Warning ... This post may be viewed by some as a rant, but I don't mean it that way. It is meant to start a dialogue about thinking beyond the catchy slogans when it comes to discussions about debt.
There was a thread over on the forums recently where someone got on their high horse preaching about being debt-free.
It is easy to say "I want to be completely debt-free" but if you stop and really think about it deeply, you will realize how totally impractical that is.
Yes, it is 100% possible to pay as you go with cash for consumer purchases and avoid debt that way. Yes, it is definitely possible to save up and pay cash for major purchases such as appliances and cars. And I suppose that, yes, you could even save long and hard and pay cash for college and for your very first home (or just not buy a house and rent forever)...But really, how practical is that?
Like many of you, I prefer not to have personal debt. I am one of those who paid off my mortgage early. I don't carry a balance on my credit cards; I have no personal loans (no student loans, no car loans, nada). But I am not going to run around spewing the anti-debt slogans that I heard on some talk radio show, because I realize that debt has a place in our society, and sometimes it is very positive.
So, this is for those of you who want to preach about being anti-debt ... here is something to think about, if you are capable of opening your ears and mind wide enough: If you are really and truly going to promote a debt-free lifestyle, then shouldn't you be voting "NO" on every school, hospital, highway, and library bond that appears on your voter's ballot? Don't you realize that when you vote to approve a bond for public works, you are voting FOR DEBT?!? Shouldn't you be going to school board meeting and insisting that the children in your district attend school in run-down and outdated buildings until the district has enough cash saved up to pay for a new one? Shouldn't you be advocating that residents be allowed to die instead of upgrading hospitals with DEBT?
Sure, it would be fantastic if our local governments had enough reserves to pay cash for everything, but that is a pie-in-the-sky dream. Are you willing to make children, the ill, and yourself suffer until that fantasy day comes?
DEBT: Thinking beyond the slogans
November 8th, 2007 at 05:53 pm
November 8th, 2007 at 06:14 pm 1194545654
nice post
November 8th, 2007 at 07:08 pm 1194548936
Our country has over $900 billion in credit card debt. There just aren't many positives in that unless you own a store at the mall.
November 8th, 2007 at 07:37 pm 1194550624
An initiative to end the "super-majority" vote required for an increase in school funding was rejected by local voters on Tuesday. My guess is that the voting community in my area is either affluent enough to choose alternatives, or most of them don't have children and therefore don't see value in contributing to public school coffers, or the voting public all went to private school and don't see value in contributing to public school coffers. Why be a member of a community if one isn't willing to both benefit from and contribute to it?
November 8th, 2007 at 07:50 pm 1194551406
November 8th, 2007 at 08:46 pm 1194554803
You know we could REALLY work our butt off and pay our house off in the next 5 years or so (optimistically). But at what cost? Why? We are on our way to a very decent retirement (only 30). We have had a great start. We have worked really hard to get here. We wanted a certain measure of financial security before we had kids. & we got it, and now our priority is our kids.
I think what I hear missing in a lot of the extreme anti-debt side is just life "balance." Would I rather have a paid off mortgage and lose 5-10 years of my kids lives? I think what, am I crazy? Of course not. We could have alternatively waited longer to have kids, until we paid off the house. & wasted much of our youth. Not sure it would have been best. (Certainly not when I look at my 2 precious sons).
I guess it reminds me a lot of retirement talk. I don't get the standard retirement model. Work really hard at a job you hate and pays well so you can retire. How many people you know really have the means or the health (certainly rarely both) to enjoy their retirement? I rather enjoy life now.
I think in a lot of cases it is possible to be debt free and keep that balance. & that is why I Admire people like Ramsey for helping. But gosh he has got some obnoxious mantras too. LOL. There are a lot of things we could do to be debt free in the very near future but they would all be a compromise we are just not willing to take. & why bother. (Move hundreds/thousands miles away from extended family? So not worth it. Be too busy working to enjoy our kids? etc.) Life is short, we live it now. We're not mired in debt by any means (rarely use it) but sure will use it where it helps us to get ahead and live more comfortably. I Can't figure any angle where I don't LOVE my mortgage personally. It has brought us tremendous financial freedom. Hope to pay it off 45. 55 if we never prepay a dime. Should also have millions in the bank by then. Win-win.
November 8th, 2007 at 11:59 pm 1194566369
November 9th, 2007 at 05:31 am 1194586261
I voted for the simple majority, mainly because I knew it wouldn't pass. Frankly, I would love all levies like sports stadiums, etc, have to be voted on by super majority.
November 9th, 2007 at 04:42 pm 1194626559
Personally, it just depends on the numbers, and seeing which avenue gives me the best bang for the buck.
November 9th, 2007 at 10:16 pm 1194646569
I don't know how many times people told me their financial plans and it includes letting their debts keep continuing so that they can invest all the money in their retirement. Coming from a house where my father had back surgery twice and my mother died while I was a teenager, I view it as financial suicide to count on your income lasting the whole 30 or 40 years. What happens if you have to take some time off due to disability or your spouse dies?
I just feel that everyone should keep in mind that things can happen when you least expect so its best not to overstretch. I want my dh and I living on one income because then if something happens, we stand a better chance of not losing everything (not too mention that gives you a lot of money to save for retirement).
Now that said, I never could have made where I am today without debt so I don't really have many regrets about that.