Comments on: Debt Reduction and Savings Statement – February 2010 http://www.debtfreeadventure.com/debt-reduction-and-savings-statement-%e2%80%93-february-2010/ Pay off debt. Save. Give. Live your mission. Fri, 10 Feb 2012 04:12:45 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Personal Debt Reduction Is A Goal Worth Your Personal Sacrifice » Article Evolution http://www.debtfreeadventure.com/debt-reduction-and-savings-statement-%e2%80%93-february-2010/#comment-13960 Personal Debt Reduction Is A Goal Worth Your Personal Sacrifice » Article Evolution Fri, 28 Jan 2011 23:42:15 +0000 http://www.debtfreeadventure.com/?p=5588#comment-13960 [...] Debt Reduction and Savings Debt reduction remains strong and consistent. Savings … in doing something similar for your debt situation … Money Crashers Top Personal Finance Blogs; Sacrifice Determines Value [...] [...] Debt Reduction and Savings Debt reduction remains strong and consistent. Savings … in doing something similar for your debt situation … Money Crashers Top Personal Finance Blogs; Sacrifice Determines Value [...]

]]> By: Stick With Stocks Or Pay Off The Mortgage? | Frugal Dad http://www.debtfreeadventure.com/debt-reduction-and-savings-statement-%e2%80%93-february-2010/#comment-8721 Stick With Stocks Or Pay Off The Mortgage? | Frugal Dad Wed, 17 Mar 2010 09:01:44 +0000 http://www.debtfreeadventure.com/?p=5588#comment-8721 [...] debt, etc, seem to have awakened people from their personal debt slumber. Folks are finally making serious dents in their personal debt, and I think that is a good [...] [...] debt, etc, seem to have awakened people from their personal debt slumber. Folks are finally making serious dents in their personal debt, and I think that is a good [...]

]]> By: Forest http://www.debtfreeadventure.com/debt-reduction-and-savings-statement-%e2%80%93-february-2010/#comment-8623 Forest Sat, 13 Mar 2010 16:43:10 +0000 http://www.debtfreeadventure.com/?p=5588#comment-8623 Thanks ;), i'll keep working at it.... Thanks ;) , i’ll keep working at it….

]]> By: Matt Jabs http://www.debtfreeadventure.com/debt-reduction-and-savings-statement-%e2%80%93-february-2010/#comment-8622 Matt Jabs Sat, 13 Mar 2010 16:31:09 +0000 http://www.debtfreeadventure.com/?p=5588#comment-8622 Awesome Forest... just keep chugging along man. Discipline and faithfulness, that's the winning recipe. Awesome Forest… just keep chugging along man. Discipline and faithfulness, that’s the winning recipe.

]]> By: Forest http://www.debtfreeadventure.com/debt-reduction-and-savings-statement-%e2%80%93-february-2010/#comment-8610 Forest Sat, 13 Mar 2010 09:25:54 +0000 http://www.debtfreeadventure.com/?p=5588#comment-8610 I finally have my debt management in place and am just getting settled financially... hopefully next month I can start that Emergency fund!!! It's inspiring to read these posts. Thanks. I finally have my debt management in place and am just getting settled financially… hopefully next month I can start that Emergency fund!!!

It’s inspiring to read these posts. Thanks.

]]> By: Matt Jabs http://www.debtfreeadventure.com/debt-reduction-and-savings-statement-%e2%80%93-february-2010/#comment-8587 Matt Jabs Fri, 12 Mar 2010 20:36:05 +0000 http://www.debtfreeadventure.com/?p=5588#comment-8587 Thank you for stopping by, and for your encouragement. Thank you for stopping by, and for your encouragement.

]]> By: Matt Jabs http://www.debtfreeadventure.com/debt-reduction-and-savings-statement-%e2%80%93-february-2010/#comment-8586 Matt Jabs Fri, 12 Mar 2010 20:35:35 +0000 http://www.debtfreeadventure.com/?p=5588#comment-8586 Thanks Brett... for me both are tax deductible, although the limit on student loan interest deductions is $2,500/year and between mine and my wife's... we pay more than that each year so the interest deduction on the 2nd mortgage is definitely more substantial. Thanks Brett… for me both are tax deductible, although the limit on student loan interest deductions is $2,500/year and between mine and my wife’s… we pay more than that each year so the interest deduction on the 2nd mortgage is definitely more substantial.

]]> By: Matt Jabs http://www.debtfreeadventure.com/debt-reduction-and-savings-statement-%e2%80%93-february-2010/#comment-8575 Matt Jabs Fri, 12 Mar 2010 18:36:17 +0000 http://www.debtfreeadventure.com/?p=5588#comment-8575 Just keep chugging a long. A great thing to do, if you haven't already, is to figure out how much your debt costs you each month. Use my <a href="http://www.debtfreeadventure.com/interest-paid-how-much-debt-costs-spreadsheet/" rel="nofollow">How Much Your Debt Costs Spreadsheet</a> to figure your amounts. Break it down into how much the interest on your debt cost you each day... talk about motivation! Right now my debt costs me $42.46/day but is declining every month. Just keep chugging a long. A great thing to do, if you haven’t already, is to figure out how much your debt costs you each month. Use my How Much Your Debt Costs Spreadsheet to figure your amounts. Break it down into how much the interest on your debt cost you each day… talk about motivation! Right now my debt costs me $42.46/day but is declining every month.

