DEBT FREEDOM...how many see it as the first step to SS?

[Sherrynboo]

Farmerchick, you will reduce your credit score if you close those accounts. It is much better to just freeze them or not use them than to close them.

We incurred some debt last year for a tractor for the farm. While I hate owing for it, it has been a lifesaver! I didn't put much out at Christmas, most of my gifts were thing I made. One gift that we recieved was a hydrolic log splitter, what a blessing that was! One less thing we have to buy for the farm.

Sherry

 

[Beekissed]

I have student loans and a personal loan....I was pretty good with just the student loan until last year's unemployment period....not a good year! Now, I owe around $20, 000!!!!($11,000 is student loans) Other than a mortgage, that is the most I've ever owed in my life!!!

I own the car and I rent my home, so, other than utilities I'm good. But the 20 thou might as well be 100 thou on my wages. The personal loan is interest free and the student loan is very little interest, so its not so bad as a credit card, but debt weighs heavy on my head.

I do not like being in debt for any reason! I'm told that what I owe is very little to most folks and their families. I think any debt is too much.

 

[TanksHill]

Farmerchick, you will reduce your credit score if you close those accounts. It is much better to just freeze them or not use them than to close them.

We incurred some debt last year for a tractor for the farm. While I hate owing for it, it has been a lifesaver! I didn't put much out at Christmas, most of my gifts were thing I made. One gift that we recieved was a hydrolic log splitter, what a blessing that was! One less thing we have to buy for the farm.

Sherry

A hydraulic log splitter. Now your talking. Sounds like fun to me.

 

[curly_kate]

I do not like being in debt for any reason! I'm told that what I owe is very little to most folks and their families. I think any debt is too much.

I agree! But it's so incredible to hear how much people owe. Some of my relatives are really bad with credit card debt, but are pretty blase about it. They have the 'everybody's doing it' attitude, and figure it will all go away when they die!

 

[poppycat]

I'm not even going to post how much debt I've got. Suffice it to say I've got you all beat by a mile!

I have rental properties which are all mortgaged. We are looking at ways to pay them off or down so that we get more income from rent. It just becomes a balancing act with tax liability. Right now when our cash flow is low it would be nice to have more income. But come April when I have to write that check to the IRS....

Like Tanks Hill, I can't live in the area I do without being in debt. If I didn't pay big on my mortgage, I would on my taxes.

 

[PamsPride]

We just sold our rental property...on land contract. We are praying that it all goes well now. We are expecting our first payment the first of Jan!! It will make a big difference in our finances!

 

[Beekissed]

Anybody ever thought of just selling all the property/houses and going off-grid, backwoods and no debts except property taxes? Buy a piece of land and pay cash from the proceeds from the sell of your homes and build a log cabin from the logs on the land?

 

[prairiegirl]

Yikes! That's what I said when I read the title of this thread. If being debt free was the first step to living self sufficient, we are no where near to living that way of life.

For us, being debt free was not the first step towards SS. That is one of our important goals that we work on each day. But, knowing that we aren't close to that, we live as self sufficient as possible in hopes that one day (praying it's soon) we achieve that goal. In living this way we are able to save money in many ways. The challenge of recycling, saving, growing, preserving, bartering is like a game at times. For the last year and half, we've paid cash for everything - we didn't make any large purchases. We did have to purchase a new stove (couldn't find a decent used one and it was the holidays last year) but we purchased it 0 percent interest for 12 months and paid it in full before the 12 months.

 

[Beekissed]

Yikes! That's what I said when I read the title of this thread. If being debt free was the first step to living self sufficient, we are no where near to living that way of life.

For us, being debt free was not the first step towards SS. That is one of our important goals that we work on each day. But, knowing that we aren't close to that, we live as self sufficient as possible in hopes that one day (praying it's soon) we achieve that goal. In living this way we are able to save money in many ways. The challenge of recycling, saving, growing, preserving, bartering is like a game at times. For the last year and half, we've paid cash for everything - we didn't make any large purchases. We did have to purchase a new stove (couldn't find a decent used one and it was the holidays last year) but we purchased it 0 percent interest for 12 months and paid it in full before the 12 months.

But you are on your way to getting there...... so, in a round about way its sort of your first goal. By living more frugally and SS, you are decreasing your debt. Whala! YAY!!!

 

[PamsPride]

Anybody ever thought of just selling all the property/houses and going off-grid, backwoods and no debts except property taxes? Buy a piece of land and pay cash from the proceeds from the sell of your homes and build a log cabin from the logs on the land?

Ummmmm....NO!! I like having internet, and running HOT water in my house, a washing machine that you just load up, push the buttons, and then come back later to dry and put more laundry in! I like having ALL the perks that comes with electricity!!!