you to get out of debt?
- See above

How much do you make?
- combined we are between 190-210k, depends on how my side stuff comes.  We also 'lost' 2 yrs of her income from parental leave (Canada, it's 1yr), we have 2 kids.  With 2 kids my side stuff has really taken a hit as well, but kids are GREAT!

Hold old are you?
- both 35 (target FIRE age is 42)

What is your occupation?
- Me ~ LAN Admin (Banking industry)
- Her ~ Sr. Finance Manager (Manufacturing industry)

« Last Edit: July 11, 2014, 07:42:51 AM by sleepyguy »

johnintaiwan

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Re: Are you out of debt?
« Reply #2 on: July 10, 2014, 07:22:12 PM »
No debt. Had a loan for my masters and a car loan once.

Took less than a year for the student loan. I almost got it paid off before payments were due. The car got sold to BIL when I moved back to TW. The student loan was about 15-16K

I make about 27K a year.

Im 28 yrs old

I am an English teacher




kallinan

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Re: Are you out of debt?
« Reply #3 on: July 10, 2014, 07:29:41 PM »
Are you out of debt?
Nope.  $30k student loans left, and we'll probably buy a house soon and incur another $120k in mortgage debt (currently renting).

How long did it take you to get out of debt?
I'll let you know when I get there.  We started with $100k in student loan debt.  Our previous house has become a rental, and so our equity has transferred to an investment.

How much do you make?
Currently I have a temporary windfall job at around $130k, traditionally we've been in the $90-ish range.

How old are you?
34.  Probably FIRE at 50, but in many ways we're already half there.  Dear Wife is 90%+ stay at home, homeschooling our three children. 

What is your occupation?
Software Developer (currently finance industry) & very part time Physical Therapist (local hospital)

We'll have a house payment for 12-15 more years.  We'll eventually send the kids off to public school, but until then, we're still saving for retirement (maxing out both IRAs), paying off debt (both school & soon to be house), saving for pre-59.5 retirement, and having a family of 5.  We're not quite as frugal as MMM, but we're slowly getting there.  I could be FIRE earlier than ~50 if Dear Wife went back to work full time, but eh... that's not what we want out of life right now.
« Last Edit: July 10, 2014, 07:31:57 PM by kallinan »

mattchuck2

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Re: How much debt do you have? Are you out of debt?
« Reply #4 on: July 10, 2014, 08:16:09 PM »
Are you out of debt?

No. I have about $7,500 in Credit Card debt like a total asshole and $167,000 left on my mortgage

How long did it take you to get out of debt?

Again, like a total asshole, I've had the debt since I bought the house and didn't have enough cash for a couple of home expenditures that came up. I've also spent way too much time as a consumerist sukka.

How much do you make?

About $70,000 a year

Hold old are you?

34

What is your occupation?

Geologist

Threshkin

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Re: How much debt do you have? Are you out of debt?
« Reply #5 on: July 10, 2014, 08:24:31 PM »
No debt

Paid off my mortgage last year.  (The interest rate was low but I like the security of no payments.)

Never carried a credit care debt more that two months (forgotten payment)

Paid off student loans many years ago

I make enough to save ~75% of gross.

Older than dirt

I am a manager in the software business, pretty standard corporate job.

Have been FI for years and did not realize it.  Hope to RE within the next 6-9 months.

neo von retorch

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Re: How much debt do you have? Are you out of debt?
« Reply #6 on: July 10, 2014, 08:53:00 PM »
Are you out of debt?
I have a mortgage ($109k on $156k purchase @ 3.375%).
I've paid off student loans, a gazillion car loans and a quadrillion credit cards. I still have some small month to month balances on credit cards. (I'm working on going almost 100% cash though.)

How long did it take you to get out of debt?
I started accumulating debt in 1997 - student loans and shortly after that credit card debt started. Car loans beginning in 2000 or 2001.
I paid off the carried credit card debt in 2008. (One of the reasons it took so long was some great balance transfer options - no fee, low or no interest.)
I paid off the student loan debt in 2011.
I paid off my car loan debts several times but kept buying different cars. Put the final nail in the coffin in May 2014.

How much do you make?
I started working in 2000 making $27k.
I'm semi-steadily increased my income between now and then and currently make $80k.

Hold old are you?
I'm 35.

What is your occupation?
Web application developer. (Microsoft technologies - C# .NET, Transact-SQL)

libertarian4321

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Re: How much debt do you have? Are you out of debt?
« Reply #7 on: July 11, 2014, 05:17:51 AM »
I'm just curious...

Are you out of debt?

How long did it take you to get out of debt?

How much do you make?

Hold old are you?

What is your occupation?

Are you out of debt?

Yes.  We don't do debt.  Neither of us has ever had a penny of debt except a couple of cases where we were effectively paid to hold debt for a short term.

How long did it take you to get out of debt?

0 days.

How much do you make?

Maybe $180k, give or take?  This is a guesstimate, I haven't looked at my paycheck in years, nor have I looked at my wife's.

Hold old are you?

51.  Wife is a bit younger.

What is your occupation?

Engineer and Chemist.

