Anybody want to get debt free????

[MidnightVoice]

Noah_Bodie wrote:

Once again, my sociopathic tendencies shine through. Just as 1-9 percent util is a sweet spot, owing the IRS a few $20s in April is ideal--for me. Owing a lot hurts and can lead to interest and penalties. But owing a little, again for me the guy with the crawlspace that merits monitoring, gives me perverse pleasure.

I agree, but I tend to overpay a little because my wife is very erotic, sorry, erratic in her earning, being a freelance artist.  In a good year we could end up being really clobbered by the IRS, and that would hurt, so better safe than sorry. 

[Anonymous]

Overpay some more, and your wife might turn more erotic, umm, less erratic.

[Anonymous]

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Noah_Bodie wrote:

Overpay some more, and your wife might turn more erotic, umm, less erratic.

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Oh Boy, Noah...you are on a roll today!!! Are you sure that was milk you put in your cereal this morning??????

[MidnightVoice]

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Noah_Bodie wrote:

Overpay some more, and your wife might turn more erotic, umm, less erratic.

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That might be bad for my health  

[Anonymous]

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flygirl wrote:

Oh Boy, Noah...you are on a roll today!!! Are you sure that was milk you put in your cereal this morning??????

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Oh, it was milk. But, did you ever see Alien Nation?

[Anonymous]

[Anonymous]

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fused111 wrote:

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crocpa wrote:

In order to have the highest FICO score, you pretty much should be debt free.  Take Snodog for instance, his three FICO's were all in the 800+ ranges and he had barely no debt at all.  I agree with OP's views, just one thing though.  In order to maximize your FICO scores, you should pay down your debt to achieve proper utilization ratios. 

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You mean revolving util ratios, right?

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Both revolving and installment.  Mortgage utilization ratios are not considered by FICO.

[SoulSmilen]

Something everyone always seems to forget on paying down higher APRs first - the time involved to do it.

If I have a 5000.00 balance at 10% and a 10K balance at 20% and can make a total of 75.00 / month extra in payments, is it really logical to let that 5000.00 balance accrue interest @ 10% until I've made 135-140 payments?

That's an extreme example, but just a reminder that the higher APR shouldn't always be the sole basis of the decision.

[Anonymous]

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Noah_Bodie wrote:

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flygirl wrote:

Oh Boy, Noah...you are on a roll today!!! Are you sure that was milk you put in your cereal this morning??????

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Oh, it was milk. But, did you ever see Alien Nation?

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You like ROTTEN MILK in your cereal?? 

[Anonymous]

As the originator of this thread, I'd like to clear up a few assumptions about myself and the assumptions made by many posters so far.

First off, I can't belive how many people get so upset here when one believes in a more conservative, or alternative way of thinking about debt.  I currently have no debt except my home mortgage.  I am 34 years old with a wife and one child.  I am a Catholic, not a born-again Christian , so my religious beliefs have some similarities with the radio host and author, Dave Ramsey, but I don't agree in many of the religious ideas of Born Again Christians, but this is not pertinant to a financial discussion whatsoever. 

I make over $90,000 a year, and my wife makes $30,000.   Like most couples, we used to fight alot about money, so we decided to pay off all of our credit cards and student loans QUICKLY (within 2 years).  We made it in less than that.  I also have a total of just over $100,000 in our 401K's and IRA's. Our home in Illinois has about $60,000 in equity. 

If those who are doing as well as, or better than my family, and at a similar age to myself, I say great job.   To others whose net worth is much lower, I say, try to have a more open attitute to those like myself, who are taking a more fiscally conservative approach to personal finance. 

Signed,

Bob