Comments on: 5 Debt Reduction Methods http://www.ncnblog.com/2009/01/19/5-debt-reduction-methods/ Debt Reduction Rocks - We Are Living Debt Free! Sat, 21 Nov 2009 11:44:22 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Ellie http://www.ncnblog.com/2009/01/19/5-debt-reduction-methods/comment-page-1/#comment-156033 Ellie Wed, 08 Apr 2009 19:23:50 +0000 http://www.ncnblog.com/?p=2098#comment-156033 The debt avalanche is a very good method, my sister uses the avalanche and swears by it. Because, though it takes more patience and resolve, in the end it is faster and you save money. This was an informative article I really enjoyed it. However, I think that if people are buried under considerable debt they should think about consulting professionals. Institutions like CareOne and Jubilee Worldwide have had years of experience helping people get out of debt, and I think I would take advantage of their expertise. I have heard great things about these companies you should check them out. The debt avalanche is a very good method, my sister uses the avalanche and swears by it. Because, though it takes more patience and resolve, in the end it is faster and you save money. This was an informative article I really enjoyed it. However, I think that if people are buried under considerable debt they should think about consulting professionals. Institutions like CareOne and Jubilee Worldwide have had years of experience helping people get out of debt, and I think I would take advantage of their expertise. I have heard great things about these companies you should check them out.

]]> By: Emily http://www.ncnblog.com/2009/01/19/5-debt-reduction-methods/comment-page-1/#comment-144691 Emily Tue, 27 Jan 2009 13:32:32 +0000 http://www.ncnblog.com/?p=2098#comment-144691 One unappreciated benefit of the debt snowball is that it decreases your risk (for example, in case of a layoff) by reducing your monthly burn rate (of minimum payments). If your debt reduction plan is disrupted, you are (temporarily) in a much better position if you need lower cash flow to make it through the period of disruption. Long term you are better off paying the highest rate first, but you may be carrying higher risk by doing so. One unappreciated benefit of the debt snowball is that it decreases your risk (for example, in case of a layoff) by reducing your monthly burn rate (of minimum payments). If your debt reduction plan is disrupted, you are (temporarily) in a much better position if you need lower cash flow to make it through the period of disruption. Long term you are better off paying the highest rate first, but you may be carrying higher risk by doing so.

]]> By: fathersez http://www.ncnblog.com/2009/01/19/5-debt-reduction-methods/comment-page-1/#comment-144407 fathersez Sun, 25 Jan 2009 05:58:12 +0000 http://www.ncnblog.com/?p=2098#comment-144407 We follow the snowball. Your list gives people a complete understanding. Useful post. Regards We follow the snowball. Your list gives people a complete understanding. Useful post.

Regards

]]> By: The Personal Finance Playbook http://www.ncnblog.com/2009/01/19/5-debt-reduction-methods/comment-page-1/#comment-144197 The Personal Finance Playbook Fri, 23 Jan 2009 14:39:03 +0000 http://www.ncnblog.com/?p=2098#comment-144197 I would opt for the credit avalanche. Pay off those high interest debts first. If you have borrowed money at 3 or 4%, that's a positive thing. Or, if you can, take a bank loan and pay off all of your debts that are at a higher interest rate than the bank loan. I would opt for the credit avalanche. Pay off those high interest debts first. If you have borrowed money at 3 or 4%, that’s a positive thing. Or, if you can, take a bank loan and pay off all of your debts that are at a higher interest rate than the bank loan.

]]> By: Dust Wunderdebt http://www.ncnblog.com/2009/01/19/5-debt-reduction-methods/comment-page-1/#comment-144139 Dust Wunderdebt Thu, 22 Jan 2009 21:49:52 +0000 http://www.ncnblog.com/?p=2098#comment-144139 I like the chunks method. I pay down chunks of money on my debt when I feel like I have a little extra. I think one of the big things that stinks about debt is the burden that it has in your mind. When you are feeling good about your money situation, that's when it feels good to chunk down some debt. I've been paying 400 nearly every month on a Credit Card that has a balance of 4,000. Something about paying down 400 bucks on $4,000 feels good. Its a good number for me. I paid off my student loans last year as one of my goals for 2008. I think the feeling of knowing its gone is bigger then the actual savings on interest Still chipping at that credit card which is at 0% until June....but Hawaii was worth a little debt... I like the chunks method. I pay down chunks of money on my debt when I feel like I have a little extra. I think one of the big things that stinks about debt is the burden that it has in your mind. When you are feeling good about your money situation, that’s when it feels good to chunk down some debt. I’ve been paying 400 nearly every month on a Credit Card that has a balance of 4,000. Something about paying down 400 bucks on $4,000 feels good. Its a good number for me.

