Comments on: The Debtor’s Toolkit: Twelve Effective Tactics to Use When Tackling Debt http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/ Simple, applicable personal finance advice for the modern world Sat, 20 Mar 2010 17:51:34 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Matt http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/comment-page-1/#comment-279035 Matt Sun, 18 May 2008 10:30:06 +0000 http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/#comment-279035 I found that the best way for me to get out of my debt was to increase my income. It took a bit of time, but after some smart thinking I was able to change jobs, start up my own business and am now earning double what I was previously. I admit this wasn't easy. It did take a lot of hard work. BUT, having now got my debt under control, I really need to make sure I monitor my expenses and ensure that I don't get back into that situation where I was maxed out on my credit cards. I found that the best way for me to get out of my debt was to increase my income. It took a bit of time, but after some smart thinking I was able to change jobs, start up my own business and am now earning double what I was previously. I admit this wasn’t easy. It did take a lot of hard work. BUT, having now got my debt under control, I really need to make sure I monitor my expenses and ensure that I don’t get back into that situation where I was maxed out on my credit cards.

]]> By: Joshua Feinberg's Blog http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/comment-page-1/#comment-276992 Joshua Feinberg's Blog Thu, 15 May 2008 20:26:40 +0000 http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/#comment-276992 Thanks for this really helpful and thorough checklist of things to think about when it comes to debt. Many of the computer consultants I advise that are starting their own businesses see their debt as a major obstacle to becoming an entrepreneur, and many delay the process of starting their own companies because they want to get their finances in order, but then have no idea of where to start. It’s definitely possible to get rid of debt, and it’s also possible to strike a comfortable balance between eliminating debt and getting on with your professional and personal life. These strategies are a good start! Thanks for this really helpful and thorough checklist of things to think about when it comes to debt. Many of the computer consultants I advise that are starting their own businesses see their debt as a major obstacle to becoming an entrepreneur, and many delay the process of starting their own companies because they want to get their finances in order, but then have no idea of where to start. It’s definitely possible to get rid of debt, and it’s also possible to strike a comfortable balance between eliminating debt and getting on with your professional and personal life. These strategies are a good start!

]]> By: Simple Mom http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/comment-page-1/#comment-276826 Simple Mom Thu, 15 May 2008 15:34:26 +0000 http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/#comment-276826 I, too, love both snowflaking and ING, but I put any snowflake I have immediately towards my student loans, which are my last debt. It helps that there's no limit to how many payments I can make. But somehow, it feels better to make lots of little payments instead of one extra big one at the end of the month. It's fun to watch the balance fall. I, too, love both snowflaking and ING, but I put any snowflake I have immediately towards my student loans, which are my last debt. It helps that there’s no limit to how many payments I can make. But somehow, it feels better to make lots of little payments instead of one extra big one at the end of the month. It’s fun to watch the balance fall.

]]> By: jm http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/comment-page-1/#comment-276150 jm Wed, 14 May 2008 18:51:46 +0000 http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/#comment-276150 Trent, just a slight writing criticism: you use the word 'solid' many times in that article, specifically in #5. This might be a crutch word for you, which you could do well to work on. Other than that, its great to have all of these steps laid out in one place. Trent, just a slight writing criticism: you use the word ’solid’ many times in that article, specifically in #5. This might be a crutch word for you, which you could do well to work on.

Other than that, its great to have all of these steps laid out in one place.

]]> By: Chris http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/comment-page-1/#comment-276100 Chris Wed, 14 May 2008 16:56:10 +0000 http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/#comment-276100 Amazing post! It's great to see all of these tips together, I'm sure this will help a lot of people. Amazing post! It’s great to see all of these tips together, I’m sure this will help a lot of people.

]]> By: Philip http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/comment-page-1/#comment-275187 Philip Tue, 13 May 2008 04:24:35 +0000 http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/#comment-275187 Great post. I particularly enjoyed the idea of snowflaking. What a great way to add extra to the debt on top of my snowball. As far as the snowball goes I'm in Dave Ramsey's court on this one. I tried the interest rate one several years ago, but because I didn't make any progress I dropped out. In Dave's plan you begin to see progress really quickly which really gives me an incentive to keep going. For Bill. Absolutely an emergency fund is important. That was one of the things in my current plan that keeps me on it. As soon as I started <em>Murphy</em> came over to try and discourage me. My car blew an alternator, starter motor, and computer all within one month. Thanks to my emergency fund and a budget I was able to cashflow these problems and keep focused on my debts. Great post. I particularly enjoyed the idea of snowflaking. What a great way to add extra to the debt on top of my snowball. As far as the snowball goes I’m in Dave Ramsey’s court on this one. I tried the interest rate one several years ago, but because I didn’t make any progress I dropped out. In Dave’s plan you begin to see progress really quickly which really gives me an incentive to keep going.

