Effect of Foreclosure, Short Sale, and Bankruptcy on Your Credit Score

Have you ever wondered what kind of impact a foreclosure, short sale, or bankruptcy would have on your credit score? Well, wonder no more…

According to a recent report from VantageScore Solutions, which is a credit scoring company created by the “big three” (Equifax, Experian, and TransUnion), here’s what you can expect:

• Short sale = 120-130 points
• Foreclosure = 140-150 points
• Bankruptcy = 355-365 points

Apparently loan modifications, where late payments and penalties are rolled into the mortgage balance, can actually have a small beneficial impact on your credit score.

Note that your VantageScore isn’t the same as your FICO credit score. VantageScores range from 501 (subprime) to 950 (superprime), whereas FICO scores range from 300-850.

Despite these differences, the numbers above can give you an idea of the relative impact of the different scenarios. Moreover, your VantageScore is being used by an increased number of lenders, particularly large mortgage lenders.

If you’re curious about your “real” FICO credit score, you can take a free peek at it by signing up for a free trial with MyFICO.

Source: Baltimore Sun via Clark Howard

Published on November 20th, 2009 - 7 Comments
Filed under: Credit Cards, Mortgages
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DIY Garage Kayak Racks: Fast, Frugal, and Effective

Today I want to share with you one of my recent home projects… Frugal and effective DIY garage kayak racks.

As I’ve continued down the path of voluntary frugality, I’ve gotten more and more interested in DIY projects of all kinds. Whether or not you’re handy around the house, most frugal homeowners eventually jump on the DIY bandwagon.

Benefits of doing it yourself

1. You control the quality. When you do it yourself, you’re in complete control of the quality of workmanship. I know some folks are very particular, and others who just want to hurry up and get it done. DIY gives you the power to do everything according to your own standards. I naturally tend toward anal retentive, but my increased focus on time management is helping me find that healthy balance between quality and time spent.
2. You control the effectiveness. As with any project that you tackle yourself, the solution you create will be as effective as you want it to be. I am a stickler for effective equipment. Store bought products rarely meet my needs precisely, so DIY allows me to design something that’s perfect for my personal situation.
3. You control the cost. This is a big one… We all know that I love to save those greenbacks. When you DIY, you can decide exactly how much to spend in light of your desired quality and functionality.
4. You learn as you go. When you start tackling your own home projects, you might be rather ignorant. By the time you finish, however, you’ll be well on your way to becoming a handyman. And being a handyman is, well… Handy!
5. You can take pride in the job. I do 95% of my work with my mind, so few things give me more pleasure than getting my hands dirty with some physical labor. I grew up in the country with livestock, a wood stove for heat, and acres of mowing, so… Doing some actual labor makes me feel like I’m home again. And few mental jobs can rival the pride you have when you lay your eyes upon a finished project — at least not for me.

I’m sure there are more benefits, but will stop at five.

While there are benefits to store-bought solutions, there’s rarely a “one size fits all” solution that fits my needs precisely, so I prefer DIY over store bought whenever possible.

A real-life example: kayak racks

I recently decided that I needed some kayak racks in the garage. As it turns out, my solution took more time to conceptualize than to implement. The design is incredibly simple, but perfectly effective. Like I said above… I’m pretty proud of this project.

The materials:

Keep in mind that I made two sets of racks, so I had to double the materials and costs listed below.

• 2 x bungee cords – Just normal bungees will do. I used 2′ cords, but you can use whatever length you need for your situation.
• 2 x 16×11 L shaped brackets – Get the kind with holes for mounting as well as holes in the end for attaching the bungees.
• 2 x 2″ eye bolt screws – I recommend the closed eye hooks so the bungees are less apt to slip.
• 6 x 2-1/2″ wood screws – A lengthy screws provides more support.

Total cost of materials from Lowe’s was around $18 per rack set. Since I built two, I spent about $36.

The tools:

Before starting, you’ll need the following tools.

• Power drill
• Tape Measure
• Pencil
• Stud Finder
• Screwdriver
• Carpenters level

The process:

Obviously, you don’t have to follow this exact method… Remember, it’s your project, so feel free to make whatever changes you like.