TheNorwegianGuy

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Re: How much debt do you have? Are you out of debt?
« Reply #8 on: July 11, 2014, 05:34:39 AM »
Are you out of debt?
No, I have about $ 38500 (2,67%) in  student loans. Other than that I have never had anyt or even a credit card.

How long did it take you to get out of debt?
It will take med about 7 years to get rid of this. The interest rate is lower than I get in my savings account and investment returns so I dont really have any hurry.

How much do you make?
I make about $ 97 000 a year, before tax

Hold old are you?
26

What is your occupation?
I am an engineer

Exflyboy

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Re: How much debt do you have? Are you out of debt?
« Reply #9 on: July 11, 2014, 05:44:10 AM »
I'm just curious...

Are you out of debt?

How long did it take you to get out of debt?

How much do you make?

Hold old are you?

What is your occupation?

1) Yes. Had a 160k Mortgage in '97.. and about $20k in savings, no other debt.

2) Mortgage paid off in just under 7 years.

3) Before I retired in jan about $160k combined.. on average since '97 though around $100 to 130k

4) 52

5 Now FIRED.. Previously mechanical engineer/ engineering manager.


Frank

MandyM

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Re: How much debt do you have? Are you out of debt?
« Reply #10 on: July 11, 2014, 05:56:19 AM »
1. I have two mortgages: $95K for primary residence and $66K for rental.

2. I don't plan on paying the mortgages off terribly early. Maybe in RE. I had a couple of car loans long ago - paid one off in less than a year and held the other to term (low interest rate). Never CC or student loans (thanks dad!)

3. About $105K

4. 35

5. Civil Engineer

shotgunwilly

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Re: How much debt do you have? Are you out of debt?
« Reply #11 on: July 11, 2014, 06:17:49 AM »
1. No. I have about $4,500 left on a student loan, and a boat loan for another $14,000.

2. Still in debt.

3. I make about $72,000

4. 26

5. Engineer.

It's crazy how many engineers are on this site.

Lady from Joppa

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Re: How much debt do you have? Are you out of debt?
« Reply #12 on: July 11, 2014, 06:39:21 AM »
Are you out of debt?
No, we have a mortgage of $88,000 @3%.

How long did it take you to get out of debt?
We have carried credit card debt since paying it off in 2004.

How much do you make?
My DH makes around $55,000 net (after taxes, insurance and TSP contribution).

Hold old are you?
We are both 42.

What is your occupation?
I'm a homemaker (and homeschool our children) and my DH is in the military but soon will be medically retired.


dude

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Re: How much debt do you have? Are you out of debt?
« Reply #13 on: July 11, 2014, 07:04:48 AM »
Out of debt?

No, around $405K on mortgage, just under $20K in student loans, no cc debt.  I was once in debt about $12,500 to credit card companies, and $80,000 in student loans, with a decidedly negative net worth.  About 14 years later now, and the only debt DW and I have is the aforementioned.  Current net worth approaching a million (though in truth much more if you factor in the expected pension)

How long to get out of debt?

Could pay the student loans off today if we wanted to, but at 2.33%, I'm re-thinking that.  Mortgage -- not sure if we'll make any attempt to pay it off.  Happy to just build equity in it now, for possible downsize with equity proceeds from sale in the future.

Income?

@ $215k - $229k combined.  This wasn't always the case.  I began my career as an attorney making $38,000/year in 1997.  Steady increases since then, but didn't break 6-figures until some time around 2004/2005.  Had pay freeze in effect from 2010-2013, and just got 1% increase in 2014.  Wife's income was pretty stagnant at @$60k for 5-6 years until just very recently, when she scored a raise to $75k + additional bonus eligiblity.  So it's been a steady progression with some occasional plateaus.

How old?

Me - 49, DW - 42

Occupation?

Attorney, Office Manager

matchewed

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Re: How much debt do you have? Are you out of debt?
« Reply #14 on: July 11, 2014, 07:14:25 AM »
Debt?
Not right now.

How long?
Never was in debt. Plan to be in debt in a year or so for some further education. My plan on paying it off depends entirely on the interest rate on it.

How much do you make?
Used to pull 40k gross (about 20k-ish take home). I anticipate a 60k job after education.

How old are you?
33

What is your occupation?
Quality Technician previously, student for now, and well we'll see after school. There are a number of choices available.

Gray Matter

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Re: Are you out of debt?
« Reply #15 on: July 11, 2014, 07:16:08 AM »
Are you out of debt?

Nope.  We have a mortgage with a current balance of $331,000 at 2.95% with 13 years left.

No other debt.

How long did it take you to get out of debt?

We've never had a lot of debt (by US standards), but paid off the last of it in 2010.  During our 20-year-marriage, in addition to mortgages, our debt included:
  • 6K subsidized student loan (not bad for two bachelors, two masters, and a doctorate)
  • 4K used car loan
  • 30K new car load (never again!)
  • 15K HELOC to cover overspending during 6 months of unpaid maternity leave
  • 40K HELOC to cover adoption expenses and overspending
  • several cash-out mortgage refinances to pay for new roofs, patios, fences, and other repairs/improvements
  • several "no payment, no interest" purchases (electronics, mattress) over the year - always paid off by due date

Funny, I always thought we were really good with money because we didn't borrow as much for student loans as our peers, we've only had 2 car loans in 20 years, we would dip into the HELOC and pay it off before dipping into it again rather than letting the balance accumulate, we've never had credit card debt, and we've always saved for retirement (albeit a paltry 10-15%). 

