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What Do You Mean by Debt?

by derekwong28
6 replies
I see all the time posts and WSO by members who said they had debts of up to $100,000 before they got into IM. But most people with mortgages have much more debt than that.

I am wondering what do they actually by debt. Do you mean net debt rather total actual debt.


-Derek
#debt
  • Profile picture of the author sknollii
    Derek,

    Most of those folks are probably referring to credit card debt for the most part.

    At least you can write off the interest on a mortgage .

    Sam
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    • Profile picture of the author Andyhenry
      Hi Derek,

      I had debts of $100,000 - on top of mortgage.

      In fact, I had to sell my house and was recommended to declare myself bankrupt since I still had $100k of debt after that. (WHY is a long story and doesn't matter anymore).

      So, I've used IM to get rid of $100K of credit card and loan debt.

      It took several years to do and if I listened to everyone else I wouldn't have done it - but it IS possible.

      Andy
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      nothing to see here.

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      • Profile picture of the author ShayB
        When I say "debt," I mean "debt" - mortgage or otherwise doesn't matter to me. If I have to write someone a check each month because I owe them money, that is a debt to me.

        My goal is to have everything paid off - house, car, etc. - within 12 months, preferably sooner. This is why I have started with IM. I want to be debt free.

        At this point, I need $19,000 to pay off all my debts (house, car, etc.) and I am looking forward to doing it. I have been working hard to pay everything off, and I will thoroughly enjoy the last check I write to pay it off.
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        "Fate protects fools, little children, and ships called Enterprise." ~Commander Riker
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        • Profile picture of the author 2bwealthy
          for me debt doesnt include the house. it would be loans, credit cards etc.
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          • Profile picture of the author Andyhenry
            I should probably add that to me - "debt free" also includes house etc...

            So when I was in debt I never included the house - that was extra debt.

            These days - I would class every single penny I owe anyone as debt. I used to think that you had to have debt, but apart from the monthly bills for electricity etc that you cannot pay in advance I would not ever want debt again.

            This means I'm now saving in order to buy my next house in cash. I never borrow money to buy cars and I have no credit cards apart from a debit card which is also a Visa (but only for using money I have in the bank).

            This means I have to be cashflow positive and although I spend a lot of money and give to charity, I never create new debts that end up eating away at what I'm making.

            Andy
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            nothing to see here.

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            • Profile picture of the author ShayB
              Originally Posted by Andyhenry View Post

              This means I'm now saving in order to buy my next house in cash. I never borrow money to buy cars and I have no credit cards apart from a debit card which is also a Visa (but only for using money I have in the bank).

              Andy
              This is exactly what we are going to do. We will pay off this house and car and then start a "new house and new car" fund.
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              "Fate protects fools, little children, and ships called Enterprise." ~Commander Riker
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