Ton of debt crashing down!

I second what tired said, pay off your credit cards, but leave you're mortgage alone. Once you've paid off all your debt except the mortgage, invest it. If you really feel thatyou don't want any debt, then start doubling up on the mortgage payments.

The mortgage is a huge tax advantage while you pay off you're debt, so take advantage of it. I had problems with credit in the past, but always kepy my mortgage, school loan through Sallie Mae, and my car payment up to date. These are the most important debts that you have, and you don't want to lapse on those. Credit cards can be worked out, don't let the overwhelming feeling get the best of you. In the end, we are here only so long, so everything hundreds of years from now won't matter.

Do what you have to do, but be happy. Being miserable up to the point of death won't help you anyway. Good luck to you.
 
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I listen to Dave Ramsey fairly often, I don't agree with absolutely 100% of what he says, but overall, I think he provides some good sound advice.

Suze Ormann, on the other hand, I'd like to strangle at times.

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Wow we agree!

Have any of you heard Robert Kiyosaki? (Rich Dad, Poor Dad)

He's a great speaker (and author.)
 
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Have any of you heard Robert Kiyosaki? (Rich Dad, Poor Dad)

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That guy is a complete fraud. He's just some MLM huckster that go out of control. As far as anyone can determine most of his money was made from selling his books. Of course, this is difficult to determine because he is so vauge on the details of how he made it.

http://www.fool.com/news/commentary/2003/commentary030714me.htm
 
Kiyosaki? I think you have the wrong guy.

Read Cashflow Quadrant and you will see how he made his money. It was in rental properties. The books came later.

Agreed, he speaks to MLM audiences now AND he has "grown in head size" but the principles he teaches are GOLDEN.

I know I am in a very small minority of Americans whose income exceeds outgo, has no debt except a mortgage, has zero balance on credit cards and won't buy anything till it can be paid for in full.

the quadrant itself is a great teacher:

Active Income | Passive Income

Employee | Company Owner
-----------------------------------------------------
Self Employed | Investments


The idea is to get your cash flow over on the passive side, so you are no longer trading "hours for dollars."

It's not easy. I've been working at it for 4 years and I still have 75% of my income on the left side. But it used to be 90% so I'm making progress.
 
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I know I am in a very small minority of Americans whose income exceeds outgo, has no debt except a mortgage, has zero balance on credit cards and won't buy anything till it can be paid for in full.

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Hey John,

I'm with you here... Only debt is my mortgage (which is only about 40% the value of my house)... Should have this mortgage gone in 9 years (or less)...
 
Well, my wife and I actually are doing quite well right now. With both incomes, we make a good deal of $$ over and above what are outgo is. While we do have financial obligations beyond our mortgage (school loans, a credit card that's almost paid off, and our home equity line of credit, which we are paying down), we've consistantly been able to put money away for that "rainy day" when I begin instructing.... which will still be a while, so by then, we (hopefully) will be sitting pretty.

In other words: Add us to the list of "doing well".
 
I'm there, too. And I give all the credit to my parents. The stuff they taught me -- save money, don't waste your money on things that really have no use or value, and invest your savings in the stock market -- really paid off.

It allowed me to weather a full year of a 75 percent paycut.

Now I'm busting my butt to build my savings back up and to fly while I'm doing that. But I'll get there.
 
Don't add me into that category. I'm living paycheck to paycheck. Girlfriend+flying=major expensive for a college kid makin' $6.58 an hour for 28 hours a week!
 
John, give it time. You're a college student, you're going to be poor. Just make sure that you don't do anything that will create problems for you down the road (like running the credit cards they're pretty much throwing at you if you can figure out how to sign your name to their limits, etc).
 
Ain't that the truth man! I've got one credit card that's co-signed with my parents and has a $500 limit on it, so even if I do find some way to run that thing up (note likely) it's not that hard to pay off. Other than that, my check/debit card is my best friend. I can make purchases and when I'm outta cash, I'm outta cash. I'm not too interested in running up debt just yet. I'm poor enough as it is, I don't need to make it worse
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I tell ya what though, the goldmine will hit when I graduate with this degree in philosophy. w00t
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Cheers


John Herreshoff
 
John,

I have read a lot of Kiyosaki's books and they are great. I talk to people about them and they are like "what the heck are you talking about." What he teaches is definitely not how most of us were brought up.

As soon as I graduate, I am looking into buying my first rental property and will go from there.
 
I'm not too hot on the rental property deal anymore. Since those books came out everyone and his mother are out there buying rental properties, and the market has not really changed that much.

But the principles he teaches are very useful. Especially delayed gratification. Don't buy something if you can't pay for it today, for example.
 
Im also in college, but I tell you, scholarships are wonderful... so far i havent accumulated any debt, and I pay for my flying in cash... i also dont have a credit card. So I guess Im doin alright...

The word debt is just a dirty word to me... it scares me!
 
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The word debt is just a dirty word to me... it scares me!

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Debt isn't necessarily a bad thing. For example, who's got the money to buy a house with cash? Not too many of us. So you pick up the mortgage, pay it down over time, and you get a tax break in the process. Not too shabby.

Now, on the other hand, if you run up your credit cards to the limit for stuff that has no long term value, then it's bad.

Debt is a tool -- you can use it for good or bad.
 
Count me in the "no debts except mortgage" group. We've got enough excess stashed away (not counting retirement accounts, kid's college accounts, etc.) to fund the difference in income (for a few years) when I finally go from part-time charter pilot (and full time other job), to full-time pilot and it's attendant substantial pay cut.

Good to go, just need the right job combination to come up.
 
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