Debt Free!

Radii · 11-09-2009, 06:33 AM

September 1995: First credit card obtained in my first week of college. Credit limit: $350
1995-1998: Picked up a Visa card, and also two department store credit cards. Maxxed them all out, paid the minimums on all of them.
1998: Dropped out of college and officially took on my student loans. Total Debt: ~$12,000
2002: Used the money I was setting aside for an "emergency fund" as a down payment to purchase a Honda Civic Hybrid. Total Debt: $25,000
2006: Lived off of credit cards for 6 months while hoarding cash, something that seemed like a smart thing to do at the time in fear of potential fireworks and financial responsibilities during a divorce.

January 1, 2007: Total Debt: $50,000

Back on my own at the start of 2007, I moved into a tiny 1-bedroom apartment and finally started living below my means, something I'd been preaching for a long time but not really doing. A salary that was easily able to support 3 people in the past was now able to aggressively attack that debt, and for the first time ever, I actually stuck to my plan and didn't stray to buy some sort of cool new toy with the money that was intended to go to debt.

January 1, 2008: I moved back home to help out my family, among other things. One major benefit of this change has been an even further reduction in my expenses. I do consulting work only part time, but given the extent to which I've been able to minimalize the amount of money I need to survive, I was able to continue to aggressively attack my debt.

November 9, 2009: Today I wrote a $737 check(well, ok, I used online bill pay) to Bank of America, paying the last little bit off my last credit card with a balance on it. I have no student loans, I own my car outright, and now I have ZERO credit card debt.

For the first time since I went to Lenox Mall in Atlanta and used my first credit card in my first month of college when I was 18 years old, I am officially DEBT FREE. WOOOHOOOO. I've been lucky. I've never been unexpectedly unemployed, never had a serious crisis of medical bills, ever since I got my first technical job as part of Georgia Tech's co-op program in 1996, I've been employed. And working 13 years consistently in the same general field has allowed me to grow my career to the point that I can make a solid living. Enough so that waking up one morning and realizing that I have $50,000 in debt is scary, but not soulcrushing. I'm very, very fortunate I believe.

The scary thing to me looking back is that I never really used credit cards after college. Student loans, big bump in debt. Spur of the moment car purchase, big bump in debt. Not thinking straight about money while under stress of separation/divorce, big bump in debt. I would go months, sometimes years at a time without using a credit card but then let one thing set me back massively, like buying a computer on impulse with money that I had intended to use to make a big student loan payment, or buying a car with money that was set aside in case I ever lost my job.

So now I own a car with only 60,000 miles on it that I intend to drive into the ground. I have a couple credit cards but I have no intention or desire to use them for anything. I have all the things I want and the patience to wait for the right time to make new purchases. Everything's looking pretty damn good

Thanks for reading, I thought it'd be nice to share a positive story here with everyone.

Butter · 11-09-2009, 06:36 AM

Nice job, dude. I hope to learn from your smarts and take my debt down over the next couple of years. Of course, with my mortgage that won't be so easy, but if I got rid of everything else, I'd be pretty happy.

Mizzou B-ball fan · 11-09-2009, 06:51 AM

Well done. It's a great feeling to get to the point of being debt-free. Now remember what it feels like and make sure it stays under control.

spleen1015 · 11-09-2009, 06:52 AM

I'll get there one day.

EDIT - Grats, too!

Flasch186 · 11-09-2009, 07:32 AM

Congrats!!!

Wanna buy a home

Draft Dodger · 11-09-2009, 07:35 AM

we got there in February...although we took an *ahem* slightly different route

still remember my first ccard purchase, back when I was 20 years old: a SNES. That was on my $500 card and was going to be the only purchase I made. I was going to pay it off and just keep it for emergencies. Pretty sure that was maxed out in a matter of months.

Flasch186 · 11-09-2009, 07:41 AM

For us we have both been pretty good about avoiding debt although I remember in College getting up to about $6K. My parents stepped in at one point and offered to pay it off if I assured them I'd never get into CC debt again. They paid it and over the next 4 years I gave them back all of that money eventhough they never asked for it. For some reason paying them back meant more to me than paying back CapitalOne.