I paid off my student loans last year as one of my goals for 2008. I think the feeling of knowing its gone is bigger then the actual savings on interest

Still chipping at that credit card which is at 0% until June….but Hawaii was worth a little debt…

]]> By: Amber Weinberg http://www.ncnblog.com/2009/01/19/5-debt-reduction-methods/comment-page-1/#comment-143900 Amber Weinberg Wed, 21 Jan 2009 02:06:05 +0000 http://www.ncnblog.com/?p=2098#comment-143900 Great list! I think it depends on what kind/how much debt you have to figure out what works best. I only have a student loan and a car loan...the student loan has a higher balance but a lower rate, but I'd rather pay the car off quicker. :) Great list! I think it depends on what kind/how much debt you have to figure out what works best. I only have a student loan and a car loan…the student loan has a higher balance but a lower rate, but I’d rather pay the car off quicker. :)

]]> By: Йошкар-Ола http://www.ncnblog.com/2009/01/19/5-debt-reduction-methods/comment-page-1/#comment-143869 Йошкар-Ола Tue, 20 Jan 2009 22:30:21 +0000 http://www.ncnblog.com/?p=2098#comment-143869 I prefer the avalanche method, but see the value in the snowball. Paying off a low balance card is a great feeling. I also think the best method is the one that will most likely keep you motivated. I prefer the avalanche method, but see the value in the snowball. Paying off a low balance card is a great feeling. I also think the best method is the one that will most likely keep you motivated.

]]> By: Russell http://www.ncnblog.com/2009/01/19/5-debt-reduction-methods/comment-page-1/#comment-143848 Russell Tue, 20 Jan 2009 18:41:37 +0000 http://www.ncnblog.com/?p=2098#comment-143848 Thanks for an interesting post. All the best. Thanks for an interesting post. All the best.

]]> By: Troy http://www.ncnblog.com/2009/01/19/5-debt-reduction-methods/comment-page-1/#comment-143837 Troy Tue, 20 Jan 2009 16:11:57 +0000 http://www.ncnblog.com/?p=2098#comment-143837 This is my favorite site, because becoming debt free is the KEY to financial stability. All else comes second. I prefer the snowball, because it eliminates both a liability, a monthly expense, and a bill to track all in one swoop. I also think the best method is the one that will most likely keep you motivated. I firmly believe that mathematics, balances, interest rates, etc don't matter. Motivation matters. Whatever motivates you is what you shoud do. People are motivated by goals, dreams, fear, etc. Interest rate, balance, monthly payment, debt discomfort, etc. There are numeros ways to list the payoff order. What I have found is it doesn't really matter which order. It matters that you start, and you finish. This is my favorite site, because becoming debt free is the KEY to financial stability. All else comes second.

I prefer the snowball, because it eliminates both a liability, a monthly expense, and a bill to track all in one swoop.

I also think the best method is the one that will most likely keep you motivated.

I firmly believe that mathematics, balances, interest rates, etc don’t matter. Motivation matters. Whatever motivates you is what you shoud do. People are motivated by goals, dreams, fear, etc.

Interest rate, balance, monthly payment, debt discomfort, etc. There are numeros ways to list the payoff order. What I have found is it doesn’t really matter which order. It matters that you start, and you finish.

]]> By: Stephen http://www.ncnblog.com/2009/01/19/5-debt-reduction-methods/comment-page-1/#comment-143827 Stephen Tue, 20 Jan 2009 15:25:29 +0000 http://www.ncnblog.com/?p=2098#comment-143827 Hey thanks for the list. While I know about these already it's good to have it in one location for a handy list :) Hey thanks for the list. While I know about these already it’s good to have it in one location for a handy list :)

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