]]> By: Ronnie http://www.debtfreeadventure.com/debt-reduction-and-savings-statement-%e2%80%93-february-2010/#comment-8574 Ronnie Fri, 12 Mar 2010 17:57:45 +0000 http://www.debtfreeadventure.com/?p=5588#comment-8574 Congrats on great progress this month! You know, the more I work and pay on my loans (and I've got 3 separate loans higher than yours, and plenty that are lower too :D), the more I want them gone before anything else. It's not psychological for me, it's really more the I CAN NEVER GET AWAY FROM THESE STUPID THINGS feeling. Garnish the wages, liens on accounts and refunds, never gone in bankruptcy, that type of thing. It actually makes them the worst debt to have in my opinion, low interest rate notwithstanding (that said, I'd still pay off the credit cards first). But they're also by far my largest debt, so I might be biased ;). Congrats on great progress this month!

You know, the more I work and pay on my loans (and I’ve got 3 separate loans higher than yours, and plenty that are lower too :D ), the more I want them gone before anything else. It’s not psychological for me, it’s really more the I CAN NEVER GET AWAY FROM THESE STUPID THINGS feeling. Garnish the wages, liens on accounts and refunds, never gone in bankruptcy, that type of thing. It actually makes them the worst debt to have in my opinion, low interest rate notwithstanding (that said, I’d still pay off the credit cards first). But they’re also by far my largest debt, so I might be biased ;) .

]]> By: Brett http://www.debtfreeadventure.com/debt-reduction-and-savings-statement-%e2%80%93-february-2010/#comment-8573 Brett Fri, 12 Mar 2010 17:15:40 +0000 http://www.debtfreeadventure.com/?p=5588#comment-8573 Matt, I would consider paying off your student loan first because typically the interest paid on your second mortgage is tax deductible while the student loan interest may not be. Just my two cents. Congrats on your progress. Matt, I would consider paying off your student loan first because typically the interest paid on your second mortgage is tax deductible while the student loan interest may not be. Just my two cents. Congrats on your progress.

]]> By: Budgeting in the Fun Stuff http://www.debtfreeadventure.com/debt-reduction-and-savings-statement-%e2%80%93-february-2010/#comment-8572 Budgeting in the Fun Stuff Fri, 12 Mar 2010 16:51:22 +0000 http://www.debtfreeadventure.com/?p=5588#comment-8572 Congrats! I just wandered over from Free Money Finance and cannot wait to see your next update. Good luck! Congrats! I just wandered over from Free Money Finance and cannot wait to see your next update. Good luck!

]]> By: Matt Jabs http://www.debtfreeadventure.com/debt-reduction-and-savings-statement-%e2%80%93-february-2010/#comment-8568 Matt Jabs Fri, 12 Mar 2010 16:39:02 +0000 http://www.debtfreeadventure.com/?p=5588#comment-8568 My student loan balance = $31k at 6% 2nd mortgage = $39k at 8.8% Like you said, the housing market will help me out - IF - it rebounds. The hope that the market would rebound would be the ONLY reason I pay off the student loan first. My student loan balance = $31k at 6%
2nd mortgage = $39k at 8.8%

Like you said, the housing market will help me out – IF – it rebounds. The hope that the market would rebound would be the ONLY reason I pay off the student loan first.

]]> By: Matt Jabs http://www.debtfreeadventure.com/debt-reduction-and-savings-statement-%e2%80%93-february-2010/#comment-8567 Matt Jabs Fri, 12 Mar 2010 16:36:45 +0000 http://www.debtfreeadventure.com/?p=5588#comment-8567 Great questions and points Neil. This is definitely NOT a lowest balance thing - normally I pay off the highest interest loan first, regardless of amounts... like you said, the psychological boost isn't a necessary factor for me. The reason to pay off the student loan first would be in the hopes that the housing market returned, and I could sell my home and recoup the value of the 2nd mortgage in the sale... all the while paying off my student loan. This is off course subject to the markets, and I don't see them coming back anytime soon. Great questions and points Neil. This is definitely NOT a lowest balance thing – normally I pay off the highest interest loan first, regardless of amounts… like you said, the psychological boost isn’t a necessary factor for me.

The reason to pay off the student loan first would be in the hopes that the housing market returned, and I could sell my home and recoup the value of the 2nd mortgage in the sale… all the while paying off my student loan.

This is off course subject to the markets, and I don’t see them coming back anytime soon.

