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Poll

Are you currently in debt? CC or Medical
Yes
 37%  [ 44 ]
No
 62%  [ 74 ]
Total Votes : 118


lilies




 
 
 
 

Post  Mon, Jan 13 2020, 2:15 pm
Is it possible to go through life debt-free? Referring to medical, credit card, or other expenses.
Not a mortgage.

One may be financially stable or careful to live beneath their means and have unexpected expenses or medical issues come out of nowhere.

What do you think?
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amother




Floralwhite
 

Post  Mon, Jan 13 2020, 2:17 pm
Depends somewhat on Hashem's plan. We can only do our best, but sometimes stuff happens that we can't control. Illness, accident, etc.
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amother




Babypink
 

Post  Mon, Jan 13 2020, 2:20 pm
Yes but bh only a little debt which we iyH hope to pay off before we remortgage for 1st time for an extension.
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amother




Papaya
 

Post  Mon, Jan 13 2020, 2:20 pm
lilies wrote:
Is it possible to go through life debt-free? Referring to medical, credit card, or other expenses.
Not a mortgage.

One may be financially stable or careful to live beneath their means and have unexpected expenses or medical issues come out of nowhere.

What do you think?


I am completely debt free including a mortgage. I paid my tuitions in advance of the school year. I get nervous owing money. DH likes to live large. As long as every bill is paid and we met our savings goals, he can live as large as he wants.
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amother




Papaya
 

Post  Mon, Jan 13 2020, 2:21 pm
amother [ Floralwhite ] wrote:
Depends somewhat on Hashem's plan. We can only do our best, but sometimes stuff happens that we can't control. Illness, accident, etc.
Insurance is for accidents and illnesses.
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amother




Scarlet
 

Post  Mon, Jan 13 2020, 2:22 pm
I am about $50k In debt. Sad
You can be as responsible as you want with your spending but sometimes life just sends you a curveball..
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amother




Babypink
 

Post  Mon, Jan 13 2020, 2:23 pm
We are lucky here where we live we get free medical care. That helps a lot! We only have a little debt from buying a 2nd car which we need. We are trying to save for our 1st bar mitzvah and a small extension all at the same time. That small debt is my husband's debt really. My money is what we save most of, and dh saves weekly for simchas iyH. Goes out of our account automatically but generally we live month to month after savings, paying off cc etc. Its hard! My oldest high school fees are very expensive Confused
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zaq




 
 
 
 

Post  Mon, Jan 13 2020, 2:26 pm
Absolutely. Paamonim in Israel is an org that teaches people how to get out of debt and stay there. The first thing that has to go is the “magia li umagia li achshav” mindset. The second thing that has to go is the credit card and any other debt-generating program like layaway, buy-now-take-11-months-to-pay, and so on.

However, one must have some sort of income. It’s hard to see how one can stay alive and not be in debt if one literally has no income whatsoever, unless one is in jail, the military ( you get paid for that, actually), an institution of some sort, or living as someone else’s dependent.

Well, you COULD live self-sufficiently on an organic farm in the back country, grow your own food, make your own clothes, shoes and furnishings from materials you grow or harvest yourself or barter with others, and doctor yourself or barter for services. Not many doctors would accept a bushel of avocados as payment. You’d probably still need some cash for some things, but you could earn it by selling your produce or other handiwork.


Last edited by zaq on Mon, Jan 13 2020, 2:32 pm; edited 1 time in total
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Ruchel




 
 
 
 

Post  Mon, Jan 13 2020, 2:29 pm
Yes. My parents always held debt was more apart/house, or a car.
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lilies




 
 
 
 

Post  Mon, Jan 13 2020, 2:32 pm
amother [ Papaya ] wrote:
Insurance is for accidents and illnesses.


Insurance does not pay for everything.
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lilies




 
 
 
 

Post  Mon, Jan 13 2020, 2:36 pm
zaq wrote:
Absolutely. Paamonim in Israel is an org that teaches people how to get out of debt and stay there. The first thing that has to go is the “magia li umagia li achshav” mindset. The second thing that has to go is the credit card and any other debt-generating program like layaway, buy-now-take-11-months-to-pay, and so on.

However, one must have some sort of income. It’s hard to see how one can stay alive and not be in debt if one literally has no income whatsoever, unless one is in jail, the military ( you get paid for that, actually), an institution of some sort, or living as someone else’s dependent.

Well, you COULD live self-sufficiently on an organic farm in the back country, grow your own food, make your own clothes, shoes and furnishings from materials you grow or harvest yourself or barter with others, and doctor yourself or barter for services. Not many doctors would accept a bushel of avocados as payment. You’d probably still need some cash for some things, but you could earn it by selling your produce or other handiwork.


