What's the average age that people are debt free in America?

[JSt0rm]

I have no debt except mortgage. My interest payments are less then my rent was. If you end up with interest payments that are more then rent then you did something wrong. Im also putting an extra 12k a year towards the mortgage.

 

[Engineer]

I was 37. Paid off my mortgage on my 37th birthday as a gift (almost 9.5 years ago).

 

[Atomic Playboy]

Is it sad that this feels like a trick question?

 

[ImpulsE69]

I was debt free from 0-16. Those were the days.

 

[xeemzor]

lol, no it's not, it's a fine place

holland is good, sylvania is good

Those are small pockets of mediocrity. It's much better for the average person to move to a big city like chicago to establish their career. Everyone smart who could get out did. I know because my buddy tried to do a startup in Cleveland and had issues sourcing local talent. Places like Lakewood are only just starting to turn around and it will be decades before they fully recover economicaly.

The women are also way hotter in Chicago

 

[dud]

OP, to answer your question ... I am a pretty average American and am completely out of debt. In my case it was 44.

Hope this helps ...

 

[ponyo]

Debt free is a lifestyle choice. It requires sacrifice, hardwork, and some luck. I became debt free at 36. I made some sacrifice to my lifestyle and I worked my ass off. And I had some luck with my business and investments. I could've done it faster if my wife worked but I don't mind her staying home and taking care of the house and enjoying her hobbies. I work enough for both of us and she's helping me by taking care of the household.

I know lot of people who could be debt free but chooses not to. I can respect that. It's their choice.

 

[Pulsar]

This is really way too random a question. Did you have kids? That greatly affects it. Yearly salary also greatly affects it.

Your dedication to getting debt free also affects it. Do you choose to have a couple toys or put everything you have into reducing debt? Etc.

 

[Red Squirrel]

I'm hoping to be debt free by 40, hopefully before. With the company removing stuff from us every time it's union renewal, I'm not counting on having any kind of retirement by the time I'm at that point as they'll probably take that away sooner or later. I need to start saving asap and I have started a bit already. I have about 17k in RRSPs so far. Right now my only debt is mortgage and I'm putting 200 bucks extra biweekly on it. Once mortgage is paid off I'll probably take the $1200/mo that I no longer have to pay and put it into some kind of investment. Mind you by then cost of living will be higher too so that $1200/mo will be like $600/mo right now. Honestly, I don't even know what to do about increasing cost of living, it's not urgent now, but I can't ignore it. By the time I'm 60 everything will probably have doubled in price if more.

 

[postmortemIA]

I'm hoping to be debt free by 40, hopefully before. With the company removing stuff from us every time it's union renewal, I'm not counting on having any kind of retirement by the time I'm at that point as they'll probably take that away sooner or later. I need to start saving asap and I have started a bit already. I have about 17k in RRSPs so far. Right now my only debt is mortgage and I'm putting 200 bucks extra biweekly on it. Once mortgage is paid off I'll probably take the $1200/mo that I no longer have to pay and put it into some kind of investment. Mind you by then cost of living will be higher too so that $1200/mo will be like $600/mo right now. Honestly, I don't even know what to do about increasing cost of living, it's not urgent now, but I can't ignore it. By the time I'm 60 everything will probably have doubled in price if more.

Then start by not paying more for mortgage. Let inflation eat it

 

[rcpratt]

I'll consider myself debt free when the fiancée's student loans are paid off. Happy to hold on to my 3.25% mortgage for as long as I can.

 

[RichieZ]

i have a mortgage but have liquid assets that vastly exceed what i owe, 3.2% 30 fixed

Debt free since 2011 (mid 20s) when the startup i worked at went IPO

 

[DAGTA]

Where are you guys getting 8% returns? My mortgage is at 3.25 and I'm already maxing my 401k. I have some cash that I've been trying to decide where to place. Thanks.

 

[NikolaeVarius]

Where are you guys getting 8% returns? My mortgage is at 3.25 and I'm already maxing my 401k. I have some cash that I've been trying to decide where to place. Thanks.

Total Market Index funds historically have a 6-8% return on a year to year basis.

 

[IndyColtsFan]

I'll consider myself debt free when the fiancée's student loans are paid off. Happy to hold on to my 3.25% mortgage for as long as I can.

Good plan. I have a 2.8% mortgage that will be done in 10-12 years and I'm in no hurry to pay it off.