It never occurred to me that you could save in advance for things like cars and home improvements--I always thought your monthly outflow should equal your monthly inflow and you just added things to your lifestyle as your income improved.  So I wasn't as ignorant about debt as some people (e.g., we never borrowed for vacations), but I was still pretty darned ignorant.

How much do you make?

250K combined pre-tax household income (have only made this much the past 5 years, made less than half that before)

How old are you?

43 and 46

What is your occupation?

Until very recently, I was in training and development (now a non-profit jack-of-all-trades).  Hubby is a management consultant.


rocksinmyhead

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Re: How much debt do you have? Are you out of debt?
« Reply #16 on: July 11, 2014, 07:37:13 AM »
Are you out of debt?
nope, but I just paid off my last student loan today!!! I still have ~$2k in a 0% car loan that will be done in about a year, but... it's 0%. (and on about as mustachian a new car as you can get)

How long did it take you to get out of debt?
it's been about 2 years since I started making payments on my student loans.

How much do you make?
~$100k + bonuses (it's been a really good year for bonuses)

How old are you?
26

What is your occupation?
petroleum geologist

250K combined pre-tax household income (have only made this much the past 5 years, made less than half that before)
...
Until very recently, I was in training and development (now a non-profit jack-of-all-trades).  Hubby is a management consultant.

if you don't mind my asking, was it your job, your husband's, or both that was responsible for the big pay increase? just curious what you did to make that happen, it's pretty awesome! :)

so.mpls

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Re: How much debt do you have? Are you out of debt?
« Reply #17 on: July 11, 2014, 07:41:09 AM »
Some of you guys are in such great shape.  Really fun to read through this thread.

Are you out of debt?

Nope.  $150k mortgage.

How long did it take you to get out of debt?

My wife and I just paid off our student loans, took ~2.5 years.  Mortgage is next, although our interest rate is 3% so we haven't decided if we'll aggressively pay it down, or invest our extra savings.

How much do you make?

We both make between $40-45K including bonuses. 

Hold old are you?

24 and 25

What is your occupation?

Me: Database Marketing
Wife: Software Support & Training

soccerluvof4

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Re: How much debt do you have? Are you out of debt?
« Reply #18 on: July 11, 2014, 07:42:58 AM »
Are you out of debt?

Zero Debt

How long did it take you to get out of debt?

Never was in debt for more than a year that I can remember and probably ZERO debt both personal and Coporate since late 80's early 90's

How much do you make?

250k-350k depending on year. This year looking like right in the Middle

Hold old are you?

49,46

What is your occupation?

I own a business in the transportation Industry. I am basically retired and am at home. My wife works maybe 25 hours a week at office by her choice and to give us time to see how this whole Healthcare thing works out. Still have 4 kids at home and Kinda would like to call it quits totally after a market collapse. Throw cash from business into market then but no matter what barriing the unknown 2.5 years max we are done!

so.mpls

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Re: Are you out of debt?
« Reply #19 on: July 11, 2014, 07:48:10 AM »

What is your occupation?
Software Developer (currently finance industry) & very part time Physical Therapist (local hospital)


That's really interesting.  Don't you need a doctorate to practice Physical Therapy, or am I mistaken?  That would be a lot of time and money invested to be mostly working in another field.  Either way, congrats on having two skills that can earn good money.

JGB

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Re: How much debt do you have? Are you out of debt?
« Reply #20 on: July 11, 2014, 07:55:15 AM »
Are you out of debt?
The way I look at it, I am out of debt. Carry a mortgage ($175k), but have assets ($500k+) that could pay it off if needed -- rates are low enough that this would lose money over investing.

How long did it take you to get out of debt?
I went straight from Bachelor's to Master's in Computer Science. Had scholarships and government employment programs that paid for a lot of that school (making the MS free). Graduated December 2006 with around $10k in student loans and $35k in car loans for the new car I bought right away. Had everything paid off by the end of 2008.

How much do you make?
During the timeframe of getting out of debt, I was making ~$70k (gross). From mid 2011 to early 2013, that dropped to $28k (gross). Now it's closer to $115k (gross).

Hold old are you?
31

What is your occupation?
Computer Programmer (accounts for 80% of income) + Owner/Operator of Grinderschool.com Poker Training Website. The Programmer side of things was as a government employee (starting while at school, 2004; ending in 2011), then as a partner in a struggling software development shop (2011 to early 2013), then as an employee of an inspections company in the Oil & Gas industry.
« Last Edit: July 11, 2014, 08:01:34 AM by JGB »

hybrid

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Re: How much debt do you have? Are you out of debt?
« Reply #21 on: July 11, 2014, 08:12:35 AM »
I'm just curious, do some people that have a mortgage but significant equity in their house consider the mortgage a debt, rather than say a liability? I still have a mortgage on both my home and rental but have significant equity in both. I consider myself to be debt free in one sense of the word, but my cash flow is significantly impacted because of the mortgages. I mention this because if you live in an apartment you have no debt regarding the roof over your head, but you have a significant amount of money going toward your daily living expenses all the same.

