Is "Debt Free" all it's cracked up to be?

UsernameAlreadyExists

eyeopener2 wrote: »

If you already have a pension is it a SIPP? ....

Yes, it's a SIPP, but thanks again for the advice I don't want.

In post #1, I wrote

Me wrote:

I don't care, as my house is on the market and I am planning to jump the ladder a little so I can live "above my means" and enjoy a nicer place.

I've decided that "debt free" is bad ... because you're burning money on nothing, whereas being in debt is better ... because you are living in a better environment/situation than you would otherwise be in.
...
What do others think?

With regard to having access to emergency funds in case I lose my job or have a large expense, then assets can be sold or my current account mortgage can be used to drop behind plan ... or worst case, I can load up the credit cards I still have.

I still conclude that being debt free isn't anywhere near as "comfortable" as I thought it would be.

mildredalien

UsernameAlreadyExists wrote: »

I still conclude that being debt free isn't anywhere near as "comfortable" as I thought it would be.

I can definitely relate to this bit Being debt free has given me basically a third more money each month - but I'm still budgeting, watching my pennies and worrying about where my money goes! I'm not spending willy nilly on whatever I like or trying to achieve a radically different lifestyle. I am saving each month, both for long term plans (e.g. making sure I have a good emergency fund behind me) and shorter term plans such as holidays or bigger spends. I can't get out of the habit of careful planning about where my money goes... but I reckon that's a good thing!

I guess I'd rather live within my means and an achievable lifestyle rather than aim above that and have to rely on possibly expensive credit, or know that if something went pear-shaped I'd have to give up that lifestyle. I do love the feeling that if I need to, in a few months I can save up for something I really want - that's what drove me to become debt free in the first place. I got into debt by trying to live outside my means, I don't want to start that cycle again.

bossymoo

I sort of get what you're saying.

If we are talking purchasing power of your liquid cash, then it's worth considering. My mum was talking of having a kitchen refit in x years time. I said I wondered how much they would cost in x years time and if she had the money (I wouldn't have wanted her to raise debt for a non-essential) maybe get the value from it now, plus the enjoyment of having her dream kitchen sooner, rather than later.

Having "savings" does come with an element of responsibility, I for one feel it ought to be working for me (irritatingly I've just switched my isa, now had a letter from the new provider that they are dropping the rate too :mad:) and yes it is frustrating when rates are low and inflation is high.

But, it's a different story to being in debt up to your eyeballs, with the prospect of losing your home. Security is a huge factor.

Determined_diva

Seriously .. The op cannot be for real ?? " I'll just load up on my credit card" etc

COME ON !! Gotta be spam

Can't believe I lost 2 mins of my valuable time reading this !!!!!!

eyeopener2

Interesting, so you have a SIPP, but do not believe in risk. You must have substantial funds already to be thinking like this. Glad to see your retirement is fully funded, I wish mine was.

For some reason, you think living a life style you can't actually afford, made possible by spending somebody else's money, is a the way forward. This is after already clearing some debt.

Good luck with that.

Snagggles

Savings rates really are poor at the moment. There are accounts out there with better than average interest rates, but many have catches or conditions that mean they are not suitable for everyone.

The problem is that a post of this nature is unlikely to meet with a positive reaction from an audience made up mostly of people who are in debt, many of whom not only have the worry of their money buying increasingly less, but also additional worries, such as whether or not they will lose their home, whether or not they can provide for their children, whether or not they can put the heating on for an hour tonight if the temperature drops, etc.

None of this makes your concern irrelevant. But I would imagine that a significant number of people reading this thread would love to swap problems with you.

I admit, I bristled in annoyance because I'm jealous. I'd rather be spending time trying to maximise my income from savings than minimise damage from debt.

UsernameAlreadyExists

I'll freely admit that this is in the worst possible forum. I saw the title "debt free wannabee", and given that I don't specifically browse by forum (I "view new posts" and end up hopping all over the place) I didn't realise quite what a faux pas posting here was going to turn out.

Thanks to those that have actually bothered to read through their anger and see that I do think I have a point to make, but you can take solace from the fact that I too have had to survive in the past on the breadline. I bought my first house when the interest rates were over 15%. I lived on beans on toast for years.

But recently thanks to the "good fortune" and "luck" of my father dying at the age of 65 (3 months after his retirement) and my still having 25+ years of work ahead of me, my situation has changed. I'd have had a mortgage for the next 13 years anyway, so I really don't see the problem with still having one.

I think I'll leave this "train wreck" of a thread well alone now, and learn from my mistake.

Snagggles

I'm really sorry to hear about your father. Regardless of whether or not I agree with your original post, that is very sad and you have my sympathy.

beanielou

I.Would.Love.To.Be.Debt.Free.
Is all.

tpl

UsernameAlreadyExists wrote: »

I think I'll leave this "train wreck" of a thread well alone now, and learn from my mistake.

....ah well, we all make mistakes...