Debt Free Definition

smudgemanc26

Apologies cos this is not directly related to the thread but ive read a few comments regarding spending on credit cards with 0% when you have the money to pay for it outright in savings.

I would still class this as a debt as its a form of borrowing money off a company which they do not think you have (they are giving you credit) what i dont understand is if you pay the minium payment amount off each month from the money you have saved what are you gaining? Your money is still coming out of your savings account to pay off the credit card, sorry if this is a silly question but i dont really get all this business on how to make money from cards etc as i am new to this money saving game!

jen x

nearlyrich

smudgemanc26 wrote: »

Apologies cos this is not directly related to the thread but ive read a few comments regarding spending on credit cards with 0% when you have the money to pay for it outright in savings.

I would still class this as a debt as its a form of borrowing money off a company which they do not think you have (they are giving you credit) what i dont understand is if you pay the minium payment amount off each month from the money you have saved what are you gaining? Your money is still coming out of your savings account to pay off the credit card, sorry if this is a silly question but i dont really get all this business on how to make money from cards etc as i am new to this money saving game!

jen x

If you go to the stoozing sub board of the credit card area of the forum you will find lot's of information on stoozing.

If you get £1000 on 0% for a year and put it in a high interest account you are effectively getting paid for borrowing the money. If you can afford to fund the minimum payment from income it's even better.;)

I was an active stoozer last year with £34k at the maximum in my high interst account belonging to a variety of CC companies. The application of balance transfer fees has spoiled the game for me( because I hate paying any kind of fee or interest to banks :mad: ) although it is still possible to make a profit.

HairyHandofDartmoor

I don't include my mortgage as debt as I see it more as an investment, the house is rising in value and most peope would have rent to pay if they had no mortgage.

So anything but the mortgage is debt to me, I especially hate bad debt (ie consumer debt) as there is nothing to show for this at all!

save-alot

Debt free for me will be the 1st time I have a zero or positive bank balance the day before pay day and owe nothing to anybody.