For Bill. Absolutely an emergency fund is important. That was one of the things in my current plan that keeps me on it. As soon as I started Murphy came over to try and discourage me. My car blew an alternator, starter motor, and computer all within one month. Thanks to my emergency fund and a budget I was able to cashflow these problems and keep focused on my debts.

]]> By: Dannalie http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/comment-page-1/#comment-274726 Dannalie Mon, 12 May 2008 13:42:56 +0000 http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/#comment-274726 I am working a debt snowball. At first it looked impossible, but it's starting to finally roll. The key is to not incure any more debt. Two cars should be paid off in the next 3-4 months which means I will take those payments and pay towards CC debt. I should be debt free in 18-24 months. I am working a debt snowball. At first it looked impossible, but it’s starting to finally roll. The key is to not incure any more debt. Two cars should be paid off in the next 3-4 months which means I will take those payments and pay towards CC debt. I should be debt free in 18-24 months.

]]> By: BIll http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/comment-page-1/#comment-274691 BIll Mon, 12 May 2008 12:44:28 +0000 http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/#comment-274691 Bella, A few comments regarding your point about paying debt prior to building an emergency fund. #1) Why not pay on an emergency through debt? Well, that premise missing the bigger point here. The one way to ensure you stay in debt is to keep using debt. An emergency fund helps to prevent you from using debt any more in the face of an emergency. #2) The savings interests vs. the debt interest. Again, the point is to get out of debt. Slow and steady wins the race. If you don't build up an emergency fund and start attacking debt to save the associated interest expense, you almost assuredly will get hit with expenses that will move you to lean on debt again. And, ultimately, if interest expense was the main concern/issue, people wouldn't go into debt in the first place. It is imperative to have an emergency fund to support you as you get out of debt. Sincerely Bill (debt free and loving it) Bella,

A few comments regarding your point about paying debt prior to building an emergency fund.

#1) Why not pay on an emergency through debt? Well, that premise missing the bigger point here. The one way to ensure you stay in debt is to keep using debt. An emergency fund helps to prevent you from using debt any more in the face of an emergency.

#2) The savings interests vs. the debt interest. Again, the point is to get out of debt. Slow and steady wins the race. If you don’t build up an emergency fund and start attacking debt to save the associated interest expense, you almost assuredly will get hit with expenses that will move you to lean on debt again. And, ultimately, if interest expense was the main concern/issue, people wouldn’t go into debt in the first place.

It is imperative to have an emergency fund to support you as you get out of debt.

Sincerely Bill (debt free and loving it)

]]> By: mary http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/comment-page-1/#comment-273939 mary Sun, 11 May 2008 11:31:11 +0000 http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/#comment-273939 "If you own your own home, a home equity line of credit is yet another option". This is the only thing I disagree with in this article, many people I've seen wind up in more trouble after they take out the second mortgage and thats what it is a "second mortgage". After a few months of zero credit card balances and seeing they have consolidated everything into one neat package which costs less a month they usually go back out and get back into debt. Plus you put your home at risk. IMHO “If you own your own home, a home equity line of credit is yet another option”. This is the only thing I disagree with in this article, many people I’ve seen wind up in more trouble after they take out the second mortgage and thats what it is a “second mortgage”. After a few months of zero credit card balances and seeing they have consolidated everything into one neat package which costs less a month they usually go back out and get back into debt. Plus you put your home at risk. IMHO

]]> By: Greener Pastures http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/comment-page-1/#comment-273935 Greener Pastures Sun, 11 May 2008 11:25:40 +0000 http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/#comment-273935 All you can do is crawl out, one dollar at a time. Good for you. If you're in so deep that a financial planner says there's no hope of getting out, check into filing for bankruptcy and starting fresh. There is always an answer to getting out of debt,unless you become an extreme repeat offender. All you can do is crawl out, one dollar at a time. Good for you. If you’re in so deep that a financial planner says there’s no hope of getting out, check into filing for bankruptcy and starting fresh. There is always an answer to getting out of debt,unless you become an extreme repeat offender.

]]> By: bakednudel http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/comment-page-1/#comment-273672 bakednudel Sun, 11 May 2008 00:26:07 +0000 http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/#comment-273672 I know you probably think this kind of column is repetitious, but I think it's inspiration that I need to read every single day. I was only able to do step one for the first time two days ago. It was a real shock. I'm sure it's difficult for those not in this situation to understand, but I was AFRAID to add up my debts. I knew I was spending more each month than I make, and making up the difference on credit cards. It's all come home to roost, but I'm going to try to crawl out anyway. I know you probably think this kind of column is repetitious, but I think it’s inspiration that I need to read every single day.