For me the day I achieved positive net worth (rather than being out of debt as defined in this thread, sometime back in the late 90s) was the day I could sell my assets that could be fairly quickly liquidated and still have money in the bank. I am also in the group that is eager to pay off the mortgage early to reduce the amount of cash I need going forward, even though the interest I pay on the loans are just 3.25 and 3.99%. Because my wife will receive a pension when she retires in a few years and the great Social Security deferral game begins for her when she hangs them up, cash flow is something that means much to me in our situation. Getting our rental completely paid off before that date will help out cash flow quite a bit, but it won't really change our overall net worth had I opted to direct the extra principal I am paying on the mortgage into equities instead.

matchewed

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Re: How much debt do you have? Are you out of debt?
« Reply #22 on: July 11, 2014, 08:28:14 AM »
I'm just curious, do some people that have a mortgage but significant equity in their house consider the mortgage a debt, rather than say a liability? I still have a mortgage on both my home and rental but have significant equity in both. I consider myself to be debt free in one sense of the word, but my cash flow is significantly impacted because of the mortgages. I mention this because if you live in an apartment you have no debt regarding the roof over your head, but you have a significant amount of money going toward your daily living expenses all the same.

For me the day I achieved positive net worth (rather than being out of debt as defined in this thread, sometime back in the late 90s) was the day I could sell my assets that could be fairly quickly liquidated and still have money in the bank. I am also in the group that is eager to pay off the mortgage early to reduce the amount of cash I need going forward, even though the interest I pay on the loans are just 3.25 and 3.99%. Because my wife will receive a pension when she retires in a few years and the great Social Security deferral game begins for her when she hangs them up, cash flow is something that means much to me in our situation. Getting our rental completely paid off before that date will help out cash flow quite a bit, but it won't really change our overall net worth had I opted to direct the extra principal I am paying on the mortgage into equities instead.

Maybe I take too simple of an approach at this, but in my mind debt=liability. Until you sell the house or pay off that mortgage it is still a debt. It may be offset by equity but it is still there for accounting purposes in my head.

JGB

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Re: How much debt do you have? Are you out of debt?
« Reply #23 on: July 11, 2014, 08:32:27 AM »
I'm just curious, do some people that have a mortgage but significant equity in their house consider the mortgage a debt, rather than say a liability?
...
For me the day I achieved positive net worth (rather than being out of debt as defined in this thread, sometime back in the late 90s) was the day I could sell my assets that could be fairly quickly liquidated and still have money in the bank.

As noted in my post above, I look at it the same way you do. Despite a sizeable mortgage, I consider myself debt-free. The mortgage is there purely because it makes more sense to do other things with the money.

Prairie Stash

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Re: How much debt do you have? Are you out of debt?
« Reply #24 on: July 11, 2014, 08:50:34 AM »
I'm in debt - 32,000 mortgage at 2.99%. I expect to pay it off in April 2016.

Previous had 35K in student loans, took 4 years.

I'm 33, making 90k now in Engineering (made much less when I paid off the student loans).

Maybe I take too simple of an approach at this, but in my mind debt=liability. Until you sell the house or pay off that mortgage it is still a debt. It may be offset by equity but it is still there for accounting purposes in my head.
+1 debt is debt, who cares if its so called good or bad debt or offset by equities? It seems childish to pretend some debts are okay just to be able to say your debt free. I think it's admirable when people are in debt and its of benefit, kudos to them for being wise and using debt effectively. 

matchewed

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Re: How much debt do you have? Are you out of debt?
« Reply #25 on: July 11, 2014, 09:12:02 AM »
Hmmmm, I definitely don't see it that way. My 18 year old son is "debt free". Whoop-de-freaking-do. His net worth is less than 3K. I am not "debt free", my net worth is, um, significantly higher. I think total net worth is the far better gauge to measure by.

Cash flow is much more significant to me for various reasons (some peace of mind), and that is why I am focused on paying off the mortgages early rather than using available funds on investments (where I have enough eggs in the basket already) instead.

Oh don't get me wrong. I'm not saying debt is good or bad. Debt in of itself is not a bad thing necessarily. But for accounting purposes it is still there. It just so happens that the possibilities of what debt may be end up frequently as high interest "bad" debt. There are several examples of good debt, and being debt free is no guarantee that everything is hunky dory. I was debt free and living paycheck to paycheck for a big portion of my early 20's. It sucked. I was also terrible with money. Learning how to be good with money and your life makes it so that you can handle and deal w/ debt in an educated manner. When you can do so debt is a tool like anything else.

But it's still there on the balance sheet. :)

pipercat

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Re: How much debt do you have? Are you out of debt?
« Reply #26 on: July 11, 2014, 09:16:22 AM »
Are you out of debt?
No way!  We have $267,000 of debt.  About $163,000 is mortgage and the rest is a wide variety of crap.  (So far, I think I win lose the debt thing compared to the rest of you)

How long did it take you to get out of debt?
We'll let you know.