Now our debt is the wife's car which Im hoping to pay off by the end of the year. Our mortgage and thats it! Ill be taking on a prepaid college fund for the kid when he gets here (any day now) but otherwise we've done pretty good about hoarding cash during the good times and being able to plod ahead during the bad.

Didnt mean to threadjack but to celebrate your great day Ill tell ya I was there at one point and my anxiety was very high about the load so I can appreciate in some small way your freedom.

Congrats again!

Alan T · 11-09-2009, 07:43 AM

Congratulations!!

I am envious, I sometimes feel that I'll never get there with all of the school loans, medical debt, mortgage, credit card debt, etc..

JonInMiddleGA · 11-09-2009, 07:45 AM

Like Alan T, I don't have any realistic hope I'll ever see it either but I'm happy for you for getting there.

Mizzou B-ball fan · 11-09-2009, 07:52 AM

FWIW......I've never considered a mortgage part of being 'debt-free'. Unlike other things like cars, you can generally get a good portion of equity out of a home and be removed from that debt by selling the property. A home isn't like a car where it loses it's value the moment you drive off the lot. With good maintenance and some work, it's not hard to break even or even make money on a home.

Alan T · 11-09-2009, 07:57 AM

Quote:

Originally Posted by Mizzou B-ball fan

FWIW......I've never considered a mortgage part of being 'debt-free'. Unlike other things like cars, you can generally get a good portion of equity out of a home and be removed from that debt by selling the property. A home isn't like a car where it loses it's value the moment you drive off the lot. With good maintenance and some work, it's not hard to break even or even make money on a home.

That may have been the case a few years ago, but thanks to the economy, I'm pretty sure my house is now 'worth' far less than the amount owed on it. (which seems to be a very common trend at least in my area for anyone who has bought a house in the past 5-7 years) Luckily for me my home was not meant to be a short term investment though so it doesn't phase me much other than one more piece of debt on my back.

Mizzou B-ball fan · 11-09-2009, 08:02 AM

Quote:

Originally Posted by Alan T

That may have been the case a few years ago, but thanks to the economy, I'm pretty sure my house is now 'worth' far less than the amount owed on it. (which seems to be a very common trend at least in my area for anyone who has bought a house in the past 5-7 years) Luckily for me my home was not meant to be a short term investment though so it doesn't phase me much other than one more piece of debt on my back.

Sure, that's always going to be the case. Don't confuse what you can get right now for the home value. The demand will come back at some point and you'll be just fine. Meanwhile, you've got a place to stay that allows for a large tax break and a chance to build up more equity. Even with the downturn in the market over the last year or two, there's still very few investments better than a home.

Subby · 11-09-2009, 08:20 AM

Great job Radii!

Pretty sure I'll always be in debt, but that's okay.

cuervo72 · 11-09-2009, 08:34 AM

Bravo, Radii.

Kodos · 11-09-2009, 08:40 AM

Nice job, Radii. That's awesome.

Edward64 · 11-09-2009, 09:31 AM

Congratulations on your discipline! I had some debt early on (and took on some of my brothers also). I remember paying it off (credit union loan) and the weight that came off my shoulders.

johnnyshaka · 11-09-2009, 09:47 AM

We've only got the mortgage right now...which is nice...but at the same time we are definitely making some sacrifices while my wife stays home with the girls. Trust me, every time I walk into Costco and see those big screen TVs I get the shakes and try to scurry along as fast as possible so I don't lose my mind and load one into my cart.

Great job, Radii!!

SportsDino · 11-09-2009, 10:02 AM

Good to hear, without the debt monkeys on your back and the tricks you learn to handle your money in order to get debt free, you will no doubt have an easy time pushing ahead beyond 0!

Mustang · 11-09-2009, 10:15 AM

You should celebrate by going out and buying something really expensive for yourself.

Lathum · 11-09-2009, 10:21 AM

Congrats Radii, it is amazing how being financially stable can be so good for your state of mind.

Now put 10K away and win the main event next year, and if you have 20K you can back me!

CamEdwards · 11-09-2009, 10:32 AM

Congrats Radii! that's fantastic.

cubboyroy1826 · 11-09-2009, 10:36 AM

Congrats Radii that is some serious good news. Now how about starting a new FBCB Dynasty?

flere-imsaho · 11-09-2009, 10:37 AM

Congratulations! Excellent work!

digamma · 11-09-2009, 10:51 AM

Congrats, radii!

