Comments on: Paying Off Debt the Right way

By: jhl918

jhl918 — Sun, 31 May 2009 04:24:56 +0000

Right now, I have a $18,000 automobile loan at 4.99% and no other debt. My savings are minimal. Any ideas?

By: Anonymous

Anonymous — Thu, 14 May 2009 10:00:39 +0000

I agree with both above comments. However, most people with credit card debt with no answers to get out also lack emergency savings. The plan above runs short in its advise because there has to be a way for people to be prepared for auto repairs, house repairs, etc. You could have the best payoff plan, however you need a savings plan to slow down the use of the credit card.

By: rush2112

rush2112 — Sat, 09 May 2009 22:42:33 +0000

This advice is overall good, but paying off the highest interest rate doesn’t help with gaining momentum. It makes sense mathmatically, but most of the reason you find yourself in debt is due to emotional decisions: I need this or deserve that.
Pay off the smallest debt first, and you get a small victory and gain momentum.

By: J

Sun, 03 May 2009 08:41:10 +0000

Good, except that you don’t want to dip into the emergency fund unless it’s an emergency. Wiping it out to save a couple bucks in interest is never worth it.