Originally Posted by fintstone (Post 9149355)

Personally, I separate my debt between investment debt and personal debt. I have multiple rental homes. Some are paid off and some are not but have significant equity. I could sell some and pay off others to eliminate debt/payments, but that would also reduce potential growth and tax advantages...so I have chosen not to do so, even though it would increase my cash flow. Having some leverage is a big investment advantage. Currently, all proceeds are channeled back into paying off the mortgages, but it will take at least 10 more years to pay all off.

As far as personal debt, I have a large mortgage on a home I purchased only a couple of years ago. I have enough in retirement accounts that I can access without penalty (other than income tax) and could easily pay it off, but with the low interest rates and tax advantage...it does not make financial sense (although I often think about doing so). I have a defined pension plan where I will not really need extra cash flow to live my relatively frugal lifestyle. There

So, I could be debt free if I chose to do so...but choose not to. I have not borrowed for cars or anything else for about 15 years. That does seem to be unwise in most cases.

Originally Posted by aschen (Post 9149389)

if a bank is willing to loan you say 200k for a mortgage at xx percent, what do you know that they do not, such that you have a high probability of a better return than them?


I think the real discussion is the joys of living significantly below your means, and not necessarily debt free vs debt

Originally Posted by jcommin (Post 9149562)

I have been a saver all of my life - the debt I did carry (home). Got married and that changed a bit. Had a few cars loans but what really changed was in 2006. I got divorced and that was just a mess - heavy debt, owed the IRS, the housing market crashed and my youngest had a drug/behavioral problem that needed attention.

Flash forward, no house, no car debt, IRS paid off, no credit card debt, son is clean and going to college and I have very little money left. I'm ok, it is just money: it's not my life. I'm fortunate to have had the money, a good paying job, good health and fortune to whether the last several years. I can truly understand that a catastrophic event can wipe someone out financially or maybe not get the attention or service they need because they don't have the financial resources.

I don't take anything for granted anymore - life can get in the way and things change no matter how much we plan.

Originally Posted by wdfifteen (Post 9149596)

I haven't had any personal debt for a long time. I used to use credit to fund business projects, but I'm not even very aggressive about that any more. There is more to life than making money.