Celeval · 11-09-2009, 11:23 AM

Rock on - congratulations! We're making progress ourselves, but aren't there yet.

Honolulu Blue · 11-09-2009, 11:39 AM

Congrats. I have a somewhat similar story, so I can sympathize.

The hardest part, IMO, is not falling into old bad habits.

Dodgerchick · 11-09-2009, 01:35 PM

Awesome Radii, congrats! What a weight off your shoulders!

We're fortunate to just have credit card and student loans. I don't see it as a bad thing because Antmeister is in a better place career-wise, and the $$ we spent on credit card bills were valid while he went to school full-time. We'll get there some day, I'm sure of it

Neuqua · 11-09-2009, 02:10 PM

Congrats man, I'm in the same boat and am in the process of eliminating some of the debt I've accumulated over the years. Your story was inspiring!

Cuckoo · 11-09-2009, 02:53 PM

I offer my congrats as well. That takes a great deal of dedication and sacrifice.

My wife and I accumulated a significant amount of credit card debt in college and immediately following. We've been working to pay it down for years, at the same time keeping our credit record flawless. We're very nearly there, and I can only imagine the sigh of relief when it's gone.

Unfortunately, we have a mortgage, student loans, and car payments as well. Those will probably never go away, particularly the ridiculously high student loans.

rowech · 11-09-2009, 02:54 PM

My wife and I paid off our final credit card payment in August. We now have two cars, a house, and two student loans. It is a great feeling. My parents gave me a card when I went to college telling me I could charge all of my books I needed and extra $1,000 per year as needed for food, etc. and they would pay it. I get out of college and they give me the payments to take over. They only made the minimum payments the entire time. My graduation gift? Nearly 10K of debt. It eventually got up to 25K when my wife and I combined ours. (mine was 21 of it for a variety of reasons...mostly a teacher's salary while trying to take college classes to get a master's degree)

sabotai · 11-09-2009, 03:08 PM

Congrats!

I was in a similar hole not too long ago. Although, I think my "high point" was around $30,000 in CC and student loan debt, and no divorce. It took me awhile but several months ago I got my CC balance to $0 and the loan was paid off several months before that.

M GO BLUE!!! · 11-09-2009, 03:09 PM

Congradulations!

I paid all mine off 10 years ago. Being in the black is a great feeling.

finketr · 11-09-2009, 03:10 PM

congratulations..

now celebrate by buying a new jaguar!

Schmidty · 11-09-2009, 03:18 PM

Nice job!!!

I have no real debt, but I live in an old rental home, drive 2 old vehicles, and don't have stuff like HDTVs, PS3s, yachts, riding lawnmowers, etc. I do everything the hard way, or I don't do it. I have one Amex, but I pay it off every month, and only use it for credit-building stuff, just in case I ever want to buy a house.

The only splurges that I have are computer stuff and a new laptop, but I pay for those things with cash (well, with my Amex that I pay off every month). In fact, a few months ago, our washer and dryer broke within the same week, so after waiting a week or so, I went down and bought new ones with cash. Well, I guess all of my sports packages like Sunday Ticket and Center Ice are spurges too, but still.

I know that this stuff is going to pay off in the future, even though at times, it feels pretty spartan. At least my kid will have most of her college paid for before she even starts, and I can buy a house whenever I want to.

k0ruptr · 11-09-2009, 04:11 PM

Well done Radii! its gotta be rough. I wish I was debt free, but I think I should feel positive about being 25 years old and only having about 1800 dollars worth of debt. I actually have no idea if that is decent, but I do know that I got rid of both my credit cards and just use debit cards now. $1500 of that is student loans, the other $300 is whats remaining on my ex cc.

k0ruptr · 11-09-2009, 04:12 PM

dola, one of the things my parents taught me (the wrong way) was that being in debt truly truly sucks.

finketr · 11-09-2009, 04:36 PM

k0ruptor, that's pretty awesome.

I had no debt from 2000 through 2008 outside of CC's that i paid off every month when i bought my new car.