1. Decide where you want your kayaks to go, and remember to measure for length. Remember to space your brackets to provide sufficient support, and also be sure to line them up on studs. Once you decide on a spot, use your pencil and level to mark where the tops of the L-brackets should be. Also be sure to mark where the holes in the L-brackets are so you can drill pilot holes.
2. Drill the pilot holes for the L-bracket support screws using a drill bit slightly smaller in diameter than your screws.
3. Drill the holes for the eye bolt screws in a place that will allow the bungees to wrap around the boat and attach to the eye hole loop. The goal here is to position the bungees such that they’ll hold the boat in place on the L-brackets.
4. Screw your L-brackets securely into place with wood screws through each anchor hole in each. Before you screw in that 2nd bracket, double check to be sure everything is level… Then screw it in too.
5. Screw your eye hole screws into their respective holes.
6. Now load your boat onto the L-brackets and stretch the bungee cords from the tip of each bracket to the corresponding eye bolt screw. Voíla! You’ve now finished your very own DIY garage kayak racks for very little money and very little labor.

Here’s a picture of the finished product…

If you’re looking for kayak racks, I highly recommend this design.

If not, I hope that I’ve at least provided a bit of inspiration for tackling other projects around your house. Good luck!

Published on November 19th, 2009 - 7 Comments
Filed under: Frugality
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Lending Club $25 Bonus Reminder

This is just a quick note to remind you that the good folks at Lending Club are still offering a $25 signup bonus* just for opening a Lending Club account.

Here’s how it works…

1. Visit Lending Club using a link in this post
2. Open and activate a lender account
3. The $25 will be automatically deposited in your account shortly thereafter

That’s it. Note that there are some eligibility requirements for opening a Lending Club account (must be 18, certain states excluded, etc.), but those should quickly become apparent when you click through.

*Note: The signup page won’t say anything about the bonus, but they’ll be able to track and credit you using the special link in this post.

Published on November 18th, 2009 - 4 Comments
Filed under: Saving & Investing
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Coupons are a Waste?

I recently ran across an interesting letter to the editor in Time Magazine, and thought it would make good fodder for discussion. For background, this letter was written in response to an article by Joel Stein titled “The Week of Living Cheaply.”

Here’s an excerpt from the letter:

“Coupons are the worst kind of junk mail and a terrible waste of paper in our green economy — never mind the time waster they are in the saving, sorting, filing and waiting at the checkout counter. Think of the p.r. coup for the company that announces, “No more coupons!” I, for one, would buy that product on principle.”

To be fair (to Stein), he’s not quite so militant about things in his article. He also makes a good point near the end of his article about the value of haggling or, as he puts it, mumbling “Can you do a little better?” Nonetheless, he clearly places himself squarely in the “no coupon” camp.

So… What do you think? I’ve gone on record in the past saying that we’re not big into coupons. Sure, we’ll use ‘em if we have ‘em, but we don’t go out of our way to track them down. What about you?

Published on November 18th, 2009 - 38 Comments
Filed under: Frugality
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How to Save Money on Pet Care

Last month was a bit of an adventure with our seven year old cat. He ran away (something he’s never done) and we were worried sick. Once we got him back, we spent some money on keeping him healthy.

In addition to taking him to the vet for a check up, we also got him updated on his rabies shot. I couldn’t have imagined the true costs of being a pet owner when we first adopted him. I thought it would be cheap and easy to take care of an animal, but that’s not always the case.

If you’re thinking of adopting a pet, please read this article. It’s my hope that pets get adopted into ‘forever homes’ and that both parties happy. Unfortunately, many pets are dropped off at shelters because the owners couldn’t handle the financial responsibilities.

How much does it cost to own a pet?

Some people don’t realize the total costs of maintaining their pets. They may only think of food and the occasional visit to the vet. Being a pet owner, I can tell you that unexpected things will happen even if your pet is relatively healthy.

If you’re still interested in getting a pet, you should first check out how much it costs to care for a pet. The ASPCA looked at the first year costs of some common animals people have as pets and shared the numbers:

• Fish: $235
• Bird: $270
• Guinea Pig: $705
• Rabbit: $1,055
• Cat: $1,035
• Medium Sized Dog: $1,580

Speaking of the ASPCA, shelter animals can make wonderful pets for your home. Don’t think that they are the throwaways. My family went to the local shelter years ago and they were able to find a kitten with the particular temperament they were looking for. He was very people friendly and loved to snuggle up to you when you fell asleep.

Have a pet emergency fund

It’s important to plan ahead and save money up for your pet. Look at the numbers the SPCA has and budget for your pet’s care. You may want to set aside a dedicated savings account for your pet, or you could add that amount into your emergency fund and keep it in one big account.

