Author Topic: How real is it, the "get out of debt now" mentality?  (Read 2222 times)

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Offline bijou

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How real is it, the "get out of debt now" mentality?
« on: February 10, 2008, 12:31:49 PM »
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Angela Shelley (970 posts)     Sat Feb-09-08 01:14 PM
Original message
How real is it, the "get out of debt now" mentality?
 Edited on Sat Feb-09-08 01:16 PM by Angela Shelley
There are hundreds if not thousands of financial advisors who sell books, tapes, videos and DVDs with their message of "get out of debt now".

Many talk show hosts have financial advisors as regular guests.

I am curious if there truly is a "get out of debt now" mentality, or is it just "hot air".

My question:

In your opinion, based on what you´ve PERSONALLY heard from friends, family and colleagues, which percentage of all US households are SERIOUSLY working on "getting out of debt now"?

 
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Orrex  (1000+ posts)       Sat Feb-09-08 04:23 PM
Response to Reply #18
30. Sure, some people CAN live debt-free, but for others is simply not realistic
 Debt-free living presupposes a living wage, which itself largely a fantasy. It also assumes that no emergencies arise (broken furnace, car repair, medical bills, etc.), and it generally requires a preexisting savings account or the like. For many, the amassing of debt has nothing to do with "keeping up with the Joneses" and everything to do with keeping up with their utility bills.

I applaud those who manage to live debt-free or close to it, but reality doesn't permit everyone to live that way.
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Angela Shelley (970 posts)     Sun Feb-10-08 06:05 AM
Response to Reply #18
36. Was Dave Ramsey the one with the radio show?
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Wcross  (1000+ posts)      Sun Feb-10-08 11:39 AM
Response to Reply #36
42. Yes he is. He is a fundy republican but his plan is workable.
 You don't need to buy his books or attend his seminar. It is such a simple plan it can be explained in a short post here.

1) Free up some of your cash flow. You can do this by cutting back on luxuries such as eating out, buying starbucks, going to the movies & everything else that is not necessary.
2) Build up a small emergency fund of 1000.00 with the savings.
3) List your debts smallest to largest EXCEPT FOR YOUR MORTGAGE. DO NOT BE CONCERNED WITH INTEREST RATES.
4) Use the extra cash from step one and throw it all towards the smallest debt. When that debt is retired use the money you used to pay the smallest debt with & apply it towards the next debt on your list.
5) When all your debts are paid (except for the house), build a larger emergency fund of 3-6 months of living expenses.
6) Attack the mortgage with everything you can throw at it.

Imagine what your life would be like with no debt.
Colour me shocked that he is not a whiny entitlement minded liberal.  ::)
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SoFlaJet (1000+ posts)      Sat Feb-09-08 01:17 PM
Response to Original message
2. we are
 and were doing pretty good until Christmas came along and a couple of new grandkids last year-back to it though-you know AFTER we pay Uncle Sam a couple of grand for George Bush's war-which is why it's so critical to get a dem in office-either one, and we'll ALL be so much better off

link

Long thread, well worth a visit.



Offline Chris_

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Re: How real is it, the "get out of debt now" mentality?
« Reply #1 on: February 10, 2008, 12:36:58 PM »
The only debt I have is my Mortgage, and it will be paid off in 5 years.

A "livable wage" is available to everyone who makes good decisions when they are young (go to college, choose a profession that pays well and has a future).

Being debt free is a question of discipline.  I don't buy anything unless I can pay cash for it.  Period.  That includes "big ticket" items like furniture.

Anyone and everyone can be debt free.
If you want to worship an orange pile of garbage with a reckless disregard for everything, get on down to Arbys & try our loaded curly fries.

Offline Carl

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Re: How real is it, the "get out of debt now" mentality?
« Reply #2 on: February 10, 2008, 12:42:14 PM »
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Orrex  (1000+ posts)       Sat Feb-09-08 04:23 PM
Response to Reply #18
30. Sure, some people CAN live debt-free, but for others is simply not realistic
 Debt-free living presupposes a living wage, which itself largely a fantasy. It also assumes that no emergencies arise (broken furnace, car repair, medical bills, etc.), and it generally requires a preexisting savings account or the like. For many, the amassing of debt has nothing to do with "keeping up with the Joneses" and everything to do with keeping up with their utility bills.