]]> By: Matt Jabs http://www.debtfreeadventure.com/debt-reduction-and-savings-statement-%e2%80%93-february-2010/#comment-8566 Matt Jabs Fri, 12 Mar 2010 16:34:15 +0000 http://www.debtfreeadventure.com/?p=5588#comment-8566 It is... and that is where I'm leaning. The only reason I wouldn't is because I plan to sell my house as soon as the market recovers (if it does.) If I could pay off my student loan and recover the cost of the 2nd mortgage in the home sale... then I win. The other option is to pay off the 2nd mortgage first, so I can sell whenever I want... but then will have to take a loss in the sale - unless the market returns. It is… and that is where I’m leaning. The only reason I wouldn’t is because I plan to sell my house as soon as the market recovers (if it does.) If I could pay off my student loan and recover the cost of the 2nd mortgage in the home sale… then I win. The other option is to pay off the 2nd mortgage first, so I can sell whenever I want… but then will have to take a loss in the sale – unless the market returns.

]]> By: Matt Jabs http://www.debtfreeadventure.com/debt-reduction-and-savings-statement-%e2%80%93-february-2010/#comment-8565 Matt Jabs Fri, 12 Mar 2010 16:32:25 +0000 http://www.debtfreeadventure.com/?p=5588#comment-8565 Good idea... I need to plan a frugal vacation to Oregon! Good idea… I need to plan a frugal vacation to Oregon!

]]> By: Jolyn@Budgets are the New Black http://www.debtfreeadventure.com/debt-reduction-and-savings-statement-%e2%80%93-february-2010/#comment-8560 Jolyn@Budgets are the New Black Fri, 12 Mar 2010 14:47:09 +0000 http://www.debtfreeadventure.com/?p=5588#comment-8560 Congratulations! We just paid off the last of our consumer debt last month. Next step: 2nd mortgage. But first we are going to sock more away in savings, and probably start a fund for future purchases that we need and want. Both of those steps are important for avoiding future debt, after all! I am curious what your student loan balance is. For what it's worth, we waited on our 2nd even though it's the highest interest rate. Our consumer debt was actually on a 0% APR CC, which helped to snowball it fast. Are you thinking you can make real headway on the student loan? Meanwhile, the market may help you recoup the loss on the Second? It's a quandry, for sure. The important thing is to keep attacking it! Good job! Congratulations! We just paid off the last of our consumer debt last month. Next step: 2nd mortgage. But first we are going to sock more away in savings, and probably start a fund for future purchases that we need and want. Both of those steps are important for avoiding future debt, after all!

I am curious what your student loan balance is. For what it’s worth, we waited on our 2nd even though it’s the highest interest rate. Our consumer debt was actually on a 0% APR CC, which helped to snowball it fast.

Are you thinking you can make real headway on the student loan? Meanwhile, the market may help you recoup the loss on the Second? It’s a quandry, for sure. The important thing is to keep attacking it! Good job!

]]> By: Neil http://www.debtfreeadventure.com/debt-reduction-and-savings-statement-%e2%80%93-february-2010/#comment-8552 Neil Fri, 12 Mar 2010 07:14:25 +0000 http://www.debtfreeadventure.com/?p=5588#comment-8552 Is there a good reason for paying off your student loan first? Is this a "lowest balance first" thing, because that's just a psychological boost...it is certainly the more expensive option. Lowest balance first is only good for people who are prone to abandoning their repayment plan, which doesn't seem to describe you. Are there different tax treatments to the debts? I don't know US tax law very well, but in my country the student loan would get a tax credit, while the mortgage would not. Is there a good reason for paying off your student loan first? Is this a “lowest balance first” thing, because that’s just a psychological boost…it is certainly the more expensive option. Lowest balance first is only good for people who are prone to abandoning their repayment plan, which doesn’t seem to describe you.

Are there different tax treatments to the debts? I don’t know US tax law very well, but in my country the student loan would get a tax credit, while the mortgage would not.

]]> By: Financial Samurai http://www.debtfreeadventure.com/debt-reduction-and-savings-statement-%e2%80%93-february-2010/#comment-8551 Financial Samurai Fri, 12 Mar 2010 06:37:37 +0000 http://www.debtfreeadventure.com/?p=5588#comment-8551 Gotta feel good paying double principal yeah? I'd pay off your 2nd mortgage first, esp if its a higher rate. Gotta feel good paying double principal yeah?

I’d pay off your 2nd mortgage first, esp if its a higher rate.

]]> By: Jizzo http://www.debtfreeadventure.com/debt-reduction-and-savings-statement-%e2%80%93-february-2010/#comment-8547 Jizzo Fri, 12 Mar 2010 04:14:26 +0000 http://www.debtfreeadventure.com/?p=5588#comment-8547 I know a sweet place out west for you to vacation. I know a sweet place out west for you to vacation.

]]> By: Matt Jabs http://www.debtfreeadventure.com/debt-reduction-and-savings-statement-%e2%80%93-february-2010/#comment-8545 Matt Jabs Fri, 12 Mar 2010 02:12:13 +0000 http://www.debtfreeadventure.com/?p=5588#comment-8545 I'm very happy to see the progress we have made over the last year... a little sacrifice yields great results! I’m very happy to see the progress we have made over the last year… a little sacrifice yields great results!

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