Comments on: Moving Debt Is Not The Same As Paying It Off

By: Steve

Steve — Tue, 25 Mar 2008 21:46:11 +0000

Excellent post.

I’ve done all of these except #1 and #3. I moved debt around for several years each time thinking I was actually accomplishing something. I convinced myself I was being productive and even proactive with my finances. It’s a very strange state of mind to be in but eventually I got my act together. Because, at the end of the day the debt is still there!

By: My Daily Dollars

My Daily Dollars — Tue, 25 Mar 2008 21:38:00 +0000

You are so right. As my gigantic student loan demonstrates, moving debt just enables the same habits. I’ve finally learned I just need to dig in and shovel out of my debt.

By: emilyg

emilyg — Tue, 25 Mar 2008 21:28:49 +0000

I’m so glad to hear you say that. We are always writing about debt consolidation and how to get rid of debt, and I’ve talked to so many experts who say when you are going to move your debts onto one credit card, you must cut up that credit card and not use it. Only think of it as something that must be paid off, because moving it does not get rid of it. People look at it the wrong way then get in major trouble. They need a paradigm shift!

By: NCN

NCN — Tue, 25 Mar 2008 21:21:44 +0000

Sam, I strongly recommend calling for lower rates AND surfing balances – but, only if these things are coupled with a true debt reduction plan!
NCN

By: Sam

Sam — Tue, 25 Mar 2008 21:03:32 +0000

We paid off all unsecured debt last year ($55,500) and I regret not looking into #2 (lower interest credit cards). I never thought about transferring debt or even calling to see if we could get lower rates. #5 the first couple months of 2008 we have been on a spending bug, I think we delayed so many purchases last year that we had some real pent up needs and wants. I’m trying to get us back on track for the rest of the year.

By: BigBroodGander

BigBroodGander — Tue, 25 Mar 2008 16:06:47 +0000

We’ve spent years shifting debt around on 0% interest credit cards and just recently decided we were done. Done I tell you! (Well, ok, not yet).

Since we had such a great rate, we consistently racked up more debt. I’m not sure we ever felt we were “paying it off” but it just seemed to sort of disappear from our radar when on 0%.

Now, we’re on a path to paying those dumb debts off. After years of doing this and not really communicating about it I can now feel relief every time we get one of them paid off.

We’re still doing the “0% shuffle” until we can pay them off, but to see debts actually go away is a great feeling. I can’t wait until we’re debt-free (except for mortgage)

By: Baby Name

Baby Name — Tue, 25 Mar 2008 11:46:56 +0000

Very true and rightly said. Money borrowed from anyone has to be returned, whether its our mom, uncle, or
friend.

By: Jason Mathew

Jason Mathew — Tue, 25 Mar 2008 09:04:46 +0000

100% Agreed. This is what the problem is? Getting a new debt to pay the older one. This is a very good post, keep posting new things about finance.
Thanks,
Jason

By: Debt Free Revolution

Debt Free Revolution — Tue, 25 Mar 2008 04:07:14 +0000

This is SOOOOO TRUE!!!! I can’t count just how many times I have tried to explain to various people that they didn’t really “pay off” debt. They only moved it around. Paying off debt is when it is truly GONE FOR GOOD!!!

By: Tyler

Tyler — Tue, 25 Mar 2008 00:17:37 +0000

Sounds like The Sun’s Financial Diary personal motto. I unsubscribed from him because of this. I don’t need those kind of ideas in my head.