Comments on: The 5 Worst Forms of Debt http://www.consumerismcommentary.com/the-5-worst-forms-of-debt/ 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. Sun, 12 Feb 2012 20:01:44 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: tigernicole86 http://www.consumerismcommentary.com/the-5-worst-forms-of-debt/comment-page-1/#comment-249284 tigernicole86 Fri, 14 Jan 2011 02:07:12 +0000 http://www.consumerismcommentary.com/?p=8335#comment-249284 Sometimes, there are certain things necessary to gain a new job like Auturo said. But i have found that with trying to find new furniture,the RTO places are bad news. I need a new bed but my back can take it for a few more months rather than pay about 2x as much for a bed even if I paid everything up front. Sometimes, there are certain things necessary to gain a new job like Auturo said. But i have found that with trying to find new furniture,the RTO places are bad news. I need a new bed but my back can take it for a few more months rather than pay about 2x as much for a bed even if I paid everything up front.

]]> By: Jeff Kursman http://www.consumerismcommentary.com/the-5-worst-forms-of-debt/comment-page-1/#comment-203007 Jeff Kursman Mon, 01 Feb 2010 01:51:47 +0000 http://www.consumerismcommentary.com/?p=8335#comment-203007 Payday lending opponents’ “cycle of debt” claim is not valid CFSA’s Best Practices indicate that any customer who cannot pay back a loan when it’s due has the option of entering an extended payment plan. This option allows them to repay the loan over a period of additional weeks at no additional cost. Payday lending opponents’ “cycle of debt” claim is not valid CFSA’s Best Practices indicate that any customer who cannot pay back a loan when it’s due has the option of entering an extended payment plan. This option allows them to repay the loan over a period of additional weeks at no additional cost.

]]> By: Arturo http://www.consumerismcommentary.com/the-5-worst-forms-of-debt/comment-page-1/#comment-202582 Arturo Mon, 25 Jan 2010 11:24:03 +0000 http://www.consumerismcommentary.com/?p=8335#comment-202582 Sometimes some depreciating assets such as a car or new clothes for a new job are important for producing money, for your income, so in some cases you should decide wether you may be in debt for income or stay without the new or higher income to stay debt free; I see the problem should be take the risk or be in debt after exploring all posibilities and find no option, and of course buy a car for your job does not mean a 2010 Mercedes, could be a used car yoi can afford. Another topic is how we can see todays consumism in families and how we assume as a true that our parents or grandparents had an easier life before so that they could have assets that we could not afford if we do not enter ito the cycle of debt; 2 things for that: 1, today we only understand we enjoy life eating out, paying for places to enjoy and go shopping; 2 is that when people today is 30 we think that in order to live we need to have the same standard of life as our parents have, and they are already 60, so they have their standard but worked 40 years to have it and we have worked only a few years, so we get in debt Sometimes some depreciating assets such as a car or new clothes for a new job are important for producing money, for your income, so in some cases you should decide wether you may be in debt for income or stay without the new or higher income to stay debt free; I see the problem should be take the risk or be in debt after exploring all posibilities and find no option, and of course buy a car for your job does not mean a 2010 Mercedes, could be a used car yoi can afford. Another topic is how we can see todays consumism in families and how we assume as a true that our parents or grandparents had an easier life before so that they could have assets that we could not afford if we do not enter ito the cycle of debt; 2 things for that: 1, today we only understand we enjoy life eating out, paying for places to enjoy and go shopping; 2 is that when people today is 30 we think that in order to live we need to have the same standard of life as our parents have, and they are already 60, so they have their standard but worked 40 years to have it and we have worked only a few years, so we get in debt

]]> By: Just thinking... http://www.consumerismcommentary.com/the-5-worst-forms-of-debt/comment-page-1/#comment-202574 Just thinking... Mon, 25 Jan 2010 08:05:51 +0000 http://www.consumerismcommentary.com/?p=8335#comment-202574 Just thinking.... It could be argued that *too* much school loan debt can be right up there with these other 5 "worst" debts. Too much in school loans (ex. $50K+) will seriously hinder your future financial cash flow. School loans don't always lead to high-paying jobs. Plus...you can't get out of it by declaring bankruptcy. All these other debts you can potentially be elimanated by bankruptcy; but not school loans. Just thinking….
It could be argued that *too* much school loan debt can be right up there with these other 5 “worst” debts. Too much in school loans (ex. $50K+) will seriously hinder your future financial cash flow. School loans don’t always lead to high-paying jobs. Plus…you can’t get out of it by declaring bankruptcy. All these other debts you can potentially be elimanated by bankruptcy; but not school loans.

]]> By: Peter http://www.consumerismcommentary.com/the-5-worst-forms-of-debt/comment-page-1/#comment-202306 Peter Fri, 22 Jan 2010 16:05:30 +0000 http://www.consumerismcommentary.com/?p=8335#comment-202306 I really hate those any type of loan that takes advantage of people - like the payday loans or refund anticipation loans. typically those loans end up being extremely high interest - and taking advantage of people who really can't afford those types of loans.. I really hate those any type of loan that takes advantage of people – like the payday loans or refund anticipation loans. typically those loans end up being extremely high interest – and taking advantage of people who really can’t afford those types of loans..

