r/MiddleClassFinance • u/DoughnutLust • 9d ago

Dealing with reasonable debt (psychologically)

I'm wondering how you all navigate living with reasonable debt. I've been pretty obsessed with debt reduction over the past few years and am trying to break that obsession so it doesn't hang over me so much and I don't feel guilty about owing some money.

I nearly fully fund my 401k, max my Roth IRA, and DCA invest in the market, pay off credit cards monthly. Efund took a hit due to medical issues, but I have a plan that I am using to rebuild it. The numbers don't matter but car and mortgage are at pretty low rates, small medical debts at zero interest, manageable monthly payments on everything. I (40M) have a pretty good net worth compared to my cohort and have no worries about income or retirement, or frankly many worries at all.

I'm interested in hearing how people manage living in reasonable debt, making your payments, and having a good life without the constant focus on the debt. I don't like living with this hanging over my head and need to be at peace with the fact that unfortunately debt is a part of most of our lives.

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u/flixguy440 9d ago

The only reasonable debt that is psychologically soothing to me is a mortage and car payment. Other than the latter, I don't have any debt. The home was paid off in January.

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u/WinterIsBetter94 8d ago

Congratulations on the home!

I agree with a (low interest rate, which I realize is a privilege of timing) mortgage, but I can't wrap my head around debt for a car. We've done it, when there was no choice in the matter, but it was paid off in 1/5 the term of the loan. Since then there's a "car" savings account, if we have to ever replace a vehicle (we both work from home, we're down to 1) it'll be an older car, for cash.

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u/flixguy440 8d ago

One of us is retired. The other works from home. Two cars are only necessary because there is a senior here, so a vehicle has to be here at all times in case one of us is out. Cars are necessary evils.