Comments on: What to Do Immediately After We Become Debt Free http://moneyning.com/debt/what-to-do-immediately-after-we-become-debt-free/ A personal finance blog where we share insights on carefully saving money, investing, frugal living, coupons, promo codes because the little things matter in achieving financial freedom! Sat, 11 Feb 2012 19:58:22 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Debtfree2011 http://moneyning.com/debt/what-to-do-immediately-after-we-become-debt-free/comment-page-1/#comment-67541 Debtfree2011 Sun, 01 Jan 2012 03:00:54 +0000 http://moneyning.com/debt/what-to-do-immediately-after-we-become-debt-free/#comment-67541 I'll chime in. My husband and I just paid off $70K in credit card & business debt. It took us 24 months. Because we own our own business, we did just borrow $32k for a new company vehicle at 2.99% interest. We need some type of write-off and considering the miles we put on the previous car (170K on a 2005 model, which we kept for schlepping around in), it just made sense to finance the car and keep the cash on hand in case of darker times. We are now debt free with the exception of the 2 mortgages, with one of those being a rental unit. I'm in no rush to pay both of these houses off. We're adding $200 a month to each mortgage, and investing the money we were using to pay off debt into additional 401K's. I'll agree that some debt is good debt - like mortgages and an automobile for business use, but I will NOT go into credit card debt again. We have to a have a credit card for traveling expenses, but those expenses get paid off every month. We're only 51, so we have some time to build some additional wealth. Also, even though we paid off our debt in two years and followed the Dave Ramsey TMO plan, we did not call Dave to announce it to millions of folks. We're just fine keeping it to ourselves (well mostly - not counting this comment!)...Great advice in this article. I’ll chime in. My husband and I just paid off $70K in credit card & business debt. It took us 24 months. Because we own our own business, we did just borrow $32k for a new company vehicle at 2.99% interest. We need some type of write-off and considering the miles we put on the previous car (170K on a 2005 model, which we kept for schlepping around in), it just made sense to finance the car and keep the cash on hand in case of darker times. We are now debt free with the exception of the 2 mortgages, with one of those being a rental unit. I’m in no rush to pay both of these houses off. We’re adding $200 a month to each mortgage, and investing the money we were using to pay off debt into additional 401K’s. I’ll agree that some debt is good debt – like mortgages and an automobile for business use, but I will NOT go into credit card debt again. We have to a have a credit card for traveling expenses, but those expenses get paid off every month. We’re only 51, so we have some time to build some additional wealth. Also, even though we paid off our debt in two years and followed the Dave Ramsey TMO plan, we did not call Dave to announce it to millions of folks. We’re just fine keeping it to ourselves (well mostly – not counting this comment!)…Great advice in this article.

]]> By: Kevin @ Debteye http://moneyning.com/debt/what-to-do-immediately-after-we-become-debt-free/comment-page-1/#comment-62479 Kevin @ Debteye Fri, 09 Dec 2011 04:38:37 +0000 http://moneyning.com/debt/what-to-do-immediately-after-we-become-debt-free/#comment-62479 I agree with you, but I think the context of this article revolves around credit card debt. I could be wrong. But adding to both of your statements, having some kind of debt is critical in maintaining a good credit score as well. I agree with you, but I think the context of this article revolves around credit card debt. I could be wrong. But adding to both of your statements, having some kind of debt is critical in maintaining a good credit score as well.

]]> By: UH2L http://moneyning.com/debt/what-to-do-immediately-after-we-become-debt-free/comment-page-1/#comment-62462 UH2L Fri, 09 Dec 2011 03:21:30 +0000 http://moneyning.com/debt/what-to-do-immediately-after-we-become-debt-free/#comment-62462 It's surprising how nobody wants to answer Steve's and my comments on how going debt free is not always a good thing. The key is not going into more debt than you can handle. It's like you've all been drinking debt-free Kool-Aid! :-) It’s surprising how nobody wants to answer Steve’s and my comments on how going debt free is not always a good thing. The key is not going into more debt than you can handle. It’s like you’ve all been drinking debt-free Kool-Aid! :-)

]]> By: Kevin @ Debteye http://moneyning.com/debt/what-to-do-immediately-after-we-become-debt-free/comment-page-1/#comment-62459 Kevin @ Debteye Fri, 09 Dec 2011 02:57:57 +0000 http://moneyning.com/debt/what-to-do-immediately-after-we-become-debt-free/#comment-62459 Considering that most people who become debt free will become "repeat debtors", I think having a sound financial budget is important as well. But I guess that kinda goes hand in hand with having an emergency fund/retirement fund. If you're able to set aside money for that, I guess you're doing something right..right? :) Considering that most people who become debt free will become “repeat debtors”, I think having a sound financial budget is important as well. But I guess that kinda goes hand in hand with having an emergency fund/retirement fund. If you’re able to set aside money for that, I guess you’re doing something right..right? :)

