I'm still driving my old Honda I paid off right before I retired. I hope to drive it a few more years... then pay cash for a new one.
I've heard it is better not to tell the car dealership in advance that you are paying cash. Is that right ??
I do this so they never can hit me with a failed to make minimum payment in case I ever forget to pay.
I do not understand the people who also pay off their credit cards in full monthly but claim any unpaid unbilled credit card balances are debt.
What am I missing besides some deep fear/hatred of using credit cards?
Zero
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I don't know if it's right or not, but I'm coy when car shopping and they ask if I'm financing. I usually just say I might finance with them if I can get a good deal, and then just write a check instead.
Having taken masters level courses in accounting and finance, I get so frustrated when everyone wants to impose their own definitions.
When we bought our last car (certified used not new) we told the dealer we were paying cash up front. We negotiated our deal and finalized it with the sales manager. When we sat down the the finance guy doing the contract he said something about financing it and I said unless he's gonna give me something in return I'd just write a check. He said he would give us the 250 bucks the credit union(lender) would give them and he'd settle for the incentive points from the lender. He said they get 1% from the lender and are eligible for additional money based on volume of loans written. Seemed upfront, but who knows.
If you believe unbilled credit card charges that you will pay off in full when billed are debt , please explain why you are not including unbilled electric, gas, water, sewer, cable TV, cell phone, etc as debt also. I see no difference in having an unbilled electric/gas balance of $100 (partial month usage) or an unbilled credit card balance of $100.
This is why I voted less than 10%, even though my only bills are credit cards and other bills paid in full each month, and my real estate taxes. As Meadbh said, it is the most accurate answer.
In fairness, many people who said they had "no debt" admit to having credit cards that they pay off each month. I would call that current debt. But whatever. I am also surprised at the overwhelming majority of respondents to date who say their debt ratio is <10%. I suspect that if more young people responded, that picture might change.
Exactly. That's why zero debt in this poll is always the wrong answer if you go by that argument, even if you pay cash for everything. The only way you wouldn't be lying is if you said you prepaid all your utilities AND taxes upfront before the liability is incurred. And I mean all taxes.
Which of course no one does, so we're all answering wrong if you buy that.
I wouldn't be too quick to take an accountant's word on financial matters anyway. Two accountant friends I know and my own brother are not good with their own money - go figure.I think many here have too much free time on their hands to quarrel about whether paying by check or paying a monthly credit card by check is debt or not. I'm not an accountant, though (DW is). Whatever!