How much do you make?
In 2013, our adjusted gross income was $150,000

Hold old are you?
41 and 41

What is your occupation?
Speech therapist and Physical therapist- no there is currently no Ph.D. requirement for PT.
« Last Edit: July 11, 2014, 12:14:02 PM by pipercat »

mak1277

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Re: How much debt do you have? Are you out of debt?
« Reply #27 on: July 11, 2014, 09:18:21 AM »
Debt Free?  I would've said no before I read Hybrid's post, but he's convincing me..ha.

We have a mortgage of ~$300k with over $100k of equity in our home.  Significantly positive net worth, so I'm not concerned about a little leverage at a good rate (< 4%).

Graduated college with ~$50k of student loans (about 1.5 times my starting salary).  Those were paid off in just over 5 years, along with some residual credit card debt and a car loan.  Since 2008, my wife and I have had no debt except for the mortgage.

Combined we make about $250k per year...both in the accounting field to various degrees.

Both 37 years old.

ketchup

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Re: How much debt do you have? Are you out of debt?
« Reply #28 on: July 11, 2014, 09:29:39 AM »
Are you out of debt?
No.  Still owe about $8k (at 5%) on my rental house (plan on moving into it next year with GF).  Had about $8.5k of temporarily 0% then turned 13-22% debt because of a stupid mistake/agreement with let's say a former friend.
How long did it take you to get out of debt?
Only a few months for the CC debt, but the bulk of the payoff fell out of the sky for me.  I've had the house since early 2012.
How much do you make?
~$34k/year including bonus
Hold old are you?
23
What is your occupation?
IT Guy, he who curses at printers and object variables not set.

GF is 21 with about $5k in low-interest student loans still and something little like $400 on a 0%-for-a-year card that she'll be able to easily pay off before it blows up.

RetireAbroadAt35

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Re: How much debt do you have? Are you out of debt?
« Reply #29 on: July 11, 2014, 09:33:48 AM »
Nada nada nada.

I graduated from university with about $20k in loans, which I paid off in the first year of working.  I also took on a $3k car loan to buy a used car to get to work.  I paid that off in the first few months.

I'm very debt averse, which has helped me avoid consumer/student debt but has also prevented me from using any kind of leverage, for example, in real estate.

I currently earn ~6x my living expenses which is a fantastic but recent turn of events.  I'm living cheap, working too much, and saving for the next adventure.

shotgunwilly

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Re: How much debt do you have? Are you out of debt?
« Reply #30 on: July 11, 2014, 09:49:18 AM »
Nada nada nada.

I graduated from university with about $20k in loans, which I paid off in the first year of working.  I also took on a $3k car loan to buy a used car to get to work.  I paid that off in the first few months.

I'm very debt averse, which has helped me avoid consumer/student debt but has also prevented me from using any kind of leverage, for example, in real estate.

I currently earn ~6x my living expenses which is a fantastic but recent turn of events.  I'm living cheap, working too much, and saving for the next adventure.


Holy crap, you could literally retire in 5 years! That is, if you wanted to maintain that level of spending. That's crazy.

hybrid

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Re: How much debt do you have? Are you out of debt?
« Reply #31 on: July 11, 2014, 10:03:20 AM »
Hmmmm, I definitely don't see it that way. My 18 year old son is "debt free". Whoop-de-freaking-do. His net worth is less than 3K. I am not "debt free", my net worth is, um, significantly higher. I think total net worth is the far better gauge to measure by.

Cash flow is much more significant to me for various reasons (some peace of mind), and that is why I am focused on paying off the mortgages early rather than using available funds on investments (where I have enough eggs in the basket already) instead.

Oh don't get me wrong. I'm not saying debt is good or bad. Debt in of itself is not a bad thing necessarily. But for accounting purposes it is still there. It just so happens that the possibilities of what debt may be end up frequently as high interest "bad" debt. There are several examples of good debt, and being debt free is no guarantee that everything is hunky dory. I was debt free and living paycheck to paycheck for a big portion of my early 20's. It sucked. I was also terrible with money. Learning how to be good with money and your life makes it so that you can handle and deal w/ debt in an educated manner. When you can do so debt is a tool like anything else.

But it's still there on the balance sheet. :)

I had deleted that post but damn you Interwebs, it's there for perpetuity now. The "childish" comment above rubbed me the wrong way but I couldn't quite gather what the poster was getting at. Anyway, I agree about the balance sheet and that was sort of the point. My mortgages are irksome because they significantly affect my cash flow. On the other hand, I could probably sell the rental and be completely "out of debt" in perhaps two years. Obviously not going to do that so I can be "debt free".

