Are you debt-free? Has it made much difference to you?

28-02-2020 6:53pm #1

I'm sitting here with two loans hanging over me, one a bank loan that I probably didn't need, and the other the mortgage on the house.

I yearn for the days when I'll look back and think of all this money owed and how much money I'd have in my ass pocket if I didn't have to pay them.

And I wonder, has anyone here cleared the house/car/whatever loan? And avoided getting another loan again? Has it actually made much difference to you? Or is it one of those goals that, when you pay the final mortgage payment you just feel a tad underwhelmed and it makes no odds to you whatsoever?

A fella that works with my brother finished his mortgage and immediately reduced his hours to part time and has claimed he just goes to work now for something to do and he'd never work a full time job again. I wonder is he legitimately happy with that, or after 6 months is he bored to death sitting around the house all day.

What about ye folks on boards? Anyone made it there yet? Any advice or "inspo" as the girlz on facebook say?

Leg End Reject · 28-02-2020 6:55pm

Thread needs Srameen.

Better Than Christ · 28-02-2020 7:01pm

I've never taken out a loan or a mortgage, so I've always been debt-free. I generally prefer to save, rather than borrow. Not sure I'll manage to do that when it comes to eventually buying a house. Unless there's another huge crash...

eviltwin · 28-02-2020 7:10pm

My only loan is my mortgage and that's nearly paid so that will be my last loan. I'm just going to save the money for any big expense that might crop up.

28-02-2020 7:11pm

I'm now debt-free fortunately, and live within my means. Sleep better at night.

KWAG2019 · 28-02-2020 7:15pm

Yes. First step was getting lucky years ago: had all the usual loans and mortgage. Spotted tracker option as the banks began throwing money at people. Consolidated all borrowing into new mortgage, got garden done and was still saving 200 a month on what I had been paying off. That made a huge difference especially in crash. Owe nothing now.

Has that made a difference? Yes. Sense of satisfaction and conclusion. And I still say fcuk BoI and thank you Ulster Bank.

somefeen · 28-02-2020 7:18pm

I've never actually taken out a loan for anything.
When I eventually do it will be for a house.

Even though my financial situation still isn't ideal, not having to worry about making payments on things means I can walk out of a job anytime I like. At the moment I keep 3 months of expenses locked away and have actually just recently quit my job.

Boozybooze · 28-02-2020 7:21pm

I'm considering getting a mortgage in the next three months but as a single person think I'm just going to pack in my job, travel the world instead and work and just keep a deposit in savings if I do eventually settle down.

Not sure my plan but it's too retire as early as I possible can and having big loans won't let that happen

Still waters · 28-02-2020 7:23pm

I have a mortgage, a bank loan and credit union loan, all small and easily managed but can be a pain in the arse at times, only a little over a year left on the 2 smaller loans, I'm building a shed next year so when the small loans are paid ill borrow a few bob to do that, i always found it easier to repay a loan than to save money, I've about 7 grand in savings so i borrow against that from credit union

RWCNT · 28-02-2020 7:27pm

Just the mortgage. I don't really "feel" as though I'm in debt though.

I need a place to live in and it's cheaper than what I paid before in rent, doesn't feel like something weighing me down.

Jim_Hodge · 28-02-2020 7:30pm

Now debt free as the mortgage is cleared. That let us save more and we could holiday or change the car without loans. Having the family all reared and flying the coop helped too.

28-02-2020 7:33pm

No debt at the moment, I’ve had loans in the past for cars etc and never bothered me at all as they were very manageable. Will soon be getting a decent enough sized mortgage for building our house. Looking forward to getting started with that and not really bothered about the mortgage debt.

Leg End Reject · 28-02-2020 7:47pm

RWCNT wrote: »

Just the mortgage. I don't really "feel" as though I'm in debt though.

I need a place to live in and it's cheaper than what I paid before in rent, doesn't feel like something weighing me down.

The security is worth it too, no need to worry about eviction or paying rent when older.

Mortgage and small loan (will be cleared soon) for me, credit card if needed too. I'm also better at repaying debt than saving. Debt doesn't bother me once it's manageable.

28-02-2020 7:56pm

Jim_Hodge wrote: »

Now debt free as the mortgage is cleared. That let us save more and we could holiday or change the car without loans. Having the family all reared and flying the coop helped too.

Welcome back

Leg End Reject · 28-02-2020 7:57pm

[Deleted User] wrote: »

Welcome back

Ubbquittious · 28-02-2020 7:59pm

Never took out loans for anything

adox · 28-02-2020 8:08pm

Debt free the last three years or so as paid off my only debt, my mortgage 13 years early.

It’s great to know that we have no debt and the house is ours but in practical terms I don’t see any real day to day difference as I put what was the mortgage payment into my pension fund high was badly neglected up until then.

