Woo Hoo!!! Debt free is the preferred way to go for maximum peace of mind when it comes to money matters.

-- Edited by biggaRView on Thursday 20th of March 2014 07:11:36 AM

Congrats!!!! Fantastic feeling!!!

Trace,

What a great feeling to be debt free! The day we paid the house off was one of the best days ever! We do keep credit cards but pay them in full every month! HATE paying interest, although I agree with Selah, we actually looked into financing the 5er and even the truck and investing it, as interest rates are so low - but being debt free won out!

Sounds like all is falling into place! When do you get your Open Range?

Kelly

We, too, are debt free. Including truck and fiver.

We do keep a credit card and put almost EVERYTHING on the card. Then at least once a week I go online and pay off everything I've charged in those last few days. Have not paid a penny interest in over 4 years. I do this because we receive points toward gift cards. Since we love to eat out I use my points for Applebees, Chili's, Red Lobster, Olive Garden, Pizza Hut, Outback, etc.

Even when we bought the truck we put $20,000 on the credit card. Took money from savings four days later and paid it off. That gave us $200.00 in gift cards. Did the same when we put a $10,000 down payment for the Fiver in August.

The only time we do not use the credit card but instead the debit card is when we need cash. Will use it at Walmart or grocery store and use the cash back feature. We like a small amount of cash in our wallets for small items such when eating out. We leave the tip in cash because we know the server does not get the full amount if the tip is included on credit card.

I so much agree. It is a great feeling to be debt free!

phyllen wrote:

We leave the tip in cash because we know the server does not get the full amount if the tip is included on credit card.

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 Why don't they receive the full amount? 

Gino

TheNewhalls wrote:

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phyllen wrote:

We leave the tip in cash because we know the server does not get the full amount if the tip is included on credit card.

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 Why don't they receive the full amount? 

Gino

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 Most chain restaurants put tip money into a pot and split it with the wait staff, bussers, kitchen help, etc.  If you want to reward individual excellence, cash tips go a long way to accomplishing that. But then, that is a whole different topic than this thread.

-- Edited by biggaRView on Tuesday 18th of March 2014 04:47:25 AM

Trace wrote:

In most restaurants credit card tips go to the individual server. Both my diaghters work in restaurants currently and their is no pool

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 That's what I thought. When we have a really good experience with a waiter or waitress we will tip in cash. It's money in their pocket right away and it's unrecorded (or so I think). 

phyllen wrote:

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All businesses have to pay a charge for using the credit card. I am not sure what the % is. I am thinking either 2 or 3%. When the business receives the funds, the bank that holds the card deducts that percentage. Therefore, the server loses a percentage of the tip.

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 The percentage the business has to deal with is the cost of doing business and shouldn't come out of the tip. If they are that's a rip-off. 

.......Sorry for adding to the "Derailment"

Selah wrote:

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I don't know your financial situation but some times it's ok to carry some debt. Right now loan interest rates are low. You might be better off investing the proceeds from your house and continue your payments.
It might be nice having the money in a appreciating investment instead of a depreciating one.

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 Congrats!!! It's always a good feeling to have things paid off. But I also agree that the blanket statement we hear so often of paying cash for everything to remain that way is the only way to go may NOT be the best choice every time.

 Like Salah said, interest rates are low and money in the market just might make you more money in the long run. Just be open minded.

 I am in no way taking away from the fact that being dept. free is a great feeling.

Jo and Ben wrote:

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Trace, congrats on being debt free! We close on our house tomorrow and plan to use the funds to pay down our debt, but we will not be debt free for a long time. We will be working on the road and hopefully paying it down as we go. You are in a great position!

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It's likely we won't be 100% there Jo and Ben...but as close as we can.  It's funny because I was adamant early on we needed to be 100% there but now with such a low RV monthly payment I could live with taking some debt with me out on the road...my priorities are changing...see I can be flexible lol 

 

I also agree that being debt free is best if possible. I can give you this weeks example of why that might be true.

We returned to the RV from our Winter adventures in Mexico to find a few problems that required cash.

1. Dead house batteries. $260.00
2. Fridge not working correctly. $140.00 (more $ to come)
3. Slide awnings need replacement due to Arizona wind storm this last Fall. $337.00

$737.00 gone pretty quickly in a few days. Best to be debt free and have a reserve when "stuff happens".

I agree that being debit free can be a great way to go.

BUT, at times some get to be zealots and may give some the impression that others are somehow inadequate because they can't pursue their dreams without incurring some debit in order to get on the road. Even worse, some may only have a limited period of time before infirmities or death takes them - how sad it would be that they never get to make the memories because of advice they got that they HAD to be debit free in order to enjoy this lifestyle.

We financed part of the price of our coach because our investments (in tax free accounts) make more each year than what we paid in interest, and we didn't incur the huge tax bit that would have been required to pull out the money all at once. Everyone situation is different.

Barb

We were fully prepared to go into full timing debt free but when we met with our financial advisor he felt that our interest rates were so low (1.95% on the truck and 3.95% on the trailer) that our money was better off working for us. So far this year that approach is paying off and we can deduct the interest on our trailer.

I think the theory to being out of debt would be for those that are "Retired" and no longer working....I know that being out here on a speculative budget with out knowing really what is available at the end of the month can be lethal.

There are alot out here or coming out that believe workamping or mobile merchant will carry the load but those jobs are not always available....and even under the best circumstances things happen or dont line up

-- Edited by Lucky Mike on Thursday 20th of March 2014 06:49:42 AM

So many big money decisions we have to make...I've been doing a lot of research, and its confusing. Looking forward to meeting some other folks in our situation at the upcoming RV Dream rally and getting a new perspective. The good news is that I turn 55 in about 2 weeks, so if I choose to retire, I get employer paid health insurance for life with my hubby. Now thats a great feeling!

Trace, we are in the same boat. Paid off all our credit card debt but we will have a truck payment and rv payment so will need to continue working on the road. It's still worth it for us to travel now rather than wait, but yes, that is a personal decision. Looking forward to meeting you at the rally :)

Congratulations Trace & Lee. That is terrific. We had originally said we would not fulltime until we were 100% debt free, but have calculated our income (which is stable and not dependant on working) we will start next Spring with one year left to pay on our truck and 3 years on our RV. We will have an emergency fund and will still be able to save money every month to augment our small savings.
We are in a bit of a fix because we live in a manufactured home that is valued at less than we owe on it. It's very unfortunate but we live in a less than desirable (to be kind) all age park and have been told by an experienced realtor we will never get what we owe on it. We are trying to work with our lender to get them to take what we can get for the house but that remains to be seen.