My sig explained (finally..and it's a fricken' novel)

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 !!

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Originally Posted by IntellaWorks

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 !!!)

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Eureka!

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Originally Posted by IntellaWorks

...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 !!!)

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The thing about living in a situation like that is that you have to VERY carefully screen your tenants--because you live right next to them. You wouldn't want someone who blasts music 24/7, nor would you want someone who is going to complain about every little thing--because you live right next door to them. Then there is the question of whether or not the tenant actually pays.....

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Originally Posted by IntellaWorks

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 !!

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What the heck would I need credit for, eh? If I dont want to borrow money, why would I care what Equifax and TransUnion think of my "credit." I realize that most people would argue that you need a 9,863 credit score to get a good interest rate on a house, but buying a house is a super big deal and if a lender doesnt like the fact that I don't owe everyone in town money, he can go **** himself and I'll go somewhere else. I guarantee you there are more than a few mortgage lenders who would jump at a customer who owes no one else money--that means I can afford to pay THEM.

Oh, and saying that credit companies think not having credit is a bad thing is a lot like saying drug dealers think that not having a cocaine addiction is a bad thing. Credit is what those people sell--OF COURSE they want you to have as much debt as possible!

You have your masters in IT and you only make 24k a year ???

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Originally Posted by IntellaWorks

You have your masters in IT and you only make 24k a year ???

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we've already been down that path :)

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Originally Posted by wizardPC

What the heck would I need credit for, eh? If I dont want to borrow money, why would I care what Equifax and TransUnion think of my "credit." I realize that most people would argue that you need a 9,863 credit score to get a good interest rate on a house, but buying a house is a super big deal and if a lender doesnt like the fact that I don't owe everyone in town money, he can go **** himself and I'll go somewhere else. I guarantee you there are more than a few mortgage lenders who would jump at a customer who owes no one else money--that means I can afford to pay THEM.

Oh, and saying that credit companies think not having credit is a bad thing is a lot like saying drug dealers think that not having a cocaine addiction is a bad thing. Credit is what those people sell--OF COURSE they want you to have as much debt as possible!

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All that sounds good in theory ... but I guarantee getting a mortgage is 100x harder without a good credit score. Compare the deal I got (and how easy it was) to that guy I told you about who has all the debt (he bought a house about the same time I did). He had a much worse time and got royally screwed in his deal.

Having good credit doesn't mean you owe money all over town ... good credit means you have a strong credit history (i.e. you pay off your debts) and a low debt to income ratio.

I have very good credit but very little debt (if you don't count the house).

Jake

P.S. what does "(attack on hold)" in your sig mean?

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Originally Posted by IntellaWorks

You have your masters in IT and you only make 24k a year ???

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My take home pay is $24k. Before taxes and insurance (which is taken out of my check) I make $33k. But that is neither here nor there because I won't be here much longer---because $33K totally sucks.

@shakes, My credit score is continually falling now because I am paying off cards and cancelling them. My credit history is perfect, because I have never been late on a payment for anything in my life. As far as the debt to income ratio, if debt = zero.........

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Originally Posted by shakes

P.S. what does "(attack on hold)" in your sig mean?

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moving soon to make more than $33k. Need cash for moving expenses, this is Ramsey approved :D

AHh ok that salary makes more sense, Hope that when you move you find a better place to work for or a place that is willing to pay you a bit more !