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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: P938LVR on July 10, 2014, 06:43:31 PM

Title: How much debt do you have? Are you out of debt?
Post by: P938LVR 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?

Title: Re: Are you out of debt?
Post by: sleepyguy 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)

Title: Re: Are you out of debt?
Post by: johnintaiwan 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



Title: Re: Are you out of debt?
Post by: kallinan 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.
Title: Re: How much debt do you have? Are you out of debt?
Post by: mattchuck2 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
Title: Re: How much debt do you have? Are you out of debt?
Post by: Threshkin 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.
Title: Re: How much debt do you have? Are you out of debt?
Post by: neo von retorch 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)
Title: Re: How much debt do you have? Are you out of debt?
Post by: libertarian4321 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.
Title: Re: How much debt do you have? Are you out of debt?
Post by: TheNorwegianGuy 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
Title: Re: How much debt do you have? Are you out of debt?
Post by: Exflyboy 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
Title: Re: How much debt do you have? Are you out of debt?
Post by: MandyM 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
Title: Re: How much debt do you have? Are you out of debt?
Post by: shotgunwilly 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.
Title: Re: How much debt do you have? Are you out of debt?
Post by: Lady from Joppa 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.

Title: Re: How much debt do you have? Are you out of debt?
Post by: dude 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
Title: Re: How much debt do you have? Are you out of debt?
Post by: matchewed 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.
Title: Re: Are you out of debt?
Post by: Gray Matter 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:

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.

Title: Re: How much debt do you have? Are you out of debt?
Post by: rocksinmyhead 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! :)
Title: Re: How much debt do you have? Are you out of debt?
Post by: so.mpls 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
Title: Re: How much debt do you have? Are you out of debt?
Post by: soccerluvof4 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!
Title: Re: Are you out of debt?
Post by: so.mpls 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.
Title: Re: How much debt do you have? Are you out of debt?
Post by: JGB 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 (http://www.grinderschool.com). 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.
Title: Re: How much debt do you have? Are you out of debt?
Post by: hybrid 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.
Title: Re: How much debt do you have? Are you out of debt?
Post by: matchewed 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.
Title: Re: How much debt do you have? Are you out of debt?
Post by: JGB 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.
Title: Re: How much debt do you have? Are you out of debt?
Post by: Prairie Stash 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. 
Title: Re: How much debt do you have? Are you out of debt?
Post by: matchewed 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. :)
Title: Re: How much debt do you have? Are you out of debt?
Post by: pipercat 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.
Title: Re: How much debt do you have? Are you out of debt?
Post by: mak1277 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.
Title: Re: How much debt do you have? Are you out of debt?
Post by: ketchup 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.
Title: Re: How much debt do you have? Are you out of debt?
Post by: RetireAbroadAt35 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.
Title: Re: How much debt do you have? Are you out of debt?
Post by: shotgunwilly 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.
Title: Re: How much debt do you have? Are you out of debt?
Post by: hybrid 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.
Title: Re: How much debt do you have? Are you out of debt?
Post by: matchewed 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 ;)
Title: Re: How much debt do you have? Are you out of debt?
Post by: Prairie Stash 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.
Title: Re: How much debt do you have? Are you out of debt?
Post by: lexie2000 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
Title: Re: How much debt do you have? Are you out of debt?
Post by: anisotropy 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 ;)
Title: Re: How much debt do you have? Are you out of debt?
Post by: desrever 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.
Title: Re: How much debt do you have? Are you out of debt?
Post by: matchewed 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.
Title: Re: How much debt do you have? Are you out of debt?
Post by: darkadams00 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
Title: Re: How much debt do you have? Are you out of debt?
Post by: RNwastash 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
Title: Re: How much debt do you have? Are you out of debt?
Post by: mpg350 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
Title: Re: How much debt do you have? Are you out of debt?
Post by: Ftao93 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

Title: Re: How much debt do you have? Are you out of debt?
Post by: GGNoob 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.
Title: Re: How much debt do you have? Are you out of debt?
Post by: EarlyRetirementGuy 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

