Oh yes....my 2001 Explorer has been paid off for a while now. Of course there is nothing wrong with it. I just know that I am going to need a new car sometime in the future. I hate the thought of car payments. I hope I can save enough to pay cash.

I only use one credit card and that is scarey enough.

My Daughter scares me to death everytime she buys something new on credit. I keep warning her to be careful.

Gayle

I wouldn't say it scares me, since we owe 200K something on our mortgage. Debt allowed us to enjoy our dream of homeownership. I guess it doesn't "scare" me since I know we can make the monthly payments (plus all our other utility bills) without worry. Our house was a bit over our budget, but we reasoned it out before we signed the papers.

I also don't get people that charge their credit cards to the limit for stuff they don't even need! I wouldn't be able to enjoy the stereo/TV/computer whatever knowing that the bills we going to start coming in!! Too much guilt and stress!

We also paid cash for our last car (2005), sure the savings account took a big hit, but we still had enough leftover for any possible emergencies. I worry about people that don't have ANY savings built up or have to live paycheck to paycheck.

I was brought up that you save in the good times, in case the bad times come. If the bad times never come, then hey you're still doing good! In our house, we pay all the bills first, then contribute to DD's college fund, our retirement accounts etc. Then we can have a little fun-we do go out to eat, buy stuff for the house etc, but in just in moderation!

It is so puzzling to me why couples take on huge mortgages knowing that if one loses a job, has to be off work for extended period of time, etc. the dream may collapse.
That is exactly the reason why folks should have 6 months of living expenses put aside, and readily available if the need should happen to arise.

Some folks don't think beyond the next paycheck, as they just live from one paycheck to the next...always broke the day b4 payday.

Sue

I wouldn't say it scares me but I don't like the thought of it.
The only debt we have is our small mortgage. Dh uses a credit card rather than carry cash but it's paid off monthly.
Things like furniture, cars and our recent kitchen remodel are all paid in cash.
I couldn't imagine having thousands and thousands of dollars of debt.

Well it doesn't feel good. I don't mind our mortgage since we bought a modest house before the market took off and prices went up. I was slightly queasy about a new car payment but again, it's modest by most people's standards - not an SUV and I drove my last car (my first car ever) 11 years and 178K miles.

What would make me ill is credit card debt. I had that in the past before cc companies sharpened their claws. I can't see how anyone could carry a balance these days. I recently read where B of A was randomly jacking up people's rates to over 25%. I don't know how anyone could afford to have any amount of cc debt these days.

You are asking a person with a 24" tv, no cell phone and whose newest car is a 1998 Explorer? I hate debt. Right now I have too much on the charge card to pay it off (taking a trip and put the hotel, car and tickets on it) and it is bugging me. I am seriously thinking of taking the money out of savings and paying it off.
It is hard to judge what is enough when there are temptations all around. We have decided to travel somewhere every year (this year it's Texas) so I can do without some things at home. Hubby's job has been eliminated and restored 3 times and that changes your "needs" and "wants"too.

Kathy

Oh heck no! Live dangerously!
LOL
Seriously some amounts don't scare me a bit....say under $3000! LOL When we bought the business 25 years ago I didn't worry much and it was over $100K at that time, plus the stupid intrest rates. But NOW the thought of $100K scares me!!
I think because I am not sure I'd live to see it paid off.
Back when we took over here we were like 23 and 28 years old! Young and dumb?? Maybe I don't know.

I'm only 30, and I was brought up that you don't use debt. Mortgage is okay, but everything else gets paid off.

I have a steady and reliable job, so I don't worry about not being able to pay for our house in the future. Our cars are both paid for, and the credit card is paid every month. I put 6% into my 401k, and the kids each get some added to their savings accounts each month.

When DH decided to quit his job and go to medical school, we started living on my salary alone and saved his entirely. While most students are going into debt (over $200k) to go to school, we are living off my salary and our savings. Our savings have decreased over the past few years, but they aren't depleted, and in 2009 DH will start getting a small paycheck. His education is an investment for us, but it did not put us into debt.

I'm amazed at friends who buy things and are still paying for them long after the "things" are gone. I think it would be hard knowing that you owe so much money but have no way to pay for it without a major change in the way you live your life and spend your money. (Kind of like going on a diet vs. changing the way you eat lifestyle change)

Audrey

Scare us? No--but we make it a rule to not have more than one payment at a time (car or mortgage), and we always pay way more than the stated payment. Our 30 year mortgage was paid off in 15. My 2007 FJ Cruiser (which, mind you cost much more than we paid for our house) was paid off in 6 months. At the moment, we haven't had any debt at all for over a year.

