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View Poll Results: What is your debt to total asset ratio?
I have no debt whatsoever, not even a credit card bill 149 51.03%
<10% 98 33.56%
10-19.99% 27 9.25%
20-29.99% 10 3.42%
30-39.99% 5 1.71%
40% or greater 3 1.03%
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Poll: what is your debt to total asset ratio?
Old 09-24-2016, 10:54 AM   #1
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Poll: what is your debt to total asset ratio?

In the thread about percentage of assets in home equity, someone brought up the valid point that the data ignored debt. So here is a poll to address this question.

The number I am looking for is:
The sum total of ALL your debt (including mortgages)

Divided by....

The sum total of ALL your assets (including your home)

Multiplied by 100, to give a percentage.
Feel free to elaborate below. I'll start. My debt ratio is currently 3.175%, and consists of three mortgages on rental properties. (I just paid my credit card bill).
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Old 09-24-2016, 11:04 AM   #2
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Mine is 0% , I'm debt adverse, so much so that I usually pay off the CC every 2 weeks so my CC statement nearly always reads 0.00.
I do this so they never can hit me with a failed to make minimum payment in case I ever forget to pay.

Life is pretty cheap when you have zero debt.

Poll should have had smaller break points as in 5% , 10%, 15% etc. (IMHO)
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Old 09-24-2016, 11:11 AM   #3
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Sitting at 0.5% due to the 1.9% interest rate used car loan, and credit card charges in Quicken but the payments aren't due yet.

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Old 09-24-2016, 11:13 AM   #4
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Zero. No mortgage, CCs and other bills paid in full every month.
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Old 09-24-2016, 11:14 AM   #5
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We charge everything for the CC cash back rewards but pay it all in full when due. I still voted less than 10% because it's still showing as debt on Quicken.
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Old 09-24-2016, 11:15 AM   #6
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We charge everything for the CC cash back rewards but pay all in full when due.
I do likewise.
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Old 09-24-2016, 11:19 AM   #7
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No mortgage. Only debt is credit cards which are paid in full each month... so at any given point it's between 0% and 0.2%.
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Old 09-24-2016, 11:21 AM   #8
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Poll should have had smaller break points as in 5% , 10%, 15% etc. (IMHO)
Too many categories make it difficult to analyze small data sets. I felt that six options was sufficient to get an overview. It matters little whether the ratio is 4.5% or 5.5%. This is not meant to be a scientific study. If the results are sufficiently interesting that a more granular analysis seems worthwhile, such a poll can be designed after this one closes on October 1.
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Old 09-24-2016, 11:27 AM   #9
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I always pay my credit card bill in full, automatically. It was paid on the 15th and I haven't charged anything since.

Other than that, I have zero debt so that is what I chose. I really hate debt and some of you probably remember how hard it was to persuade me to get a credit card! But now I have one.
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Old 09-24-2016, 11:30 AM   #10
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Originally Posted by W2R View Post
I always pay my credit card bill in full, automatically. It was paid on the 15th and I haven't charged anything since.

Other than that, I have zero debt so that is what I chose. I really hate debt and some of you probably remember how hard it was to persuade me to get a credit card! But now I have one.
Oh, the slippery slope of debt...
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Old 09-24-2016, 11:32 AM   #11
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Oh, the slippery slope of debt...
You know it! So far I only have one.
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Old 09-24-2016, 11:35 AM   #12
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You're not going to have much fun w/o a credit card, too hard to buy stuff -
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Old 09-24-2016, 11:36 AM   #13
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I have mortgage on 2 of my rental houses. Around 5% of total NW.
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Old 09-24-2016, 11:37 AM   #14
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I also hate debt. The USAA app on my iPhone makes it so easy to pay my credit card bills daily, I never carry a balance. We paid off our mortgage in 2010 for the home we live in, and paid off a rental property long before that. The only debt we've taken on the past few years were when we bought our cars, they offered to pay us money to finance with the dealer with no prepayment penalties or other fees. We took out the loans, verified they paid what they promised, and paid off the loan, usually within the first month or two. We nearly took out a Home Equity line of credit from PenFed recently since DW is officially retired by the end of this year (hasn't worked since June). But we decided against it after reading the small print in the loan documents. It just isn't worth it. Being debt free is a great feeling.
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Old 09-24-2016, 11:41 AM   #15
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0%. I do have one CC, but pay I off every month...
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Old 09-24-2016, 11:42 AM   #16
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We are at 1.33%. Smaller loans for auto and HVAC.
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Old 09-24-2016, 11:44 AM   #17
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You're not going to have much fun w/o a credit card, too hard to buy stuff -
Nah, a debit Mastercard was accepted everywhere. Never had it turned down.
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Old 09-24-2016, 11:55 AM   #18
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Quote:
Originally Posted by Rosie View Post
Zero. No mortgage, CCs and other bills paid in full every month.

Same here.


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Old 09-24-2016, 12:36 PM   #19
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Had -0- debt for many years and that was a critical part of our accumulation plan.

Fully aware of the risk and monthly cash flow impact, I took out a mortgage earlier this year to maintain higher investable assets and liquidity while the kids are still at home.
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Old 09-24-2016, 12:38 PM   #20
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Nah, a debit Mastercard was accepted everywhere. Never had it turned down.
I highly recommend not using a debit card for anything other than getting cash from a bank ATM. If your card is compromised, your bank account is at risk and while you'll be able to recover any fraudulent charges, it might take months to do so. You'll likely have your bank account closed and will need to change any automatic transactions. Your safer bet is to get a standalone credit card since there is minimal risk with fraudulent charges. For traveling, I recommend carrying 2 cards in case your primary card becomes compromised or locked (didn't inform cc company of travel). I used to carry 3 cards, but Costco switched to VISA, so I'm down to 2.
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