Title: Re: How much debt do you have? Are you out of debt?
Post by: Melf 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
Title: Re: How much debt do you have? Are you out of debt?
Post by: RetireAbroadAt35 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.
Title: Re: How much debt do you have? Are you out of debt?
Post by: FIreDrill 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.
Title: Re: How much debt do you have? Are you out of debt?
Post by: nordlead 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
Title: Re: How much debt do you have? Are you out of debt?
Post by: Prairie Stash 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!
Title: Re: How much debt do you have? Are you out of debt?
Post by: bekkah 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.
Title: Re: How much debt do you have? Are you out of debt?
Post by: anisotropy on July 11, 2014, 02:29:32 PM
debt
Real: about $35000 student loans and consumer debt (not NW) upon graduation in 2009
Emotional: tons haha

how long?
Too long, finally cleared the tab in 2011. Thanks to my off the chart spending habits, so many oppourtunies missed and wasted...

income
We do ok, net income is about 4-5x of expenses since 2011. A year of bad market could easily turn it into 2x though or even way into the negatives depending on how bad it is.....

age
Both 30.5

occupation
Geo
Title: Re: How much debt do you have? Are you out of debt?
Post by: Gray Matter on July 11, 2014, 02:46:15 PM
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! :)

I don't mind at all!  I think this happens pretty frequently.  My husband started in a very entry level job (account administrator) at a consulting firm.  He worked really hard, and got promoted, and promoted again.  Every time, he got raises that looked good from a percentage perspective, but didn't amount to much since he started at such a low salary.  After a number of years, he was a senior consultant with a lot of clients, responsibility, and international travel, but he never overcame the fact that he started out earning so little.  Though his salary had nearly tripled, he was still significantly underpaid for the work he was doing.

By moving to another department and taking on additional responsibilities, he was able to secure a big pay increase (something like 65%), but it felt like too little, too late and he was already disengaged and disenchanted.  But the move and the pay bump gave him the confidence to look elsewhere and secure a new job at another big increase (80%), so he ended up tripling his salary in one year through those two moves (one internal, one external).

I have seen this happen time and time again--your salary has far more to do with the economy and circumstances at the time of your hire than what you're actually "worth" relative to your colleagues.  And many companies have guidelines against giving raises bigger than 10% or 15% even when changing jobs internally, and they really seem to hate to do market adjustments.  In many cases, you have to leave in order to come in somewhere else at market value.
Title: Re: How much debt do you have? Are you out of debt?
Post by: Cheddar Stacker on July 11, 2014, 02:51:37 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!

I agree with PP here, but it was a valiant effort desrever. There is a difference between an investment in a REIT (no recourse) and your own rental property which many times has personal guarantees or additional assets beyond the value of the property in case things go south.

For the record PP, I carry debt in efforts to accelerate FIRE, and I do not consider myself debt free. I don't want to be debt free until after I FIRE. I believe it is disingenuous to call yourself debt free if you have mortgages and such. You have positive net worth on that investment, isn't that enough? A debt is a debt, some are for a great reason, but they are still a debt.
Title: Re: Are you out of debt?
Post by: kallinan on July 11, 2014, 03:20:58 PM

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.

Ah, my mistake - Physical Therapist is my wife's occupation.  I'm the software developer.   But yes, her eduction & time is currently invested in teaching our kindergartener & 1st grader how to read & do basic math.  :)  Such is life.
Title: Re: How much debt do you have? Are you out of debt?
Post by: carozy on July 11, 2014, 06:22:02 PM
Are you out of debt?

No.  I have $700 is credit card debt which I'll pay off with the next paycheck.  This is down from $14,000 credit card debt which I'd had for a few years and had been paying the minimums on for the past year or two. 

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

I started aggressively paying off the debt around the end of April, when it was $10,000.  I moved in with my parents at that time and so my monthly expenses went way down.  The debt was from being spendy when I was unemployed or only part time employed.

How much do you make?

Around $38,500.