We all want to be responsible pet owners, but you have to realize that while love and attention are the main ways to care, you still have to have money. The last thing I’m sure you want is to be forced into an economic euthanasia.

Tips for saving on vet care

While pets are never free to take care of, there are ways you can make it more affordable. The key to saving money on taking care of your pet(s) is not to be frugal, not cheap.

Find an affordable vet you can trust

I’ve had my cat since I was in college and was on a very tight budget. I managed to care for him on my limited budget by utilizing my local animal shelter’s low cost pet clinic. There are shelters around the country that offer this service.

The catch with these cheap clinics is that often have odd hours (whenever they can get volunteers), are based on your income (my shelter was $42k or less), and offer limited services. The shelter I used in Virginia covered my cat’s needs (shots, annual checkups, and flea control) and was incredibly inexpensive. I paid about $15 for an office visit and $12 for his rabies shot.

If you don’t qualify for a low cost clinic at the SPCA, some pet stores have clinics, like Banfield at PetSmart. They offer more services and have regular office hours. The quality can vary with the clinics, so check around before you choose.

Once I finished school and had a higher income, I went ahead and found a vet with more convenient hours and a good reputation with my pet owner friends. I’m happy with my current veterinarian and my cat is doing well.

Schedule regular check-ups

Don’t skimp on getting your pet’s annual checkup. Preventive care can save you money in the long run, as you can catch ailments earlier. Keep careful records of your pet’s inoculations and other health-care services. If you move somewhere else or switch vets, make sure you can provide this information to avoid duplication and/or mis-diagnosis.

This past spring, my cat started urinating blood. We went to our veterinarian, but it hadn’t improved even after a few visits. I took my cat to get another vet to second opinion based on a friend’s passionate recommendation.

When I arrived, I gave the new office a copy of the records I had and the contact info for my original vet. They were able to diagnosis and treat him without spending a fortune on another complete round of tests.

Try some DIY grooming

Depending on your pet, this may be a great idea or a huge stress. Getting my cat nail caps at the vet was too much money and not enough reward. Instead, I bought a Pedi-Paw (or something like it) and I trim his nails as needed. After he got used to the routine, it hasn’t been too bad.

Bathing your dog can be messy, but it also save you some money. If you’re not really in the mood to give your dog a bath, do what my dad did and offer your kids money to do it. It’ll help teach responsibility and earn them some spending cash. Who knows, maybe they can start a side business and do it for the neighborhood.

The big take away is look if the grooming service is worth it to you and budget accordingly.

Consider pet health insurance or a pet care plan

Just like people, pets can have health insurance. Not all policies are equal, though. Some policies can save you some money, but be sure to double-check the fine print. You have to run the numbers and see if pet insurance is a good deal for you. If you want to get pet insurance, some popular companies include:

• VPI
• ASPCA
• Pets Best

I think a wellness plan might be a better fit if you find pet health insurance to be too expensive. Many offices offer a package, so ask your vet what their wellness plan is. Having a wellness plan for your puppy or kitten can save you some money during that expensive first year.

Your thoughts?

I love being a pet owner, but I can now understand why my mom was so hesitant with getting a pet. She made us wait until our family budget could afford handle it, and I’m glad she did.

If you’re a pet owner, what tips would you give to potential pet owners? What unexpected expenses have you incurred? What unexpected benefits have you received at a pet owner?

Published on November 17th, 2009 - 21 Comments
Filed under: Miscellany
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Best HSA Custodian?

As a followup to my earlier post about high deductible health plans, I’m curious if you guys have any recommendations when it comes to health savings account (HSA) custodians. My employer has picked one, but their terms aren’t great (too many fees) so I’m thinking of looking elsewhere.

As I noted previously, you’re free to use whoever you want as an HSA custodian. The only downside is that I won’t be able to have the contributions withheld from pre-tax dollars if I don’t use my employer’s preferred HSA custodian. Instead, I’ll have to wait until the end of the yeat to deduct our contributions.

Published on November 16th, 2009 - 22 Comments
Filed under: Insurance, Saving & Investing
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Considering a High Deductible Health Plan

‘Tis the season… For open enrollment. This year, my employer is really pushing the high deductible health plan, so I spent the weekend poring over the plan documents. Today I thought I’d share what I learned.

Lower premiums

The primary draw of the high deductible health plan are the low premiums. In 2010, the regular PPO plan that we’re accustomed to will cost in the neighborhood of $440/month for our family. In contrast, the high deductible plan will run roughly $70/month.

