Comments on: August 2006 Financial Plan http://fromthered.com/2006/08/09/august-06-financial-plan/ A Young Professional's Quest to Get Out of Debt Wed, 07 Jan 2009 14:33:14 +0000 http://wordpress.org/?v=2.0.3 by: John http://fromthered.com/2006/08/09/august-06-financial-plan/#comment-14 Mon, 14 Aug 2006 19:35:44 +0000 http://fromthered.com/2006/08/09/august-06-financial-plan/#comment-14 Yes, pay down the highest rate first. Every penny goes toward it. When it's gone, move to the next highest rate. Of course, if you see an invitation in the mail for 0% introductory offer, followed by a rate that is competitive with what you have now, then transfer that high rate to the zero rate. If you can get your debts down to the 5% area, that's when their meaning subtly shifts. Until then, pay them off, every penny toward them. Here's a great way to think about it: If you have a debt at 10%, paying it off is the same as making an investment at 10%! You can't invest in CD's at 10%, so the debt payoff is more valuable than any savings move you can make. Yes, pay down the highest rate first. Every penny goes toward it. When it’s gone, move to the next highest rate.

Of course, if you see an invitation in the mail for 0% introductory offer, followed by a rate that is competitive with what you have now, then transfer that high rate to the zero rate.

If you can get your debts down to the 5% area, that’s when their meaning subtly shifts. Until then, pay them off, every penny toward them.

Here’s a great way to think about it: If you have a debt at 10%, paying it off is the same as making an investment at 10%! You can’t invest in CD’s at 10%, so the debt payoff is more valuable than any savings move you can make.

]]> by: SleepyOreo http://fromthered.com/2006/08/09/august-06-financial-plan/#comment-13 Fri, 11 Aug 2006 18:18:05 +0000 http://fromthered.com/2006/08/09/august-06-financial-plan/#comment-13 I like your approach on the credit cards and i've adapted it in my new budget plan. I really reccomend PearBudget (http://www.pearbudget.com) for budgeting if you aren't using anything already, it works great. Great site, but i'm curious, how did you find out that I linked you? SleepyOreo I like your approach on the credit cards and i’ve adapted it in my new budget plan. I really reccomend PearBudget (http://www.pearbudget.com) for budgeting if you aren’t using anything already, it works great.

Great site, but i’m curious, how did you find out that I linked you?

SleepyOreo

]]> by: Jess http://fromthered.com/2006/08/09/august-06-financial-plan/#comment-12 Fri, 11 Aug 2006 14:58:28 +0000 http://fromthered.com/2006/08/09/august-06-financial-plan/#comment-12 just curious - who are you doing your e-fund and IRA through? just curious - who are you doing your e-fund and IRA through?

]]> by: Beachgirl http://fromthered.com/2006/08/09/august-06-financial-plan/#comment-11 Wed, 09 Aug 2006 15:38:53 +0000 http://fromthered.com/2006/08/09/august-06-financial-plan/#comment-11 Hey Red. Check out my Debt-Proof Living series, particularly Part 3 - Contingency Fund and Part 4 - Debt Repayment. This might help you with your situation. Hey Red. Check out my Debt-Proof Living series, particularly Part 3 - Contingency Fund and Part 4 - Debt Repayment. This might help you with your situation.

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