I applaud those who manage to live debt-free or close to it, but reality doesn't permit everyone to live that way.

As always they just reek of stupidity.
Please explain how paying utility bills =amassing debt.

My take is that this person lives beyond their means which might be because with no ambition they never progressed beyond minimum wage.
The debt being amassed is from certain unnecessary expenses like say Internet and God only knows what else.

Life is what you make of it,always has been...always will be.
Misery isn`t a natural state of being but a chosen and cultivated one.


Offline Lauri

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Re: How real is it, the "get out of debt now" mentality?
« Reply #3 on: February 10, 2008, 02:31:19 PM »
i see it as the way we look at life; most of us want to choose our life and head in a certain direction. lefties never want to choose, therefore, they are never forced to make the hard decisions like, "giving up starbucks" in favor of getting together the money for a down payment on a car or a house.

we've had debt.. and we will have it again at some point but it will be short term. but right now, our college and private school expenses are our number one priority.

but they wont be forever.

Offline Chris_

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Re: How real is it, the "get out of debt now" mentality?
« Reply #4 on: February 10, 2008, 02:34:10 PM »
i see it as the way we look at life; most of us want to choose our life and head in a certain direction. lefties never want to choose, therefore, they are never forced to make the hard decisions like, "giving up starbucks" in favor of getting together the money for a down payment on a car or a house.

we've had debt.. and we will have it again at some point but it will be short term. but right now, our college and private school expenses are our number one priority.

but they wont be forever.
Exactly -- it is understanding the debt you are taking on and what the return will be for what you are leveraging.

That part never occurs to the DUmmies.  They want everything they want and they want the gummint to provide it.  Now.
If you want to worship an orange pile of garbage with a reckless disregard for everything, get on down to Arbys & try our loaded curly fries.

Offline Uhhuh35

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Re: How real is it, the "get out of debt now" mentality?
« Reply #5 on: February 10, 2008, 02:41:53 PM »
Why would they want to get "Out of Debt Now" when Barak is gonna' bring "Change We Can Believe In" and all their problems will be solved anyway?
"Two things are infinite: the universe and human stupidity; and I'm not sure about the universe."
— Albert Einstein.

Offline Chris_

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Re: How real is it, the "get out of debt now" mentality?
« Reply #6 on: February 10, 2008, 02:43:03 PM »
Why would they want to get "Out of Debt Now" when Barak is gonna' bring "Change We Can Believe In" and all their problems will be solved anyway?

Yep -- "change"="gimme gimme gimme"
If you want to worship an orange pile of garbage with a reckless disregard for everything, get on down to Arbys & try our loaded curly fries.

Offline bijou

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Re: How real is it, the "get out of debt now" mentality?
« Reply #7 on: February 10, 2008, 02:44:34 PM »
Why would they want to get "Out of Debt Now" when Barak is gonna' bring "Change We Can Believe In" and all their problems will be solved anyway?

Just in case Hillary wins and starts taking things away from them for the common good.



Offline Lauri

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Re: How real is it, the "get out of debt now" mentality?
« Reply #8 on: February 10, 2008, 02:50:50 PM »
i see it as the way we look at life; most of us want to choose our life and head in a certain direction. lefties never want to choose, therefore, they are never forced to make the hard decisions like, "giving up starbucks" in favor of getting together the money for a down payment on a car or a house.

we've had debt.. and we will have it again at some point but it will be short term. but right now, our college and private school expenses are our number one priority.

but they wont be forever.
Exactly -- it is understanding the debt you are taking on and what the return will be for what you are leveraging.

