Can I be considered 'debt free'?

takman

TightRob wrote: »

Completely missing the point :money:

Well if your completely missing the point what part would you like me to explain to you?.

2ilent8cho

I do not look at the debt as such, i look at my net worth which i think is a better way of assessing your financial situation. So you would not be debt free but your net worth would be positive.

FinallyDebtfree2017

So true, all about the net worth

takman

2ilent8cho wrote: »

I do not look at the debt as such, i look at my net worth which i think is a better way of assessing your financial situation. So you would not be debt free but your net worth would be positive.

Having a positive net worth is a good thing because it means you can pay off all your debts. As long as your only considering cash assets in your net worth, you should never consider the value of your main home when calculating this.


You also need to look at each individual debt because if you have a loan at 9.9% interest and have the money in the bank earning 3% interest for example. Then that means that you are wasting money on interest and you should be paying off the loan even though you have a positive net worth.

ReadingTim

TightRob wrote: »

Not sure the future receipt of an inheritance should be classed as "good fortune"

Death is inevitable. I know I will die, just as you will die, and everyone will die. It's not very nice when it happens, but it happens all the same.

"Fortune" can't prevent death, but it's entirely fair to say that you had the good fortune (or good luck) to be related to or friends with someone who had money at the time of their death, that they wanted to pass onto you. To claim (for example) that an inheritance was "deserved" or "earned" would be more distasteful.