Hold old are you?

35

What is your occupation?

Office Manager
Title: Re: How much debt do you have? Are you out of debt?
Post by: neophyte on July 11, 2014, 07:34:21 PM
Are you out of debt?
How long did it take you to get out of debt?


Never been in debt. Thanks to scholarships and a generous father, I made it through college without any student loans. Someday I'll probably have a mortgage.

How much do you make?

About $30,000 gross.  I need to figure out how people make money and get in on that.

Hold old are you?

27

What is your occupation?

I work in bioengineering
Title: Re: How much debt do you have? Are you out of debt?
Post by: DollarBill on July 11, 2014, 07:46:21 PM
Are you out of debt?  Yes

How much do you make?  56k (Most ever)

Hold old are you?  39

What is your occupation? Military (Soon to be retired)
Title: Re: How much debt do you have? Are you out of debt?
Post by: NV Teacher on July 11, 2014, 09:02:52 PM
Are you out of debt?   No, but I'm getting there.  I paid off my SL this week but I still have a house note.  No other debt.

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

How much do you make?   $75,000 a year

Hold old are you?   Older than I look.

What is your occupation?    School teacher
Title: Re: How much debt do you have? Are you out of debt?
Post by: lizzzi on July 12, 2014, 06:17:01 AM
Never carried any debt except for house mortgages over the years and sometimes car payments (relatively short-term; always paid off cars as soon as possible). Credit cards almost always paid monthly; once in a while for large purchases (refrigerator, etc.,) would pay in it two months

Associates degree: Paid for without loans; worked three part-time jobs while a student.
Bachelor's degree: Paid for with GI bill.
Master's degree: Just paid for it with savings; cash on the barrelhead.

Income was always fairly average RN's salary. First husband was Air Force pilot, second husband is retired NYC policeman. Both quite Mustachian, in their own ways.

Age: 64

Life philosophy was always Mustachian, long before MMM started his blog and coined the term. I personally think it is a great route to happiness.


Title: Re: How much debt do you have? Are you out of debt?
Post by: lizzzi on July 12, 2014, 06:19:44 AM
Forgot to say current income ( state pension and part of military pension) is $32,000. Husband's SS and NYC police pension totals around $34,000. So $66,000. Save around half of that.
Title: Re: How much debt do you have? Are you out of debt?
Post by: CU Tiger on July 12, 2014, 08:14:47 AM
Are you out of debt? Yes.

How long did it take you to get out of debt? Purchased house in 2000, paid it off in 2014. For three of those years (2005-2007) we also had a car payment.)

How much do you make? Total between husband's jobs and my job/part time job is about $170,000

Hold old are you?  48/49

What is your occupation?  IT Manager/Administrative Assistant
Title: Re: How much debt do you have? Are you out of debt?
Post by: Silverwood on July 12, 2014, 12:46:28 PM
Am I out of debt: not even close

$222 204 left on the mortgage, $ 16 000 on line of credit

How long: I'll be working on this for years

Income: about 60 000 but take home is about 45 000 I like the first number better damn taxes

Job: I'm an aerospace manufacturing  tech.

Age: I'm 29

 

Title: Re: How much debt do you have? Are you out of debt?
Post by: Wanderlusting on July 12, 2014, 02:05:34 PM
Are you out of debt? Nope, paying off some outrageous student loans right now, no other debt otherwise, thankfully.

How long did it take you to get out of debt? I'm on path to be out of debt in about 3 years, hopefully less than that if I can bend the savings rate in my favor more.

How much do you make? Gross pay is about 30-32k a year

Hold old are you?  25

What is your occupation?  U.S Navy
Title: Re: How much debt do you have? Are you out of debt?
Post by: twbird18 on July 12, 2014, 05:33:13 PM
I'm just curious...

