Where are my anti-debt/credit card people at?

[svivian]

Who of you cash kings paid for their first home fully in cash?

 

[Reburn]

Ok gotcha. To go take on more debt makes sense lol

Most people dont have the stoke to pay for a house in cash.
The goal to own a paid for house only can start when you buy the house. Presumably not for cash money.
I guess if you inherited it this is a non problem.
I guess if you dont want debt can rent and pay off my houses.

 

[browning2480]

And generate wealth via appreciating assets and the tax benefits of said "debt".

Who of you cash kings paid for their first home fully in cash?

A mortgage would be the only acceptable form of debt as it is an appreciating asset. As long as you buy a house you can afford, which most people won’t do.

 

[browning2480]

Most people dont have the stoke to pay for a house in cash.
The goal to own a paid for house only can start when you buy the house. Presumably not for cash money.
I guess if you inherited it this is a non problem.
I guess if you dont want debt can rent and pay off my houses.

I don’t disagree with this as far as buying a house. I would just argue that if someone has a bunch of student loan debt, they should clear that first before taking on more in a mortgage.

 

[Reburn]

Cash. Because 100 dollars in paper form stays 100 dollars. I do use a debit card here and there. No clue about this Ramsey guy.

Like was said before the only thing a $100 bill has the same with last years $100 bill is the way it looks. Its purchasing power is nowhere near the same. Inflation steals 10% from you a year out of your cash whether you like it or not.

 

[WCB]

Totally! I can pay it back in full whenever rates turn on. But as you said in the post cash is king right now! I’d rather have money in the bank than the check mark with my federal lender saying that I am a good boy. I see what you mean, if you’re pay-check to pay-check maybe that’s a different story but even then you can pay it off when it’s impacting your life.

That is a totally different thing....most people can't pay it back whenever they want...but now have had 2 years to pay it off at 0% and won't take advantage of it. I don't really care either way on Dave Ramsey....BUT his advice is not bad for people who are bad with money or struggling. The people that don't pay it back now will complain that the interest is making it too high to pay back.

Credit cards are as bad or good as you make them. I use mine like other people use their debit card. Lower risk if someone gets my information (yes there are rewards) and I don't have to carry thousands of dollars of cash if I want to bid on a hunt or buy something.

 

[Reburn]

I don’t disagree with this as far as buying a house. I would just argue that if someone has a bunch of student loan debt, they should clear that first before taking on more in a mortgage.

I don’t fundamentally disagree.
However
Depends on the interest on the student loan debt.
I would not encourage someone to pay off an unsecured low interest debt in lieu of purchasing an appreciating asset.

The fact still remains you normally need over about a 715 to get a good mortage rate. Its hard to get there without a credit card even if you have 200k in cash savings.

 

[307]

Single variable thinking is rarely the best strategy.

 

[Bubblehide]

Credit card debt is modern day slavery. I have such an aversion to credit card debt that I pay off my credit cards every single month. But, I do love the consumer protections that come with using my credit cards, and, the cash back feature. So in my case, it pays to use my credit cards .

 

[Winnie]

Don't agree that a home is the only appreciating asset you can buy with debt. Land appreciates. Rental houses appreciate and provide equity. Fixer uppers appreciate. Even buying a smashed car and fixing it up makes money. There are tons of ways to make money by buying something with credit, improving it or letting time appreciate it for you and then selling.

 

[TN2shot07]

Who of you cash kings paid for their first home fully in cash?

I didn’t, but I also didn’t have any problems getting it financed at the advertised rates with a 20% down payment

 

[svivian]

Im not trying to come off as rude in anyway and im sure each have their own reasonings for cash only. But I feel like these types of threads show the folks who are not good with money, specifically debt.

Also, it is very old-fashioned thinking anymore. Saying to pay off student debt before getting a mortgage. Tell that to the 22-year-olds who graduated in 2019 who watched housing prices leap into the stratosphere that they did the right thing by waiting.


I will say however, there comes an age where all debt should be paid off and let cruise control kick in. When I see a 60 year old worrying about retirement with $200,000 left on their mortgage, a car payment and credit card debt, that's rough....

 

[browning2480]

Don't agree that a home is the only appreciating asset you can buy with debt. Land appreciates. Rental houses appreciate and provide equity. Fixer uppers appreciate. Even buying a smashed car and fixing it up makes money. There are tons of ways to make money by buying something with credit, improving it or letting time appreciate it for you and then selling.

Yeah but you have to figure in the risk. I know a few people who owned rentals that they owed money on during Covid. Government made it impossible to evict someone for not paying rent. They had to make that payment while the people living there stayed for free. Much easier to manage that if you don’t owe money on them.

Not to mention when someone destroys a rental or things start breaking and you don’t have money to fix it cause you have all these loans. To each their own though.

 

[svivian]

Yeah but you have to figure in the risk. I know a few people who owned rentals that they owed money on during Covid. Government made it impossible to evict someone for not paying rent. They had to make that payment while the people living there stayed for free. Much easier to manage that if you don’t owe money on them.

Not to mention when someone destroys a rental or things start breaking and you don’t have money to fix it cause you have all these loans. To each their own though.

Again, great example of not managing money correctly and associated risk. If someone doesn't have the ability to manage it or risk appetite for possible loss, they shouldn't get debt.

 

[Ikmclean]

I agree with your view on debt, but the credit card isn't the problem. Almost every dollar we spend goes through a credit card. Between added consumer protection and rewards programs it would be leaving money on the table not to. If someone gets a hold of a debit card or your Benjamin's there is little you can do to get it back.

 

[CorbLand]

I use my credit card for everything and rarely carry more than a 20 in my wallet. I don’t like to have cash because if I lose my wallet, it’s a lot easier to get a card shutdown than it is to get cash back.

In 10 years of using a credit card I have only paid interest on it for 6 or so months. I had a rough patch where hours at work were limited and essentials needed to be purchased.

 

[307]

Credit cards don't cause debt problems any more than guns cause murders.

 

[Mighty Mouse]

I'm averse to debt but make nearly all my purchases via credit credit. I've never paid a dime of interest to a credit card company.

 

[LoggerDan]

Some of us just live simple lives. My ex wife and children live on payed for land and a house. Newer van , paid for in cash. We don’t buy the new version of an iPhone whenever it drops. We barter with real goods derived from sweat and muscle. I live in logging camps. I drive an old yj. You can poke fun, if ya like, but I wouldn’t trade it. When I need a new saw, I dig out 17bens and go to the stihl shop and get it. I don’t much care to do things any differently. Maybe that makes you smarter than me. But we have different lives driven by different goals and ideals. Old fashioned? Sure.

 

[Customweld]

Some of us just live simple lives. My ex wife and children live on payed for land and a house. Newer van , paid for in cash. We don’t buy the new version of an iPhone whenever it drops. We barter with real goods derived from sweat and muscle. I live in logging camps. I drive an old yj. You can poke fun, if ya like, but I wouldn’t trade it. When I need a new saw, I dig out 17bens and go to the stihl shop and get it. I don’t much care to do things any differently. Maybe that makes you smarter than me. But we have different lives driven by different goals and ideals. Old fashioned? Sure.

Life was economically pretty easy living in logging camps. Not much to spend money on other than some food, saw gas and bar oil! I thoroughly loved living that life and would go back in a heart beat if it was feasible.