Cash flow and total net worth are of more value to me than the amount of debt I still have on the balance sheet or when there will be absolutely no loans on the liability side of it. I haven't included my car either, because I owe about 3K on it (an interest free loan), it's worth about 10, and I am in no hurry to retire an interest free loan. But it is technically a debt all the same.

matchewed

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Re: How much debt do you have? Are you out of debt?
« Reply #32 on: July 11, 2014, 10:06:32 AM »
Hmmmm, I definitely don't see it that way. My 18 year old son is "debt free". Whoop-de-freaking-do. His net worth is less than 3K. I am not "debt free", my net worth is, um, significantly higher. I think total net worth is the far better gauge to measure by.

Cash flow is much more significant to me for various reasons (some peace of mind), and that is why I am focused on paying off the mortgages early rather than using available funds on investments (where I have enough eggs in the basket already) instead.

Oh don't get me wrong. I'm not saying debt is good or bad. Debt in of itself is not a bad thing necessarily. But for accounting purposes it is still there. It just so happens that the possibilities of what debt may be end up frequently as high interest "bad" debt. There are several examples of good debt, and being debt free is no guarantee that everything is hunky dory. I was debt free and living paycheck to paycheck for a big portion of my early 20's. It sucked. I was also terrible with money. Learning how to be good with money and your life makes it so that you can handle and deal w/ debt in an educated manner. When you can do so debt is a tool like anything else.

But it's still there on the balance sheet. :)

I had deleted that post but damn you Interwebs, it's there for perpetuity now. The "childish" comment above rubbed me the wrong way but I couldn't quite gather what the poster was getting at. Anyway, I agree about the balance sheet and that was sort of the point. My mortgages are irksome because they significantly affect my cash flow. On the other hand, I could probably sell the rental and be completely "out of debt" in perhaps two years. Obviously not going to do that so I can be "debt free".

Cash flow and total net worth are of more value to me than the amount of debt I still have on the balance sheet or when there will be absolutely no loans on the liability side of it. I haven't included my car either, because I owe about 3K on it (an interest free loan), it's worth about 10, and I am in no hurry to retire an interest free loan. But it is technically a debt all the same.

We can make this all go away hybrid... for a price ;)

Prairie Stash

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Re: How much debt do you have? Are you out of debt?
« Reply #33 on: July 11, 2014, 10:21:16 AM »
Hmmmm, I definitely don't see it that way. My 18 year old son is "debt free". Whoop-de-freaking-do. His net worth is less than 3K. I am not "debt free", my net worth is, um, significantly higher. I think total net worth is the far better gauge to measure by.

Cash flow is much more significant to me for various reasons (some peace of mind), and that is why I am focused on paying off the mortgages early rather than using available funds on investments (where I have enough eggs in the basket already) instead.

Oh don't get me wrong. I'm not saying debt is good or bad. Debt in of itself is not a bad thing necessarily. But for accounting purposes it is still there. It just so happens that the possibilities of what debt may be end up frequently as high interest "bad" debt. There are several examples of good debt, and being debt free is no guarantee that everything is hunky dory. I was debt free and living paycheck to paycheck for a big portion of my early 20's. It sucked. I was also terrible with money. Learning how to be good with money and your life makes it so that you can handle and deal w/ debt in an educated manner. When you can do so debt is a tool like anything else.

But it's still there on the balance sheet. :)

I had deleted that post but damn you Interwebs, it's there for perpetuity now. The "childish" comment above rubbed me the wrong way but I couldn't quite gather what the poster was getting at. Anyway, I agree about the balance sheet and that was sort of the point. My mortgages are irksome because they significantly affect my cash flow. On the other hand, I could probably sell the rental and be completely "out of debt" in perhaps two years. Obviously not going to do that so I can be "debt free".

Cash flow and total net worth are of more value to me than the amount of debt I still have on the balance sheet or when there will be absolutely no loans on the liability side of it. I haven't included my car either, because I owe about 3K on it (an interest free loan), it's worth about 10, and I am in no hurry to retire an interest free loan. But it is technically a debt all the same.
The OP just asked about debt, debt isn't intrinsically good or bad.  I'm finding it fascinating how many people say they're debt free when they carry debt.  Are they embarrassed that they make logical decisions that include holding debt to increase NW faster? The attitude of defending oneself as debt free is funny, some of the wealthiest people on here have the highest debts.

I bet Arebelspy has a lot, just a guess, and he's going to retire way before me. Debt has been very good for some.  MMM paid off his last debt 2 years after FIRE, a very smart strategy for his family.

lexie2000

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Re: How much debt do you have? Are you out of debt?
« Reply #34 on: July 11, 2014, 10:35:34 AM »
Are you out of debt?
We currently have a mortgage; we've never carried any other kind of debt.

How long did it take you to get out of debt?
Over our lifetime we've paid off two mortgages.  We've been paying on our current home for 8 years and are holding onto the mortgage because the interest rate is historically low.

How much do you make?
$55k/yr.


Hold old are you?
56 / DH is 57


What is your occupation?
Retired

anisotropy

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Re: How much debt do you have? Are you out of debt?
« Reply #35 on: July 11, 2014, 10:46:57 AM »
Hmmmm, I definitely don't see it that way. My 18 year old son is "debt free". Whoop-de-freaking-do. His net worth is less than 3K. I am not "debt free", my net worth is, um, significantly higher. I think total net worth is the far better gauge to measure by.

