Pretty blunt question. I ask because I often come home asking questions like; “Do you know what the 25 year old analyst at work bought? A $38K Infiniti G27!”, “How in the world did so and so go on 4 major trips this year?”, “Did you know so and so bought a 5K square foot house?”. My wife says I would be surprised how many people carry large amounts of credit card debt. Since getting married we have operated by paying off every credit card in full each month and only financing things that allow 0% interest (besides cars and house). Her parents did the same thing and so did mine. While I love nice things it is nice to not worry about our debt preventing us from doing something. I am going to hook up an anonymous poll to see what credit card debt CFers are carrying. If you want list what it is, college debt, rims, engagement ring, etc.
about $1,500. My wife and I had about 7k in debt a few years ago when she was finishing her masters. Since paying that off, we were free of cc debt for about 3 1/2 years, and now have about $1,500, which we'll pay at least two-thirds of this month. Our second child is due in Sept, and we went and bought everything we needed in June, so that's what makes up the balance. We should have just paid cash, and saved the 2 months of interest.
$0. I have a philosophy that the credit card is to be paid off in full every month, and the cash back is the incentive to use it.
Between $10K and $15K. The majority of it is college and the years shortly following when I was only making $11K a year and my cost of living was much higher. And then there's a small chunk that is my "current" debt.
I have never had any debt in my life (I'm in my mid-20s). I treat my credit card the same way Azadre just described.
no house? no car? not trying to be a douche...just hate all kinds of debt and would love to live debt free.
I'm with you...a car loan is Debt..but most people don't see it that way. There needs to be a poll result for 0. We don't even use Credit cards anymore - don't have one. Just a debit card that we rarely use. Only to secure hotel rooms or make purchases online when paypal isn't an option.
I actually have 2 different cash back cards which I use. One gives me a higher rate at restaurants and Costco and the other for everything else.
I should rephrase...I actually hate paying interest, not really debt. Interest free debt doesn't bother me so much.
Car loans are definitely debt. I pay off my credit cards in full every month. I do have student loans, car loans, and a mortgage. Determined to have no debts outside my mortgage within 5 years. Problem is going to be the student loans.
Well, I still owe $13k on my car, but that is the only debt we have (hers is paid off). My interest rate is 2% on the car loan and the car is worth $10k more than what I owe. As far as credit card debt, we don't have any. We pay our cards off in full each month and never carry a balance over.
I have some student loans from my wife still remaining, but otherwise I am debt-free (except for the mortgage). The interest rate for the student loans is so low it almost does not bother me (I hate interest). The wife and I use DC for almost everything. The cash back bonus is great, and you can trade it in for even better deals all the time (I just got $350 bucks in bed,bath,and beyond giftcards for 20% off. Couple that with those 20% off coupons and I got $350 worth of stuff for ~$200.) The key for me is to have my savings auto-deducted. The 401k, the Roth, the savings account, the college funds...all are taken from me automatically - I can't spend money I never see. We also have a strict budget. Like the OP, I'm often flabbergasted at what folks will blow their money on. Blowing even more money on interest? Insanity.
- $70 I usually keep my credit card overpaid, so they owe me money, for some reason it makes me feel good.
I don't have the stats but i'd be willing to bet nothing gets people debt quicker than marriage. There are the wedding and engagement rings. The next major debt couples have is their wedding. Women want a big great wedding. You're lucky if you can find girl who can look past all the superficial crap such as the wedding. Well, that's $20,000 right there. Of course you have to go on a honey moon. Bam! $5000 more. After you come, you have to a buy a house now. 10 years later, you're still trying to pay off the wedding and honey moon. Sorry if that sounds like a rant about marriage. I just think people easily get in over their heads with it. It only works if both parties are financially responsible like you and your wife. It took me not having a job to realize how important managing credit card debt is. Paid off two car notes a couple of years ago. I can't even walk into a dealership without feeling somewhat resentful because of the money i've thrown away.
