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Is It Better To Invest or Be Debt Free?

paying off debt quickly

A big reason many people put off investing is debt. It doesn’t really make sense to ramp up investments while paying 21 percent interest to credit card companies, but what about low interest debt? Obviously the answer depends on many variables including income, how much debt you owe, and if you are investing for short or long term goals. We currently have lots of mortgage debt, mostly from investment properties, that we’d like to see paid off quickly. However, we don’t want to miss out on investment gains and compound interest either. Is is better to invest or be debt free? Completely Debt Free In Six Years! Assuming we maintain our current level of income and expenses, if we were to stop investing in our 401k’s, IRA’s, and taxable brokerage accounts and put all the money toward paying down mortgage debt, our primary home could be paid off in about three years. The commercial building we own will be paid off in a little over four years. At that point, we could throw everything toward the other rental house and four plex, paying those off in another two or three years. If we went for that strategy, we would own ...

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Banish Debt Like A Boss At Frugal Woods

climing the mountain of debt

Are you struggling with debt? Do you lie awake at night worrying about making monthly payments? Do you feel like you’ll owe Visa until the day you die? Don’t worry, you’re not alone. Today I’m excited to be guest posting at Frugal Woods. Mr. and Mrs. FW are the rare exception in today’s society. They have never had debt troubles! Since I have had my fair share of debt experience, I’m helping with their series in Demystifying Personal Finance. I’ll be talking about how to mentally prepare to pay off debt and steps people should take to get banish debt once and for all. I hope you all will check out Banish Debt Like a Boss at Frugal Woods.

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How Anyone Can Get Out Of Debt

paying off debt once and for all

On Monday, we talked about how people, even smart ones, can get into debt. Getting into debt is easy and sometimes even fun, but there is always a price to pay. I don’t know about you, but I love having choices. Debt robs any choice besides having to make a payment. If you really want to start living the life you were meant to have, it’s time to get out of debt once and for all. The good news is that by following some simple steps, anyone can get out of debt.  Accept Responsibility For Your Debt Now when I say simple, that doesn’t always equate to easy. It’s simple to lose weight by burning more calories than you consume, but how many people struggle with that one? I believe the first step in getting out of debt is to let go of the reasons that landed you here so that you can move forward. It doesn’t matter if your debt came from bad decisions, taking out too many student loans, not getting or keeping the job you wanted, or even from having medical bills. Once the balance is on your credit report, it’s all debt and your responsibility. Debt ...

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How I Got Into Debt

There was a time when I thought it was normal to be in debt. As I finished school and entered the work force, I believed it was normal to sign up for the debt club with a new mortgage, new car, and all the trappings of the lifestyle people told me I needed. Eventually, debt lost it’s glitter, and it took control of my life. I’m here to tell you how smart people get into debt by spending too much, believing in good debt, getting approved for too much credit, and thinking that making payments means you can afford it. Later this week, I’ll tell you how to stop the cycle because debt does not have to be forever. How I Got Into Debt People only get into debt one way, by spending more than they earn. My initiation into the debt club came on my first day of optometry school when I picked up my first ever student loan check to pay tuition. Since my income was zero and I’d just spent $10,000, I got immediate silver status! Fast forward four years, and I graduated with a really nice diploma, a residency position that paid $25,000 a year, and ...

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Chapter 7 Bankruptcy: Are You Eligible?

Chapter 7 Bankruptcy

In your journey toward financial clarity, there will come a time when you will need to take an honest look at your debt. If you’re lucky, you might be in a position to pay off your debt and improve your financial picture. However, if your debts are far greater than your income, or if you have had a series of misfortunes that have left you financially bereft, you might have no option but to file Chapter 7 Bankruptcy. What is Chapter 7 Bankruptcy? Before we talk about what Chapter 7 is, we should discuss what it is not: Chapter 7 bankruptcy is not a way for people to shirk their responsibilities or defraud their creditors. It is a way for honest people, who have fallen on hard times financially, to eliminate their debts and start over with a clean slate. Because it is designed to forgive honest debt, there are several criteria you must meet to be eligible to file. Chapter 7 Bankruptcy Criteria Because Chapter 7 is reserved for those who truly cannot pay their bills, there are several criteria that you must meet before you can file. The biggest criterion is the chapter 7 means test. The Means ...

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