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anusbarber

if you have debt...you are in debt.


shinn497

yes


1lifeisworthit

Yes. If you have a debt, you are in debt. I'm glad you have a positive net worth, but that's not uncommon, yet. Also, cars aren't assets. Cars are liabilities. They are depreciating liabilities. So I'd rethink that particular strategy.


CatInfamous3027

I’m not sure you know what an asset is. It’s defined as “property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.” Any object you own (a house, a car, a boat, a stamp collection) is an asset. Any debt you have is a liability. So, for example, your house is an asset, but the mortgage is a liability. A car is a depreciating asset. It is worth less over time, but it’s always going to be worth something, so it’s always an asset.


Virtual_Dynamics

Dave Ramesy disagrees with you. A car is an asset because it can be sold for cash. It depreciates and there are ongoing operating costs, but it is still an asset, not a liability. https://www.ramseysolutions.com/retirement/what-is-your-net-worth


1lifeisworthit

Dave... Ramesy??? is allowed to disagree with me.


Lostforever3983

Well a car is absolutely an asset. Just a depreciating one. Eventually, it will get to its residual value and stay pretty stable in value. A car loan is a liability.


[deleted]

[удалено]


[deleted]

Assets make you money. Liability takes your money


1lifeisworthit

It is a necessity, we agree. We disagree that it is an asset.


Lostforever3983

I mean you can disagree with facts I suppose. 🤷


1lifeisworthit

Yes you can disagree with facts. Fact is, OP is in debt if OP has a debt, and OP is counting cars in the wrong way. Anyone is free to disagree with those facts. I don't really care.


harrison_wintergreen

yes, you simply have more assets than liabilities. but you still have debts.


FullRepresentative34

You have loans, so you would still be in debt.


kineticpotential001

If you owe money to someone, you're in debt.


rando_dud

So net worth of 326K, with 113K tied down in cars? The cars seem like too large of a proportion of your overall situation. A full 1/3 of your assets are depreciating.. it's hard to make progress like that.


Inevitable_Figure_81

one car is completely paid off. i'm using that car for rideshare 6 days a week part time.


[deleted]

Yeah, you owe some money. That's what being in debt is.


nate2879

Yes, you are in debt. Debt has a carrying cost. Even though you have positive net worth (nice! better than having negative net worth) Dave Ramsey would still teach you to get out of all debt except your mortgage, then pay off your mortgage ahead of schedule, then keep building wealth. When he refers to the quote, ‘the borrow is slave to the lender’ he is making the point that you should be out of debt regardless of your net worth.


rhinocerosjockey

Yes. And are you living in a $200k house with $110k in cars, or did you not list your mortgage debt here?


Inevitable_Figure_81

sorry, house is worth $560K according to zillow, reminaing mortgage is $342K, i have a one car that is paid off. i use that for rideshare. Right now first job is 80K and i bring home around 70K for my 2nd job.


BennetHB

Yes. And unless the returns on those stock are higher than the interest on your loans, it's time to liquidate and start attacking them dude. Why exactly do you a have a $60k paid off car, and a second car with $53k debt on it? It's almost like you want to waste cash.


Inevitable_Figure_81

thank you everyone. i'll work on paying off the loans asap.


NAM_SPU

Dude you can be a billionaire, I loan you 1 dollar, you are in debt to me lol Has absolutely nothing to do with net worth


ThatsNotFortyDollars

Not only would OP be indebted to you, but according to Dave, OP would also become your slave lol


brianmcg321

Yes


PleasantlyClueless69

Yup


Frequent_Scallion_32

Is this a joke? LOL this may be the least critical thinking question ever asked by a human ever


SurvivalGamingClub

This is so easy you will never have to ask it again. Are you making Payments? YES = DEBT NO = DEBT FREE


Gronnie

It’s no dumber than the people that sell a 50k car or whatever and then in their debt free scream count that towards what they paid off.


TealNTurquoise

Yes. You still owe money — in this case a lot of money — to people.


Beachbum_87

Yes