Right. So, if someone loses their source of income, they would be in debt.
Have you known someone to live and pass on without ever being in debt at some point in their journey of life?
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lilies




 
 
 
 

Post  Mon, Jan 13 2020, 2:37 pm
amother [ Papaya ] wrote:
I am completely debt free including a mortgage. I paid my tuitions in advance of the school year. I get nervous owing money. DH likes to live large. As long as every bill is paid and we met our savings goals, he can live as large as he wants.



Have you been in debt before being debt-free?
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amother




Indigo
 

Post  Mon, Jan 13 2020, 2:42 pm
lilies wrote:
Right. So, if someone loses their source of income, they would be in debt.
Have you known someone to live and pass on without ever being in debt at some point in their journey of life?


Losing a job doesn't necessarily mean debt. You should aim to have at least 6 months' living expenses in savings. I know its not always possible, but it is something that everyone should strive for.

And yes, I know plenty of people whose only debt, throughout life, was a mortgage.
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Rappel




 
 
 
 

Post  Mon, Jan 13 2020, 3:10 pm
I took some bad advice, and have a bit of student loan debt because of it. But that's it. I hope I'll never have to walk further down that rabbit hole.
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amother




Blue
 

Post  Mon, Jan 13 2020, 3:16 pm
it would be interesting to see if theres any connection to age, number and age of kids... a newlywed couple hasn't yet had to deal with tuition and likely not with medical expenses to the same degree as someone with 8 kids 16 and under.

b"h th only debt is minimal student loans, mortgage and car loan because it meant sense financially but we could pay it off whenever we want from savings.
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Rappel




 
 
 
 

Post  Mon, Jan 13 2020, 3:23 pm
amother [ Blue ] wrote:
it would be interesting to see if theres any connection to age, number and age of kids... a newlywed couple hasn't yet had to deal with tuition and likely not with medical expenses to the same degree as someone with 8 kids 16 and under.

b"h th only debt is minimal student loans, mortgage and car loan because it meant sense financially but we could pay it off whenever we want from savings.


Your questions are US-centric though.

Where I am, tuition and medical care do not have the same impact that it does on you. As my family increases I will certainly be concerned about growing expenses like food, clothes and lodgings. But odds are good that I won't go into debt for my kids' extracurricular activities, which will probably be their next-largest expense for many years.

In short, my numbers will not say the same thing as yours, and the same goes for many people here.
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amother




Burgundy
 

Post  Mon, Jan 13 2020, 3:27 pm
Please read up on Dave Ramsey. You can do this.
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amother




Puce
 

Post  Mon, Jan 13 2020, 3:29 pm
If your income exceeds expenses (both regular and amortized), then you can live debt free.
Taking out loans for an amortized expense (like a vehicle purchase) is not a bad thing. Purchasing a home with a mortgage is even more compelling, as it is an appreciating asset and is generally above water equity wise, and the interest rates are generally lower than the appreciation and cap rate. I wouldn't compare that to credit card debt with usurious interest rates.
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amother




Coral
 

Post  Mon, Jan 13 2020, 3:39 pm
For sure there are circumstances which make it difficult to live within one's means. Even with health insurance, there can be expenses like transportation, cleaning help; prepared foods that add up. Not to mention that some health issues impact earning power through no fault of the person.

However, if one is not experiencing a crisis and one is working at one's more or less life career which means one can expect normal salary increases but not a 1000 percent increase in salary, then one needs to figure out a way to live within one's means without debt. And this would include having emergency savings so that normal "emergencies" like dental bill, glasses or car repairs aren't put on a credit card without a viable way of paying them back. That is the crux - if you need to charge something because it's not in the budget for the month, you can't just keep adding to the charges rather than paying off the emergency expense in a month or so.
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zaq




 
 
 
 

Post  Mon, Jan 13 2020, 4:00 pm
lilies wrote:
Right. So, if someone loses their source of income, they would be in debt.
Have you known someone to live and pass on without ever being in debt at some point in their journey of life?


Yes. Most of my family, with the exception of money my dad borrowed to build a house. Very few people can pay cash for a house. If we can’t afford it, we don’t buy it. If we can afford it, we may not buy it either. We’re allergic to debt and would rather do without.

Obviously if your baby needs heart surgery ch”v you do whatever you have to do to make that happen, even if it means being in debt for twenty years. You don’t go into debt to make your son a lavish bar mitzvah.
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