Repay Your Debt

Brian  

I was thinking about this the other day, thought I’d share. We owe money, like most people. We have generous friends and family that have helped us out throughout the years. We have student loans, we have a mortgage, and we have car payments. We’re lucky that we have minimal credit card debt.

Anyhow, I’ll get to the point. Don’t be a chump. Don’t wait for a bailout. Pay back your debt, and do it in this order:

  1. Friends: because you don’t want to be “that” guy.
  2. Family: because you may need them to loan it back in the future.
  3. Credit Cards: because they are brutal.
  4. Automobile: because car payments suck.
  5. Other (mortgage, student loans, etc.): because they are, typically, fair and manageable investments.

“How do I do this?” You might ask. Easy:

  • Buy a used car. (And join a credit union so you’ll get a better rate).
  • Go out to eat (or, especially, drink) one or two fewer times per week.
  • Quit with the Starbucks (or variation). Brew at home, and buy a nice to-go cup. Like the specialty drinks? Have you seen the flavors the creamer companies have come out with recently. Buy some.
  • Drop the gym membership. Be honest, you don’t really use it, anyway (if you’re in the 5% who actually do, kudos to you). Do some pushups and crunches, jump rope, ride a bike. Do yoga at home.
  • Get a cell plan that fits your usage. One should never EVER pay overage fees or excessive texting fees.

Keep it simple. There are plenty of ways to save a few bucks here and there so you can take care of that pesky debt. Get creative. Most importantly, do it. However you have to. Do it.

2 thoughts on “Repay Your Debt

  1. I know friends and family are important, but US credit card companies are B R U T A L so I'd advise paying them down first and ASAP. Sometimes I think their actual goal is to bankrupt everyone – why else would they bump up someone's interest rate to 38% (like they did to a friend of mine) when they seem to be a high risk. Such a usurious rate basically *guarantees* that the borrower will default.

    But I'm not bitter 🙂

    1. Steve, I do agree with you in some cases. If you're in a major bind with the CC companies, then by all means pay them off first. It also depends on the friends/family you owe. Another way to look at is the emotional bind it can put on a relationship. If you owe someone money, there's emotional interest involved as well.

      As always, thanks for the insight.
      –B

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