S/O Debt free

[FaithManor]

For us, debt-free means no payments in which interest is accruing. So, if we had a small hospital bill or something that we made payments on but weren't being charged interest, we'd still consider ourselves mostly debt-free. We hope to be in the debt-free category in three years. That's what we are working towards.

 

Faith

[Mejane]

I consider "debt free" to mean not owing anyone any money at all.

 

This. However, I'm willing to settle for only a mortgage. :001_smile:

[keptwoman]

I consider debt free to be owing NOTHING to anyone. Even being under a lease is a form of debt to me. If you are renting, but don't have a lease term...then it's not debt. We are currently 'debt free' with the exception of our house rent, which is a temporary situation for us until our house sells. We owe nothing else on anything: cars, credit card, medical, mortgage...nada. We plan on keeping it that way if at all possible. I don't consider it debt free if you still have a mortgage.

Well yeah, but part of being debt free is being financially secure. So while month by month rent is technically debt free, it is not at all secure, especially when you can be kicked out by your landlord (like we were 3x, when the landlord wanted to sell, or move in themselves)

[Woodhaven]

I'd say it means no debt at all. To have any debt is to be in debt. Right?

 

We have a mortgage, so we are not debt free. We have one credit card which we pay off completely every month. But the mortgage is a big debt and I wish we didn't have it.

[The Girls' Mom]

Well yeah, but part of being debt free is being financially secure. So while month by month rent is technically debt free, it is not at all secure, especially when you can be kicked out by your landlord (like we were 3x, when the landlord wanted to sell, or move in themselves)

 

Those are two separate things to me. I can own my house out right, and have no other debt and still not be financially secure. Job loss, medical bills, etc. could cause a tax default on the property and you could still lose your home. (It actually happened here locally recently) Too many variables to include financial security into the debt free equation. Debt free to me means not being indebted to another person or entity over a period of time.

[keptwoman]

Those are two separate things to me. I can own my house out right, and have no other debt and still not be financially secure. Job loss, medical bills, etc. could cause a tax default on the property and you could still lose your home. (It actually happened here locally recently) Too many variables to include financial security into the debt free equation. Debt free to me means not being indebted to another person or entity over a period of time.

Ah, that's interesting. That wouldn't happen here as medical is govt funded so you would never loose your home over it, and there is only very very minimal property tax compared to what you pay (less than $100/month in my city) I don't think unemployment could loose you a debt free house either actually. So here in Australia, I feel very much that a debt free house gives a good degree of financial security.

[wy_kid_wrangler04]

Debt free is 0 debt in my opinion- "I consider us debt-free other than our mortgage payment" That is always how I phrase it when I have to.

 

We have no debt other than our home. I do consider student loans debt (because it is something you have to pay back) But I also consider in in the same catagory as a mortgage- "needed unless blessed to be paid off" LOL (Yes that is my actual column name on our monthly budget for our mortgage ;))