Pac1Man · 28-02-2020 8:23pm

[Deleted User] wrote: »

Welcome back

FFS, that's not him is it?

Canyon86 · 28-02-2020 8:24pm

Loan and a credit card approx 3 k left hopefully clear this by the end of the year

anewme · 28-02-2020 8:43pm

Have a mortgage and last year borrowed to refurb the house after 10 years.

Both run concurrently will be paid off in about 6 years.

Think paying off will be an anti climax, same as when I got the keys of the house.

Remember signing the deeds on the quays, been handed two keys, standing in an empty shell thinking "is this it?"

28-02-2020 8:57pm

KKV wrote: »

I'm sitting here with two loans hanging over me, one a bank loan that I probably didn't need, and the other the mortgage on the house.

I yearn for the days when I'll look back and think of all this money owed and how much money I'd have in my ass pocket if I didn't have to pay them.

And I wonder, has anyone here cleared the house/car/whatever loan? And avoided getting another loan again? Has it actually made much difference to you? Or is it one of those goals that, when you pay the final mortgage payment you just feel a tad underwhelmed and it makes no odds to you whatsoever?

A fella that works with my brother finished his mortgage and immediately reduced his hours to part time and has claimed he just goes to work now for something to do and he'd never work a full time job again. I wonder is he legitimately happy with that, or after 6 months is he bored to death sitting around the house all day.

What about ye folks on boards? Anyone made it there yet? Any advice or "inspo" as the girlz on facebook say?

Yep! I have found that being debt free lifts multiple millstones from round your neck. There again, I’m 66 now! I’ve had mortgages, car loans, etc most of my adult life but those days are gone. It puts a subtle but real perspective on the future. Since formally retiring, I have on taken a role that’s 3 days/week because I ((am stupid and arrogant enough to believe) can still “add value” given my experience.

And I am thoroughly enjoying it. I have time now on my four day “weekend” to do things I have put on the back burner for too long, simple things, as well as little projects, and my head isn’t full of work related issues and problems.

There’s no doubt that I am extremely lucky, and I recognise and am grateful for that.

So, yes, there is a reward at the end of all the struggling and worrying. But I still remember how I felt when, back in the 80s, I went off to Switzerland for a meeting lasting two days. When I went out, the mortgage rate was an already eye-watering 6%. When I came back, it was 16%.

But, with luck, a following wind and crossing fingers, it comes good.

And, no, I assure you I am not smug!

Cupatae · 28-02-2020 8:57pm

No debt, decent savings and mostly spend money on stuff that could make me more money, up skill/training, travelled a nice bit, had very good jobs that would allow a comfortable living but i always lived in...rougher places and saved the money as i was never one for the frills,

The one major advantage to me is savings + no debt + decent skill level mean ur never chained to a job, you can stand up to bosses that talk down to people, where as ive seen people with mortgages/debt that have got chewed up by higher ups (alot of the time in the wrong) and had to take it out of fear of losing a job.

Its a nice feeling being financially steady and not having to worry about whats around the corner in that sense.

L1011 · 28-02-2020 9:03pm

Did a drastic cost cutting job so I could clear the credit card a few years ago after realising how much it was costing me. What's ironic (and deliberate by the bank) is that now its cleared every month I've been given a 'fancier' card with significantly lower interest! Had term loans, also gone.

Cut my mortgage term in December and if my partner gets an expected promotion in April it'll be cut again. Outstanding amount is already less than 1x household income thankfully

Would go back in to debt again for that specific purpose, if looking to move to a bigger/closer to the city property but I want the existing one gone ASAP.

anewme wrote: »

Remember signing the deeds on the quays, been handed two keys, standing in an empty shell thinking "is this it?"

Two keys? TWO keys? Luxury!

I got one with a manky white keyring and advice to change the locks!

Jim_Hodge · 28-02-2020 9:04pm

Deleted User wrote: »

Welcome back

I'm missing something here because I don't get it. Back to being debt free?

gipi · 28-02-2020 9:05pm

Moved house last year, cleared the mortgage as part of the move, which allowed me to retire early at the end of last year.

After 34 years paying mortgages on various homes, it was and is a nice feeling to finally own my 4 walls and roof!

Jim_Hodge · 28-02-2020 9:07pm

adox wrote: »

Debt free the last three years or so as paid off my only debt, my mortgage 13 years early.

It’s great to know that we have no debt and the house is ours but in practical terms I don’t see any real day to day difference as I put what was the mortgage payment into my pension fund high was badly neglected up until then.

At least you will hopefully only gain from that. We saw a difference because the second and youngest child finished uni at the same time, so it was spare cash.

Rufeo · 28-02-2020 9:10pm

Debt free, no mortgage or family. Going to London in a few weeks to live.

