View Poll Results: What is your debt to total asset ratio?
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I have no debt whatsoever, not even a credit card bill
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149 |
51.03% |
<10%
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98 |
33.56% |
10-19.99%
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27 |
9.25% |
20-29.99%
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10 |
3.42% |
30-39.99%
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5 |
1.71% |
40% or greater
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3 |
1.03% |
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09-24-2016, 11:38 AM
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#21
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,585
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So, if we pay our CC balance in full each month, but this month has not yet been paid, does that mean that right now we have debt?
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09-24-2016, 12:05 PM
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#22
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2006
Posts: 11,401
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Quote:
Originally Posted by MichaelB
So, if we pay our CC balance in full each month, but this month has not yet been paid, does that mean that right now we have debt?
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Yes! I owe, I owe, so off to work I go!" (..... or maybe not)
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09-24-2016, 12:08 PM
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#23
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,264
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5.9%... this assumes CC balances are paid since they are on autopay and a small car loan balance that I plan to pay of in a month or so (I reduced the denominator for those items rather than leave them in the numerator.. so the numerator is my mortgage and a car loan I plan to keep and pay off over time).
Unadjusted (strictly based on the formula in the OP) it would be 6.5%.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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09-24-2016, 12:28 PM
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#24
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Moderator
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,299
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Quote:
Originally Posted by MichaelB
So, if we pay our CC balance in full each month, but this month has not yet been paid, does that mean that right now we have debt?
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I would think so.
For us at the moment it's about 0.0016% because the cc bills haven't come in yet. But when they do we pay them off of course.
__________________
When I was a kid I wanted to be older. This is not what I expected.
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09-24-2016, 12:35 PM
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#25
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Moderator Emeritus
Join Date: Apr 2011
Location: Conroe, Texas
Posts: 18,645
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0.08% - still owe $10 K on a loan (why don't I pay this off? (1.9% interest)).
__________________
*********Go Astros!*********
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09-24-2016, 12:43 PM
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#26
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2015
Location: the prairies
Posts: 5,027
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$0 debt...I don't count what's currently on my credit card as the card is only used for points and convenience and is paid in full every month.
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09-24-2016, 12:47 PM
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#27
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Full time employment: Posting here.
Join Date: Sep 2014
Posts: 645
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2.8% of assets. A mortgage with a 2.875% rate. DW wants to pay it off, I have a had time giving up that low rate. It will be gone in 4 years regardless.
Sent from my iPad using Early Retirement Forum
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09-24-2016, 01:26 PM
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#28
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Recycles dryer sheets
Join Date: Sep 2012
Location: Spring, Texas
Posts: 483
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0%
We do use Credit Cards but we pay off the bill each month.
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09-24-2016, 01:52 PM
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#29
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Thinks s/he gets paid by the post
Join Date: May 2007
Posts: 1,577
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0% debt since 1991
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09-24-2016, 02:37 PM
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#30
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2011
Posts: 8,368
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Quote:
Originally Posted by Rosie
Zero. No mortgage, CCs and other bills paid in full every month.
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Pour nous aussi, la męme chose...........and since we get zip in interest on the bank account we reconcile then pay the Visa off online on the statement date rather than wait until the due date......ergo, no bill - no debt.
__________________
"Exit, pursued by a bear."
The Winter's Tale, William Shakespeare
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09-24-2016, 02:45 PM
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#31
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Full time employment: Posting here.
Join Date: Sep 2010
Location: Orlando, Fl
Posts: 950
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Have been debt free for many, many years. Paid cash for the last two homes, cash for a 2016 new car 5 months ago. If I don't have the money to pay immediately I can't afford it. I have lived this way for the last 30 years. Paying interest for anything is not something I am willing to do.
__________________
"Some people describe themselves as being able to see things as a glass half full. For some, the glass is half empty. Me? I can't even find the f***king glass."
Silver
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09-24-2016, 02:50 PM
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#32
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2011
Posts: 8,368
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Quote:
Originally Posted by Silver
Paying interest for anything is not something I am willing to do.
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I believe most of us here probably learned early that "Interest is something you earn, not something you pay".
__________________
"Exit, pursued by a bear."
The Winter's Tale, William Shakespeare
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09-24-2016, 02:58 PM
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#33
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Thinks s/he gets paid by the post
Join Date: Mar 2015
Location: philly
Posts: 1,219
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7% . I have a mortgage and a home equity. No plans on paying it off early. Not "debt"adverse Didn't include my amex bill as it gets paid in full
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__________________
My darling girl, when are you going to realize that being "normal" is not necessarily a virtue? it sometimes rather denotes a lack of courage~Aunt Francis
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09-24-2016, 03:05 PM
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#34
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Thinks s/he gets paid by the post
Join Date: Apr 2016
Location: Ex-Cali
Posts: 1,235
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5%. Two of our rentals and our home have mortgages. All significantly less than current value. Have the cash to pay them off but I like having the cash. Interest rates are low on the mortgages so keeping them for now.
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______________________
The plan was September 1, 2022 and I am 95% there. Still working a few hours a week at the real job.
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09-24-2016, 03:20 PM
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#35
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Thinks s/he gets paid by the post
Join Date: Jul 2012
Location: Texas
Posts: 3,024
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Like others, we have no debt except small credit card balances that are paid in full every month. We only use the cards for the cash back rewards. I don't really consider this "debt." So I answered "no debt whatsoever." If I calculate based on the average CC balance across the month, the ratio is 0.14%, which IMO is too small to answer "<10%."
__________________
Retired at 52 in July 2013. On to better things...
AA: 85/15 WR: 2.7% SI: 2 pensions, SS later
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09-24-2016, 03:22 PM
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#36
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2009
Posts: 6,682
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Quote:
Originally Posted by Nemo2
I believe most of us here probably learned early that "Interest is something you earn, not something you pay".
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Yup I ways considered paying interest a waste of money. When I first took out a mortgage, and with a high interest rate (north of 10%, this was 1989), I hated paying $522 a month but seeing only $21 or so going toward principal. I was glad to refinance that loan a few years later and then see a lot more than $21 out of a $312 monthly payment go toward principal. Six years later, I paid off the loan and have been debt-free ever since.
With regard to a point in this thread, I consider my debt 0% because I pay off my CC in full every month and have no other ongoing debt.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.
"I want my money working for me instead of me working for my money!"
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09-24-2016, 03:26 PM
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#37
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2006
Posts: 11,401
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Quote:
Originally Posted by Nemo2
I believe most of us here probably learned early that "Interest is something you earn, not something you pay".
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Me too. But in business school I learnt that there is good debt and bad debt. Good debt makes you money and is the only type of debt that I don't mind having. I keep it under 5%.
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09-24-2016, 03:30 PM
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#38
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Administrator
Join Date: Apr 2006
Posts: 22,973
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Nothing but the credit cards, which are paid in full every month.
__________________
Living an analog life in the Digital Age.
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09-24-2016, 03:33 PM
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#39
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Recycles dryer sheets
Join Date: May 2014
Location: Far Hills
Posts: 51
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0% debt. CC's paid in full each month.
Sent from my iPad using Early Retirement Forum
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09-24-2016, 03:39 PM
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#40
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Recycles dryer sheets
Join Date: Feb 2013
Location: San Jose
Posts: 289
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Zero if bond holdings are counted in assets but not in debt. Net debt owed would be around -15%.
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