Can I claim to be debt free?

antonia86

We finally have savings! £1500 to be exact.


I consider we are now debt free, however we have £1320 on a 0% credit card, as I figure is 0% until June so I'll attract the interest (not that it is much) whilst I can.


Would you consider us debt free?


It's taken 4 years to shift £21,500, well I say four but two years ago we were still owing £18,000, but I'm not sure whether I can, actually, finally, call us debt free!

HappyMJ

If your cash assets exceed your current debts such as loans, credit cards and overdrafts then yes you are debt free.

If your property can sell and clear your mortgage with some cash left over then I'd still consider that free of debt.

Pixie5740

I'd classify your credit card situation as stoozing so you're therefore debt free.

asparagus1968

yes, i'd say you were debt free, you aren't accruing interest on the debt and you could pay the credit card off today with your savings if you wanted to, but you are stoozing, so don't need to.


YAY! CONGRATULATIONS

antonia86

Thank you! My goodness this feels good

Zoology_Dragon

I agree with everyone else, well done!

Puddylove

Oh, in that case I'm debt free, too, as I have £6750 on credit card at 0% but more than that in savings.

Well done, OP!
P X

andyfromotley

Can i be the party pooper??

Sorry but i dont think you're debt free. :-(

You are in a fantastic position (one i would kill for) and could be debt free any time you chose, but you have a debt!

I will consider myself debt free when i look myself squarely in the mirror and say 'i owe nobody anything'.

Its only a small and personal thing to me so i wouldnt worry too much about what i say!

lee111s

Effectively they don't owe anyone anything though. They're being savvy with their money.


If you could borrow £5000 at 0% interest but could get a savings rate of 5% on that £5000 then all you're simply doing it storing your money elsewhere.


If you have enough money to clear your "debt" in one go, then you're debt free.

Puddylove

Technically, I have to agree with Andy the Party Pooper.
But if you can repay debts, then I guess you are free of the anxiety/possible problems of being a debtor.

Of course, if you spend the savings on chocolate that might not work.
P x

andyfromotley

lee111s wrote: »

Effectively they don't owe anyone anything though. They're being savvy with their money.


If you could borrow £5000 at 0% interest but could get a savings rate of 5% on that £5000 then all you're simply doing it storing your money elsewhere.


If you have enough money to clear your "debt" in one go, then you're debt free.

Nope you are debt free when you have no debt.. They have a positive (cash) net worth, but its a debt! And it may well make sound financial sense to be in this position but that wasnt the question.

I accept that its more a philisophical point than a practicl point as they could become debt free with a few clicks of the mouse or a phone call, but its still a debt. As i say its a really minor point in this case and i really dont enjoy being the party pooper so i'll get my coat.

ps I still think the OP has done a great job and i salute them.