We live well below our means. We could get by for years on our savings, if that need arose (as long as neither of us suffered a catastrophic illness). Credit card is only used for rental cars or phone orders--and always paid in full when the bill comes.

It boggles my mind that there are people out there--my husband visits dozens of them every day--who have to have every possible electronic gizmo, huge houses they can't afford, pools, late model cars--and then they can't pay their electric bill. We may have a smaller house, we may drive our cars for 15-18 years each, we may not have a huge TV (after next winter, we may have no TV's at all--since ours are all old and won't work when the signal goes to digital)--but at least we don't have collectors coming to the door, cutting the electric because we can't afford to run our expensive toys.

azzalea--
I think you can buy a digital-to-analog converter rather than buying a whole new television when the over-the-air signals go digital. You can request a $40 coupon (I think 2 per household) to reduce the cost of the converter boxes, but I think there's a limited supply of coupons so you might want to go ahead and look into it!

Here is a link that might be useful: FCC Website on Digital Broadcast Transition

Yes, it bothers me to have debt. We paid our mortgage off 10 years ago, and buy our cars outright, with no loan. We paid cash for our renovation, and don't carry a credit card balance. We scrimped and saved for years to get into this position, just because we don't like debt.

Thanks, I'm aware of that, but don't think I'm in the market to be blackmailed to buy equipment that I've not needed for the past 35 years--even with a $40 discount. Not like there's really anything on TV that's that worthwhile, anyway, unfortunately.

A question, though--once the changeover happens, when we turn on our old TV's, will we actually be able to pick up the military transmissions that will be being broadcast on analogue channels? How will they block them? or will they? Seems kind of dangerous if one will be able to pick them up on their old analogue sets. Seems there must be a better way to give the military broadened broadcasting access.

With a single income (and it's not that much) I have to pay things out. It's the only way I can do anything. Last year besides the normal house and car, I had to get a new roof, new heat and air and a big dental bill.

I'm terrified of debt. I didn't have any debt until my Mom died and I had to take the cash value out on my life insurance to pay for what she owed.

When I started taking care of my Mom she had over $20,000 in credit card debt - Visa and Sears. The bank gave her the card when she was in the early stages of Alzheimers and she used it mostly to buy cartons of cigarettes for my herself, my brother an his wife and to take his family out for dinner every few days. She used the Sears card to buy things for my sister and her kids and I think a microwave for our house. After I became POA it took me over 6 years using her money to pay off that debt and I wasn't working because I was taking care of her and using up my savings. I focused on paying off the high interest debt and didn't pay the city taxes because the interest rate was lower. Just before she died I was able to start making payments on the taxes but when she died there was still a balance which my life insurance paid for.

I have a $45,000 mortgage on the rental house but my brother's rent pays for it so he better plan on living in that house for a long time. LOL Should be paid off in 2028 or thereabouts.

I don't have credit cards. I warned my older sister about getting a credit card because she is on a fixed income but she didn't listen and now has 2 that are maxed out and a bank loan and she is so stressed about it. If I can't pay for something with cash, I just don't get it and do without.

Yep, with trying to clean up my Mom's debt I am terrified of it. I didn't think I would ever get out of that hole.

Anne

I've never had enough of it to be scared! Always lived frugally, by necessity, more so than by design.

I have been looking for years for a new wallet. They don't seem to make them like they used to. In an ad a couple days ago I saw a picture of a wallet that looked like it might be okay. When I looked at the picture of it opened up, there were spaces for 15 credit cards! Granted you could put your driver's license and maybe a snapshot of your DGKs, or your dog, but who needs that many CC slots? I have a debit card and a credit card, for convenience. The Credit card is paid off each month.

I just don't understand the more! more! life style that so many people feel is important.

Sue

do you really think that anybody who HAS a lot of debt is going to come on here and tell you?

After I became POA it took me over 6 years using her money to pay off that debt

You should have consulted a real attorney, who would have told you that this unsecured debt could never be collected and would vanish into the ether when she died. Perhaps that would have seemed irresponsible to you, but....they sent it to her, right?

