Dave Ramsey, debt, credit cards, retirement, etc

[douglee25]

You don't get a zero score, you get "no score".

'to free up capital' is an excuse for 'i used up all my money and need to borrow some'. If you don't have the money, don't buy something, it's pretty simple and in the long run since you're not paying interest, YOU MAKE MORE MONEY AND CAN BUY MORE TOYS.

BTW, Apple is a debt-free company and has tons of cash. It does work.

Darin - Not quite. The money is there. Like I said, it was done to expedite the sale. It's easier to be more liquid in order to free up resources for other business strategies.

Doug

 

[SuperJETT]

to be more liquid in order to free up resources for other business strategies.

I love sophisticated talk like this. In other words, he had some other plans and was out of money, so borrowed on something that was paid for so he could pay interest and try the other stuff out too.

 

[WaveDemon]

I love sophisticated talk like this. In other words, he had some other plans and was out of money, so borrowed on something that was paid for so he could pay interest and try the other stuff out too.

there is a reason why the biggest buildings in every city have names on banks on them.

 

[The Penguin]

My Dad has currently started a new business in the past few years doing multi-dwelling rentals plus flipping houses. He bought this one house cash in order to expedite the sale. He later went to get a mortgage on it while it was being rehabbed in order to free up some capital. He had a hell of a time finding a bank to lend to him. Why? Not because my Dad's credit rating was bad (he's over 800 something), but rather the business was too new to have even established credit. He paid cash for the house!!

Doug

It probably has more to do with the fact that the credit market has tightened, and the type of loan your father was looking for either does not exist - or the broker he used does not have access to a lender that provides that product.

the mortgage business has change A LOT in the last few years - especially this year.

Thank Obama.

 

[douglee25]

I love sophisticated talk like this. In other words, he had some other plans and was out of money, so borrowed on something that was paid for so he could pay interest and try the other stuff out too.

This isn't sophisticated talk at all. Is there a reason why you don't believe me? Seriously? He has working capital soley for the business and nothing else. We're not talking about using his retirement, savings, or something similar to fund the purchase. This is working capital for for the business ONLY! My father has no debt. Zero. Everything is paid for. His old business went on for 45+ years. He's trying something else for kicks. 'Sophisticated talk' doesn't keep someone in business for that long. Smart business moves on the other hand just might.

Doug

 

[douglee25]

It probably has more to do with the fact that the credit market has tightened, and the type of loan your father was looking for either does not exist - or the broker he used does not have access to a lender that provides that product.

the mortgage business has change A LOT in the last few years - especially this year.

Thank Obama.

He did mention that was a factor as well. Things have changed, and not for the better.

Doug

 

[The Penguin]

oops, sorry - yes, I forgot to include "not for the better"

 

[AtomicPunk]

wait a minute the "change" everyone wanted was "not for the better"?
What about the "hope" we were promised?


A business using a line of credit is nothing like personal use of credit.

BTW, Apple is a debt-free company and has tons of cash. It does work.

Sure, but have they always been (debt free)?

 

[SuperJETT]

When all of the different kinds of debts were added up, the average consumer held a total debt load of $210,236 at the end of 2011, down only about 1% from 2010.

Credit cards: $6,576 - went down in 2011
Mortgage: $173,876 - steady in 2011
Auto: $15,504 - went up in 2011

http://money.cnn.com/2012/01/17/pf/credit_card_debt/index.htm?hpt=hp_t3

 

[SuperJETT]

So my coworker that was the final person that convinced me to start this stuff retired on Friday. He asked his financial advisor on Thursday if he was able to retire yet (was planning on it later this year) and was told yes, so he came in Friday and said "I retire".

He's 60 years old. He is set and can finally travel to see his kids/grandkids more often like he's been wanting to.

The cool thing is we live about 2 miles apart so we do see each other occasionally outside of work so it'll be cool to keep in touch.

 

[Buckwild12]

wait a minute the "change" everyone wanted was "not for the better"?
What about the "hope" we were promised?


A business using a line of credit is nothing like personal use of credit.




Sure, but have they always been (debt free)?

The "HOPE" is that you better hope to have some money left in your bank account after he "re-distrubutes" it to a bunch of unemployed free-loaders and people that in general will rob you if you walked through their 'hood late at night.

 

[SuperJETT]

I just submitted a preapproval application online for a house we've made an offer on. On the page where it lists non-mortgage debts, it was empty, as it should be.

BTW, if you haven't refinanced recently, take a look because we did in the beginning of 2011 to a 15 year and rates are even lower now so that it would be worthwhile if we were staying here more than 2 years.

 

[SuperJETT]

http://www.bloomberg.com/news/2012-...-u-s-increases-0-8-as-incomes-climb-0-4-.html

Awesome, and people wonder why the national debt keeps going up. Incomes climbed 0.4% and spending rose 0.8%, double the income increase.

 

[oxnard111]

I just submitted a preapproval application online for a house we've made an offer on. On the page where it lists non-mortgage debts, it was empty, as it should be.

BTW, if you haven't refinanced recently, take a look because we did in the beginning of 2011 to a 15 year and rates are even lower now so that it would be worthwhile if we were staying here more than 2 years.

My refinance is funding tomorrow. Getting 3.375 fixed 30 years non-conforming. Not saving a ton on our monthly payments ($187 less per month) because PMI has increased since we first purchased our home but once the PMI drops off (about 7-8 years away) we'll save another $380/month. Zero out of pocket to refinance, in fact they're cutting us a $327 check at closing.

Our only debt are our student loans and the mortgage.

 

[AtomicPunk]

My refinance is funding tomorrow. Getting 3.375 fixed 30 years non-conforming. Not saving a ton on our monthly payments ($187 less per month) because PMI has increased since we first purchased our home but once the PMI drops off (about 7-8 years away) we'll save another $380/month. Zero out of pocket to refinance, in fact they're cutting us a $327 check at closing.

Our only debt are our student loans and the mortgage.

How do you save $380 month when PMI drops, is it really that much?
Just curious, we will probably start house shopping in the next month and I am not up to speed on the latest mortgage challenges.

 

[douglee25]

My refinance is funding tomorrow. Getting 3.375 fixed 30 years non-conforming. Not saving a ton on our monthly payments ($187 less per month) because PMI has increased since we first purchased our home but once the PMI drops off (about 7-8 years away) we'll save another $380/month. Zero out of pocket to refinance, in fact they're cutting us a $327 check at closing.

Our only debt are our student loans and the mortgage.

Who did you refi through?

Doug

 

[SuperJETT]

How do you save $380 month when PMI drops, is it really that much?
Just curious, we will probably start house shopping in the next month and I am not up to speed on the latest mortgage challenges.

Just do a normal 80% mortgage and skip PMI altogether.

 

[SuperJETT]

Another thread kind of brought this up and it made me realize we're over 5 years with no debt other than a mortgage. We had no problems at all getting the mortage on our new house and were even approved with no contingency to sell our old house, so we actually had 2 mortgage payments for 2 months+.

 

[douglee25]

Good to hear. I guess you're doing everything right for your situation.

Doug

 

[djkorn1]

Awesome, Darin...just refinanced again. It was a big one. Should take 12 years off of my loan, if I continue to make the same payments and save me over $120,000 in interest. Bad for banks, good for me.

I have been debt free for a year (except for house and college loans).
My wife will be credit card free in 4 months. (She still has van, house, college loans). We'll get there, Darin.