All I hear these days is Get out of Debt, Get out of Debt, Get out of Debt. Well, practically speaking that is not possible.

3년 전

About 60% plus of americans are homeowners and have a mortgage. That is most likely a 30 year debt. If you own a car, that is a 4-8 year debt. If you went to college, it will take years if not decades to pay off your student loan debt. Credit cards are the main means of payment, not cash for most people, and not many pay this off each month, so another monthly debt at least. Holidays for the family are impossible without running up debt(Christmas presents to vacation trips,whether a short trip on Thanksgiving day or longer trip for relaxation from your work/job). Not to mention daily debt from gasoline, food, entertainment,whether eating out or going to the movies/ballgame. Unexpected debt from accidents to household appliances breaking down, automobile mechanical problems, health debt problems. The point is who can avoid having debt, in all seriousness. It is impossible for 99% of people. I'm not advocating debt, I'm just saying, really? Who can do that, live debt free? Feel free to leave your comments about this below. Just my thoughts!

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I think the point is even if you can't 100% get out of debt at least to try not to wallow in it :)

I live a very simple life. My income would be considered low in any state in the US. But I don't have any debt atm. I have before. I changed the way I lived. I have saved about 5k this year all of it earned in crypto profits. Crypto has really helped me start saving. And I am a firm believer in taking profits along the way. Sometimes it is impossible. A crisis can always occur. But you don't have to buy a new car. You can cut back on many things. You can lessen the possibility. I read most people don't even have $500 n the bank. The struggle is real for sure.

Most of the debt free people I've met in my life, were single.

When I was single, I too lived a debt free lifestyle. Upon marriage with no kids, it was even easier with both people working and sharing household costs.

However, once kids came along, all the dynamics changed.

Now there are some people that have kids and don't incur debt and that's mainly because their relatives are helping take care of the kids while they're working, but if you don't have that kind of arrangement or family dynamic, then you're paying childcare and/or pre-school and/or a nanny.

After our 1st kid, we did the math and financially (due to tax reasons) it didn't make sense for my spouse to work as that salary put us into the next tax bracket and we'd have to pay someone to take care of our first born child.

Yes, there's a deduction for childcare, but it doesn't offset the costs - not even close.

After the 2nd child, the costs for 2 children in childcare or pre-school skyrocket. Suddenly you're looking at around $20k.

Our neighbors, both parents making right around six figure income each, got a nanny and the cost of that nanny was over $30k/yr. plus they had to provide her a car.

Throw in the mortgage, two cars, and all household expenses and there goes the debt free lifestyle.

Edit: Forgot to mention that there is one way to get out of debt forever...... and that is if you die.

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Two ways to look at this.... If hyperinflation happens the debt of a mortgage would whittle away. However if a crash comes they are going to go for every asset they can get. As for credit card debt and recurring debt that is just living beyond your means. That will have to be cured, one way or another.