Scared out of my wits - but I was out of my mind when I did the kitchen redo. I have paid off everything at least 3 time and felt so in control afterwards. I'll get there again. It's so difficult living on a cash basis, but I'm all for it. There was a time when I could almost do it. But I did have one cc to use for emergencies. Thanks to so much inspriation and a weak willpower, I'm CRAZY again. It is pretty scary but at least I'm aware and know how to get back to normal. I love my kitchn though! Hopefully if I have to sell, someone else will love it too - LOL. Once I get out of this hole I'm not getting back in - too old now to use traditional methods like working have to death. Plus I want to enjoy my life without worrying about the bank!

If you haven't starte on that trek, DON'T; it's not worth it. Life is so much better without that debt!!

Talley, she was still alive which was why I was using her money. I paid off her credit card debt using "her" money4 years before she died. I was no longer a POA after she died. We lived on my savings so I could get rid of her debt.

I still had her back city taxes on the rental house to pay off after she died and because I did inherit that house I had to pay them. If there wasn't a cocodil(sp) in her will regarding that house I would have sold it in a minute.

I keep getting credit card applications in the mail and they just get shredded.

Anne

I hate being in debt so much I avoided buying a new car for years.

I still have to work at convincing myself that there is good debt and bad debt. That is what most financial advisors would say.

A roof over one's head and a reliable vehicle is healthy debt. Credit card debt is not.

Being in debt wouldn't scare me b/c I know we have the resources to pay it off, but, we're not in debt and paid cash for this house 7 yrs. ago. When we were in debt I hated the thought of all the interest we were paying. We are in our early 60s and I would think by this age you should have your ducks in a row and not be in debt. I see my children, all in their 30s in debt but they figure they're going to enjoy life now w/ everything they want.

No it doesn't.
Debt is a tremendous tax deduction in our business.
It allows us to expand and be more productive.
We borrow for something on the ranch (equipments, trucks, more cows and sometimes operating capital) but it's paid off before we borrow more.

I don't have a credit card but use my checkcard instead.

Lori

I'm not afraid of "good" debt.

Our house is paid off, but we needed to get new siding. There was an interest-free loan for 12 months - heck, yes, I financed it! My money staying in my accounts earning for me for longer.

My new car (the last one died at 190,000 miles) is also financed at 0% interest for 24 months. It just makes more sense for me to keep my money as long as possible.

I could have paid cash for both these major purchases, but they are good debts, at least for me. I'm earning interest on my money, and they aren't charging me any interest.

I also financed a very expensive sewing/embroidery machine for my business. It wasn't an interest-free transaction, but it was on sale, and the model was being discontinued. The newer model would have cost at least $1K more. I paid it off in 3 months with a finance charge of about $50 - well worth it.

Random fear of any debt at all seems counter-productive.

Yes debt does scare me which is why we don't owe any money accept to MasterCard which we pay off each month. I never want to be in the position of owing a whole lot of money ever again.

No. My philosophy is to die broke. I buy what I want.
I have to fear of using credit cards.

No, only debt I cannot pay or a loan with huge interest.

I do remember being so afraid of our first mortgage--30 years of debt to pay off $30,000!!!! What a bargain today!

Having lived the early years with "which bill are we not going to pay this month?" living debt-free is peace of mind. We live below our means (my truck is 11 yrs. old, etc.) and with the 8th unemployment in 20 yrs., we can ride it out (the 9 mo. one was rough, ditto the 4 mos. one when the kids were 7-17.) No debt. Living WAYYYY below our means (no IPODS, 15 yr. old tv, etc.) and even with the unemployment, we're still on track to having 1M before retirement -- oh, and the house is nice, older, but 2000 sf in a GREAT neighborhood. . . . We coulda payed cash for a 4500 new house and had money left over for a Beamer and 6 mo. vacation around the world :-)

I carry a credit (actually a "debt") card - the moment before I used it: no debt ... the moment after I used it - I had a debt to pay.

I pay off the balances owing in full each month: something like 50% of carriers do: not "owners" - the credit card co. owns it, I have it on loan. They loan it to me ... so that they can loan money to me (at high interest rates).

While I don't say that I would never get into debt, I really seriously don't want to go into debt to buy food, fuel, a vacation or other stuff that I eat up now and it's gone.

I would want to avoid that even if I were young. Unwilling to live within this year's income, you are moving some current expenses from being covered by this year's income into being a charge on next year's income ... plus you're going to have to pay even more to cover the interest: double jeopardy.

I've never heard of anyone going to ask his/her boss for a reduction in wages ... but when we go into debt for current consumption ... that's precisely what we've done! And ... we did it to ourselves!

As a personal financial advisor, I tried to encourage all of my clients to have a few months' income available in case of emergency, the closer that one gets to a year's worth, the better.

