Comments on: Getting Out of Debt: Make That New Year’s Resolution Work http://www.consumerismcommentary.com/getting-out-of-debt-make-that-new-years-resolution-work/ A premier personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Mon, 13 Feb 2012 01:22:47 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Ram http://www.consumerismcommentary.com/getting-out-of-debt-make-that-new-years-resolution-work/comment-page-1/#comment-282987 Ram Thu, 29 Dec 2011 12:07:04 +0000 http://www.consumerismcommentary.com/?p=7657#comment-282987 A sugestion to Marci, Now that you are debt free keep the same records that gave you so mutch pleasure and use it to keep track of increasing your net worth!!!! This should be a very positive motivator to see how mutch you can increase your net worth instead of wondering where all that money went that you used to pay on your debt. A sugestion to Marci, Now that you are debt free keep the same records that gave you so mutch pleasure and use it to keep track of increasing your net worth!!!! This should be a very positive motivator to see how mutch you can increase your net worth instead of wondering where all that money went that you used to pay on your debt.

]]> By: Denise http://www.consumerismcommentary.com/getting-out-of-debt-make-that-new-years-resolution-work/comment-page-1/#comment-282968 Denise Wed, 28 Dec 2011 22:40:39 +0000 http://www.consumerismcommentary.com/?p=7657#comment-282968 There will probably be more new year's resolutions to get out of debt. Many will have goals written down and maybe even a plan of action. The trick is to make that plan into a habit by consistently implementing the steps/plan for about a month. At this point the habit will become ingrained. There will probably be more new year’s resolutions to get out of debt. Many will have goals written down and maybe even a plan of action. The trick is to make that plan into a habit by consistently implementing the steps/plan for about a month. At this point the habit will become ingrained.

]]> By: smeej http://www.consumerismcommentary.com/getting-out-of-debt-make-that-new-years-resolution-work/comment-page-1/#comment-282965 smeej Wed, 28 Dec 2011 21:48:55 +0000 http://www.consumerismcommentary.com/?p=7657#comment-282965 Is the maximum mortgage deduction really more than the interest you'd pay in one year on $1M in debt? It sounds preposterous! Is the maximum mortgage deduction really more than the interest you’d pay in one year on $1M in debt? It sounds preposterous!

]]> By: marci http://www.consumerismcommentary.com/getting-out-of-debt-make-that-new-years-resolution-work/comment-page-1/#comment-201023 marci Thu, 24 Dec 2009 18:14:15 +0000 http://www.consumerismcommentary.com/?p=7657#comment-201023 Keep track of it monthly - on paper like I did - as I liked the thrill of doing the addition and subtraction by hand and seeing that final figure get lower and lower every month. Or, if you're a techno-person, do it on a spreadsheet.... but it's not as much fun as having it all in a little book/ledger that you can look back thru and see your progress :) It was a thrill to see the balances drop each month, and to see something finally get crossed off the list. I can't say that I miss the debt, (debt free now) but I miss the thrill of watching the debt drop :) Keep track of it monthly – on paper like I did – as I liked the thrill of doing the addition and subtraction by hand and seeing that final figure get lower and lower every month.

Or, if you’re a techno-person, do it on a spreadsheet…. but it’s not as much fun as having it all in a little book/ledger that you can look back thru and see your progress :)

It was a thrill to see the balances drop each month, and to see something finally get crossed off the list. I can’t say that I miss the debt, (debt free now) but I miss the thrill of watching the debt drop :)

]]> By: ctreit http://www.consumerismcommentary.com/getting-out-of-debt-make-that-new-years-resolution-work/comment-page-1/#comment-200955 ctreit Wed, 23 Dec 2009 11:26:12 +0000 http://www.consumerismcommentary.com/?p=7657#comment-200955 Let me add another suggestion to your list: talk to a trusted person about your debt situation, who can help you take a hard look at it. Sometimes we are not able to really understand our own situation since we are so wrapped up in it, which makes it more difficult to get out of that situation on our own. Let me add another suggestion to your list: talk to a trusted person about your debt situation, who can help you take a hard look at it. Sometimes we are not able to really understand our own situation since we are so wrapped up in it, which makes it more difficult to get out of that situation on our own.

]]> By: ctreit http://www.consumerismcommentary.com/getting-out-of-debt-make-that-new-years-resolution-work/comment-page-1/#comment-200954 ctreit Wed, 23 Dec 2009 11:25:20 +0000 http://www.consumerismcommentary.com/?p=7657#comment-200954 I would add another suggestion to your list: talk to a trusted person about your debt situation, who can help you take a hard look at it. Sometimes we are not able to really understand our own situation since we are so wrapped up in it, which makes it more difficult to get out of that situation on our own. I would add another suggestion to your list: talk to a trusted person about your debt situation, who can help you take a hard look at it. Sometimes we are not able to really understand our own situation since we are so wrapped up in it, which makes it more difficult to get out of that situation on our own.

