Comments on: Classifying your debt: The Good, the Bad and the Ugly http://www.cleverdude.com/content/classifying-your-debt-the-good-the-bad-and-the-ugly/ Family, Marriage, Finances & Life Sat, 11 Feb 2012 13:09:32 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: David Brown http://www.cleverdude.com/content/classifying-your-debt-the-good-the-bad-and-the-ugly/comment-page-1/#comment-35971 David Brown Mon, 30 Mar 2009 07:46:35 +0000 http://www.cleverdude.com/articles/finances/classifying-your-debt-the-good-the-bad-and-the-ugly/#comment-35971 I agree with the credit card debt. with the debt card we can easily go through car loan,bills,student loans,shopping.Most student loan debt can’t be discharged in bankruptcy. Many students and former students would be lucky to have only $27,000 in student loan debt. I’ve got a friend with $100,000 in student loan debt. Also, car loans are secured debt, meaning the lender can take your car, sell it for you at auction for a deeply discounted price, and still hold the balance over you.

]]> By: How to be the Family CFO [Book Review] at Clever Dude Personal Finance & Money http://www.cleverdude.com/content/classifying-your-debt-the-good-the-bad-and-the-ugly/comment-page-1/#comment-31076 How to be the Family CFO [Book Review] at Clever Dude Personal Finance & Money Mon, 03 Nov 2008 10:14:10 +0000 http://www.cleverdude.com/articles/finances/classifying-your-debt-the-good-the-bad-and-the-ugly/#comment-31076 [...] Kim discusses “good debt and bad debt“. While I really think all debt is bad, I also agree that they differ in their [...] [...] Kim discusses “good debt and bad debt“. While I really think all debt is bad, I also agree that they differ in their [...]

]]> By: Let’s Talk About Debt, Savings and Expenses: A Big Week Of Carnivals » Money and Personal Finance Blog In Silicon Valley http://www.cleverdude.com/content/classifying-your-debt-the-good-the-bad-and-the-ugly/comment-page-1/#comment-11334 Let’s Talk About Debt, Savings and Expenses: A Big Week Of Carnivals » Money and Personal Finance Blog In Silicon Valley Wed, 22 Aug 2007 15:08:56 +0000 http://www.cleverdude.com/articles/finances/classifying-your-debt-the-good-the-bad-and-the-ugly/#comment-11334 [...] Clever Dude: Classifying your debt: The Good, the Bad and the Ugly [...] [...] Clever Dude: Classifying your debt: The Good, the Bad and the Ugly [...]

]]> By: Best Finance Posts from Carnival of Personal Finance #114 at Clever Dude Personal Finance & Money http://www.cleverdude.com/content/classifying-your-debt-the-good-the-bad-and-the-ugly/comment-page-1/#comment-11250 Best Finance Posts from Carnival of Personal Finance #114 at Clever Dude Personal Finance & Money Tue, 21 Aug 2007 14:32:39 +0000 http://www.cleverdude.com/articles/finances/classifying-your-debt-the-good-the-bad-and-the-ugly/#comment-11250 [...] The Best of the Carnival of Personal Finance #114 on Classifying your debt: The Good, the Bad and the Ugly [...] [...] The Best of the Carnival of Personal Finance #114 on Classifying your debt: The Good, the Bad and the Ugly [...]

]]> By: The Best of the Carnival of Personal Finance #114 » The Dough Roller http://www.cleverdude.com/content/classifying-your-debt-the-good-the-bad-and-the-ugly/comment-page-1/#comment-11219 The Best of the Carnival of Personal Finance #114 » The Dough Roller Tue, 21 Aug 2007 00:12:27 +0000 http://www.cleverdude.com/articles/finances/classifying-your-debt-the-good-the-bad-and-the-ugly/#comment-11219 [...] Classifying Your Debt: The Good, the Bad, and the Ugly @ Clever Dude: All debt is not created equal, and Clever Dude gives you the lowdown. [...] [...] Classifying Your Debt: The Good, the Bad, and the Ugly @ Clever Dude: All debt is not created equal, and Clever Dude gives you the lowdown. [...]

]]> By: The Simple Dollar » Carnival of Personal Finance #114 http://www.cleverdude.com/content/classifying-your-debt-the-good-the-bad-and-the-ugly/comment-page-1/#comment-11201 The Simple Dollar » Carnival of Personal Finance #114 Mon, 20 Aug 2007 13:33:26 +0000 http://www.cleverdude.com/articles/finances/classifying-your-debt-the-good-the-bad-and-the-ugly/#comment-11201 [...] Classifying Your Debt: The Good, The Bad, and The Ugly (@ clever dude) [...] [...] Classifying Your Debt: The Good, The Bad, and The Ugly (@ clever dude) [...]

]]> By: Sunday Morning Link Love at I’ve Paid For This Twice Already… http://www.cleverdude.com/content/classifying-your-debt-the-good-the-bad-and-the-ugly/comment-page-1/#comment-11140 Sunday Morning Link Love at I’ve Paid For This Twice Already… Sun, 19 Aug 2007 14:29:34 +0000 http://www.cleverdude.com/articles/finances/classifying-your-debt-the-good-the-bad-and-the-ugly/#comment-11140 [...] Dude writes yet another post about debt I wish I’d written about The Good, The Bad, and The Ugly. Clever Dude sees my brain and improves upon it, and then writes it down. Or so it feels to me a [...] [...] Dude writes yet another post about debt I wish I’d written about The Good, The Bad, and The Ugly. Clever Dude sees my brain and improves upon it, and then writes it down. Or so it feels to me a [...]