]]> By: Flexo http://www.consumerismcommentary.com/the-5-worst-forms-of-debt/comment-page-1/#comment-202237 Flexo Thu, 21 Jan 2010 23:32:09 +0000 http://www.consumerismcommentary.com/?p=8335#comment-202237 Cars are certainly depreciating assets, so the best choice is to not go into debt to buy one. However, I can see circumstances where a reliable car is a necessity, even if someone hasn't had a chance to save up money. Cars are certainly depreciating assets, so the best choice is to not go into debt to buy one. However, I can see circumstances where a reliable car is a necessity, even if someone hasn’t had a chance to save up money.

]]> By: Flexo http://www.consumerismcommentary.com/the-5-worst-forms-of-debt/comment-page-1/#comment-202235 Flexo Thu, 21 Jan 2010 23:24:17 +0000 http://www.consumerismcommentary.com/?p=8335#comment-202235 Thanks for the clarification, A.J. Many people who gamble, particularly those who do compulsively, will find themselves in debt before long. And if credit is given to you by unscrupulous individuals, perhaps some gamblers' only options, then you're asking for trouble down the road. Thanks for the clarification, A.J. Many people who gamble, particularly those who do compulsively, will find themselves in debt before long. And if credit is given to you by unscrupulous individuals, perhaps some gamblers’ only options, then you’re asking for trouble down the road.

]]> By: Jim http://www.consumerismcommentary.com/the-5-worst-forms-of-debt/comment-page-1/#comment-202215 Jim Thu, 21 Jan 2010 19:17:40 +0000 http://www.consumerismcommentary.com/?p=8335#comment-202215 I'd put money owed to the IRS in there above #5. You do NOT want to owe the government money. THey won't bust your knee caps but they can put you in jail worst case. I'm not even clear on what they are saying for #5. Cars are the obvious depreciating asset that people get loans for but they seem to say cars don't count there. But then they talk about houses losing value. Is #5 meant to cover houses but not cars? Or what? I’d put money owed to the IRS in there above #5. You do NOT want to owe the government money. THey won’t bust your knee caps but they can put you in jail worst case.

I’m not even clear on what they are saying for #5. Cars are the obvious depreciating asset that people get loans for but they seem to say cars don’t count there. But then they talk about houses losing value. Is #5 meant to cover houses but not cars? Or what?

]]> By: A.J. http://www.consumerismcommentary.com/the-5-worst-forms-of-debt/comment-page-1/#comment-202211 A.J. Thu, 21 Jan 2010 18:57:12 +0000 http://www.consumerismcommentary.com/?p=8335#comment-202211 Steve, gambling itself might not be a debt, but going in to debt in order to gamble might very well be the dumbest thing one can do, financially. That's what the article's warning about--not the gambling itself (although it's certainly not recommending such activities), but gambling with money you don't have. Steve, gambling itself might not be a debt, but going in to debt in order to gamble might very well be the dumbest thing one can do, financially. That’s what the article’s warning about–not the gambling itself (although it’s certainly not recommending such activities), but gambling with money you don’t have.

]]> By: Steve http://www.consumerismcommentary.com/the-5-worst-forms-of-debt/comment-page-1/#comment-202203 Steve Thu, 21 Jan 2010 17:19:28 +0000 http://www.consumerismcommentary.com/?p=8335#comment-202203 #1 is bad debt no question #2 is bad, sure, but you didn't really address why the debt is bad (you only talked about why getting a refund is bad.) RALs are another type of overly expensive debt, as typically the refund would come in two weeks or less anyways. #3 Gambling isn't a type of debt. #4 Nor is a "rent to own" plan a type of debt, really. Just an expensive way to purchase something. #5 Isn't a "form" of debt, just a blanket statement. #1 is bad debt no question
#2 is bad, sure, but you didn’t really address why the debt is bad (you only talked about why getting a refund is bad.) RALs are another type of overly expensive debt, as typically the refund would come in two weeks or less anyways.
#3 Gambling isn’t a type of debt.
#4 Nor is a “rent to own” plan a type of debt, really. Just an expensive way to purchase something.
#5 Isn’t a “form” of debt, just a blanket statement.

]]> By: ctreit http://www.consumerismcommentary.com/the-5-worst-forms-of-debt/comment-page-1/#comment-202196 ctreit Thu, 21 Jan 2010 16:22:30 +0000 http://www.consumerismcommentary.com/?p=8335#comment-202196 I'd broaden #5 to include debt you incur that does not even get you a depreciating asset like financing vacation on a credit card. I’d broaden #5 to include debt you incur that does not even get you a depreciating asset like financing vacation on a credit card.

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