That part never occurs to the DUmmies.  They want everything they want and they want the gummint to provide it.  Now.

ive been talking about my little hippie neighbor on here of late. she is very sweet and a helluva lot of fun, but really clueless about the world. in causal conversation this week it came up that in our house, we plan our year every september when my husband gets his bonus and we cash in stock and decide what we are doing - for the next year. a full twelve months. this includes holidays, birthdays, trips... everything.

she had never heard of anything like that before. i was telling her that our taxes here are getting so out of control, along with the threat of Hilary or Obama coming in and laying down even more burden on us, that we werent sure we could send the little one to private school next year.

she was shocked.. she thought there must be some program we could use to keep going to the private school.. i said, "no, they have scholarships but we arent desparate. we just wont spend as much and focus on getting the college kiddo out cause thats more pressing."

i could see she was mulling it all over and thinking about how taxes could affect anyone's ability to go to school.. granted, she has toddlers, so this hasnt hit her yet. but she's apparently never been exposed to the idea of having to wait or put things off. she did grow up here, so i cut her a TON of slack..


Offline Carl

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Re: How real is it, the "get out of debt now" mentality?
« Reply #9 on: February 10, 2008, 02:52:43 PM »
i see it as the way we look at life; most of us want to choose our life and head in a certain direction. lefties never want to choose, therefore, they are never forced to make the hard decisions like, "giving up starbucks" in favor of getting together the money for a down payment on a car or a house.

we've had debt.. and we will have it again at some point but it will be short term. but right now, our college and private school expenses are our number one priority.

but they wont be forever.
Exactly -- it is understanding the debt you are taking on and what the return will be for what you are leveraging.

That part never occurs to the DUmmies.  They want everything they want and they want the gummint to provide it.  Now.

Growing up on a small dairy farm meant that there was debt,often difficult to pay.

That is one of the reasons I don`t do that anymore,the phone ringing in those days wasn`t a spammer it was someone looking for their money.

As a result I have a great aversion to debt of any kind but sometimes it is necessary.
It is how debt is or isn`t managed that creates the problems.
Always understand the true cost of debt,that is the total expense after interest is added in.
Fwiw my outlook on short term debt (credit cards) is this....if the purchase can`t be paid off within 3-5 months then it isn`t worth it and can`t be afforded.
Those type of beyond 30 days purchases on a credit card need to be limited to a once a year thing as well,thinking vacation,maybe Christmas....etc.

Last time I checked my FICO score was over 800 so seems to work.

Offline Zeus

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Re: How real is it, the "get out of debt now" mentality?
« Reply #10 on: February 10, 2008, 02:53:13 PM »
i see it as the way we look at life; most of us want to choose our life and head in a certain direction. lefties never want to choose, therefore, they are never forced to make the hard decisions like, "giving up starbucks" in favor of getting together the money for a down payment on a car or a house.

we've had debt.. and we will have it again at some point but it will be short term. but right now, our college and private school expenses are our number one priority.

but they wont be forever.
Exactly -- it is understanding the debt you are taking on and what the return will be for what you are leveraging.

That part never occurs to the DUmmies.  They want everything they want and they want the gummint to provide it.  Now.

perzactly,debt in & of itself is not a bad thing,it can be but it's not automaticlly and always bad.

Aproxiamately 15 yrs ago I was in the neighborhood of 600K or so in debt with not a dam thing to show for it cept a look of shock.  Under the tutleage of a very wise and generous man today I have about 1.5 mil in debt but that debt and various other investments generates a very substancial net income for me and associates.

 Number one lesson is Ignore the vast majority of so called Money experts. They are experts alright,experts at seperating you from your money. ::)
It is said that branches draw their life from the vine. Each is separate yet all are one as they share one life giving stem . The Bible tells us we are called to a similar union in life, our lives with the life of God. We are incorporated into him; made sharers in his life. Apart from this union we can do nothing.

Offline jukin

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Re: How real is it, the "get out of debt now" mentality?
« Reply #11 on: February 10, 2008, 10:32:51 PM »
The best plan is to always live below your income.
When you are the beneficiary of someone’s kindness and generosity, it produces a sense of gratitude and community.

When you are the beneficiary of a policy that steals from someone and gives it to you in return for your vote, it produces a sense of entitlement and dependency.