Get out of debt...?

[dangerman]

You only need to add a small amount monthly to clear the mortgage in the times I'm talking about. What is it that you feel that you need to buy that's more important than working towards financial security? I feel like clearing the mortgage is the most important 'prep'. I still have enough money to live quite comfortably, I have food in the cupboard, a car, about a million kids. And I still find money to overpay the mortgage. I still buy some camping and prepping stuff too on occasion. Plus I have beer money, kids have pocket money and my wife still buys... Well she just buys anything she wants.

[jansman]

We paid our mortgage off 8 years early. That saved us 24,000 quid! our payments were small as our mortgage was not eye watering like today.

However, it was my goal. I was earning fantastic money as a manager but it was killing me- literally. High blood pressure etc etc. I knew that job was going to end and that I would get a very good payoff. So in the three years left I put all the bonuses/ anti social payments aside. This paid the mortgage off. Then I was made redundant.

Now I have a breeze of a job, no responsibility and I work part time. Whatever happens no one can take our house from us.

I always remember what Mortgage means in French. Death Grip.

[nickdutch]

It depends whether you can count your mortgage as debt when most people might not. Its the out of control credit cards, overdrafts and store cards that many consider to be real debt.

It has occurred to me that there are "drink aware" warnings on some alcohol adverts, "gamble responsibly" adverts at betting shops, but no "borrow responsibly" adverts on Visa and Mastercard logos on websites.....

Everything has to be worked out by your own schedule, cost, benefits, survival money and the like.

[jansman]

I agree Nick. However, a mortgage is borrowed money. If you borrow it, you owe it. That is a debt, and you are enslaved by it.

I suppose it all depends on your personal outlook, but myself , no debt is very liberating. I no longer fear unemployment, I will always find something to put grub on the table. I am comfortable with the fact I could get by very well on minimum wage now. That was always my long term survival strategy as I got older.

[Deeps]

I agree Nick. However, a mortgage is borrowed money. If you borrow it, you owe it. That is a debt, and you are enslaved by it.

I suppose it all depends on your personal outlook, but myself , no debt is very liberating. I no longer fear unemployment, I will always find something to put grub on the table. I am comfortable with the fact I could get by very well on minimum wage now. That was always my long term survival strategy as I got older.

There can't be many people or organisations in the world that haven't borrowed, you're right that it puts you in debt but if you borrow 'wisely' it's a speculate to accumulate type deal. Mortgages and home improvements fall into this category generally, we all need somewhere to live and if you're paying rent to live in someone else's house you might as well borrow the money and own your own home eventually. Borrowing isn't evil inherently, like anything its what people do with it, borrowing 10 grand for a holiday might be seen as frivolous by some but if you used that 10 grand for solar panels (guess who got solar panels recently ) then it should be money well spent. Each to their own, we'll all have a level that we're comfortable with. I'd rather not be in debt but there's no way I would be able to buy a house outright, I can't wait 'til I've paid off my mortgage, I'll still owe the bank for other properties but knowing that my house is ours outright will be a great feeling, an even better feeling will be having the extra cash from not paying they mortgage anymore.

[dangerman]

Good call Deeps. In fact I have first hand experience, I rented for 18 months at a cost of £550 pcm. That added up to a whopping £9900 that I paid to live in someone else's house. It cost them a £50 call out fee when the boiler broke one day.

That £9900 is gone and I've nothing to show for it. And without giving you any specifics, my mortgage when I first took it out was less than that amount by a significant amount. In fact, when I add in my chosen over payment I'm still better off by a hundred quid. Ok, I still have to spend a bit of money on my home maintenance, but they really adds up to pittance and anything I do beyond that adds value to the property. So really, when you factor in the increasing value of the property (mine has gone up over 15% in the last few years despite economy problems) you can't lose by paying off a mortgage early. The ones losing are the ones renting.

[jansman]

Of course you are right Deeps when you talk about 'wise' borrowing. When we bought our place we did not have that kind of money. So we borrowed it. Thinking back it made us feel ill at what we had done!

I suppose though, your outlook upon the subject depends on your attitude. My Wife and myself come from quite humble backgrounds. My Wife's family are deeply devout Christians and despise debt in all forms. I come from a family that was up to its neck and drowning in debt. I vowed my family, when We started one would never experience that. And it has rubbed off on my grown up Daughters.

As I said, it is all about attitude and appetite for that commitment. Me, I owe no man anything. That makes me free in my eyes.

[Decaff]

Anyone struggling with debt should take a look at www.daveramsey.com there are a lot of good ideas to be found and you don't need to spend money to get books etc, its all out there on utube.

I hate debt, I have zero. No credit cards, no store cards, no loans. If I want it, I save for it. I have my budgets and I stick to them. It gives huge peace of mind and I never fear a knock at the door. Mr D on the other hand is drowning in debt. I've given up trying to help sort it out, didn't help that he ran up another debt on a credit card I had no idea he had. He wants everything NOW and doesn't save for it. He's stressed to the Max and sleeps badly.

[ForgeCorvus]

Cynic, two questions.
First, do you love your job? I don't mean like or don't mind it, I say love as in you'd do it for free if you didn't need to work
The second one is, do you know that your job is secure for the rest of your life (or at least until you've paid the mortgage off) ?..... This includes you being able to carry on working

If the answer to either of these is "No" you'll see why killing the mortgage as quickly as feasible is often classed as a prep.

Always remember Micawber's Law.

Annual income twenty pounds, annual expenditure nineteen nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. T

[BlinkingCory]

Interesting thread, thanks all.
Lots of common sense input and it's all true, owning your home provides the ultimate physical and financial security that most of us will ever know.
We ain't wealthy by any definition, just of that age that we are now mortgage free. I've always considered that a primary prep. When I snuff it, the missus won't financially suffer. Making sure mrs cory is ok, is the reason I prep.
I'm probably the least qualified person in the world to recommend and/or give advice financially, but the greatest decision we ever made was to buy a small apartment abroad. Cheap as chips to buy. Rented out on a noncommittal basis, it's ours when we want to use it. The family love it as it's a free holiday destination, I love it for that reason too, but also because it's a prep. I consider it a prep insomuch that although it's in another country, I know it's there and in an emergency, it's a home for anyone. A bolthole. A BOL.