It seems to me that folks who are willing to live from paycheque to paycheque are wage slaves ... if they miss a couple of cheques, they are sweating blood! No flexibility, no options, no freedom!

Imagine the pain of getting laid off in such a circumstance! Not my idea of a great way to fly!

I haven't always (in recent years) had that much money more or less instantly available, myself, for two what I consider to be good reasons. A bank account, money market fund, short-term CD or other quickly available asset usually earns interest, which is a too low a rate of return, to suit me ... and in Canada taxed at top rate. Don't like either side of that issue!

If you're interested in what I do instead, ask me - not room here to explain adequately.

However, I am willing to borrow in order to obtain something that will be an ongoing asset, such as a house (which I prefer, as there is a good chance that it may appreciate in value, over a substantial period).

Or a car - but I like that idea a lot less, for few cars appreciate in value, short or long term, especially new ones, for depreciation in years 1 - 3 of their life is substantial. I last bought a new car over 30 years ago (and it was last year's model). Usually buy 5 - 10 years old ... current car 20 years old. When this one dies, probably get a newer one: nearing 80, I'm getting too old to have to fart around with a car that isn't working well on occasion (especially in winter).

I may be willing to borrow to buy other assets, e.g. stocks, mutual funds, etc., for if I choose them well, there's a good possibility that they will grow in value, over time.

While their dividend rate is lower than the interest on the loan, it helps pay the interest on the loan. Auto loans don't.

The interest that I pay on such purchases is deductible ... used for consumables, it isn't. Used for purchasing tax-deferred retirement fund asset, it isn't, either.

In Canada, when I buy Canadian stocks and they pay me a dividend, I pay tax at a low rate (supposedly to offset taxes that the company has already paid).

If I buy shares in a national bank at $5.00 and hold it for 50 years, then sell it for $100., I didn't have to deal with the increase in value, tax-wise, till I sold.

Then, I pay tax at regular rate - but on only half of the increase.

I have written a thread here or nearby where I explained how there's a good possibility that I can make such loans at or near nil net cost to me.

Plus ... I repay the loan amount with depreciated dollars - each one of them would have bought more when I borrowed it than when I pay it back. I gained from inflation ... the guy who put his money into the bank (guaranteed not to shrink ... plus, guaranteed not to grow) ... lost.

So - I consider incurring debt for some purposes not a wise choice, but sometimes it may be worthwhile.

Learning how money works - an interesting hobby ... that *pays well*!

Good wishes for increasing knowledge of how to use income and assets more effectively - to pay you rather than the other guys!

ole joyful

Being debt free is great, but there are plenty of times in life when it's not an option. I'm debt free now, only because I'm married and my dear husband paid off all my debts after we were married.

I was a writer making $15,000 a year and living a very modest lifestyle. I had a 19" TV from the 1980s and when it died, I simply did not replace it.

But when you're a single woman, you *have* to have a good car. You can't be broken down in some crum-bum neighborhood at 11 pm one night. You also *have* to live in a place where you feel safe.

The other factor is divorce. Everyone I know who's been married and then divorced ends up having their financial world reset to zero by the divorce.

All that aside, I struggled and struggled to stay out of debt during my single years, but I didn't always succeed. Sometimes, you just run out of money and have to "borrow" to keep things going.

My heart *bleeds* for the people who are up to their eyeballs in debt, because so many of those folks have been hit and hit hard by rising costs, employment problems and job loss, medical expenses, business failure, etc.

I think debt scares *everyone* but not everyone can avoid it. And I think there's a special place in hell for some of these men and women who run the credit card companies. Thousands of years ago, usury was considered a great evil and excessively greedy and that's even mentioned in the Bible.

Charging 25% interest on a debt is nothing but usurious. IF there is Karma, may those bankers come back in the next life as a single mom with four kids who has no money and has to borrow to buy the groceries...

Rose

Yes, it scares me. We don't have any bills except the lights and phone and insurance. My husband had work that was seasonal for years. He is getting ready to start a new job where he will be making much more money and working full time.
We need a lot of work done around here, but we will save up to do it.

No, it doesn't scare me. Runaway debt scares me.

Debt is tool. Properly used it provides you with lot in return. Improperly used? Well, you've heard the stories about people taking off a leg with a power saw because they weren'tpaying attention? Same thing with debt.

Through judicious use of debt I've pushed my credit rating to just shy of 800. At that point you have a ton of leeway in negotiating your own interest rates, credit card terms, etc.

