debt elimination [Archive] - Glock Talk

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Ralphumor
08-28-2005, 22:26
Sorry If Im in the wrong spot...Cant sleep and its late. My question is.....I have enough stock to cover my credit card debt (which I have tried for 2 years to eliminate with little success) at high interest rate. Should I take a asset and eliminate stupidity of using the credit card. I HATE CREDIT and do not use it anymore and will not use it anymore when/if this debt is gone. Thanks for any help!!!

PS sorry I suck at spelling if anything is wrong......

Glocker74
08-28-2005, 22:52
One option is to take advantage of the 0% credit cards out there- 0% for 6 mos to 1 year for balance transfers. Pay it in full before it comes due.

If your credit is already impacted to the point your mailbox isn't full of cc card offers, then maybe a stock sale is your best bet.

Figure the optimal rate of return of 10% per year for stocks versus what you are paying now on debt- are you shelling out more than 10% interest per year on your cards?

Are you going to make a good profit when you sell your stock? If so, you not only make a profit but you make what you save on interest.

Once your stock is sold it's gone and you have no long term savings...sorry, no concrete answers here. I would have to have the figures in front of me to crunch.

geminicricket
08-28-2005, 23:15
I hate debt too. I have sold stock to pay some debt. I don't know if that was the right thing to do, but the stock is gone and the debt isn't.

jprj
09-05-2005, 01:13
Originally posted by geminicricket
I hate debt too. I have sold stock to pay some debt. I don't know if that was the right thing to do, but the stock is gone and the debt isn't.

Had the same experience....

duncan
09-14-2005, 17:19
I'd think about credit counseling and getting them to negotiatate a debt workout plan for you.

They can get your interest rates cut in half and I would just cut those cards up and use cash only.

Eat chicken and rice for the next year and pay it off.

Been there with credit card bills, only carry one now and for special planned purchases.

DBradD
09-18-2005, 00:39
You need to do more than just selling the stock and paying off the credit cards. If you only do that, your debt will grow back in no time flat, and all you've accomplished is losing your stock funds. The reason is that you didn't do anything to get rid of the problem that caused the debt, namely lack of living on a pre-planned budget. If you hate the slavery of debt and really want to do something about it, go to amazon.com and pick up a copy of Financial Peace or the Total Money Makeover, both by Dave Ramsey. Financial Peace can be had for less than $10. He also has a radio show with archives that can be found on www.daveramsey.com. His recommendations make sophisticated academic types scream, but in the real world, his advice works. The reason is that he focuses on the real problems - the psychological aspects of personal finance. Academic types focus on math and sophisticated schemes. Being a math nerd type, I can appreciate that, but the fact is that personal finance is more a matter of behavior and psychology and this is where Ramsey's recommendations really shine. Years ago, we were not in such good financial shape. We found Ramsey and worked our way into good financial shape using his ideas. It completely changed our financial lives.

Good luck.
DBD

DBradD
09-18-2005, 00:49
Originally posted by duncan
I'd think about credit counseling and getting them to negotiatate a debt workout plan for you.

They can get your interest rates cut in half and I would just cut those cards up and use cash only.


I agree with cutting up the cards.

I do not agree with using credit counseling. My understanding is that most of them are ripoffs and many are blatantly corrupt. Besides, the original poster doesn't need them. He needs to get with the Ramsey plan which is the real deal. Assuming he doesn't have a 6-digit debt, and that he pays it off Ramsey-style, the difference in interest payment won't be enough to spit at, even if they could half it. Probably won't cover their fee. Don't get me wrong. It would be good to save the money, but the psychology is wrong. This falls more into the category of trying to trick his way out of debt instead of doing it right, which is correcting the problem of living without preplanned budgets, sacrificing, and wiping it out. Also, it's my understanding that use of credit counseling services trashes his credit.

One more thing. He could contact the credit card company directly and threaten to surf the balance somewhere else. If his interest rate is a ripoff, then it should not be difficult to take one of the six credit card offers that he probably got this week and surf the balance. This still should not be the main focus, but can be done with no negative consequences.

DBD

ShackleMeNot
10-03-2005, 06:35
You have to change your view of how you spend and save money or you will wind up right back where you are some time in the future. Basically you need to change your behavior that got you to this point before you try to cure the symptoms.

Dave Ramsey's site is a little "busy" but his plan is solid and I very much agree with his views on debt and credit.

Link to Dave Ramsey's Baby Steps. (http://www.daveramsey.com/etc/cms/index.cfm?intContentID=2867)

DBradD
10-03-2005, 20:46
Originally posted by ShackleMeNot
You have to change your view of how you spend and save money or you will wind up right back where you are some time in the future. Basically you need to change your behavior that got you to this point before you try to cure the symptoms.

Dave Ramsey's site is a little "busy" but his plan is solid and I very much agree with his views on debt and credit.

Link to Dave Ramsey's Baby Steps. (http://www.daveramsey.com/etc/cms/index.cfm?intContentID=2867)

Preemptively +1

BigBore45
11-02-2006, 04:10
I was in debt about 30,000 from school and such and my wife and I buckled down and took Dave Ramsey's advice and we are buying a new home and have 3,600 of that 30,000 to pay off and its been 1 year and about 5 months since we started. I hav eone credit card for emergencies and it stays at home unless we travel out of state. It works if your dedicated. Good luck