]]> By: Troy http://www.consumerismcommentary.com/getting-out-of-debt-make-that-new-years-resolution-work/comment-page-1/#comment-200950 Troy Wed, 23 Dec 2009 05:22:01 +0000 http://www.consumerismcommentary.com/?p=7657#comment-200950 Samuari says "Get a $1 million mortgage to take advantage of the maximum mortgage interest deduction, why not?" HA! you know the best way to get the maximum mortgage interest deduction. Get a higher rate. you know how many people refinance to a HIGHER interest rate to maximize their deduction. none. Pay off your debt. All of it. Forget the mortgage interest deduction. It is a byproduct, not a reason. When you get to zero, you will understand true financial freedom. Not this made up fantasy "business accounting" crap in your head. Because really, if you have a million, and you owe a million, you are worth nothing, even if you think you have something. Samuari says “Get a $1 million mortgage to take advantage of the maximum mortgage interest deduction, why not?”

HA!

you know the best way to get the maximum mortgage interest deduction. Get a higher rate.

you know how many people refinance to a HIGHER interest rate to maximize their deduction.

none.

Pay off your debt. All of it. Forget the mortgage interest deduction. It is a byproduct, not a reason. When you get to zero, you will understand true financial freedom. Not this made up fantasy “business accounting” crap in your head.

Because really, if you have a million, and you owe a million, you are worth nothing, even if you think you have something.

]]> By: Tyler Karasewski http://www.consumerismcommentary.com/getting-out-of-debt-make-that-new-years-resolution-work/comment-page-1/#comment-200947 Tyler Karasewski Wed, 23 Dec 2009 03:05:35 +0000 http://www.consumerismcommentary.com/?p=7657#comment-200947 "At some point, you have to think like a company and figure out what your optimal capital structure is." You really don't. I doubt I'll ever do this. In fact, I have no interest at all in learning what "optimal capital structure" is supposed to mean. Also, working to pay your rent or mortgage or credit card payment is hardly "exclusively for your creditors". It's not like you're not getting anything (housing, maybe?) out of the arrangement. What I think is the *most* important first step, and one that is definitely worth mentioning is that you need to stop taking on new debt. This probably means cut up your credit cards. It also means live with the car you've got, and you're not buying a new house for a while. You have to do this though if you want to be able to start making progress. You can also just declare bankruptcy and be done with it. “At some point, you have to think like a company and figure out what your optimal capital structure is.”

You really don’t. I doubt I’ll ever do this. In fact, I have no interest at all in learning what “optimal capital structure” is supposed to mean.

Also, working to pay your rent or mortgage or credit card payment is hardly “exclusively for your creditors”. It’s not like you’re not getting anything (housing, maybe?) out of the arrangement.

What I think is the *most* important first step, and one that is definitely worth mentioning is that you need to stop taking on new debt. This probably means cut up your credit cards. It also means live with the car you’ve got, and you’re not buying a new house for a while. You have to do this though if you want to be able to start making progress.

You can also just declare bankruptcy and be done with it.

]]> By: Ken http://www.consumerismcommentary.com/getting-out-of-debt-make-that-new-years-resolution-work/comment-page-1/#comment-200944 Ken Wed, 23 Dec 2009 01:51:15 +0000 http://www.consumerismcommentary.com/?p=7657#comment-200944 My tip would be post the goal on your bathroom mirror. I think it needs to be stated in positive terms and be specific and realistic. Mine will be about being less in debt rather than debt free. Good post! My tip would be post the goal on your bathroom mirror. I think it needs to be stated in positive terms and be specific and realistic. Mine will be about being less in debt rather than debt free. Good post!

]]> By: Flexo http://www.consumerismcommentary.com/getting-out-of-debt-make-that-new-years-resolution-work/comment-page-1/#comment-200943 Flexo Wed, 23 Dec 2009 00:10:10 +0000 http://www.consumerismcommentary.com/?p=7657#comment-200943 If only people's finances functioned like a business's finances. I'm all for using cheap debt when it can help provide you a better return, but that's how a lot of people ran into problems. Over-leverage, taking on debt to fulfill a dream of high returns in stocks or real estate, was riskier than people bargained. I'm all for attacking your finances like a business, but that can't be used as an excuse for taking on debt for the risk of losing assets you need. If only people’s finances functioned like a business’s finances. I’m all for using cheap debt when it can help provide you a better return, but that’s how a lot of people ran into problems. Over-leverage, taking on debt to fulfill a dream of high returns in stocks or real estate, was riskier than people bargained. I’m all for attacking your finances like a business, but that can’t be used as an excuse for taking on debt for the risk of losing assets you need.

]]> By: Financial Samurai http://www.consumerismcommentary.com/getting-out-of-debt-make-that-new-years-resolution-work/comment-page-1/#comment-200931 Financial Samurai Tue, 22 Dec 2009 16:16:32 +0000 http://www.consumerismcommentary.com/?p=7657#comment-200931 Having debt has been one of the biggest motivating factors in my life to make more money. At some point, you have to think like a company and figure out what your optimal capital structure is. A combo of debt and equity to maximize your return on equity. We'll reach a point where it becomes just accounting. Get a $1 million mortgage to take advantage of the maximum mortgage interest deduction, why not? Esp if you have $1 million cash in the bank, ready to be deployed. I agree, focus on financial freedom, not zero debt at all cost! Best, Sam Having debt has been one of the biggest motivating factors in my life to make more money. At some point, you have to think like a company and figure out what your optimal capital structure is. A combo of debt and equity to maximize your return on equity.

We’ll reach a point where it becomes just accounting. Get a $1 million mortgage to take advantage of the maximum mortgage interest deduction, why not? Esp if you have $1 million cash in the bank, ready to be deployed.

I agree, focus on financial freedom, not zero debt at all cost!

Best, Sam

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