11-09-2009, 06:36 AM	#2
Butter Coordinator Join Date: Mar 2002 Location: Dayton, OH	Nice job, dude. I hope to learn from your smarts and take my debt down over the next couple of years. Of course, with my mortgage that won't be so easy, but if I got rid of everything else, I'd be pretty happy. __________________ My listening habits

11-09-2009, 06:52 AM	#4
spleen1015 Coordinator Join Date: Sep 2003	I'll get there one day. EDIT - Grats, too! __________________ Why choose failure when success is an option? Last edited by spleen1015 : 11-09-2009 at 06:53 AM.

11-09-2009, 07:32 AM	#5
Flasch186 Coordinator Join Date: May 2002 Location: Jacksonville, FL	Congrats!!! Wanna buy a home __________________ Jacksonville-florida-homes-for-sale Putting a New Spin on Real Estate! ----------------------------------------------------------- Commissioner of the USFL USFL

11-09-2009, 07:35 AM	#6
Draft Dodger Coordinator Join Date: Jan 2001 Location: Keene, NH	we got there in February...although we took an ahem slightly different route still remember my first ccard purchase, back when I was 20 years old: a SNES. That was on my $500 card and was going to be the only purchase I made. I was going to pay it off and just keep it for emergencies. Pretty sure that was maxed out in a matter of months. __________________ Mile High Hockey

11-09-2009, 07:41 AM	#7
Flasch186 Coordinator Join Date: May 2002 Location: Jacksonville, FL	For us we have both been pretty good about avoiding debt although I remember in College getting up to about $6K. My parents stepped in at one point and offered to pay it off if I assured them I'd never get into CC debt again. They paid it and over the next 4 years I gave them back all of that money eventhough they never asked for it. For some reason paying them back meant more to me than paying back CapitalOne. Now our debt is the wife's car which Im hoping to pay off by the end of the year. Our mortgage and thats it! Ill be taking on a prepaid college fund for the kid when he gets here (any day now) but otherwise we've done pretty good about hoarding cash during the good times and being able to plod ahead during the bad. Didnt mean to threadjack but to celebrate your great day Ill tell ya I was there at one point and my anxiety was very high about the load so I can appreciate in some small way your freedom. Congrats again! __________________ Jacksonville-florida-homes-for-sale Putting a New Spin on Real Estate! ----------------------------------------------------------- Commissioner of the USFL USFL

11-09-2009, 06:51 AM	#3
Mizzou B-ball fan General Manager Join Date: Aug 2001 Location: Kansas City, MO	Well done. It's a great feeling to get to the point of being debt-free. Now remember what it feels like and make sure it stays under control.

11-09-2009, 07:43 AM	#8
Alan T Hall Of Famer Join Date: Dec 2002 Location: Mass.	Congratulations!! I am envious, I sometimes feel that I'll never get there with all of the school loans, medical debt, mortgage, credit card debt, etc.. __________________ Couch to ??k - From the couch to a Marathon in roughly 18 months.

11-09-2009, 07:45 AM	#9
JonInMiddleGA Hall Of Famer Join Date: Nov 2000 Location: Behind Enemy Lines in Athens, GA	Like Alan T, I don't have any realistic hope I'll ever see it either but I'm happy for you for getting there. __________________ "I lit another cigarette. Unless I specifically inform you to the contrary, I am always lighting another cigarette." - from a novel by Martin Amis

11-09-2009, 07:52 AM	#10
Mizzou B-ball fan General Manager Join Date: Aug 2001 Location: Kansas City, MO	FWIW......I've never considered a mortgage part of being 'debt-free'. Unlike other things like cars, you can generally get a good portion of equity out of a home and be removed from that debt by selling the property. A home isn't like a car where it loses it's value the moment you drive off the lot. With good maintenance and some work, it's not hard to break even or even make money on a home.

11-09-2009, 08:20 AM	#13
Subby lolzcat Join Date: Oct 2000 Location: sans pants	Great job Radii! Pretty sure I'll always be in debt, but that's okay. __________________ Superman was flying around and saw Wonder Woman getting a tan in the nude on her balcony. Superman said I going to hit that real fast. So he flys down toward Wonder Woman to hit it and their is a loud scream. The Invincible Man scream what just hit me in the ass!!!!! I do shit, I take pictures, I write about it: chrisshue.com

11-09-2009, 08:34 AM	#14
cuervo72 Head Coach Join Date: Dec 2002 Location: Maryland	Bravo, Radii. __________________ null

11-09-2009, 08:40 AM	#15
Kodos Resident Alien Join Date: Jun 2001	Nice job, Radii. That's awesome. __________________ Author of The Bill Gates Challenge, as well as other groundbreaking dynasties.