Are you out of debt?
No,  $260K House @3.7%, $145K first house, now rental
$~11K student loands @2.5%
$8K CC & $12K business CC

How long did it take you to get out of debt?
I think we should have our houses paid of in ~10yrs. The CC debt is off & on, currently in the process of moving/changing jobs & selling a big chunk of our side business, which will pay of the CC in full - in the meantime we have temporarily stopped selling things until the sale goes through which has led to the build up in business CC debt. We charge all of our monthly expenses & typically pay off monthly though currently a little higher than normal due to these 2 events(moving/sell).


How much do you make?

$120K + DH $50K

Hold old are you?

35 & 32

What is your occupation?
Utilities/Government work
Title: Re: How much debt do you have? Are you out of debt?
Post by: Freestyler on July 12, 2014, 06:14:32 PM
I'm out of debt.

I've "never" been in debt: when I was 25 and had been working for a short while my impulsive then girlfriend (and the bike dealer) urged me to buy the motorbike that I had been longing for some time with a tiny loan (but with ridiculous interest) as "it would be more convenient" than depleting my cash... The loan and the impulsive girlfriend were gone in one year but I always tried not to ever do the same stupid mistake. Well, I had at least one other impulsive girlfriend afterwards.

In 2013 285k for me and 40k for DW. This was however significantly more than what I had previously made and I am going to pay crazy figures in taxes and social security, so after that it amounts to much less. Also, DW doesn´t work anymore and takes care of our toddler.

35 and 36.

I am a physician and DW is a nurse.
Title: Re: How much debt do you have? Are you out of debt?
Post by: hybrid on July 13, 2014, 04:53:58 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? 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.

I was questioning how one approaches the notion of debt in the first place, I don't understand why others have been quick to assume there is some sort of emotional baggage that comes with that.

Debt as defined in this thread directly affects cash flow. If you own a home (as most people that have replied do), then the monthly budget is taking a significant hit. A rental unit, as in my case, increases that outward cash flow. If my rental were empty I would surely be feeling that. And if you have cars or credit cards on top of that???

I contend that is certainly one way to look at things, and it has definitely impacted the way our family budget works. Rather than increase our investments, we have been aggressively retiring the mortgages, or getting "out of debt". Some would argue that with interest rates below 4% this is a fool's errand, I would counter that I already have enough (too much?) exposure to the stock market and this financially conservative play is prudent in our case.

On the other hand, I have been what I define as "in debt" before - having a net worth of less than zero. This changes how one approaches life dramatically compared to carrying mortgage balances but being significantly positive.  So, for me anyway, when someone talks about carrying debts I tend to subjectively define that as being financially underwater. Someone who bought a home in 2007, has 30,000 cash in the bank, but is still 100,000 underwater on their mortgage is in a far different position than a person with 3,000 in the bank but 100,000 equity in their home. The latter has options, the former has issues. Both are "in debt".
Title: Re: How much debt do you have? Are you out of debt?
Post by: Gin1984 on July 13, 2014, 06:47:11 AM
Are you out of debt?  No, we have a thirty year mortgage (4.75) and we are four years in, a 15 year NYSERDA loan (3.5) to upgrade our water heaters/furnaces that we are 3.5 years into.  Two undergrad loans and two grad loans all deferred until we graduate.  My husband graduates before I do so his two grad loans and one undergrad will be paid off when he does (we have the money set aside).  I don't plan to ever be out of debt, I like using other people's money and leaving mine in the market.

How much do you make?  25K for self, 26K for husband

Hold old are you?  29 for self, 32 for husband

What is your occupation? Both of us are grad student
Title: Re: How much debt do you have? Are you out of debt?
Post by: Cheddar Stacker on July 13, 2014, 07:30:20 AM
Someone who bought a home in 2007, has 30,000 cash in the bank, but is still 100,000 underwater on their mortgage is in a far different position than a person with 3,000 in the bank but 100,000 equity in their home. The latter has options, the former has issues. Both are "in debt".

Hybrid, good distinction. Well said. While one is worse off, thay are both in debt, unless of course with the latter the house is worth $100k since that would result in a mortgage of $0.

