Comments on: Personal Expenses Management – How to Tackle Your Debt in Five Simple Steps http://www.mint.com/blog/moneyhack/creating-a-budget-or-howto-tackle-your-debt-in-five-simple-steps/ The blog of the free, simple personal finance solution. Track all your spending automatically, find the best deals, save more money. And save the world. Fri, 20 Nov 2009 20:48:42 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: How To Get Rid Of $35 000 In Debt « USMLEMD http://www.mint.com/blog/moneyhack/creating-a-budget-or-howto-tackle-your-debt-in-five-simple-steps/comment-page-1/#comment-11503 How To Get Rid Of $35 000 In Debt « USMLEMD Wed, 05 Dec 2007 20:47:21 +0000 http://www.mint.com/blog/moneyhack/howto-tackle-your-debt-in-five-simple-steps/#comment-11503 [...] How To: Tackle Your Debt in Five Simple Steps [mint]     Photo by quaziefoto   [...] [...] How To: Tackle Your Debt in Five Simple Steps [mint]     Photo by quaziefoto   [...] ]]> By: Jason http://www.mint.com/blog/moneyhack/creating-a-budget-or-howto-tackle-your-debt-in-five-simple-steps/comment-page-1/#comment-5894 Jason Wed, 24 Oct 2007 20:07:44 +0000 http://www.mint.com/blog/moneyhack/howto-tackle-your-debt-in-five-simple-steps/#comment-5894 Another good tool for paying off consumer debt is prosper.com. I consolidated several loans under one payment with a lower interest rate than any of the credit cards had (and 2% lower than anything banks would give me). I'll be bad debt-free for the first time in 4 years with my December payment. 100% recommended. Also, having a product that aggregates all your financial information (currently I use yodlee's moneycenter, but I'm evaluating mint - they need to handle investments before I switch) is a huge motivational helper. Watching your net worth go up really helps. Now, when presented with a large chunk of money (yearly bonus, tax return) I'm more likely to put it in savings instead of buying some new gadget - just so I can see my net worth go up. And in December, I'll be in the black again, and I'm throwing a party to celebrate. Another good tool for paying off consumer debt is prosper.com. I consolidated several loans under one payment with a lower interest rate than any of the credit cards had (and 2% lower than anything banks would give me). I’ll be bad debt-free for the first time in 4 years with my December payment. 100% recommended.

Also, having a product that aggregates all your financial information (currently I use yodlee’s moneycenter, but I’m evaluating mint – they need to handle investments before I switch) is a huge motivational helper. Watching your net worth go up really helps. Now, when presented with a large chunk of money (yearly bonus, tax return) I’m more likely to put it in savings instead of buying some new gadget – just so I can see my net worth go up. And in December, I’ll be in the black again, and I’m throwing a party to celebrate.

]]> By: modemlooper http://www.mint.com/blog/moneyhack/creating-a-budget-or-howto-tackle-your-debt-in-five-simple-steps/comment-page-1/#comment-4482 modemlooper Mon, 10 Sep 2007 03:41:13 +0000 http://www.mint.com/blog/moneyhack/howto-tackle-your-debt-in-five-simple-steps/#comment-4482 If you are current on student loan payments then defer them and use the money you would pay them off to credit card debt. If you are current on student loan payments then defer them and use the money you would pay them off to credit card debt. ]]> By: Viet http://www.mint.com/blog/moneyhack/creating-a-budget-or-howto-tackle-your-debt-in-five-simple-steps/comment-page-1/#comment-543 Viet Wed, 16 May 2007 22:03:54 +0000 http://www.mint.com/blog/moneyhack/howto-tackle-your-debt-in-five-simple-steps/#comment-543 Eric: That's a great point Eric, consolidate other accounts into a lower rate account when possible and without fees would be a good way to reduce amounts you pay via interest, and make it easier to keep track of your payments too. Thanks for adding that in. Moneymonk: Doh! Not sure why spellcheck didn't catch that typo but I suppose I can say the same about why I didn't notice it during proofing. Paying more than the minimum can definitely save you a lot of money in the long term, but if the home or student loan is of low enough interest rate, it may not be a bad idea to contribute your money to other funds such as retirement accounts. After all, there's no such thing as a retirement loan when you're old! Thermopyle: Hmm that may be true, I can see how that will help in building discipline, but I also believe that many people can also develop discipline even if they're paying higher amount accounts. In certain circumstances, tackling debts w/ the highest rate first will save staggering amounts of money! Of course, as Eric suggested... you can simply consolidate or transfer all funds into a single account, and that'll throw that problem out of the window :) Eric: That’s a great point Eric, consolidate other accounts into a lower rate account when possible and without fees would be a good way to reduce amounts you pay via interest, and make it easier to keep track of your payments too. Thanks for adding that in.