In other words, if we opt for the high deductible plan, we’ll save $370/month in premiums. That’s a total savings of $4440 per year. Not too shabby. But at what cost?

Higher deductible

It should come as no surprise that a high deductible health plan has a relatively high deductible. In our case, the family deductible would be $3000 ($1500 for individuals). The PPO, on the other hand, has a $900 family deductible ($300 for individuals).

Coverage comparison

Aside from the difference in deductible, the coverage of the two plans is quite comparable. Both plans use the same network, so we’d have access to the same collection of physicians either way.

For “everyday” doctor visits, the PPO has a $20 copay for regular office visits. With the high deductible plan, our insurance would cover 90% of the network rate, subject to our deductible. Beyond that, the coverage is virtually identical, though the high deductible plan has a higher “stop loss” limit ($6000 vs. $2000 for family coverage).

As I noted above, both plans utilize the same network of doctors, and both entitle us to the same reduced rates that have been negotiated by the insurer. Thus, the primary difference really does appear to be

In terms of pharmaceuticals, the coverage would be similar. Instead of calling for a $10 (generic) or $25 (name brand) copay, the high deductible plan would cover 90% of the cost of our prescriptions, again subject to our deductible.

Health savings account (HSA)

If we opt for the high deductible plan, we’ll be eligible for a health savings account (HSA). Like the FSA, the HSA provides provides a tax break on qualified medical expenses.

Not to be confused with a flexible spending account (FSA), however, the HSA has higher limits ($6150 for a family in 2010) and is not subject to the “use it or lost it” provision.

Another key difference is that we’ll be able to invest the funds in the HSA in much the same way we can invest the money in our IRAs. My employer has selected an HSA custodian, but we’re actually free to use anyone we want.

If we choose to go with a different provider our contributions won’t be made with pre-tax dollars, but we’ll still be able to deduct them at the end of the year, and we’ll still be able to make tax-free withdrawals to cover qualified expenses.

One final bit of information is that my employer is offering a one time “seed” contribution to jumpstart our HSA. This amount will count against our annual contribution limit, but it’s free money.

Making a choice

After reading through all of the paperwork, it seems like we’d be fools not to take the high deductible plan. After all, we’d realize an immediate savings of $370/month or $4440/year. Even after paying the deductible, we’ll be $1440 ahead (not counting the HSA seed money).

It’s also worth noting that the physician and pharmaceutical copays are actually a good bit higher than 10% in most cases (e.g., the $20/visit copay is more like 20-25% of the negotiated rate). Thus, once we’ve met our deductible, we’ll actually be catching a bit of a break on these costs.

As of right now, it looks like we’ll be going with the high deductible plan. Assuming we move ahead with this, my intention is to max out the HSA and start building up a stockpile of cash for medical expenses.

Since the HSA isn’t tied to my employer, and we can also carry the money forward and invest it as we see fit, there’s really no downside to overshooting our current needs.

What am I missing?

Okay, here’s where you come in… This high deductible plan almost sounds too good to be true. What am I missing? Do you have a high deductible plan? Why or why not? And if you do have a high deductible plan, have you run into any nasty surprises?

Published on November 16th, 2009 - 35 Comments
Filed under: Insurance
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Pay Back the Homebuyer Tax Credit?

Did you know that you have to pay back the homebuyer tax credit if you claim it and then sell your house (or otherwise stop using it as your principal residence) within the next three years? I didn’t, but apparently that’s the case. Here’s the scoop straight from the IRS:

Q: When must I pay back the credit for the home I purchased in 2009?

A: Generally, there is no requirement to pay back the credit for a principal residence purchased in 2009. The obligation to repay the credit on a home purchased in 2009 arises only if the home ceases to be your principal residence within 36 months from the date of purchase. The full amount of the credit received becomes due on the return for the year the home ceased being your principal residence. (source)

Note that there are no exceptions for military personnel who are deployed and sell their home. If they move out during deployment but retain ownership, the deployment “may be” considered a temporary absence such that the home can technically remain their primary residence.

If you find yourself subject to the recapture provision, you are required to repay the credit in full as “additional tax” when you file your Federal income tax return for that year. See IRS Form 5405 for additional details.

Published on November 13th, 2009 - 7 Comments
Filed under: Real Estate, Taxes
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How to Find a Good Deal

This is a guest post from Craig Ford of Money Help for Christians. If you like what you see here, please consider subscribing to his RSS feed.