Even credit card debt CAN be healthy debt if it's used properly. Most people don't, can't, or won't use credit cards properly, so it's generally seen as not healthy debt.

However, if you have a low credit score, you can do a LOT of good for yourself with a credit card.

Sure, I'd love to be able to pay $30,000 cash for a new car...

"Uh, Mr. Kframe, there's only $22,000 here..."

"Darn, I brought the wrong wallet!"

That's not going to be happening any time soon, though.

Debt does not scare me at all!

I use it to my advantage.
For example, I was ready to pay cash for my Mountaineer. But when offered a loan for payment (at the same cash price I negotiated....), I jumped at it.
I now make monthly payments at 0% for the Mountaineer, while my lump sum payment is in a CD making 5.1%.

There's a major potential disadvantage to borrowing to invest. If I'd borrowed up near $100. to have bought that bank stock lst spring that I spoke of when its price was $105.00 ...

... when it skidded down through the 90s, the 80s, then back up through the 90s, then down through the 80s, where it hesitated some, and the 70s to where it is now under $65.00 ...

... I'd still owe that $100.00 - plus, I'd have to continue paying interest on that $100.00 debt!

Not pleasant!

It's important to choose carefully when and how you choose to borrow, how much, and plans for repayment, even in case of difficulties.

I didn't mention another advantage of borrowing, though. I usually agree, on loans for investment, to pay interest only, regularly, though ordinarily I recommend to people that they try to retire a debt as quickly as possible.

When market is low, I use savings to buy, over time, as I don't know where the bottom is.

Then I may be willing to borrow to make more investments, as market stays low.

Loan costs 6.25% (most recent quote).

Deductible, at marginal tax rate 25%, or $1.56, reduces my after-tax cost to $4.69.

Estimated dividend at 3%, $3.00, at low tax rate, about $2.50 after-tax residue, takes my effective cost down to $2.19.

If I borrowed $10,000. and let it run for 10 years, paying only interest as I went along, when I went in to repay, I'd have to pay precisely $10,000. That $10,000. would buy much less than when I borrowed it - I gained from inflation, which is running at, what 2.5% ... some low-income people say that their costs are rising faster than that!

That takes my effective after-tax cost to zero!

While I'm borrowing at no net after-tax cost, I must find $6.25 to pay the interest. The stock that I bought with the loan is paying $3.00 now, $2.50, after-tax.

I use the $3.00 from this stock, plus $3.25 of dividends on previously-bought stock (both paid quarterly), to pay the interest monthly.

After tax time, the $2.50 of after-tax dividend on this stock, plus $2.65 or so of after-tax dividend on the previously owned stock, is more than enough to pay the $4.69 of after-tax cost of the loan.

As the markets recover I may use freshly generated cash to invest, but as the market advances farther, I usually use newly saved money to pay down the principal of the loan along with the interest, when the market gets high again.

However, if I were younger and felt it wiser to let that loan run, using freshly saved money for more investment, the stocks may decline a bit, but usually they resist cutting their dividend, if at all possible, so it will continue to assist with paying the interest.

Suppose the price of the stock at $100.00, earlier paying about 3% ($3.00, about $2.50 after-tax) goes up 50% to $150.00, still paying 3%, or $4.50, (about $3.25 after-tax), that leaves only about $1.50 after-tax dividend value that I need to take from the previously owned stock.

If the stock that I bought with the loan goes up by about 75%, with dividend likewise, it'll pay the full amount of after-tax loan interest cost ... so the loan is self-financing, cash-flow-wise, without counting the allowance for the credit related to inflation.

Used wisely, loans for investment can be helpful - but one needs always to be sure that they can handle the situation if markets go very sour ... they can do so, believe me!!

I am here explaining how the situation may work, not suggesting that you should use it.

I would certainly not want you having fitful sleep due to having reverses in the stock market!

It's easier for farmers or business people to stomach, for they're used to irregular income and wide variations in prices that they get for their products, in addition to variations (usually increases) in costs of production. Most employed people are not.

Good wishes for learning various facets of how to make your income and assets work more effectively - for you and yours.

ole joyful

We don't have any debt other than mortgages (on several properties) but the mortgage on the house we're building scares the crap out of me, basically because it means I'm locked into keeping a job I really don't like, and praying I don't get laid off, which could happen at any time in today's world.