I think staying put in one place would drive me bananas.

WildWater · 28-02-2020 9:10pm

I paid my own way through college and to do so, in final year, I took out a loan. I use to hitchhike home every weekend. Work Friday night, Saturday and Saturday night. Hitch back on the Sunday. First thing Monday morning it was into the bank to lodge my payment (no online banking those days). It was so painful. I kept every one of the lodgement slips (for years) to remind myself just how painful it was to pay it back.

It was a great life lesson and the resolutions I made on the back of it have served me very well in the years since. Will be mortgage free before this year is out and certainly looking forward to that.

LimeFruitGum · 28-02-2020 9:17pm

Just the mortgage these days, but clearing & closing off the credit card a few years ago made such a big difference to me at the time.

RedXIV · 29-02-2020 12:04am

I've a bank loan, owe a little bit on the credit card and am saving up for a mortgage deposit

I'll be in debt for donkeys years

JustAThought · 29-02-2020 12:20am

Having no debts and being able to manage comfortably is one of the greatest gifts - people take so much for granted the mental head space you can have from not having a niggling calculator running day and night at the back of their head - it gives you peace, options and freedom. I doubt any car upgrade or extra set of suits or extensions could make you that happy and calm.

elperello · 29-02-2020 12:29am

JustAThought wrote: »

Having no debts and being able to manage comfortably is one of the greatest gifts - people take so much for granted the mental head space you can have from not having a niggling calculator running day and night at the back of their head - it gives you peace, options and freedom. I doubt any car upgrade or extra set of suits or extensions could make you that happy and calm.

That's it.

Debt free just makes life so simple.

uch · 29-02-2020 2:53am

I owe 181,500 I have in the bank 187,000 so what ever I do i really couldn't give a shít, if I stay clean me and the missus are grand, if I manage to fúck things up again, it's in her bank so all parts covered as far as I'm concerned

Low Energy Eng · 29-02-2020 3:22am

uch wrote: »

I owe 181,500 I have in the bank 187,000 so what ever I do i really couldn't give a shít, if I stay clean me and the missus are grand, if I manage to fúck things up again, it's in her bank so all parts covered as far as I'm concerned

Considering the interest you're paying would you not pay of the loan?

I've got mortgage debt. It's quite manageable so I'm happy to have it.

Local guy · 29-02-2020 3:50am

Well,I work 3 months for my bills.
1) I put enough mortgage for 1 year ahead
2) I spend money for my car insurance and taxes

This take 3 moths of my wages
The rest I just do not use
The bank calling me every 12 months because they does not understand why money coming to my account and not leaving
I simply explaining them telling I am Carpenter if you know what I mean,.

When I loosing job I have my mortgage paid for 1 year ahead
My car insurance and taxes paid 1 year ahead
This make live easy.

Boozybooze · 29-02-2020 4:05am

I think people fall into the trap of what other people think of them. A lot of people get a huge mortgage on a fancy house paying it off for 30 years when a house half the price would of doing them, buy a new car every three years even though the other car is fine.

Making it look like there rich when they are far from it and only can retire at retirement age.

Also hate people who take their jobs way too seriously and like every single thing is the end of the world in work. Jaysus your just a number.

I'd rather retire at 50 than have to work till 67.

con747 · 29-02-2020 4:06am

Local guy wrote: »

Well,I work 3 months for my bills.
1) I put enough mortgage for 1 year ahead
2) I spend money for my car insurance and taxes

This take 3 moths of my wages
The rest I just do not use
The bank calling me every 12 months because they does not understand why money coming to my account and not leaving
I simply explaining them telling I am Carpenter if you know what I mean,.

When I loosing job I have my mortgage paid for 1 year ahead
My car insurance and taxes paid 1 year ahead
This make live easy.

Is that the tax on your Renault Clio that jumped up in price this year?

Zebra3 · 29-02-2020 11:07am

Nothing wrong with debt so long as it's manageable.

Maewyn Succat · 29-02-2020 12:23pm

Being debt free and having savings has allowed me to quit a career I hated and return to college at 40 fulltime to pursue something I've always wanted to do. It's done wonders for my mental health alone.

I'm open to taking on debt in the future to upgrade the house as my kids(1 and 3) get older but for now I'm happy with not having the worry of having to make any monthly repayments on anything.

We live on my wife's wages and live a simple enough life but it's a good life.

tamara25 · 29-02-2020 1:07pm

That would be the dream to be mortgage free, we topped up our mortgage twice in the good times & I regret it now. At the end of the day all that money has to be paid back.. I love watching programmes about people who sold up & decided to live off grid. It’s so interesting, I know not everyone can do it. Ben Fogle has loads of programmes on it. I could save more also if I put my mind to it..

