Anybody want to get debt free????

[Anonymous]

In order to have the highest FICO score, you pretty much should be debt free.  Take Snodog for instance, his three FICO's were all in the 800+ ranges and he had barely no debt at all.  I agree with OP's views, just one thing though.  In order to maximize your FICO scores, you should pay down your debt to achieve proper utilization ratios. 

[Anonymous]

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bobkelly wrote:

I did it following these simple steps.

#2 Pay off your debts in order of smallest balance to largest. (Don't include your mortgage at this point.)AS you pay off each balance, and that payment to your next smallest debt to pay it off even faster.

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Explain that to me?  Why would I want to pay off my smallest balance to largest?  Don't you care about not throwing away money towards interest?

I'd personally much rather throw all my extra money at the highest interest (non-secured) debt, and work it down that way.  Seems like any calculator you find on the web does it that way, too.  However, I've heard more then one person go the route you suggest, and I just can not comprehend why.

[MidnightVoice]

I think that is the Dave Ramsey thingie, where you get a mental boost from paying something off completely and it helps get you back on track, even if it is the wrong way logically and financially.

It is supposed to snowball.

Me, I look at the APR

[Anonymous]

100,000 loan amount for 30 years at 6.75% = $648.60

Now lets take 648.60 x 12 = $7,783.20 x 30 = $233,496...

If you have this same loan and you pay 700.00 instead of the 648.60 you will pay your home of in 24.18 years.  Thats $201,726 and just saved you $31,777. Yeah... maybe it is a bad idea!!

Who needs that $30,000!!!

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bobkelly wrote:

BTW, I don't always agree with Mr Ramsey on everthing, such as prepaying a mortgage and other ideas, but I do respect his simple ideas on living on less than you make.  

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[Anonymous]

I think paying the smallest to largest it the way to go and you should also start cashing your paychecks to toss in the fire place to keep warm. You do not want to turn on the heater because that can cause you to waste money!

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fraz wrote:

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bobkelly wrote:

I did it following these simple steps.

#2 Pay off your debts in order of smallest balance to largest. (Don't include your mortgage at this point.)AS you pay off each balance, and that payment to your next smallest debt to pay it off even faster.

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Explain that to me?  Why would I want to pay off my smallest balance to largest?  Don't you care about not throwing away money towards interest?

I'd personally much rather throw all my extra money at the highest interest (non-secured) debt, and work it down that way.  Seems like any calculator you find on the web does it that way, too.  However, I've heard more then one person go the route you suggest, and I just can not comprehend why.

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[fused]

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crocpa wrote:

In order to have the highest FICO score, you pretty much should be debt free.  Take Snodog for instance, his three FICO's were all in the 800+ ranges and he had barely no debt at all.  I agree with OP's views, just one thing though.  In order to maximize your FICO scores, you should pay down your debt to achieve proper utilization ratios. 

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You mean revolving util ratios, right?

[Anonymous]

I just spent $250K on strippers at a club on Long Island.

Put the whole thing on Ted Underhill's American Express.

Want the number?

[Anonymous]

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bobkelly wrote:

#1 Save up $1000 bucks as a begineer emergency fund.  Use this account to avoid going into any more debt as you pay things off.  This $1000 should cover most emrgencies.

#2 Pay off your debts in order of smallest balance to largest. (Don't include your mortgage at this point.)AS you pay off each balance, and that payment to your next smallest debt to pay it off even faster.

#3  Create a full-fledged Emergency Fund containing 3 to 6 months' worth of expenses.  You'l be doing better than 90% of Americans at this point!

#4 Start saving for retirement, kids college, etc.  Also consider paying off your mortgage in 15 years instead of the typical 30. 

#5 Become very rich!!!

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1) Yeah, OK. Doesn't require but ten minutes of online surfing, or a pulse, to have heard this one.

2) Size of the debt doesn't matter. Higher APR debts cost more so you pay that off first. Better include that in your third tape series.

3) Might need that just to get a mortgage anymore, as we move further towards a plutocracy.

4) Any financial planner with a few brain cells doesn't advise waiting to pay down debt BEFORE starting to save for retirement. Blowing off 401K matching is brain dead, kinda like your posts.

5) You forget to say get rich quick, like your scheme.

[Anonymous]

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bobkelly wrote:

And you'll end up as broke as all the other people out there.  Hope you are looking forward to becoming a Walmart greeter at age 72 tp pay your mortgage.  Meanwhile, I'll be living a debt free retirement. 

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Bob,

You appear to be the only one NOT smart enough to figure out I was talking about a mortgage.

[Anonymous]

fused111 wrote:

Yeah I'm one of them but this is a credit discussion, credit repair or as TNWM says credit recovery forum. Being debt free is wonderful, so is being a FICO credit dweeb!

I've dispensed with the pretense. I'm a FICO credit wh*re!