Debt is not always bad, its a tool just like a chainsaw, you just have to be careful and learn how to use it properly so you don't chop off your legs.
Title: Re: How much debt do you have? Are you out of debt?
Post by: KMMK on July 13, 2014, 07:34:25 AM
Are you out of debt?
I was out of debt in 2008 when I sold my house. I was 31 years old. But then in 2012 we (now with my husband) went back into debt buying a car, then a condo in 2013.
We currently owe about $12,000 on the car and $159,000 on the condo, jointly. But we could pay off the car anytime and my investments are making way higher than the mortgage rate, so it makes financial sense to have debt. Neither of us have ever had credit card debt. He had a small amount of student loan debt when he was 18 and paid it off quickly. I've never had a student loan.

How long did it take you to get out of debt?
Basically it just required not owning a home. It's really easy to be debt free if you just rent.

How much do you make?
$120,000 or so combined now. But in the past it has been much lower.

Hold old are you?
Both 37

What is your occupation?
Skilled trades types of things - both required a 2 year college diploma.
Title: Re: How much debt do you have? Are you out of debt?
Post by: P938LVR on July 13, 2014, 07:36:28 AM
Are you out of debt?  No, we have a thirty year mortgage (4.75) and we are four years in, a 15 year NYSERDA loan (3.5) to upgrade our water heaters/furnaces that we are 3.5 years into.  Two undergrad loans and two grad loans all deferred until we graduate.  My husband graduates before I do so his two grad loans and one undergrad will be paid off when he does (we have the money set aside).  I don't plan to ever be out of debt, I like using other people's money and leaving mine in the market.

How much do you make?  25K for self, 26K for husband

Hold old are you?  29 for self, 32 for husband

What is your occupation? Both of us are grad student
May I ask what field you are both in?
Title: Re: How much debt do you have? Are you out of debt?
Post by: Gin1984 on July 13, 2014, 11:40:02 AM
Are you out of debt?  No, we have a thirty year mortgage (4.75) and we are four years in, a 15 year NYSERDA loan (3.5) to upgrade our water heaters/furnaces that we are 3.5 years into.  Two undergrad loans and two grad loans all deferred until we graduate.  My husband graduates before I do so his two grad loans and one undergrad will be paid off when he does (we have the money set aside).  I don't plan to ever be out of debt, I like using other people's money and leaving mine in the market.

How much do you make?  25K for self, 26K for husband

Hold old are you?  29 for self, 32 for husband

What is your occupation? Both of us are grad students
May I ask what field you are both in?
Neuroscience.  My husband plans to teach and I plan to stick with research.  Obviously we would both like tenure track, but I can be happy in a research company (pharm/tox is a related field) and my husband can always find non-tenure teaching.  The fact that we don't know where we will be is why we are saving as much as we can. 
Title: Re: How much debt do you have? Are you out of debt?
Post by: brooklynmoney on July 13, 2014, 11:54:28 AM
I'm indebted to the bank for my condo mortgage to the tune of $310K. I could pay it off now, but I have no desire to do so. I do prepay principal every month and have been doing so for the 2 years I've had the mortgage. I plan to pay off the mortgage in 16 years.  I'm 40. I make as someone said above "more than enough" even for NYC.
Title: Re: How much debt do you have? Are you out of debt?
Post by: mm1970 on July 13, 2014, 08:43:23 PM
Are you out of debt? No - mortgage is $450k

How long did it take you to get out of debt? - should be paid off in about 17 years

How much do you make? in excess of $200k combined

Hold old are you? 44/46

What is your occupation? both engineers (one with a PhD)


note: we are aggressively paying down our mortgage, and in fact have enough money in savings to pay it off, but prefer not to.
Title: Re: How much debt do you have? Are you out of debt?
Post by: tanhanivar on July 13, 2014, 09:42:16 PM
Are you out of debt? No - mortgage is $323K. No other debt.

How long did it take you to get out of debt?  I did have a small HECS (Higher Education Contribution Scheme) debt when I graduated uni but that was paid off in about four years with the mandatory repayments. The mortgage is scheduled to be repaid off in 25 years. I think I can comfortably do it in 10. Would like to make it less than that.