Cash flow is much more significant to me for various reasons (some peace of mind), and that is why I am focused on paying off the mortgages early rather than using available funds on investments (where I have enough eggs in the basket already) instead.

Oh don't get me wrong. I'm not saying debt is good or bad. Debt in of itself is not a bad thing necessarily. But for accounting purposes it is still there. It just so happens that the possibilities of what debt may be end up frequently as high interest "bad" debt. There are several examples of good debt, and being debt free is no guarantee that everything is hunky dory. I was debt free and living paycheck to paycheck for a big portion of my early 20's. It sucked. I was also terrible with money. Learning how to be good with money and your life makes it so that you can handle and deal w/ debt in an educated manner. When you can do so debt is a tool like anything else.

But it's still there on the balance sheet. :)

I had deleted that post but damn you Interwebs, it's there for perpetuity now. The "childish" comment above rubbed me the wrong way but I couldn't quite gather what the poster was getting at. Anyway, I agree about the balance sheet and that was sort of the point. My mortgages are irksome because they significantly affect my cash flow. On the other hand, I could probably sell the rental and be completely "out of debt" in perhaps two years. Obviously not going to do that so I can be "debt free".

Cash flow and total net worth are of more value to me than the amount of debt I still have on the balance sheet or when there will be absolutely no loans on the liability side of it. I haven't included my car either, because I owe about 3K on it (an interest free loan), it's worth about 10, and I am in no hurry to retire an interest free loan. But it is technically a debt all the same.

We can make this all go away hybrid... for a price ;)

YES ! now i am in line for a windfall as wel ;)

desrever

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Re: How much debt do you have? Are you out of debt?
« Reply #36 on: July 11, 2014, 10:47:49 AM »
The OP just asked about debt, debt isn't intrinsically good or bad.  I'm finding it fascinating how many people say they're debt free when they carry debt.  Are they embarrassed that they make logical decisions that include holding debt to increase NW faster?

If I own shares of a REIT that carries debt on its balance sheet, am I in debt? If not, what is the meaningful distinction between that and a mortgage secured by an income producing property? I don't draw one, really. I'd say it's okay to feel debt free and awesome, the moment you no longer owe money for any current or past consumption.

matchewed

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Re: How much debt do you have? Are you out of debt?
« Reply #37 on: July 11, 2014, 10:52:58 AM »
The OP just asked about debt, debt isn't intrinsically good or bad.  I'm finding it fascinating how many people say they're debt free when they carry debt.  Are they embarrassed that they make logical decisions that include holding debt to increase NW faster?

If I own shares of a REIT that carries debt on its balance sheet, am I in debt? If not, what is the meaningful distinction between that and a mortgage secured by an income producing property? I don't draw one, really. I'd say it's okay to feel debt free and awesome, the moment you no longer owe money for any current or past consumption.

Because the REIT is the one carrying the debt versus if you own the property you're the one carrying the debt. That's the distinction.

darkadams00

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Re: How much debt do you have? Are you out of debt?
« Reply #38 on: July 11, 2014, 10:54:39 AM »
Are you out of debt?
Yes. Highest level of non-mortgage debt was ~$80K.

How long did it take you to get out of debt?
~4 years.

Hold old are you?
DW and I are both in our early 40's

What is your occupation?
Data analyst
Office manager

RNwastash

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Re: How much debt do you have? Are you out of debt?
« Reply #39 on: July 11, 2014, 11:17:33 AM »
Are you out of debt?
No, we have a mortgage left of 140K at 3.375%.  I also have an interest-free loan out to myself of 8.5K that I want to pay back. (Bought a 2006 scion xA for cash and some leftover medical bills.)

How long to pay off the debt?
I have a goal of paying everything off in 5 years so I can go part time.

How old are you?
45 and Hubby will turn 50.  Just started reading MMM 4 months or so ago.  I realize that we have joined a little late, but oh well!! You can't do much about the past.

How much do you make?
95k and 85k.

What do you do?
Registered Nurse and Computer Programmer

mpg350

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Re: How much debt do you have? Are you out of debt?
« Reply #40 on: July 11, 2014, 11:22:04 AM »


Are you out of debt?  No

Only debt I have is 106k on home.

How much do you make?  56k

Hold old are you?  35

What is your occupation? Claims Examiner

Ftao93

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Re: How much debt do you have? Are you out of debt?
« Reply #41 on: July 11, 2014, 11:28:47 AM »
I'm just curious...

Are you out of debt?
Not yet.   14k.  Started a few years ago with 35k, no retirement accounts.    this is 'new debt'.  The last of the pre-Mustachian purchases.

How long did it take you to get out of debt?
only 2 years, have 14k in 401k/IRA in the past 18 months.

How much do you make?
60k household

Hold old are you?
38

What is your occupation?
IT nerd


GGNoob

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Re: How much debt do you have? Are you out of debt?
« Reply #42 on: July 11, 2014, 11:40:07 AM »
Are you out of debt?
No - About $300,000 in debt. Bought a house 2 years ago with 0% down (VA loan so theres no PMI). We have a couple of private loans that were used for a business investment, 2 car loans, a student loan, and some 0% interest credit card debt.