When evaluating purchases, some folks are just so enamored with the price. They think a good deal is all about price. I used to think the lower the price the better, so I guess you could call me a recovering price addict. However, I’m coming to realize a good deal can only be found when one factors in both the price and the value of an item.

Consider the following fictional conversation:

Low Price Lover: “I got a great deal on my new bike!”

Person Concerned with Value: “Really? That bike looks like a piece of junk that could break if you sat on it.”

Low Price Lover: “Hey man, don’t dis’ my bike! Most bikes I looked at cost over a hundred dollars and this one was only $35. I got it for 65% less than every other bike I saw.”

Person Concerned with Value: “You just bought $35 worth of junk.”

Admittedly, this conversation over-emphasizes the boasting of the “low price lover.” However, the larger point still stands — any of us can become so enamored by price that we completely neglect to factor in the value or true worth of an item.

What is a “good deal”?

Getting a good deal means getting something that has a higher value for a lower than average price. At a minimum, every buyer should be sure that as the price for an item increases, so does the true value of the product. A purchase where price and value are comparable would be neither a good deal nor a bad deal. So what we’re really interested in is the value/dollar ratio.

When value lags behind price: a bad deal

Instances in which the price of a certain item is high, but the value is not, represent a bad deal. You’re spending more money without getting anything extra in return. If you want some examples of high price/low value items, look no further than the SkyMall Magazine next time you fly. There are some pretty outrageous prices for standard items. The bottom line is that it’s possible to get something for a really low price and still get a bad deal.

When price lags behind value: the good deal

The ultimate “good deal” occurs when you you get a high value item for a low price. In other words, the money that you spend winds up giving you more value per dollar, such that you’re maximizing that value/dollar ratio.

What are the best ways to get a good deal?

• Shop second hand stores. Some folks love name brands. When you shop second hand you can still get the value of a name brand without the associated price increase.
• Shop garage sales. Garage sales are filled with things that no longer appeal to their owners. In many cases, however, the items are still as valuable as ever. As a result, it’s possible to find like-new products at garage sales.
• Shop off season. Who wants to buy shorts in September? You do! When you buy off-season, you can typically buy items for anywhere between 50-85% off. Now that is a great deal.
• Inform the sales associate. When I bought my last computer, I started by simply telling the the sales rep that I was looking for a computer. After he showed me a few computers, I specified that I was looking for a good deal, and he then showed a number of items that had been deeply discounted for various reasons. Remember, as long as it fits your needs, and the value exceeds the price, you’re getting a good deal.
• Anticipate your needs. The more time you have available to purchase your item, the more likely you are to find a good deal. For example, if you know in advance that you need new running shoes, you have time to shop around and a great deal. If, however, you head out the night before a big race, you’ll be forced to buy whatever is available regardless of price.
• Look online. You can find some great prices online. If you’re not comfortable shopping online, then at least make some price comparisons and then ask a local store for a price match.
• Be creative. You can get a great deal if you find a way to share a product or even if you find a different item that will fill the same needs. When making a purchase, you might also consider asking if the store will throw in something extra.
• Inform friends and associates. If you are hunting for a particular item, be sure to let those around you know. It’s amazing the number of times someone has an item they are willing to sell (and even give away) for practically nothing. Take advantage of your networking groups.
• Check out non-traditional shopping outlets. Craigslist and eBay are both great places to find a good deal . Find a flea market around.
• Use cash. When purchasing items — especially from individuals — nothing makes them more anxious to make the sale than a flash of cash. They know if they make the sale there will be no hassles or problems with getting paid, so don’t be afraid to make an offer accompanied by a fistful of cash.

Any more ideas?

Do you have any additional tips/strategies for getting get a good deal?

Published on November 13th, 2009 - 11 Comments
Filed under: Frugality
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How Much Does Your Debt Cost?

Back in April of 2009, I was already mad at my debt. It wasn’t until I conjured up the idea of tabulating how much interest I was paying, however, that my eyes were finally opened to the enormous power my debt had over my ability to retain my own hard earned money!

Here is the story of what pushed me over the edge and ignited an unquenchable fire that will burn hot until that glorious day when our last debt obligation is finally met…

The backstory

Already four months into our Debt Free Adventure, I was working tirelessly to gain control over our monthly cash flow. I was angry at our debt, and consumed with the idea of establishing disciplined management over our monthly expenditures. This was not easy.

Because neither my wife nor I were experienced budgeters, getting a handle on ‘where every dollar was going’ was not something that came naturally to us. Maybe you can relate.

