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Old 09-13-2020, 01:13 PM   #21
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Originally Posted by ShokWaveRider View Post
We consider a mortgage to be Debt.
I do too. I also made a choice to carry a mortgage in retirement, but do not feel the weight of "owing the man" as I could pay it off without adjusting my life style. maybe sometime down the road we will go ahead and pay it off, but since I feel zero concern over carrying this debt I will forgo the opportunity cost of paying it off.
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Old 09-13-2020, 01:24 PM   #22
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Congratulations!!! It's a great feeling.

We paid off the mortgage right before I retired... Made for smaller cash flow, which psychologically is easier for me.

I did acquire debt after that... 3 years ago took out a ZERO percent car loan with a 4 year term. Even that debt bothers me, even though it's a free loan, given the 0% interest... I've been making extra principle payments (rounded up to the next $100 increment) and it will be paid off very early next year. I know it's stupid to pay off a zero percent loan... but it really bugs me.
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Old 09-13-2020, 01:29 PM   #23
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Congratulations!!! It's a great feeling.

We paid off the mortgage right before I retired... Made for smaller cash flow, which psychologically is easier for me.

I did acquire debt after that... 3 years ago took out a ZERO percent car loan with a 4 year term. Even that debt bothers me, even though it's a free loan, given the 0% interest... I've been making extra principle payments (rounded up to the next $100 increment) and it will be paid off very early next year. I know it's stupid to pay off a zero percent loan... but it really bugs me.
I have 30 months left on a 63 month 0% loan from my second to last car purchase (the last was for cash). The balance is ~$9k. I have to restrain myself from just paying it off, but I am being financially rational and just letting it ride. I have it autopay from my checking account every month, so I really don't even notice it.
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Old 09-13-2020, 01:49 PM   #24
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I have 30 months left on a 63 month 0% loan from my second to last car purchase (the last was for cash). The balance is ~$9k. I have to restrain myself from just paying it off, but I am being financially rational and just letting it ride. I have it autopay from my checking account every month, so I really don't even notice it.
Totally a mind trick, but I took out a 60-month 0% loan on my tractor, and I opened up an Ally savings account with some of my dry powder equal to the outstanding balance on the loan and then set up auto pay from the savings account to the loan. So now I just check occasionally and see the interest in the savings account growing beyond the loan balance.
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Old 09-13-2020, 02:23 PM   #25
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Congratulations!
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Old 09-13-2020, 03:33 PM   #26
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I look around at my neighbors with their big houses, 1.8 children, 2 late model SUV's and big credit card balances. I just don't know how they have to live that way.

Congratulations on your milestone. Zero debt takes willpower of all kinds.

And it sure is nice not to have to write checks to others every month.
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Old 09-13-2020, 03:39 PM   #27
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Congratulations!! I reached debt-free status in August of 2017, when I paid off my 30-year mortgage in 15 years. I still remember the feeling that day!
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Old 09-13-2020, 03:47 PM   #28
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Congratulations! We also paid off our mortgage early, in July. It is a great feeling.

We charge almost everything, but we do pay off our credit cards every month. It has been over 25 years since we intentionally carried finance charges.
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Old 09-13-2020, 05:03 PM   #29
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Congratulations, it does feel great to be debt free.
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Old 09-13-2020, 05:46 PM   #30
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Congratulations! Good for you. We paid off the mortgage in July. Like PB4, it wasn't a euphoria moment for us either. It was just something that I wanted to do even though it was not financially beneficial. I noticed this week that our Experian Credit score dropped by ~25 points. We're hoping it is just an anomaly.
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Old 09-13-2020, 06:03 PM   #31
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Congrats to OP. I know the feeling.

Just a comment. We have had many "should I pay off the house" threads. But many of those are big payouts with others potential problems.

I read this as, after 30 years (or what ever) we paid off the house. That was our plan, and it felt good to have it behind us.
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Old 09-13-2020, 06:13 PM   #32
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Well done you!
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Old 09-13-2020, 06:22 PM   #33
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Originally Posted by rodi View Post
Congratulations!!! It's a great feeling.

We paid off the mortgage right before I retired... Made for smaller cash flow, which psychologically is easier for me.

I did acquire debt after that... 3 years ago took out a ZERO percent car loan with a 4 year term. Even that debt bothers me, even though it's a free loan, given the 0% interest... I've been making extra principle payments (rounded up to the next $100 increment) and it will be paid off very early next year. I know it's stupid to pay off a zero percent loan... but it really bugs me.
Agree with you on the 0% car loan. We had planned on paying cash, but the manufacturer/car manufacturer also offered a $500 incentive to take the 0% loan. So we set aside the loan amount in a separate high yield savings account with an auto debit from that savings ac to pay off the 36 mo loan. Whatever is left in that account after 36 months will be profit/earnings.
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Old 09-13-2020, 06:44 PM   #34
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When we put in our hardwood floors, we were given a 0% loan credit card 1 year that I paid off in 11 months. I figured, why not??
When DW bought her new car in 2017, it was the first time in her life she did not have car payments, as she paid cash.
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Old 09-13-2020, 07:15 PM   #35
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We're debt free too, but I don't really get the euphoria thing.
I get it. Some folks, like me, are just a cheap date!
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Old 09-13-2020, 07:19 PM   #36
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Congratulations! DW and I have been accelerating the pay down of our mortgage. 2020 has been such a strange year. Happy you are able to celebrate being indebted to no one.

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Old 09-13-2020, 07:52 PM   #37
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Yes, congratulations. Re "debt free" it is a psychological state, not just a financial status. While there are sharp-pencils who will argue that financially, some debt might be beneficial, I am with @Dtail. I enjoy the psychological state too much to mess it up with a sharp pencil.
It's not always a sharp pencil thing - we have the cash to pay off our smallish mortgage, but the cash is more valuable to us (from 60 - 65), to use it to help manage our income for ACA purposes. We can utilize this money rather than tapping our 401k account for some expenses.

Having said that, I'm happy the OP's happy.
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Old 09-13-2020, 09:03 PM   #38
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Congratulations dtbach!!!
I think paying off our house was one of the most exciting days of my life!!
Debt-free is the way to be.

So happy for you!!!
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Old 09-13-2020, 09:12 PM   #39
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Congratulations.

Note that Dave Ramsey does not allow people to go on his show and do the debt free scream if they have credit cards.
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Old 09-14-2020, 07:53 AM   #40
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Way to go! Now start an automobile savings account for your next car with what you were paying on the loan so you can buy with cash the next time.


Cheers!
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