11-09-2009, 09:31 AM	#16
Edward64 Head Coach Join Date: Oct 2005	Congratulations on your discipline! I had some debt early on (and took on some of my brothers also). I remember paying it off (credit union loan) and the weight that came off my shoulders.

11-09-2009, 09:47 AM	#17
johnnyshaka College Benchwarmer Join Date: Oct 2002 Location: Edmonton, AB	We've only got the mortgage right now...which is nice...but at the same time we are definitely making some sacrifices while my wife stays home with the girls. Trust me, every time I walk into Costco and see those big screen TVs I get the shakes and try to scurry along as fast as possible so I don't lose my mind and load one into my cart. Great job, Radii!!

11-09-2009, 10:02 AM	#18
SportsDino College Prospect Join Date: Oct 2001	Good to hear, without the debt monkeys on your back and the tricks you learn to handle your money in order to get debt free, you will no doubt have an easy time pushing ahead beyond 0!

11-09-2009, 10:15 AM	#19
Mustang Grizzled Veteran Join Date: Oct 2000 Location: Wisconsin	You should celebrate by going out and buying something really expensive for yourself. __________________ You, you will regret what you have done this day. I will make you regret ever being born. Your going to wish you never left your mothers womb, where it was warm and safe... and wet. i am going to show you pain you never knew existed, you are going to see a whole new spectrum of pain, like a Rainboooow. But! This rainbow is not just like any other rainbow, its...

11-09-2009, 10:21 AM	#20
Lathum Favored Bitch #1 Join Date: Dec 2001 Location: homeless in NJ	Congrats Radii, it is amazing how being financially stable can be so good for your state of mind. Now put 10K away and win the main event next year, and if you have 20K you can back me!

11-09-2009, 10:32 AM	#21
CamEdwards Stadium Announcer Join Date: Mar 2002 Location: Burke, VA	Congrats Radii! that's fantastic. __________________ I don't want the world. I just want your half.

11-09-2009, 10:36 AM	#22
cubboyroy1826 College Benchwarmer Join Date: Jun 2002	Congrats Radii that is some serious good news. Now how about starting a new FBCB Dynasty?

11-09-2009, 10:37 AM	#23
flere-imsaho Coordinator Join Date: Sep 2004 Location: Chicagoland	Congratulations! Excellent work!

11-09-2009, 10:51 AM	#24
digamma Torchbearer Join Date: Sep 2001 Location: On Lake Harriet	Congrats, radii!

11-09-2009, 11:23 AM	#25
Celeval Pro Starter Join Date: Nov 2000 Location: Cary, NC, USA	Rock on - congratulations! We're making progress ourselves, but aren't there yet.

11-09-2009, 11:39 AM	#26
Honolulu Blue Dynasty Boy Join Date: Jan 2001 Location: Michigan	Congrats. I have a somewhat similar story, so I can sympathize. The hardest part, IMO, is not falling into old bad habits.

11-09-2009, 01:35 PM	#27
Dodgerchick College Benchwarmer Join Date: Oct 2009 Location: Austin, TX	Awesome Radii, congrats! What a weight off your shoulders! We're fortunate to just have credit card and student loans. I don't see it as a bad thing because Antmeister is in a better place career-wise, and the $$ we spent on credit card bills were valid while he went to school full-time. We'll get there some day, I'm sure of it __________________ DON'T ITCH THAT NOSE! A Meditation Dynasty

11-09-2009, 02:10 PM	#28
Neuqua Pro Rookie Join Date: Oct 2000 Location: Chicago, Ill	Congrats man, I'm in the same boat and am in the process of eliminating some of the debt I've accumulated over the years. Your story was inspiring! __________________ Our Deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness that most frightens us. We ask ourselves, 'Who am I to be brilliant, gorgeous, talented, fabulous?' Actually, who are you not to be?

