Comments on: Debt Tsunami: The Ultimate Method To Pay Off Debt

By: shaun donovan

shaun donovan — Mon, 28 Jun 2010 19:38:18 +0000

Reality Tiara you’re right i forgot to mention the most important part.
ALWAYS Live BELOW your means and save at least 20% of your income, half in retirement accounts and half in regular savings . Saving must be your priority. You’ll have enough to pay cash for cars etc. As far as cars that last… always buy hondas, acuras lexus’s and toyotas that will easily last the 12 years and 150k miles.

By: Reality Tiara

Reality Tiara — Mon, 28 Jun 2010 19:07:57 +0000

Shaun Donovan – good idea, if idealistic and overly simplified. This plan does not help people who are already saddled with credit card, car loan, and mortgage debt in their 40s and 50s. I absolutely agree that debt is the enemy, and I hope to never borrow another penny, but sometimes reality is beyond our control. Paying cash for a 2-year-old car is simply not feasible for many people, nor is paying off all mortgage debt before 50.

Expecting to keep a car until it is 12 years old is unrealistic. I’ve driven a few cars into the ground in my life, but have never had one last that long. I cannot have a car that’s unreliable, and after a certain point, they cost more to maintain than the car is worth. If you’re going to attempt this, keep a big fat savings account for towing bills, rental cars and major repairs, which always happen when you least expect them.

By: Shaun Donovan

Shaun Donovan — Mon, 28 Jun 2010 17:50:53 +0000

Debt is the enemy!!
Simple rules….30 yr old, 40 yr old, 50 yr old
1.The worst is credit card so pay off all before you are 30 then pay in full every month and never pay another penny in interest..
2. Next worst is car loans pay off all before 40 then always pay cash for a 2 yr old car and keep it 10 years.
3. Finally pay off all mortgage debt before 50.
4. Retire in your 50’s or 60 at latest.

If you can’t follow this then you are spending more money than you can afford to.

By: how do I snowball here - Page 2 - Saving Advice

how do I snowball here - Page 2 - Saving Advice — Wed, 02 Jun 2010 08:03:33 +0000

[...] I have gone downhill some. Really, a lot. After my Dad's death, my fish died in the aquarium sometime, then I dealt with all the family issues resolving with going through all the contents of the house and various buildings on the farm which wasn't easy, then my boss died in fall 2009 from an unexpected surgery. I have the same job with a different boss. I can't use any of those them for excuses. I have let myself down and all the people here who offered their help back then. I just about 2 weeks ago cleaned out the acquarium after it had sat 1.5 years at least with bad water and dead fish/snails in it. I guess I was maybe depressed and just didn't care. My day job is doing furloughs at this time, 1 or 2 days a month for the past several months. What happens after July 1st is unknown. Hopefully the state budgets will get the money that they are expecting. I still have a part time job. I have started to get back into bike riding again which I almost quit after my Dad's death. I think things are starting to turn around slow be it, yet I have to review all the comments from back then and go from there. In glancing over them I saw one indicate just to pick one debt and pay it off. I am considering doing that, regardless of amount or interest rate. I need to build up my contingency emergency fund. I ran across the below article and I may try that route as an alternate way. I really don't know what to do yet I won't give up. Debt Tsunami: The Ultimate Method To Pay Off Debt [...]

By: Kari

Kari — Tue, 01 Jun 2010 17:49:47 +0000

Great way to take all factors into consideration when deciding which debts to eliminate first – rather than just looking at the amount and the interest rate. Life isn’t just about the numbers – it’s about emotions, and quality of life and motivation. . . so really looking at the emotional impact each debt (or the paying off of each debt) has on you, and your life, has a wider breadth to it than just focusing on the numbers.

By: Organización de finanzas personales (IV): ¿cómo salir de deudas?

Organización de finanzas personales (IV): ¿cómo salir de deudas? — Tue, 01 Jun 2010 09:07:53 +0000

[...] información | La estrategia tsunami en Man vs Debt y sobre la estrategia bola de nieve en inglés en Get Rich Slowly y en español en Haga Negocios En [...]

By: Financial Planning Resources

Financial Planning Resources — Mon, 24 May 2010 17:49:41 +0000

[...] Debt Tsunami: The Ultimate Method To Pay Off Your Debt at Man Vs. Debt [...]

By: henry

henry — Sat, 24 Apr 2010 04:10:39 +0000

This is a good way to eliminate debt. It should be called pay your friends and family first then your creditors. I have some strong feelings of hatred towards all my debt. But my biggest problem is paying off one debt and then knowing that another debt is there just around the corner.

By: Simon

Simon — Wed, 07 Apr 2010 04:07:27 +0000

Michael, this isn’t correct. It doesn’t matter what your balances are – paying the highest interest debt first is always the quickest and cheapest approach mathematically.

Suppose you have the following debts:

Debt 1: $100,000 at 6% – monthly interest $500.
Debt 2: $1,000 at 24% – monthly interest $20.

Every spare dollar you put into debt 1 saves you $0.06 per year in interest. But every spare dollar you put into debt 2 saves you $0.24 per year. In the long run, choosing to pay debt 1 first could cost you a lot of money.

By: Ellen

Ellen — Wed, 17 Mar 2010 01:42:45 +0000

What an awesome life you three have! I too am on the road to simplicity and have been purging on Ebay and Craigslist. As for the debt Tsunami I concur! I had at one time almost $100,000 in debt and $12k of it was to my father at no interest. I paid him first because holidays and even ordinary visits became strained under the weight of the loan. Banks don’t give you dirty looks across the Thanksgiving table, family will and did.

I am ready to list my stuff. I live in one bedroom and a closet with my elderly parents caring for them. I have had to downscale from when I had 1200 sq feet with my own family at home. I still have too much. I am planning an extensive trip through India in about a year and your tips are just what I needed. Thanks for sharing!

Ellen