A couple years ago, I had enough cash to put down a good down payment on a home. Unfortunately, the banks refused the mortgage saying they just weren't giving them out at the time. So we went another route. We bought a small house in need of a little care for cash. We have done renovations/additions each year, buying materials on a credit card and paying the bill IN FULL each month. As for cars, we own 3 vehicles, none of them new, but 2 in well maintained condition and the other just "kept going"for random work vehicle. All 3 were bought cash. We have some consumer debt now, but are planning to have that down to zero within a couple months. We also stash cash in various places, none of which being the banks, other than a bit of operating cash in the checking account.
The feeling of owning a home outright is inexplicable to those who rent or carry a mortgage. No, we don't have a 5 bedroom 3 1/2 bath home, but we have a roof over our heads that keeps us dry, warm and protected. I will never wake up to a repo order on my car or home. Without the monthly payments, we can concentrate on other ways to be more self reliant such as generating our own energy, growing or raising our own food supply, etc. The idea is that when all hell breaks loose and the banks are repossesing homes, cars, etc...we will be able to say "those poor people will have nothing...oh well, the could have done what we did instead of having the biggest, newest, and best of everything."

Good choice of subject and good statements.

I luckily own most of my possessions outright, not that I don't have debt but none of the stuff attached to those debts effects my lifestyle or plans should things go sideways, and if things continue the way they are for me I will have cleared all debts by this time next year.

Like you there was a time when I was so loaded in debt and everything belonged to the bank, the mortgage company or the credit card companies, I had a major accident, broke my neck and had a spinal fusion. We started getting behind but still trying to keep paid up or at least pay the interest, we were honest with our creditors, and they in their wisdom decided to call our loans, I lost our home, our vehicles virtually everything we thought we owned was taken away, because they felt I would never go back to work in my trade. Turns out they were right, I never totally returned to my trade, I just stuck my nose to the grindstone and got 2 more trades and now make more money than I ever did, but thanks to them I learned a lot of very hard lessons. I save and pay cash every time I can and if I do use the banks money I do it on my "unsecured" line of credit, and my credit cards are unsecured as well. I do have a mortgage on one of my houses, but that one of the debts I need to get rid of by this time next year, because I will be living in the home I bought for cash this year. I thank the banks and lending institutions for tearing my life apart for me and allowing me to to rebuild in a different and better way.

The one thing I am glad of is that the world hasn't hit the no return point yet, if that had been added to the then scenario my family and I would never have made it out of the hole we were in.

Many, many people need to read and reread this thread! Thanks all for telling your stories!

I agree with the OP........... debt is the killer when the collapse occurs (notice I said when, not if).

My wife and I quit playing the game a long time ago. We have no debt. No loans, mortgages or lines of credit. If we can't pay cash for something, we do not need it. We keep enough money in the bank to pay bills and that is about it............ what is the point when you are getting nothing for having it there. Also, when the proverbial SHTF you will see banks shut down and limit withdrawals as has happened in several places in Europe already. Your money is not good if you can't access it.

We cancelled all our credit cards years ago.............. you know, gas cards, Sears, Mastercard, Visa, yada, yada........... and have one card now. Pretty much have to have one for emergencies, traveling and buying through the mail. But it is kept at zero balance all the time.

Our ranch is large enough that we can grow our own food, raise livestock and feed for them, cut our firewood and hunt/trap on a sustainable basis. We have a well and a number of ponds on our place for water. Several lakes nearby for fishing.

It all took planning and some personal sacrifice but it was worth it.

We are unfortunately still up to our neck in it with the mortgage 😕
But our rural property is large enough to subdivide and sell off half of it....which is what we doing at present and thankfully there has been a lot of interest as we have priced it pretty cheap so it will go fast (between $50k - $100k cheaper than other similar in this area)
This will get rid of a huge big chunk of our mortgage leaving it at a very very manageable level.
Once the property sells I want to swap the mortgage to a fixed interest rate for a few years because if the SHTF economically then sure as the interest rate will go sky high. This will give enough time also for what metals we have to also go sky high and cover the rest of the mortgage and hopefully have plenty left over.
Only one credit card with a $3k limit that is used in emergencies.
All vehicles are owned outright 2x 4WD's, 1 Truck, 1 Tractor.
Producing most of our own food from chicken meat & eggs, goat meat, and veggie patch.
Plenty of water from large dams.
Would love to set up back up power system and solar hot water...hopefully very soon.

So long as part of our property sells I feel that we will be alright when the economy goes belly-up...if we haven't sold before that, we're stuffed 😉
But at least would still have vehicles, metal etc to perhaps start again!

For me the worst thing is if we lost the property, we would lose the established gardens and our food supply and would then have to start buying food instead and I detest the thought of paying for something that can be grown from a seed!