Being sick of our paycheck-to-paycheck lifestyle gave us a lot of motivation, but we needed more. We were committed to budgeting, but I knew it would be hard to sustain the necessary level of intensity and passion. After all, changing our relationship with money was akin to reinventing your golf swing.

Regardless, we knew it was essential if we were ever going to master our money. So I set off in search of the necessary motivation. Then one happy day in April, I found it!

I discovered how much my debt cost

I’m not talking about how much my payments were. I’m talking about how much my debt was costing me. How much I was paying each and every month for someone to lend me money. What if that money was no longer vanishing into the silk pockets of banking geniuses? What if it was going straight into my pocket and staying there?

To find and sustain the necessary passion, all I needed to do was calculate how much money I was paying in interest every month, print the amount off in HUGE NUMBERS, and stick it on my fridge. Every month it makes me mad. Every month I strive to make that number go down as much as possible.

Want to know what’s even better? This simple exercise will help bring the whole family on board. Show the number to everyone, and explain how this amount can be yours every single month if you can just buckle down get out of debt. From that day forward, everyone will see that number on the fridge — every month.

This simple idea helped us develop a lasting financial philosophy to apply to our family finances. A financial mission statement of sorts to embody the spirit of our Debt Free Adventure — “sacrifice now to benefit later.” Think of it kind of like the more popular but less cool, “Live like no one else, so you can live like no one else.”

Your homework

That’s right… I’m assigning homework. Don’t worry, it’s easy, and it won’t be graded. Well, I won’t be grading you… I can’t promise the same for Nickel.

Do yourself a solid and set aside 30-60 minutes to complete the following:

1. Write out a list of all debts on which you are paying interest (or will be paying interest, like that six months “same as cash” couch that you bought). For whatever reason, the simple act of writing it down and having a physical copy is much more powerful than creating a spreadsheet.
2. Identify the interest rate of each debt and record them on your list. You shouldn’t need this for the calculation, but it’s good to see those numbers staring you in the face.
3. Record the actual amount of interest paid last month for each and every one of your debts. In other words, separate the principal from the interest and record the latter.
4. Add all of your interest payments together to discover exactly how much your debt is costing you.
5. Get mad at how much your debt is costing you. The goal here is to inspire a lifestyle change resulting in increased financial discipline.
6. Repeat this exercise every month and watch your progress. This will help remind you of how much your debt costs you, and watching that number shrink will help you stay motivated.

Although I started this exercise in April of 2009, I didn’t realize how powerful it was until I did it again six months later. I now intend to do this every month until I am completely debt free.

I know that I told you do this by hand, and you should — at least at first. Over time, however, you should be able to transition to a spreadsheet to more easily track your progress. If you have any clever ideas for a spreadsheet template, please let me know. Better yet, whip something up and drop me a line.

Spread the word

If you already have a handle on all of this stuff… Awesome! Now go help someone else see the light. I know you know someone who needs your help. You’re probably thinking of them right now, so… Go help!

My goal is to get each and every debtor that I run into to complete this exercise as soon as possible. I’m going to be like that annoying buddy of yours who sells Quixtar or Herbalife and will never let a conversation go by without bringing it up. Why? Because I know it will help people.

Make no mistake about it… I want this to become the next personal finance phenomenon. Hopefully, this article and simple homework assignment will inspire you to pursue a debt free life. It worked for me, so please give it a try.

It’s already catching on!

Here’s a quick list of others who have already experienced the power of this exercise:

• Interest Amount Paid – Establish a Proper Relationship with Your Debt – My attempt at working this calculation
• How much Interest are YOU Paying? – My second calculation, sixth months later… Notice how it is $58 less!
• Do You Know How Much Interest You Are Paying Each Month? – Patrick says you should, “get ready to be shocked!”
• How Much Interest Do I Pay? TOO MUCH! – MyJourney said his calculations made him “sick to [his] stomach!”

Now it’s your turn… If you just want to go through the exercise, print off your amounts, and stick them to your fridge… Great. Please let us know about it in the comments. If you are a PF Blogger, go through the exercise, and write a post about it… Maybe I can talk Nickel into adding your post to the list above.

However you do it… Just make sure you do it.

In closing

Think of it this way… That money can either flow out of your wallet OR into your pocket. Which do you prefer? The choice is yours!

Published on November 12th, 2009 - 20 Comments
Filed under: Debt Reduction
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