I was only able to do step one for the first time two days ago. It was a real shock. I’m sure it’s difficult for those not in this situation to understand, but I was AFRAID to add up my debts. I knew I was spending more each month than I make, and making up the difference on credit cards. It’s all come home to roost, but I’m going to try to crawl out anyway.

]]> By: Cathy http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/comment-page-1/#comment-273652 Cathy Sat, 10 May 2008 23:50:30 +0000 http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/#comment-273652 I love snowflaking! I have a sub account in my ING savings account I call "Penny Jar". I just paid off my significant debts, and got a significant raise with a new job. I don't plan on changing my lifestyle habits at all. All the extra money is going into the "Penny Jar" where I will eventually make plans to invest it. Don't neglect the emergency fund when working on paying down your debts. I'm a firm believer the emergency savings account I built while paying down my debt allowed me to keep control of my finances. I love snowflaking! I have a sub account in my ING savings account I call “Penny Jar”. I just paid off my significant debts, and got a significant raise with a new job. I don’t plan on changing my lifestyle habits at all. All the extra money is going into the “Penny Jar” where I will eventually make plans to invest it.

Don’t neglect the emergency fund when working on paying down your debts. I’m a firm believer the emergency savings account I built while paying down my debt allowed me to keep control of my finances.

]]> By: George http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/comment-page-1/#comment-273651 George Sat, 10 May 2008 23:48:33 +0000 http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/#comment-273651 Regarding an emergency fund, I heard saving enough to last three or four months is important. A lot of kids rack up huge debts going to grad school and pricey private colleges. It could be considered good debt if you pick the right major. Nobody wants to face reality. Thats why we don't like to list all our debts on paper. Regarding inspiration, I have never heard about keep a kids picture next to your credit cards. I am sure that works. Wow! Regarding an emergency fund, I heard saving enough to last three or four months is important. A lot of kids rack up huge debts going to grad school and pricey private colleges. It could be considered good debt if you pick the right major.

Nobody wants to face reality. Thats why we don’t like to list all our debts on paper.

Regarding inspiration, I have never heard about keep a kids picture next to your credit cards. I am sure that works. Wow!

]]> By: Bella http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/comment-page-1/#comment-273611 Bella Sat, 10 May 2008 22:44:31 +0000 http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/#comment-273611 Thank you again for your precious advise! Although, I think it is useful to start repaying debts before/while setting up an emergency fund: the interest rate on debt is always higher than the one we get off a savings account. Therefore, it is important to start "saving" on interests. As for the emergency fund, I don't really see why we should save it first instead of adding any emergency to debt: we will at least have saved the interest while repaying if ever an emergency happens. Thank you again for your precious advise!
Although, I think it is useful to start repaying debts before/while setting up an emergency fund: the interest rate on debt is always higher than the one we get off a savings account. Therefore, it is important to start “saving” on interests. As for the emergency fund, I don’t really see why we should save it first instead of adding any emergency to debt: we will at least have saved the interest while repaying if ever an emergency happens.

]]> By: Tyler @ Dividend Money http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/comment-page-1/#comment-273500 Tyler @ Dividend Money Sat, 10 May 2008 18:37:50 +0000 http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/#comment-273500 I like the snowflaking idea. I use a similar tactic, but since I have only my mortgage to re-pay and no other debt, my tactic goes toward investing. Before I paid off my $40,000 in student loan debt, I saved like a banshee! Don't ever nderestimate teh psychological benefits of paying off a debt. I feel a huge relief right now, even though I still have a mortgage. I loved the feeling of paying off debt so much that I'm contemplating trying to pay off my mortgage, but my interest rate is super low. It will be 3% starting July 1,2008...food for thought I guess. I like the snowflaking idea.
I use a similar tactic, but since I have only my mortgage to re-pay and no other debt, my tactic goes toward investing.
Before I paid off my $40,000 in student loan debt, I saved like a banshee!
Don’t ever nderestimate teh psychological benefits of paying off a debt. I feel a huge relief right now, even though I still have a mortgage.
I loved the feeling of paying off debt so much that I’m contemplating trying to pay off my mortgage, but my interest rate is super low. It will be 3% starting July 1,2008…food for thought I guess.

]]> By: Andy http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/comment-page-1/#comment-273475 Andy Sat, 10 May 2008 17:42:07 +0000 http://www.thesimpledollar.com/2008/05/10/the-debtors-toolkit-twelve-effective-tactics-to-use-when-tackling-debt/#comment-273475 Solid advice. My girlfriend is getting ready to take on some debt for medical school. She will get free tuition, but will still have to pay for taxes and living expenses. I am glad I am reading up on this now since in a few years that could be my debt. Solid advice. My girlfriend is getting ready to take on some debt for medical school. She will get free tuition, but will still have to pay for taxes and living expenses. I am glad I am reading up on this now since in a few years that could be my debt.

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