can't live with it can't live w/o it... Believe it or not someitmes there is a benefit to being in debt.. for example TAXES if you payed off your 30k debt now all of a sudden the gov't is going to tax you (depending on your salery) I live in NH and property tax is outragiously high... I'm looking to buy a home (180,000 - 215,000) and my property tax will be about 4,500 a year !!!! Wonderful thing is that I can claim some of that and get some money back.. almost enough to pay state taxes... If I had paid the house cash... granted I wouldnt have monthly payments but i'd still have to pay about 333 a mo. just to pay state taxes !!!!
My idea in this crazy circle is to buy a multi fam. home so that the rent from tennants will help pay off the mortgage... and because I can get a few tax breaks hopefully pay some of the state property taxes...hopefully.. I can sell the multi in a few years and make a good down payment for a real home (lets hope for inflation here on property values !!!)
The bad thing about having no debt is that credit companies sometimes think thats a bad thing.. and you may not be able to get loans.. CC bills really dont make a difference but houses and cars sure do !!