Moneymonk: Doh! Not sure why spellcheck didn’t catch that typo but I suppose I can say the same about why I didn’t notice it during proofing.

Paying more than the minimum can definitely save you a lot of money in the long term, but if the home or student loan is of low enough interest rate, it may not be a bad idea to contribute your money to other funds such as retirement accounts. After all, there’s no such thing as a retirement loan when you’re old!

Thermopyle: Hmm that may be true, I can see how that will help in building discipline, but I also believe that many people can also develop discipline even if they’re paying higher amount accounts. In certain circumstances, tackling debts w/ the highest rate first will save staggering amounts of money!

Of course, as Eric suggested… you can simply consolidate or transfer all funds into a single account, and that’ll throw that problem out of the window :)

]]> By: Thermopyle http://www.mint.com/blog/moneyhack/creating-a-budget-or-howto-tackle-your-debt-in-five-simple-steps/comment-page-1/#comment-541 Thermopyle Wed, 16 May 2007 21:45:56 +0000 http://www.mint.com/blog/moneyhack/howto-tackle-your-debt-in-five-simple-steps/#comment-541 I'm with Dave Ramsey on the notion that for most people under most circumstances paying off the smallest debt first and progressing up the debts in size order reaps psychological benefits which will help you keep disciplined in paying off the debt. I’m with Dave Ramsey on the notion that for most people under most circumstances paying off the smallest debt first and progressing up the debts in size order reaps psychological benefits which will help you keep disciplined in paying off the debt. ]]> By: Moneymonk http://www.mint.com/blog/moneyhack/creating-a-budget-or-howto-tackle-your-debt-in-five-simple-steps/comment-page-1/#comment-540 Moneymonk Wed, 16 May 2007 21:17:20 +0000 http://www.mint.com/blog/moneyhack/howto-tackle-your-debt-in-five-simple-steps/#comment-540 you misspelled Gather under step 3 I have good debt ( house, student loans) both under 10%. I carry no consumer debt. Although I am not behind on either debt. I have to execute #3 Pay more than the minimum That one move can save you a lot of money and plenty of time you misspelled Gather under step 3

I have good debt ( house, student loans) both under 10%. I carry no consumer debt. Although I am not behind on either debt. I have to execute #3 Pay more than the minimum

That one move can save you a lot of money and plenty of time

]]> By: Eric http://www.mint.com/blog/moneyhack/creating-a-budget-or-howto-tackle-your-debt-in-five-simple-steps/comment-page-1/#comment-538 Eric Wed, 16 May 2007 17:56:08 +0000 http://www.mint.com/blog/moneyhack/howto-tackle-your-debt-in-five-simple-steps/#comment-538 In example 4, you will also benefit by paying off the higher interest debts with the lowest interest one. From the example: You may have $2,000 at 13% APR; $6,000 at 16%; $3,000 at 19%; and $400 at 14%. You can use the 13% credit vehicle to pay off the other 9400 (if possible) and consolidate all the debts to 1 lowest interest payment. Then go back to #3. In example 4, you will also benefit by paying off the higher interest debts with the lowest interest one. From the example:
You may have $2,000 at 13% APR; $6,000 at 16%; $3,000 at 19%; and $400 at 14%.
You can use the 13% credit vehicle to pay off the other 9400 (if possible) and consolidate all the debts to 1 lowest interest payment. Then go back to #3. ]]>