It would if we had any, simply because we lived on a fairly fixed income. My little part-time job only keeps us in gasoline and play money. If I was to rack up a bunch of credit card debt, I'd be lying in bed wondering which investment I'd have to whittle down to pay for it, and that's just not acceptable.

Debt scares me. I have always been really good with money and i never had any debt. When DH and i met he was over $70,000 in debt. My girlfriend joked with him when we got married. She told him that it must be love because im not in it for the money.LOL! DH had 2 car payments and around $40,000 in student loans. I was not use to any debt. Much less $70,000. We got the cars paid off in 2-3 years. The student loan took much longer. While DH was overseas several years ago i began making $2,000 payments. I lived on nothing and i paid it off while he was gone. We have been living debt free(other then our morgage) for 3 years now. Now to tackle the morgage!

Debt doesn't scare me, but I hate paying interest! I'd rather pay cash for everything I buy or at least be able to pay it off at the end of the month. Credit card companines hate people like me who pay their credit card off totally each month. They make most of their money on late fees and penalties from people who can't pay and they keep offering credit cards to people who can't pay because of that reason. If I can't pay cash for it or pay it off in a month, I don't buy it. The only exception is our house and my car we bought last March and a few others through the years. I hate car notes!!! I hate interest!!!
Lulie

Ninos,

Did

he

say

thanks??

ole joyful

Ninos,

I don't know whether your husband's wife has a diamond on her hand ...

... but he has a diamond by his side.

No - that's too impersonal.

He has a princess by his side.

No, let's not be elitist.

Just one shrewd, loyal, disciplined help-meet!

Have a week that satisfies a couple of your desires.

ole joyful

OJ,You made my day! Thanks!!

Yes! I bought a car yesterday. First time I've had a car payment for 15 years. And I was up sick all night worrying about whether I made the right decision. Did I get a good deal? Did I get ripped off?

No, doesn't scare me, but annoys me that I'm paying out all this interest. I paid off a ton of debt last year and am going to finish it off this year (except for my house). I was thinking of giving my old car to my son when it was paid off in July and buying myself a new one. But, then I thought of all that money I'd be shelling out every month for years. I decided not to do it and am just going to save for a used car for him, and he will have to help pay for it.

I've been listening to Dave Ramsey every day I'm off for reinforcement. LOL!

Debt in reasonable amounts doesn't "scare" me, as long as I know the means to pay it off are there. At this stage of our lives, we are avoiding debt wherever possible, as we are relying on SS and some occasional income from past skills. The house is paid for, to all intents and purposes, so that surely helps. HOWEVER, DH went for a colonoscopy 18 months ago and ended up with six bypasses and two aneurysm repairs. Nearly $200,000 in bills..not counting all the specialists and side-bar doctors who want their pound of flesh. We are real good negotiators, so had many of the bills reduced substantially, but we will be making payments for the rest of our lives. No more "optional" (think credit cards, new cars, etc.) debt for us!

we had cc debt, until about 5 years ago..my ds1 was always twitting me about it...so when we refinanced the house to a lower rate, paid almost it all off, transferred the rest to one of those interest free "come-on's crds" and paid them all off...now i just use my bank card for everything.

what we're working on now is savings and getting ready for retirement. dh doesn't know, but the car will be paid off in 3 months, yea! that money will be paid into a savings acct, for another one, down the line....

our home loan is 15 year fixed...

We don't like it. We did spend more on this house than I would've liked, but we're really enjoying it & the neighborhood. It's actually only an average priced home for this area, but still high to me. We moved from a small town where real estate prices are low to a place where they're very high. We do make sure to structure everything so we can live off of DH's salary. We don't have any car payments. We did splurge a little during Christmas (first time we've ever splurged like that for each other). We'll pay that off in a couple of months & won't add anything else to the credit cards until we do. We do sometimes take advantage of no-interest offers & pay off things like furniture, electronics, & appliances off over several months. But we always make sure to make large enough payments so it's actually paid off before the promotion ends so we don't get hit with the deferred interest.

Yes,It scares the bejeebers outa me.
Last year we bought our retirement home before we sold our present house,and I was a total wreck.The deal was just too good to pass up,and it will be paid for this summer,but we are both fairly frugal and this was totally out of our comfort zone.
I've since come to terms with it,but spent many a sleepless night thinking we shouldn't have bought it.
Now,a year later,I'm sure glad we did,but the thought of owing money makes me nervous.
I remember when we bought our first house,our mortage was 144.00 a month (LOL),and I was so scared...thought for sure we were going to end up in"the poor house"as my mom use to say.