]]> By: Donna http://moneyning.com/debt/what-to-do-immediately-after-we-become-debt-free/comment-page-1/#comment-62431 Donna Fri, 09 Dec 2011 00:55:04 +0000 http://moneyning.com/debt/what-to-do-immediately-after-we-become-debt-free/#comment-62431 I will be debt free in January 2012. I plan to create an emergency fund and a fund for new car so I do not have to rely on my IRA as much. I am retired. I retired at age 50 and soon will be 61. My house is my last debt..and then I will feel more secure. I also like the freedom it gives me. I will be debt free in January 2012. I plan to create an emergency fund and a fund for new car so I do not have to rely on my IRA as much. I am retired. I retired at age 50 and soon will be 61. My house is my last debt..and then I will feel more secure. I also like the freedom it gives me.

]]> By: MoneyPerk http://moneyning.com/debt/what-to-do-immediately-after-we-become-debt-free/comment-page-1/#comment-61892 MoneyPerk Tue, 06 Dec 2011 21:25:05 +0000 http://moneyning.com/debt/what-to-do-immediately-after-we-become-debt-free/#comment-61892 I like the list you have made. I particularly like automated investments and IRA's as they are the most important for retirements goals. Emergency Fund is certainly paramount for the inevitable. Great read :) I would personally add charity or tithing to the list as well. I like the list you have made. I particularly like automated investments and IRA’s as they are the most important for retirements goals. Emergency Fund is certainly paramount for the inevitable.

Great read :) I would personally add charity or tithing to the list as well.

]]> By: subhorup dasgupta http://moneyning.com/debt/what-to-do-immediately-after-we-become-debt-free/comment-page-1/#comment-61697 subhorup dasgupta Tue, 06 Dec 2011 07:32:05 +0000 http://moneyning.com/debt/what-to-do-immediately-after-we-become-debt-free/#comment-61697 Very tricky question. I am re-evaluating the balancing act of debt repayment and savings as things change in my life. The answer will change depending on the kind of available income, I guess. I have been without an income and living off both savings and debt for almost a year now, and I can see the value of savings while adding to my debt situation. And till I find a revenue stream, this debt will only accumulate while wiping my savings out. I feel that both debt repayments and savings need to go hand in hand, but getting out of debt is a bigger priority. Very tricky question. I am re-evaluating the balancing act of debt repayment and savings as things change in my life. The answer will change depending on the kind of available income, I guess. I have been without an income and living off both savings and debt for almost a year now, and I can see the value of savings while adding to my debt situation. And till I find a revenue stream, this debt will only accumulate while wiping my savings out. I feel that both debt repayments and savings need to go hand in hand, but getting out of debt is a bigger priority.

]]> By: UH2L http://moneyning.com/debt/what-to-do-immediately-after-we-become-debt-free/comment-page-1/#comment-61529 UH2L Mon, 05 Dec 2011 15:49:38 +0000 http://moneyning.com/debt/what-to-do-immediately-after-we-become-debt-free/#comment-61529 Exactly. I keep reiterating that going debt free is not some panacea. There is bad debt and then there is smart debt. Businesses use it successfully because they believe it's the right financial tool to use. I'm sure people pay off low interest student loans just to go debt free and then they have to borrow money for something else at a much higher interest rate. Mortgate interest is (still) deductible. Exactly. I keep reiterating that going debt free is not some panacea. There is bad debt and then there is smart debt. Businesses use it successfully because they believe it’s the right financial tool to use. I’m sure people pay off low interest student loans just to go debt free and then they have to borrow money for something else at a much higher interest rate. Mortgate interest is (still) deductible.

]]> By: MoneyNing http://moneyning.com/debt/what-to-do-immediately-after-we-become-debt-free/comment-page-1/#comment-61389 MoneyNing Mon, 05 Dec 2011 03:23:56 +0000 http://moneyning.com/debt/what-to-do-immediately-after-we-become-debt-free/#comment-61389 Awesome to hear about your accomplishment after 2 years! Have fun with the call :) Awesome to hear about your accomplishment after 2 years! Have fun with the call :)

]]> By: Jonathan http://moneyning.com/debt/what-to-do-immediately-after-we-become-debt-free/comment-page-1/#comment-61334 Jonathan Sun, 04 Dec 2011 21:19:45 +0000 http://moneyning.com/debt/what-to-do-immediately-after-we-become-debt-free/#comment-61334 It's a difficult balancing act between paying down debt and saving for the future but for me paying down debt still comes first. It’s a difficult balancing act between paying down debt and saving for the future but for me paying down debt still comes first.

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