From the category archives:

Debt

What Is The Real Cost of Debt?

January 18, 2010

photo credit: alancleaver_2000
Your debt is costing you. No shocker there. But how much? And in what ways? My guess is that you are being affected in ways you don’t realize. So let’s explore: what is the real cost of debt?

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Is There Such a Thing as Good Debt?

January 13, 2010

photo credit: eric731
I confess at the outset that the phrase “good debt” sounds like an oxymoron to me.
Because I view “debt” with great negativity, attaching the word “good” to it doesn’t quite resonate. I also confess that I am not sure that I can be absolutely objective in answering the “good debt” issue [...]

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How to Work Out Settlements With Debt Collectors

December 16, 2009

Last week I popped a few buttons sharing how my son Jeremy and his wife Erin worked and sacrificed to eliminate all of their debt ($21,500) in their first year of marriage. I mentioned in that post that Jeremy and Erin had negotiated settlements on two old debts that had been sold to collectors. [...]

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Debt Free in One Year: A True Story

December 9, 2009

This post was awarded Runner-up in Free Money Finance 2010 March Money Madness contest.

Erin, “Debt free for me means that we have more choices, more freedom and less that will hold us down keeping us from what and where we want to be.”
Jeremy, “It means tremendous peace…now we can pay ourselves every month.”
My [...]

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Should Christians Tithe While Paying Off Debt?

October 9, 2009

photo credit: processwhite
Darren and Cynthia (fictional names) had $80,000 in credit card debt, two old paid for vehicles and a house with zero equity that they were trying to sell. Because Darren’s job required him to work sporadic hours, it was difficult for him to find extra work. Cynthia worked a sales [...]

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Abusive Debt Collection Tactics And How to Deal With Them

September 14, 2009

photo credit: dno1967
“If you get off the phone with me, that’s it. The sheriff will be there and he will come for your kids.”
“You are totally ghetto…learn English; get an education instead of just sitting on your fat derriere all day long.”
These are just samples of the tactics that some abusive debt collectors use [...]

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Are Debt Consolidation Loans a Good or Bad Idea?

July 28, 2009

photo credit: TheTruthAbout
Although I generally don’t recommend debt consolidation loans, I admit that there are times when such a loan can help. For example, if you have lost your job and the wolves are at the door, consolidating your debt can lower your payments and get you some room to breathe while you are [...]

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10 Tips on How to Graduate College Debt Free

July 15, 2009

Prospective college students: this is for you. The choices you make on funding your college will impact your life for years to come. Sure, you can take the easy path and borrow the money. But I challenge you to be different: make sacrifices and avoid the debt. No College Savings? [...]

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4 Reasons You Should Not Use Your 401k to Pay Off Your Credit Card

July 13, 2009

Q:  We have $30,000 in credit card debt and it seems it will take forever to get it paid off.  Should I use money from my 401(k) to pay off that debt?  I am 35 years old.
A:  I realize, when you see that money sitting in your 401(k), that there is a temptation to tap [...]

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How Does Debt Snowball Work?

July 7, 2009

photo credit: Gwen Bubbles
Q: I understand that you recommend a Debt Snowball to help people get out of debt. Could you explain how this works?
A: Sure, but let me preface this by saying that unless you are ready to make radical changes in your life, the Debt Snowball or any other debt [...]

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Should I Bail Out Mom From Financial Struggles?

July 4, 2009

photo credit: Michael (mx5tx)
Q: My mom, who is not good at money management, nevertheless handles all of her and dad’s finances. She just called to tell me that she had her car repossessed earlier this week. Mom asked me to give her $1,000 so she can get it back. She also [...]

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