How long did it take you to get out of debt?
We should have all debt paid off in 4 years, except for the house. The extra income from the business investment mentioned above will first pay off the credit cards before we pay any interest, then we'll use it to pay off the 2 private loans and student loan. The cars are financed at 1.9% and 0%, so we are in no rush to pay off those. The house is financed at 3.875% and we do not plan on making any extra payments on that.

How much do you make?
Getting a raise to $68,500 this month. My wife should bring in over $60,000 this year and another $10,000 from our business investment. Total this year should be around $136k.

Hold old are you?
I'm 27 and my wife will be turning 26 next month.

What is your occupation?
I'm a network engineer and my wife is a hair stylist.

EarlyRetirementGuy

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Re: How much debt do you have? Are you out of debt?
« Reply #43 on: July 11, 2014, 11:48:09 AM »
Are you out of debt?
192,000 ($328,000) - Mortgage

How long did it take you to get out of debt?

I estimate about 10 years to pay that off

How much do you make?
Combined household is about 75k ($128k)

Hold old are you?
27

What is your occupation?
IT admin

« Last Edit: July 11, 2014, 11:50:28 AM by EarlyRetirementGuy »

Melf

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Re: How much debt do you have? Are you out of debt?
« Reply #44 on: July 11, 2014, 11:58:06 AM »
Are you out of debt?  No real debt for the last decade or so other than car loans long paid off and a few $ on my credit card

How much do you make?  Somewhere just above 90K

Hold old are you?  48

What is your occupation? Telecom Engineer

RetireAbroadAt35

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Re: How much debt do you have? Are you out of debt?
« Reply #45 on: July 11, 2014, 12:12:19 PM »
Holy crap, you could literally retire in 5 years! That is, if you wanted to maintain that level of spending. That's crazy.

That's what I said when I ran the numbers.  I deliberately avoided inflating my lifestyle with this new job.  However, I was unemployed for a good stretch of time before starting this job, so it balances out.

I drive an old vehicle.  I don't commute to work.  I don't buy toys.  I do my own maintenance when possible.  I don't have a permanent residence.

My COL is going to go up soon as I can't quite maintain this forever.

But for now, I'm using it to accelerate my FI plans with as much discipline as I can muster.

FIreDrill

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Re: How much debt do you have? Are you out of debt?
« Reply #46 on: July 11, 2014, 12:22:39 PM »
Are you out of debt?

Yes and no.  No consumer debt but we have a 211k mortgage.

How long did it take you to get out of debt?

Got out of consumer debt at the age of 22 after paying off 2 cars.  Plan on keeping the mortgage for a while and just investing in the market.  Current net worth is about 86k.

How much do you make?

I make around 60k and my wife makes about 35-40k

Hold old are you?

Me: 24, Wife: 20

What is your occupation?

Network Administrator for a telecom company.

nordlead

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Re: How much debt do you have? Are you out of debt?
« Reply #47 on: July 11, 2014, 12:45:24 PM »
Are you out of debt?

No, I have a mortgage at ~$132k

How long did it take you to get out of debt?

My only debt ever is my mortgage, so it'll take me ~16-19 years depending on how fast I want to pay it off. My wife paid off all of her debts before we got married.

How much do you make?
Me: ~$77k, Wife: SAHM

Hold old are you?

Me: 30, Wife: 31

What is your occupation?

Software Engineer

Prairie Stash

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Re: How much debt do you have? Are you out of debt?
« Reply #48 on: July 11, 2014, 12:49:48 PM »
The OP just asked about debt, debt isn't intrinsically good or bad.  I'm finding it fascinating how many people say they're debt free when they carry debt.  Are they embarrassed that they make logical decisions that include holding debt to increase NW faster?

If I own shares of a REIT that carries debt on its balance sheet, am I in debt? If not, what is the meaningful distinction between that and a mortgage secured by an income producing property? I don't draw one, really. I'd say it's okay to feel debt free and awesome, the moment you no longer owe money for any current or past consumption.
If you own shares then I presume you think debt is fine and the stock is good.  There's nothing wrong with debt, why not embrace it? I draw the line at personal debt (mortgage, CC, auto, student Loan, HELOC, investment loan etc.) which I sign for and someone can ask me for the money today.  Is someone going to personally phone you up for the REIT debt if they're underwater on a loan? Large debts can be a sign of very intelligent decision making , or very stupid depending on the person (usually CC debt). I think most people fall into the former camp, except the people who need to make excuses for the debts.

My current terrific situation is because of my student loan debt.  It taught me debt can be a useful tool, I highly recommend using debt to make life better. Hooray to the smart debtors!

bekkah

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Re: How much debt do you have? Are you out of debt?
« Reply #49 on: July 11, 2014, 01:47:39 PM »
Are you out of debt?

Yes.

How long did it take you to get out of debt?

I graduated from college at age 22 with $30k in student loans. I paid off my loans on my 26th birthday. I've never had consumer debt (car, credit card) but I've also never owned a home.

How much do you make?

$70k.

How old are you?

29.

What is your occupation?

Federal employee.