Comments on: Debt Snowball, Debt Shmowball … as long as you're RICH!

By: Good Debt versus Bad Debt - Money Destiny

Good Debt versus Bad Debt - Money Destiny — Thu, 13 Oct 2011 01:25:27 +0000

[...] debt versus bad debt, and how some debt are better than others. Last week, I came across a quote at How to Make 7 Million in 7 Years that’s worth repeating here: You see, the concept of good debt and bad debt only applies when you [...]

By: real rich, real simple, redux- 7million7years

real rich, real simple, redux- 7million7years — Fri, 24 Jun 2011 04:00:33 +0000

[...] Pay down ALL expensive debt, following the method laid out in the Cash Cascade, but keep your mortgage (lock in to current low [...]

By: Anatomy Of A Startup – Part VI- 7million7years

Anatomy Of A Startup – Part VI- 7million7years — Mon, 21 Mar 2011 23:39:07 +0000

[...] don’t pay off our mortgages early, here. We don’t debt snowball. And, we don’t save until we bleed (but, we do practice delayed [...]

By: When is cheap debt expensive?- 7million7years

When is cheap debt expensive?- 7million7years — Wed, 21 Apr 2010 09:01:28 +0000

[...] as I mentioned in a previous post [...]

By: real rich, real simple « How to Make 7 Million in 7 Years™

real rich, real simple « How to Make 7 Million in 7 Years™ — Thu, 30 Apr 2009 08:51:04 +0000

[...] Pay down ALL expensive debt, following the method laid out in the Cash Cascade, but keep your mortgage (lock in to current low [...]

By: New Reader Question about debt … « How to Make 7 Million in 7 Years™

New Reader Question about debt … « How to Make 7 Million in 7 Years™ — Tue, 28 Apr 2009 08:35:35 +0000

[...] than that, simply apply the principles in this recent post and you won’t go too far wrong [...]

By: Cash Cascade your car? « How to Make 7 Million in 7 Years™

Cash Cascade your car? « How to Make 7 Million in 7 Years™ — Tue, 21 Apr 2009 13:45:28 +0000

[...] Posts on 7million7years Making Money 101Roadmap To Riches201About301Debt Snowball, Debt Shmowball … as long as you’re RICH!How much interest do you earn on one million dollars?How much to spend on a house?Maybe Dale [...]

By: Are you carrying expensive debt? « How to Make 7 Million in 7 Years™

Are you carrying expensive debt? « How to Make 7 Million in 7 Years™ — Mon, 20 Apr 2009 12:38:04 +0000

[...] after all, EVERY self-respecting ‘finance guru’ has one these days - and, I wrote a follow-up post explaining the concept of ‘expensive debt v cheap [...]

By: Adrian

Adrian — Fri, 17 Apr 2009 13:39:36 +0000

@ Jason – Thanks for sharing; I don’t see a problem with your dad ‘saving’ 8.5% interest PROVIDED that he uses that $150/mth for investing or at least paying down other higher interest debt rather than spending it.

Your Mom should pay down all of her debt with the $120k and use the rest PLUS the monthly debt repayments that she has ‘saved’ to prepare for (or improve) her retirement: perhaps TWO rentals with ‘crappy tenants’?

By: Jason Dragon

Jason Dragon — Fri, 17 Apr 2009 09:55:33 +0000

David Ramsey was on TV today…. I guess he has a regular thing, I just never knew it. He basically said this “If you are in debt, you should never see the inside of a restaurant unless you work there.”

How dumb.

My dad is just as bad. He got $5000 from an inheritances this week, from when my grandfather died. My mom god $120k. My dad cashed the check and took $4000 of the cash and paid down his car, because he just could not live with his 8.2% interest rate. Took the rest and made a payment to his credit card. At least with the credit card he can get it back if he needs to but on the car there is no way. It does reduce his monthly payment by over $150.

My mom is thinking of calling up all her credit cards, and trying to settle with them because she is behind on it. She also is thinking of putting 20k on to pay off her cars. Also when she got the money she kicked out the crappy tenant she had in her rental house and is going to make it her winter home, there goes $1200 of monthly passive income.

I keep trying to tell her not to do this but they don’t listen. My brother sold his Lexus Ls430 that he paid cash for during the good times. He put 10k on his Amex and 10k on his second mortgage, the next month both of them closed his accounts because he no longer had a job and was increasing debt with other accounts. He cashed out his E-Trade account for under 15k, he put 40k in it 2 years ago, that is how he is living now.

For me I was so glad that I was in debt when this crisis came about. I simply decided to stop paying most of my bank debts. I still pay the credit union (because they are a non profit and get no government money), my family members, my bills and of course my business partner gets his cut of profits each week. But I was able to stop paying all the rest and wait a while until they got all their bailout money, and then renegotiate with them, then pay them a lesser amount. So far I have saved over $120k, and I have over 100k more still pending…..(60k is debt from a former employee who embezzled from me.) I think it will be over $200k of debt gone, while the business and personal assets remain. My business is doing good also and I think that this year my net worth will go up by over 250k.

Jason Dragon