 

[Thump553]

Most Americans become debt free on the date of their death. The rest are outliers.

Those of you who think you will be debt free by your fifties or 65 are totally forgetting the concept of offspring.

 

[NikolaeVarius]

Most Americans become debt free on the date of their death. The rest are outliers.

Those of you who think you will be debt free by your fifties or 65 are totally forgetting the concept of offspring.

Solution. Don't get offspring.

 

[IndyColtsFan]

Most Americans become debt free on the date of their death. The rest are outliers.

Those of you who think you will be debt free by your fifties or 65 are totally forgetting the concept of offspring.

The wife and I aren't having kids, so not a concern I have!

 

[Fingolfin269]

I was 37. Paid off my mortgage on my 37th birthday as a gift (almost 9.5 years ago).

:thumbsup:

I like the idea of doing something that monumental on your birthday.

 

[Uppsala9496]

Debt free right now, but buying a house in 2 weeks (if the damn mortgage underwriter would quit being a tool and approve the damn loan already).

 

[Scarpozzi]

The wife and I aren't having kids, so not a concern I have!

I've got a 2.5 year old and a 1 year old.... What's amazing is that no matter how much daycare costs and diapers and family vacations, toys, clothes, etc... I would do it all again in a heartbeat.

I think the greatest thing about kids are that until you have some of your own, you never know what you're missing. You just think you know what it's like or would be like. The reason it's so great is that for those who want kids, but can't have them....it actually makes things a little easier, though they don't realize it. For those who have kids and see people who can't or don't.....our hearts break a little from those who don't know what they're missing. But hey...not everyone is cutout for parenting either. It's a heck of a commitment and a lot of work.

 

[videogames101]

Only in America people call debt "good".

Mortgage is the worst kind of debt one can possibly have. Have you even looked at your mortgage statement and how much interest you have paid to your bank?

There is no "worst" debt than your mortgage.

Most people pay anywhere from 10-20k a year in interest!

And NOT putting every cent towards your mortgage and minimizing your interest "to enjoy your life, which of course requires money, can't enjoy life without that".......is not exactly smart either.

You are really new huh? Mortgage interest rates are very low because of the secure nature of the asset. You can't just look at the amount of interest paid. Practically speaking, you can often get better return rates from markets than you'll pay on your mortgage.

 

[vi edit]

Most Americans become debt free on the date of their death. The rest are outliers.

Those of you who think you will be debt free by your fifties or 65 are totally forgetting the concept of offspring.

Please help me understand what debt costs my kids are in my 50's and 60's?

My parents are in their late 50's and are debt free. They helped out a small bit in college (about 5 grand over the course of 4 years) but I shouldered the rest through grants and loans that I had paid off 2 years out of school.

My wife's parents are debt free and they didn't pay a dime for my wife's college. She's sitting on that entire balance and will be paying the next 20 years on it. Granted at 2.2% there's not a ton of incentive to pay it faster.

I've borrowed money once from my parents and that was paid back in 6 months. Both my wife and I have been living on our own since we were 18. We both plan to instill a similar self dependence in our own kids. One difference between us and our parents is that we'll be able to provide more towards their college. One through early saving, and again through some work benefits that more or less provide them free college education. They won't have to walk out of college with a $50,000 anchor around their neck. They can start saving immediately for a home or go on to advanced degrees without a ton of undergrad debt.

Not sure I feel that that my kids will continue to be a burden if I set them up with the right tools to succeed early on.

 

[ControlD]

I've got a 2.5 year old and a 1 year old.... What's amazing is that no matter how much daycare costs and diapers and family vacations, toys, clothes, etc... I would do it all again in a heartbeat.

I think the greatest thing about kids are that until you have some of your own, you never know what you're missing. You just think you know what it's like or would be like. The reason it's so great is that for those who want kids, but can't have them....it actually makes things a little easier, though they don't realize it. For those who have kids and see people who can't or don't.....our hearts break a little from those who don't know what they're missing. But hey...not everyone is cutout for parenting either. It's a heck of a commitment and a lot of work.

QFT. Nice post. It keeps getting better as they get older too. Then again, we haven't quite reached the teenage years yet.

 

[Puppies04]

Please help me understand what debt costs my kids are in my 50's and 60's?

NSFW - https://www.youtube.com/watch?v=ZPpdSzyDtL0 - NSFW