How much do you make? C. $110k per annum, including side-hustles.

Hold old are you? 34.

What is your occupation? Lawyer (public service).
Title: Re: How much debt do you have? Are you out of debt?
Post by: horsepoor on July 13, 2014, 10:39:31 PM
Plenty of debt, but most of it at low interest rates, fortunately.

$5K - credit card at 0% until next May (will pay off before then)
$27K-ish on student loan at fixed 1.875% - no rush to pay that off
$160K - current residence 3.5% fixed
$105K - previous residence/rental, currently up for sale.  6.375% interest, so really hoping to sell and get rid of that albatross
$10K - car note at 2.79%

Will hopefully be down to just the mortgage and student loan within a year or so, and don't plan to pay those off early (might fire a little extra at the mortgage, and kill the SLs when they're down to a few grand just because).

Title: Re: How much debt do you have? Are you out of debt?
Post by: Sunnymo on July 13, 2014, 10:55:13 PM
An Aussie here...

Are you out of debt?
No - mortgages over three properties = $400k Equity of $550k
Plus investment loan $55k secured over managed (mututal) funds worth $105k

How long did it take to get out of debt?
We aren't - see above. Plan is to have the mortgages cleared in next 15 years.
However, cards have been paid in full each month for over 10 years.
No car related debt in over 15 years, last 2 vehicles have been bought with cash.
I paid for two degrees as I went from part time work while living at home, graduating twice with no debt. DH didn't attend uni.

How much do you make?
Wages + rent + investment earnings = approx $180k a year

How old are you?
Me 43, DH 36

What is your occupation?
Me SAH (formerly a commercial banker), DH is a heavy equipment operator (trucks, graders, dozers) at an open cut coal mine
Title: Re: How much debt do you have? Are you out of debt?
Post by: Cressida on July 13, 2014, 11:23:00 PM
I've never had credit card debt. I have a mortgage.

I did have student loans, somewhere in the low $20Ks in total. I paid them off slowly (it should be obvious that I had not discovered Mustachianism) for about 12 years and then got a windfall: a bonus and a company stock buyout (our company was acquired, and I had received some shares and options as compensation) at around the same time that totaled around $14K. At the time that was slightly less than my outstanding loan balance so I paid it off all at once. That was about a year and a half ago.

I'm nearly 40 and work as an accountant (at the moment, around $75K gross). But I didn't always; I started in clerical and worked my way up. My salary was a lot lower prior to around 2009.
Title: Re: How much debt do you have? Are you out of debt?
Post by: Lukim on July 13, 2014, 11:31:11 PM
Are you out of debt - No, have a margin lending loan on a share portfolio.  The loan is $266,000 and the portfolio has a current value of $998,000.  The interest is relatively cheap at present. Could pay of the debt tomorrow but the tax advisor tells me to keep the loan.
No other debt.

Have had mortgages in the past but for the last 4 properties purchased / built, I have paid cash (in aggregate, about $1,600,000 but probably worth now about $2,500,000).

How much do you make - Self employed so it varies from year to year. Averages around $500,000.

How old are you - 55 and wife is 50 - so we have had plenty of time to get out of debt.

What is your occupation - a business consultant (I am qualified as a lawyer). Wife stays at home.

Title: Re: How much debt do you have? Are you out of debt?
Post by: lysistrata on July 13, 2014, 11:51:54 PM
Are you out of debt?
We've got a mortgage - currently $457k.
Husband has a $3k student loan which should be paid off next year. SL in NZ are interest-free, so no hurry to pay it off.

How long did it take to get out of debt?
My goal is to pay off the mortgage in 15 years.

How much do you make?
Between two of us - $125K. I'm aggressively pursuing a side-hustle right now that should add another $10k+ to our stashe.

How old are you?
Me 29, DH 38

What is your occupation?
I'm a writer, DH is a health and safety assessor.
Title: Re: How much debt do you have? Are you out of debt?
Post by: Rodstar on July 14, 2014, 06:11:58 AM
Are you out of debt?

