Friday, April 04, 2008

I have a financial question...

Don't worry, it is a simple one (I think).

What do you think of when you hear the words "debt free" ???

I always thought that phrase meant zero debt. As in: no mortgage, no car payment, no other debts.

Anyone else have a different take on that? I was surprised to learn that to some people, debt free means you have no debt, except your mortgage...

What say you? I would love to hear lots of input! Because I was honestly surprised on hearing this version of "debt free" :-p

*eta Not that either idea of debt free is bad, just that I had never heard this theory before! :)

7 comments:

  1. I, too, have heard it both ways. My personal opinion is that the words "debt free" mean NO debt at all.

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  2. Huh.
    I was always under the impression that it meant ZERO debt, no mortgage, no nothin'.

    What's the rational behind still having a mortgage but calling oneself "debt-free"? Debt is debt to me, at least.

    All we have is a mortgage payment and I won't consider us debt-free till/if/when that's gone. And we're actually one track to have it paid off sooner than the 30 year time-frame,20 years maybe? And that's with me out of the workforce. Once I go back to work, I'd like to pay it down even faster.

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  3. I agree no debt whatsoever. Its still considered a debt on a credit report.

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  4. Debt free means, NO debt to me, no mortgage either. I've changed my ideas about whether or not that is ideal, though. I used to believe it was, but now I'm not so sure. Not that it's bad.

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  5. I think that debt free means no debt at all. I do understand, however, that it is almost impossible to avoid a mortgage, so maybe that is the point of the phrase. ???

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  6. I've read Mary Hunt's book, Debt Free Living, and she goes a step further to say that auto loans are allowable debt within reason, but nothing else. She does suggest trying hard to pay off your mortgage though. An excellent book with great tips.

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  7. I too agree that debt free means no debt at all.

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