Comments on: Balancing Good Vs. Bad Debt In This Economy.

By: Debt hurts my ear :) « Brownvagabonder's Blog

Debt hurts my ear :) « Brownvagabonder's Blog — Fri, 10 Jul 2009 18:01:36 +0000

[...] Am I stressed about something? A lot of times, I’m so clueless about things, I am blindsided by really obvious things. Someone suggested yesterday that you might be getting some acne because of stress and I instantly denied it, saying, I am not stressed, I’m free as a bird. But when I had a few moments to think about it, I realized I dont really know if I am not stressed. I might be stressing about the trip and my student loan situation subconsciously. I think finances are something that everyone worries about, underneath everything else thats’ going on in their life, like an undercurrent that is beneath their every conscious thought. Especially, if you have debt, you have additional thoughts going on in your subconscious about how all the stress related to being in debt, doesn’t matter if its the good or bad kind. My Two Dollars has a really good post about good vs bad debt. You can read it here. [...]

By: Weekly Link Review – The Debt Collector Edition | frugalandthriving.com.au

Weekly Link Review – The Debt Collector Edition | frugalandthriving.com.au — Sun, 28 Jun 2009 20:36:09 +0000

[...] Fighting with Good v’s Bad Debt by My Two Dollars [...]

By: The Difference Between Good Debt and Bad Debt — P2P No Bank

The Difference Between Good Debt and Bad Debt — P2P No Bank — Tue, 17 Mar 2009 18:29:15 +0000

[...] Balancing Good Vs. Bad Debt In This Economy. Every headline you read about personal finance right now says to get out of debt. With the economy crashing, the last thing you want to carry with you is debt, right? Well, yes and no – you do want to get rid of any credit card debt, for sure. But…… Online Stores [...]

By: david

david — Tue, 02 Dec 2008 03:00:49 +0000

That is awesome fitwallet, congrats!!

By: fitwallet

fitwallet — Tue, 02 Dec 2008 02:33:36 +0000

I’m throwing $500 at the credit cards every month. We’re down to about $2,800, so it will be fully paid off in no more than six months. We’ve had several MAJOR setbacks, though. We started out with about $3,500 in debt and had paid about half of it down when bad stuff happened. First was an old debt that came back to haunt my partner–to the tune of $3,500. Then there was another old debt which totaled $1,200. Sigh. Thankfully, I was able to transfer everything to cards with extremely low interest rates (3 and 4%).

There’s nothing we can do about the setbacks, so I try not to let it bother me. And once June 2009 rolls around, we’ll have $500 more per month to put into savings, or $900 per month total! I’m so used to living without that $500, it seems weird to think of it as actual income.

By: Weekly Roundup - Thanksgiving Edition | Cash Money Life | Cash Money Life

Sun, 30 Nov 2008 18:04:05 +0000

[...] Balancing Good Vs. Bad Debt In This Economy. The economy may bring a few surprises in the coming months, so getting a handle on your debt is extremely important. [...]

By: Joe

Joe — Sat, 29 Nov 2008 14:59:58 +0000

I think the biggest factor concerning debt in a poor economy is the fact that all debt (good and bad) takes money out of your pocket. In recessionary times, this negative cash flow can have a major impact. A loss of income can mean a loss of a home for some people… try telling them that the mortgage was “good” debt.

By: David

David — Thu, 27 Nov 2008 15:10:24 +0000

Bad debt is the real danger, but we are great at mistaking bad debt for good (and rationalizing our reasons for doing so.) Your post is a valuable reminder that there is indeed a difference.

I hope the lessons of this economic meltdown are not lost on consumers. We can’t continue to be lead like sheep to the slaughter by greedy banks out after shortterm profits and by a culture that encourages us to spend money we don’t have on things we can’t afford. Sure, we are also to blame, but only because we have let uourselves be seduced and suckered.

By: vilkri

vilkri — Wed, 26 Nov 2008 14:25:29 +0000

Good post. There is no successful and large business that was not at some point financed with debt. Not many people could afford a house if there were no mortgages. Not many young people have enough money to pay for college. – These are all good and almost always inevitable debts. In all of these cases you have an asset to show for your debt though: a business, a house, an education. If you have something to show for your debt, it is good debt. But only if the asset’s value is in line with the amount of debt you incurred to acquire that particular asset.

By: Miranda

Miranda — Wed, 26 Nov 2008 14:09:27 +0000

Sometimes we forget that the KIND of debt we have impacts us. Thanks for the reminder. We don’t have to get rid of everything, but it’s important to start with the most damaging debt we have.