11-09-2009, 02:53 PM	#29
Cuckoo College Starter Join Date: Oct 2000 Location: Edmond, OK	I offer my congrats as well. That takes a great deal of dedication and sacrifice. My wife and I accumulated a significant amount of credit card debt in college and immediately following. We've been working to pay it down for years, at the same time keeping our credit record flawless. We're very nearly there, and I can only imagine the sigh of relief when it's gone. Unfortunately, we have a mortgage, student loans, and car payments as well. Those will probably never go away, particularly the ridiculously high student loans. __________________ Commissioner - North American Football League Dallas Cowboys GM

11-09-2009, 02:54 PM	#30
rowech Pro Starter Join Date: Feb 2006	My wife and I paid off our final credit card payment in August. We now have two cars, a house, and two student loans. It is a great feeling. My parents gave me a card when I went to college telling me I could charge all of my books I needed and extra $1,000 per year as needed for food, etc. and they would pay it. I get out of college and they give me the payments to take over. They only made the minimum payments the entire time. My graduation gift? Nearly 10K of debt. It eventually got up to 25K when my wife and I combined ours. (mine was 21 of it for a variety of reasons...mostly a teacher's salary while trying to take college classes to get a master's degree)

11-09-2009, 03:08 PM	#31
sabotai General Manager Join Date: Oct 2000 Location: The Satellite of Love	Congrats! I was in a similar hole not too long ago. Although, I think my "high point" was around $30,000 in CC and student loan debt, and no divorce. It took me awhile but several months ago I got my CC balance to $0 and the loan was paid off several months before that.

11-09-2009, 03:09 PM	#32
M GO BLUE!!! Pro Starter Join Date: Sep 2005	Congradulations! I paid all mine off 10 years ago. Being in the black is a great feeling.

11-09-2009, 03:10 PM	#33
finketr College Prospect Join Date: Jan 2005 Location: Inland Empire, PRC	congratulations.. now celebrate by buying a new jaguar!

11-09-2009, 03:18 PM	#34
Schmidty Coordinator Join Date: Apr 2001 Location: Early, TX	Nice job!!! I have no real debt, but I live in an old rental home, drive 2 old vehicles, and don't have stuff like HDTVs, PS3s, yachts, riding lawnmowers, etc. I do everything the hard way, or I don't do it. I have one Amex, but I pay it off every month, and only use it for credit-building stuff, just in case I ever want to buy a house. The only splurges that I have are computer stuff and a new laptop, but I pay for those things with cash (well, with my Amex that I pay off every month). In fact, a few months ago, our washer and dryer broke within the same week, so after waiting a week or so, I went down and bought new ones with cash. Well, I guess all of my sports packages like Sunday Ticket and Center Ice are spurges too, but still. I know that this stuff is going to pay off in the future, even though at times, it feels pretty spartan. At least my kid will have most of her college paid for before she even starts, and I can buy a house whenever I want to. __________________ Just beat the devil out of it!!! - Bob Ross Last edited by Schmidty : 11-09-2009 at 03:36 PM. Reason: pay off, not payoff, which is a noun.

11-09-2009, 04:11 PM	#35
k0ruptr Pro Starter Join Date: Apr 2003 Location: Las Vegas	Well done Radii! its gotta be rough. I wish I was debt free, but I think I should feel positive about being 25 years old and only having about 1800 dollars worth of debt. I actually have no idea if that is decent, but I do know that I got rid of both my credit cards and just use debit cards now. $1500 of that is student loans, the other $300 is whats remaining on my ex cc. __________________ Xbox Live Gamertag: k0ruptr My Favorite Teams : Chicago White Sox - Carolina Panthers - Orlando Magic - Phoenix Suns - Anaheim Ducks - Hawaii Warriors - Oregon Ducks

11-09-2009, 04:12 PM	#36
k0ruptr Pro Starter Join Date: Apr 2003 Location: Las Vegas	dola, one of the things my parents taught me (the wrong way) was that being in debt truly truly sucks. __________________ Xbox Live Gamertag: k0ruptr My Favorite Teams : Chicago White Sox - Carolina Panthers - Orlando Magic - Phoenix Suns - Anaheim Ducks - Hawaii Warriors - Oregon Ducks

11-09-2009, 04:36 PM	#37
finketr College Prospect Join Date: Jan 2005 Location: Inland Empire, PRC	k0ruptor, that's pretty awesome. I had no debt from 2000 through 2008 outside of CC's that i paid off every month when i bought my new car.

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