Nope. $2,700,000 in investment mortgage debt.  Supported by $4,100,000 in property and $180,000 a year in rental income.

How long did it take you to get out of debt?
I'll let you know when I get there.  Planning on reducing as much debt over the next 4-5 years and then selling some property.

How much do you make?
$190,000 and $110,000

How old are you?
42 and 37

What is your occupation?
IT Consultant and Government Policy Analyst
Title: Re: How much debt do you have? Are you out of debt?
Post by: zinethstache on July 19, 2014, 05:20:29 PM
Are you out of debt?

Nope. I will steal the format for the poster above:)

$168k primary res. mortgage 3.875% home value $400k
$730k in investment mortgage debt.  Supported by just over $1M in rental property and $97k a year in rental income.
$12k car loan @2.89%

How long did it take you to get out of debt?
paid off LOC and CCs years ago, pay of rewards CC monthly.  Auto loan was taken because interest rate was too low to pass up, used that cash for investing $$.

How much do you make?
$115k and 97k

How old are you?
both 46

What is your occupation?
IT Lead Web Analyst and Property Investor
Title: Re: How much debt do you have? Are you out of debt?
Post by: sekritdino on July 22, 2014, 12:36:27 AM
Are you out of debt?

No, I have $11,200 left of my student loans, out of about $37k. Totally worth it. My CS degree got me a very lucrative job.

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

I started paying off my loans in February and expect to finish in October 2014. I max out my 401k, maxed out a 2013 traditional IRA, etc too.

How much do you make?

Base salary is $100,000 plus my on-hire stock award makes another $14k and has been growing so next year will be more. Bonuses are coming next month so yay!

How old are you?

27. Wish I had gotten the CS degree earlier. I got a BA in history my first time through college.

What is your occupation?

Software engineer
Title: Re: How much debt do you have? Are you out of debt?
Post by: sekritdino on July 22, 2014, 12:46:39 AM
How much do you make?

About $30,000 gross.  I need to figure out how people make money and get in on that.

Learn how to program. Seriously. Industry pays VERY well.
Title: Re: How much debt do you have? Are you out of debt?
Post by: T-Rex on July 22, 2014, 01:17:39 AM
I am out of debt, it took me about 4 years to pay my car loan. I make around $49K. 30 years old and in the military. I hated having a loan. I am not very happy with the idea of borrowing anymore.
Title: Re: How much debt do you have? Are you out of debt?
Post by: parsimonious on July 22, 2014, 01:31:31 AM
Debt?
None! Never had any besides the mortgage and we swore to always pay cash from now on. We are very debt adverse. Some of my motivation for marrying my husband was to avoid student loans. Luckily it worked out great. :)

How long did we have debt?
Closed October 2010, payed off this year. (Yes, buying the house and paying it off early during a bull market was retarded in retrospect - but this was after maxing out my 401k and both Roths)

How much was the debt?
After the down payment $144k

How old?
I'm 31

Occupation:
Night Shift Pharmacist & House Husband. I pull in $120k a year now
Title: Re: How much debt do you have? Are you out of debt?
Post by: Dollarbill49 on July 22, 2014, 06:45:15 AM
Are you out of debt?
Yes

How long did it take you to get out of debt?
15 years for our mortgage.  Extinguished at age 49

How much do you make?
That's a matter between me and my employer

Hold old are you?
56

What is your occupation?
Finance/Accounting/Systems
Title: Re: How much debt do you have? Are you out of debt?
Post by: Cap_Scarlet on July 22, 2014, 09:05:45 AM
Are you out of debt?
Yes

How long did it take you to get out of debt?
That depends, it's gone up and down over the years but currently we have unmortgaged property will a value of about €850k (about $1.1 million)

How much do you make?
Last year was €550,000 before taxes and about €380,000 after taxes (or just over $500,000)

Hold old are you?
I am 49, my wife is 51.

What is your occupation?
I'm an accountant.