OP
JOHNTHOMAS
Super Member
- Joined
- Apr 14, 2008
- Messages
- 7,719
- Location
- Somerset, Ky
- Tractor
- F2690 4WD RTV X1140 MX5400 HST ZD1211
I know the feeling of being debt free, I've been there a few times in my life.:thumbsup: But.......that was a long time ago. First let's define debt free. To some people debt free is having no obligations to pay off or pay monthly or weekly on a regular basis. Now if one has a phone, TV, Electricity, Water service, eat on a regular basis, are they debt free? They still owe money every month to live. Can anyone be truly debt free? Now throw in that those monthly obligations are only $366 a month total and a person has a monthly income of $600 and 0 savings in the bank, is this person debt free??? Who says yes???
If the above described person is debt free, how can it be since they still owe money on a regular payment basis? Are they truly debt free? They have a no reserve of cash in the bank or in the closet but still have some bills due in a few days, weeks or a month. Are they truly debt free? Who agrees that this person is debt free?
OK llet's move to the person that has $4999 (..............) a month income and owes 4 (.. )more payments of $122 (..........) payable at the first of each month on their home/car and has $456000 in savings in the bank. Are they debt free? Are they as debt free as the person described above that only owes regular monthly debt paymernts or are they in debt? Should they be the least bit concerned if they are considered to be in debt? What if they lost their job? What if they got sick? What if their kids needed lunch money? Who in this situation would be concerned that they owed money or had debt? I mean really, they still have those 4 payments out there that are going to come due and have to be paid.
Which of these two people should be concerned the most? One is "possibly" by some peoples standard debt free and the other one is in debt.
I left blank spaces by the numbers above in case one feels this person isn't really in debt so you can put a number in the blank to decide when a person is really in debt.
For me, when payments are larger than the monthly income and there are not enough savings or equity in what's owned to sell and pay off what's owed .........that person is in debt and should "worry".
"There is nothing better than being debt free". With the "story" above I believe I'm going to have to disagree if the individual that owed the 4 $122 payments is considered to not be debt free. Just in terms of money (not considering health/salvation/children, etc) if the perosn above owes some monthly payments and has major assets and major money in the bank and lots of tractors then I believe that is better than the first person that has very little but owes no money other than monthly living expenses who some consider debt free.
My parents went thru the Depression so they have a different perspective than my generation. My brother got into a financial hole many years ago and went back into the Military to get himself out. He is a retired Federal Employee, lives next door to me and he is debt free. He's always made more than me a Retired State Employee but I've also always had additional jobs that required me aquiring some debt and some times major debt but today if we both "cashed out" all of our possessions, well, not in the same ball park but he's happy now and I am to. He's in good shape and I am to. I've owed and got close some months but was never in the hole as he was at one time so we see life thru different glasses..
