Debt. Good, bad, or whatever? - Page 7 - Camaro5 Chevy Camaro Forum / Camaro ZL1, SS and V6 Forums

Silver14 · 03-14-2021, 07:45 PM

Quote:

Originally Posted by pyroguy

I think we may be saying the same thing in different ways.

We are

Quote:

Originally Posted by pyroguy

As for some of the statistics, there’s so many I could quote but here’s a few good ones:
78% of households are living paycheck to paycheck
89% of people with credit cards do not pay them off every month
57% of people die without a will
42% of people who paid cash at fast food restaurants spent less than those who used credit.
Vending machine spending increased 178% with the addition of card readers.
100% of houses that are foreclosed on have a mortgage

I meant links to the stats or sources of the information

. When searching for stuff like this, there's a ton of blogs, opinion pieces, references to "a study" but not the actual study, etc. Sharing the sources directly can help everyone get on the same page of the discussion.

Vegas Bound · 03-14-2021, 09:50 PM

Quote:

Originally Posted by pyroguy

Secondly, be careful with a partner. This isn’t a morality statement, but a financial statement. You two may be madly in love and will never split because you both love each other which is very similar to being married. However, legally speaking, neither one of you has any protection from the other in the event that one of you would pack up leave and drain the bank account on the way out the door and can legally get away with it. Legally speaking the government sees you as roommates unless you’re married. If you’re married there’s many laws that vary by state protecting the spouse from the other spouse doing just that. Again, not a moral judgement, just a friendly disclaimer for those who had no idea that could happen.

Some states recognize common law marriage, all the protections without the stupid piece of paper. Texas is one of them.

pyroguy · 03-14-2021, 09:54 PM

Quote:

Originally Posted by Silver14

I meant links to the stats or sources of the information

. When searching for stuff like this, there's a ton of blogs, opinion pieces, references to "a study" but not the actual study, etc. Sharing the sources directly can help everyone get on the same page of the discussion.

Not sure if forum rules on non car stuff, but I PM'ed you where most of my info comes from.

There's some really good information out there, but ultimately my point is still, debt isn't something good to have. Yes, you can purchase things like houses with debt, but there's always risk. It's just a matter of how much risk a person is willing to take on. Take on too much risk and you can sink your ship in a hurry.

trm2 · 03-15-2021, 05:46 AM

Quote:

Originally Posted by pyroguy

PLEASE DO NOT CASH OUT YOUR 401k! You can do a direct transfer and roll it into a back door Roth, but please do not cash it out! If you cash it out you’ll be hit with a tax penalty of your bracket PLUS a 10% penalty. If you do a direct transfer you will be taxed, but you will not have the penalty.

I said that in essence, I will be cashing it out. The 401(k) will cease to exist and I will pay taxes on the whole thing, I just won’t pay the 10% penalty for being too young.

pyroguy · 03-15-2021, 07:00 AM

Ah ha. I missed the in essence part.

Silver14 · 03-15-2021, 07:19 AM

Quote:

Originally Posted by pyroguy

Just a general discussion because I know there's plenty of opinions and there's plenty of rampant debt right now, keep it respectful, but IMO there is no such thing as a good debt. What do you think?

Quote:

Originally Posted by pyroguy

Not sure if forum rules on non car stuff, but I PM'ed you where most of my info comes from.

There's some really good information out there, but ultimately my point is still, debt isn't something good to have. Yes, you can purchase things like houses with debt, but there's always risk. It's just a matter of how much risk a person is willing to take on. Take on too much risk and you can sink your ship in a hurry.

Thanks, I'll take a look at it! Nice to see that a good faith discussion can result in considering new opinions

.

Vegas Bound · 03-15-2021, 08:57 AM

Debt is an awesome thing to have IF Congress wipes it out. Well, maybe for the person with the debt, not the taxpayers.

pyroguy · 03-15-2021, 08:57 AM

Quote:

Originally Posted by Silver14

Thanks, I'll take a look at it! Nice to see that a good faith discussion can result in considering new opinions

.

Agreed! In a world full of division and inability to respectfully discuss differing opinions, I'm glad this thread hasn't turned ugly.

pyroguy · 03-15-2021, 09:03 AM

Quote:

Originally Posted by Vegas Bound

Debt is an awesome thing to have IF Congress wipes it out. Well, maybe for the person with the debt, not the taxpayers.

Congress can't "wipe out" debt. The government doesn't actually produce anything that creates an income so it cannot wipe out debt. What happens is that the debt is redistributed to everyone instead of the people who signed up for and agreed to pay the debt. If you can't pay for your debt don't take it out.

Vegas Bound · 03-15-2021, 03:21 PM

Quote:

Originally Posted by pyroguy

Congress can't "wipe out" debt. The government doesn't actually produce anything that creates an income so it cannot wipe out debt. What happens is that the debt is redistributed to everyone instead of the people who signed up for and agreed to pay the debt. If you can't pay for your debt don't take it out.

That's why I included the 2nd sentence.

*mlee* · 03-15-2021, 05:21 PM

Quote:

Originally Posted by pyroguy

Not sure if forum rules on non car stuff, but I PM'ed you where most of my info comes from.

There's some really good information out there, but ultimately my point is still, debt isn't something good to have. Yes, you can purchase things like houses with debt, but there's always risk. It's just a matter of how much risk a person is willing to take on. Take on too much risk and you can sink your ship in a hurry.

Not a problem... that's what this Off Topic section is for.

pyroguy · 03-15-2021, 07:48 PM

Quote:

Originally Posted by Vegas Bound

That's why I included the 2nd sentence.

I’m guessing you have some you hope you have “wiped out” though, am I right?

Quote:

Originally Posted by mlee

Not a problem... that's what this Off Topic section is for.

Good deal!

There’s a variety of places to get information, but the most thorough and reliably accurate is through www.daveramsey.com. He’s very diligent in his research and at times like his millionaire study done a year or two ago, was verified through a third party so that it wouldn’t seem as though his findings went along with his way of thinking for purely a marketing thing. Besides his steps are simple enough that anyone can follow them if they put their mind to it and control their spending, not some wild crazy jump through hoops sort of way to get their finances under control.

Vegas Bound · 03-15-2021, 07:56 PM

I have zero debt and zero taxable income. You can pay the redistribution costs. I'm done.

FarmerFran · 03-15-2021, 08:02 PM

Quote:

Originally Posted by Vegas Bound

I have zero debt and zero taxable income. You can pay the redistribution costs. I'm done.

You still always pay Uncle Sam. But congrats on being elite.

03-15-2021, 07:00 AM	#89
pyroguy Started#gottalovethatblue Drives: ABM #831 Join Date: Apr 2013 Location: TN Posts: 6,913 View My Garage	Ah ha. I missed the in essence part. __________________ '10 Camaro 2SS/RS \| Aqua Blue #831 of 3,903 \| Silver Stripes Check out my build thread

03-15-2021, 08:57 AM	#91
Vegas Bound Account Suspended Drives: 2013 Sparkly Red One Join Date: Dec 2018 Location: Hospitality State Posts: 2,558	Debt is an awesome thing to have IF Congress wipes it out. Well, maybe for the person with the debt, not the taxpayers.

03-15-2021, 07:56 PM	#97
Vegas Bound Account Suspended Drives: 2013 Sparkly Red One Join Date: Dec 2018 Location: Hospitality State Posts: 2,558	I have zero debt and zero taxable income. You can pay the redistribution costs. I'm done.