29-02-2020 1:19pm

Boozybooze wrote: »

I think people fall into the trap of what other people think of them. A lot of people get a huge mortgage on a fancy house paying it off for 30 years when a house half the price would of doing them, buy a new car every three years even though the other car is fine.
.

I disagree on the house, making do isn’t good enough for something as important as your house (if you are able to push to better). I’m building and will only be doing it once so it’s being done right even though it is going to cost.

ArchXStanton · 29-02-2020 1:25pm

Debt free, I spent a few years living in Toronto, when you get to see a society were nearly everyone is in debt and just a pay cheque away from sleeping on a park bench you learn to live very frugally and within your means, it's capitalism/banking system on steroids compared to here, it's chews people up and spits them out

NSAman · 29-02-2020 1:25pm

Personal debt is zero.

I have two mortgages on properties that are small and very manageable. I have two business mortgages which are also small.

All loans have been paid off and anything I purchase now, is purchase in full with no loans (as parents brought me up to do).

Savings are very nice and assets are producing nicely.

I honestly think it is a “time of life thing” as all of this has taken years to create and hard won.

Does this financial stability (will never call it financial security) change me? Nope, I still work hard and save as much as possible.

What difference does it make? The ability to do things you want to do! The lack of worrying about where the next euro/dollar is coming from (a feeling I knew for many years). The ability to make choices for myself and others. The ability to help others. Making sure family are taken care of.

Wildly Boaring · 29-02-2020 1:44pm

Took on small debt this year to move house.

Have very manageable PCP on main car.

Means only one of us have to work.
Massive weight off, we have young kids.
Wife is at home and can do playgroup, toddler mornings etc. If a kid is sick or during school holidays we're grand.
She'll go back part time or job share when they're all in school.

banie01 · 29-02-2020 1:51pm

Yep, mortgage free and it has made a huge difference tbh.
I've had to retire from work at 38, and am currently in receipt of Invalidity Pension at 40

Having my own home owned outright and some degree of financial security and stability makes a huge difference.

Substantial drop in my income, yes.
But no real difference in our standard of living, I do joke with my son that he's living a CEO kids lifestyle, on a pensioner's kids wages :pac:

There is a lot more planning around expenditure and trying to manage outlay than I engaged in, in past times.
If I was carrying significant debt in these circumstances it would be honestly crushing.

Luckily, despite the health issues!
Life could be far, far worse for my little family.

Even illness and being pensioned off has afforded me the opportunity to return to Uni, so it's small victories.

29-02-2020 2:22pm

L1011 wrote: »

Did a drastic cost cutting job so I could clear the credit card a few years ago after realising how much it was costing me. What's ironic (and deliberate by the bank) is that now its cleared every month I've been given a 'fancier' card with significantly lower interest! Had term loans, also gone.

Cut my mortgage term in December and if my partner gets an expected promotion in April it'll be cut again. Outstanding amount is already less than 1x household income thankfully

Would go back in to debt again for that specific purpose, if looking to move to a bigger/closer to the city property but I want the existing one gone ASAP.

Two keys? TWO keys? Luxury!

I got one with a manky white keyring and advice to change the locks!

Ha! One key? Well lah de dah- I didn’t get any key coz mine didn’t have a front door !

:P

29-02-2020 2:24pm

Local guy wrote: »

The bank calling me every 12 months because they does not understand why money coming to my account and not leaving
I simply explaining them telling I am Carpenter if you know what I mean,.

.

I hear you paint houses?

:pac:

BailMeOut · 29-02-2020 2:30pm

The three financial rules everyone should follow

- Pay off your debts
- Save for a rainy day
- Secure your retirement

redarmyblues · 29-02-2020 2:34pm

Buy the cheapest house that will suit your needs, don't add on extensions or do unnecessary Major upgrades, when you are ready to move up the ladder don't, stay where you are and buy another house and rent it keep doing that until you have 3/4, retire.

twignme · 29-02-2020 2:45pm

I'm single, no loans (never had one) or credit card debt and mortgage paid off some time ago through renovating and selling my homes since 2000 and lived in this one for 10 years without a mortgage. I have a good bit of savings which allows me the occasional luxury, to travel with the occasional upgrade and have lived overseas on a whim knowing I could get right back into the housing market when I returned. I can look at my monthy pay statement and know that I don't have a chunk of it coming out to pay for the house or car. I pay all my insurance and annual bills in advance which gives me peace of mind, because those are the things that I would consider 'debt' as I can't live without utilities, petrol etc. I couldn't sleep at night if I owed a lot of money.

Crock Rock · 29-02-2020 2:54pm

I retired 20 years ago at age 55 with a pension fund worth well into the millions and a 6 figure annuity.

I got a substantial lump sum on retirement and paid off the house after 20 years....

Oh wait ..

Are you debt-free? Has it made much difference to you?

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