Denob, I honestly never tire of hearing your 'independance' story.....honest, really. It is SO inspirational!
I can tell everyone that the SHTF suddenly sometimes and with NO mercy.
My story: some mortgage and credit card debt.......husband diagnosed with cancer.......treatment puts a mega strain on our finances (just in trips to the city hospital for treatment; parking fees; meds not covered, etc) thus more debt because no working and more spending.......husband dies.......3 children still at home....
So after my personal SHTF, I made a plan to pay off the debt (credit card / funeral) .......did that within 2 years......then pay off mortgage (paying down the 'principal' every month) .......and I'm proud to say that this will be done by the end of this year. It's been a long haul....
But it also has for everyone posting on this thread - everyone has made a plan to make it happen.
A PLAN! 😀

WoW...talk about INSPIRATIONAL!

My Dh and I coordinate Dave Ramsey's Financial Peace University classes. We started the classes a few years ago so we could stay focused on getting out of debt and "stay the course" OURSELVES. The classes have been a huge success and fantastic motivation for us. We said we'd keep teaching until we were completely out of debt - we have about a month to go! No more stupid (consumer) debt! The mortgage is next.

The debt level of many is going to be a huge problem! In the classes we've walked beside many people who are up to their eyeballs in debt and been able to see some of the dedicated ones turn their lives around. It's very exciting! Getting out of debt is hard work and requires sacrifice and determination to make it happen but it's oh so worth it! If you need help there are lots of internet sites that have budget calculators and debt snowball calculators that can really help. A budget and going to a cash only system for every day purchases really helped us to stay on track.

Teaching the classes is great - I get to talk to a captive audience about food insurance too - food storage my favorite subject! 🙂

I have to add to this post; excallant thread, I was once on top of the world with a trucking company,house and toys, but it was on credit. Now this at the time was not a problem because my income was quite capable of handling the payments and my debt load was in line with my income...BUT,[" there's always a but "] what happened next was nothing short of catastrophic; the unforeseen hit, in the form of B.S.E..[madcow disease]..and when your business is based on haling beef quarters from point A to Point B, well you can guess what happened...That's right I lost everything, Wife left, trucks gone house gone toys gone done finished ....Caput......My point is, Today I see young couples with a couple of kids in the same boat as myself..Du- ell income, living the high life, paying there bills, but one wreck away from disaster, and the problem in this country, no-one took what happened in the U.S. seriously and kept on spending , especially in Alberta when the next crash hits it will be nothing less then A rolling train wreck in motion....My advise for anybody today is keep your debit level to one income and no more then 25% at the very most of your income and all bills. If you Cary debit load for both incomes; what happens when one partner losses there job..You are done, and nothing other then an a affair will put such a strain on a relationship then money and finances....Take it from my vast experience on this subject......Unfortunately unless you inherit wealth or win the lottery borrowing to build is a part of life, just be very careful with it....And pls keep your debit load at 25% of one income..... MAX....this includes utilities/food /fuel/and so on it all adds up to bills and must be factored in...

Just my thoughts....and again a very good thread.....

I need to add one point of information that i have recently received....When the housing bubble crashed in the U.S. there housing market was overpriced by 4 1/2 percent...Ours at this time, from what I have been told is 34%....can any one say holly S--T WE ARE IN SERIOUSE TROUBLE....

Debt is indeed scarey! Seems everyone has to have a big house, two new vehicles, a big trailer or 5th wheel, and a quad/motor bike or two, a fancy trip someplace exotic every year, as well as eating out all the time. Most couples we know both have to work full time and often scratch their heads at how my wife stays home with our kids and doesn't have a job, or run a daycare...etc. Sometimes I might wish I could take my wife away someplace nice, but we chose to notn have any debt with the exception of our mortgage and we are working at trying to eliminate that as we are able. Crier said it awhile ago about the first step being:

.....and first started with transforming myself to becoming debt free.
Once the shackles of mortgage payments, vehicle payments and credit payments was off, I was "free" to explore other interests when ever I want.

I would agree your financial stability should be paramount in times of economic unrest. The OP made some very good and sound points I would imagine could benefit everyone preppers and non-preppers alike. Not to invalidate the rationale behind this thread I think it prudent consider making the distinction between and financial downturn/depression, and the global economic collapse some are predicting which is unprecedented and would make the dirty 30 depression seems like a mild gas war. Leading up to such an event would truly require you to be financially secure as being able to service any debt would be increasingly difficult.

However in a true global economic collapse there will be NO financial infrastructure of any kind. I do not have the time or the true expertise to frame that picture but guaranteed you will have to make a fundamental shift both physically and mentally how you acquire even the most basic resources. I would suggest if your financial planning only considers tough times in the traditional supply/demand economic cycle we know today you may struggle in a very very local barter/equity trading society. Initially bread might cost 50 bucks and a tank of gas $1000 but within a month or two at the most your traditional assets and money would be worth nothing. When it hits bottom having no debt and lots of cash would having little bearing. Financial security after the storm will be hardest for everyone to wrap their heads around. That arrogant guy with the 5000sqft house on the hill won't understand why I am not interesting in trading his 1.5million house for some basic essentials. Could you imagine trying to heat a 5000sqft house with a wood stove? What else you got? Rolex. No I do not have job so I do not need to know what time it is. What else you got? Priceless painting. Sorry I live in a tent no place to hang it. What else you got? Hmm..my wife is a pretty good cook. Deal here is your roll of toilet paper!

Indeed, indeed, bravo.

Trading your wife for a roll of toilet paper! Lol!