]]> By: Kevin http://www.cleverdude.com/content/classifying-your-debt-the-good-the-bad-and-the-ugly/comment-page-1/#comment-10872 Kevin Wed, 15 Aug 2007 21:01:35 +0000 http://www.cleverdude.com/articles/finances/classifying-your-debt-the-good-the-bad-and-the-ugly/#comment-10872 I agree, credit card debt sucks. Atleast with a car loan, you make a payment, then you go drive your car. With student loans you have a degree that will help you get a job to pay off your debts. With a credit card debt, you're still paying for the VCR that no longer works, you're still paying for meals that have long since gone the way of the toilet, and you're still paying for the new tires on your car (which are beginning to become bald, and need to be replaced again). I agree, credit card debt sucks. Atleast with a car loan, you make a payment, then you go drive your car. With student loans you have a degree that will help you get a job to pay off your debts. With a credit card debt, you’re still paying for the VCR that no longer works, you’re still paying for meals that have long since gone the way of the toilet, and you’re still paying for the new tires on your car (which are beginning to become bald, and need to be replaced again).

]]> By: Clever Dude http://www.cleverdude.com/content/classifying-your-debt-the-good-the-bad-and-the-ugly/comment-page-1/#comment-10837 Clever Dude Wed, 15 Aug 2007 03:08:14 +0000 http://www.cleverdude.com/articles/finances/classifying-your-debt-the-good-the-bad-and-the-ugly/#comment-10837 Adam, thanks for the comment. I think you went a bit further than I had intended by saying the "B" word: Bankruptcy. I only intended some financial hardship, not total disaster. Yes, I did intend for the seller of the vehicle that is worth less than the loan to have to cover the remainder, probably with a personal loan. That's assuming their credit rating isn't so bad that they can't get an unsecured loan. I'd say "don't buy more than you can afford at the time", but it's easier said than done, as evidenced by my own history. Adam, thanks for the comment. I think you went a bit further than I had intended by saying the “B” word: Bankruptcy. I only intended some financial hardship, not total disaster.

Yes, I did intend for the seller of the vehicle that is worth less than the loan to have to cover the remainder, probably with a personal loan. That’s assuming their credit rating isn’t so bad that they can’t get an unsecured loan.

I’d say “don’t buy more than you can afford at the time”, but it’s easier said than done, as evidenced by my own history.

]]> By: Adam http://www.cleverdude.com/content/classifying-your-debt-the-good-the-bad-and-the-ugly/comment-page-1/#comment-10836 Adam Wed, 15 Aug 2007 02:59:47 +0000 http://www.cleverdude.com/articles/finances/classifying-your-debt-the-good-the-bad-and-the-ugly/#comment-10836 Most student loan debt can't be discharged in bankruptcy. Many students and former students would be lucky to have only $27,000 in student loan debt. I've got a friend with $100,000 in student loan debt. Also, car loans are secured debt, meaning the lender can take your car, sell it for you at auction for a deeply discounted price, and still hold the balance over you. "Selling your car" is not realistic. If your title isn't clean you won't be able to sell it for less than is owed unless you're prepared to buy out the balance. But, miss a few payments and the lender will gladly sell it for you. The only debt you can truly dump if the situation gets bad (bankruptcy) is credit card debt. It's unsecured. So, I respectfully disagree with you. Depending on your reader's situation, it may be in their best interest to pay their non-dischargeable debts first, followed by secured debts, followed by everything else. Not everyone is in your position. Those closer to the edge would not necessarily benefit from your plan. Furthermore, if you can afford to pay all your debts, why not do the math and get the best return on your money by paying off higher interest debts first? It's an instant return on your investment. Thinking with your heart and not your head gets a lot of people into bad debt in the first place. But, it's your money so spend it as you see fit. I've been reading your blog for weeks but never posted. I wish you all the best. Most student loan debt can’t be discharged in bankruptcy. Many students and former students would be lucky to have only $27,000 in student loan debt. I’ve got a friend with $100,000 in student loan debt. Also, car loans are secured debt, meaning the lender can take your car, sell it for you at auction for a deeply discounted price, and still hold the balance over you. “Selling your car” is not realistic. If your title isn’t clean you won’t be able to sell it for less than is owed unless you’re prepared to buy out the balance. But, miss a few payments and the lender will gladly sell it for you. The only debt you can truly dump if the situation gets bad (bankruptcy) is credit card debt. It’s unsecured. So, I respectfully disagree with you. Depending on your reader’s situation, it may be in their best interest to pay their non-dischargeable debts first, followed by secured debts, followed by everything else. Not everyone is in your position. Those closer to the edge would not necessarily benefit from your plan.
Furthermore, if you can afford to pay all your debts, why not do the math and get the best return on your money by paying off higher interest debts first? It’s an instant return on your investment. Thinking with your heart and not your head gets a lot of people into bad debt in the first place.
But, it’s your money so spend it as you see fit. I’ve been reading your blog for weeks but never posted. I wish you all the best.

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