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What is Debt free?

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Comments

  • doingitanyway
    doingitanyway Posts: 10,208 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Mortgage-free Glee!
    Mnd wrote: »
    We have no debt
    No mortgage, loans, overdraft charging us interest

    We do have day to day credit cards, all paid off in full monthly
    Also balance transfer and purchase credit cards on 0%

    We could pay them this second if we wanted to, but that money is earning us interest, so I consider that we are debt free
    You are indeed well done. Hoping to join you soon :)
    If you have built castles in the air, your work should not be lost; that is where they should be. Now put the foundations under them

    Emergency fund 800/1000
    Buffer fund 0/100
    Debt Free (again) 25/072025
  • enjoyyourshoes
    enjoyyourshoes Posts: 1,093 Forumite
    Seventh Anniversary 1,000 Posts Combo Breaker
    Debt Vs liquidity?
    Debt is a symptom, solve the problem.
  • Mnd
    Mnd Posts: 1,699 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    doingitanyway wrote: »
    You are indeed well done. Hoping to join you soon :)

    Thank you

    It took a while, we were both divorced and started again, but we really did work as a team to get to where we are today.
    Next target is to build the bridge to enable my wife to retire early at 61.5. I've done that at 63.

    I'm sure if you make plans and stick to them you will achieve your targets.good luck
    No.79 save £12k in 2020. Total end May £11610
    Annual target £24000
  • Puddylove
    Puddylove Posts: 507 Forumite
    Eighth Anniversary Combo Breaker
    Technically I have debt - a car loan at 3.4%.

    I have enough savings to pay it off today if I want - but savings are 3.5% (a HTB ISA).

    The total loan amount is also only about 7% of my annual salary.

    So it doesn't make much sense to pay it off early, and I'm not at all worried by it.
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