Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

This Couple Paid Off $92,000 in Credit Card Debt in 5 Years
Daily Finance ^ | 9/15/12 | Michael Lerner

Posted on 09/22/2012 4:32:36 AM PDT by SoFloFreeper

Jerry Bailey, a minister in Jackson, Mich., says he feels as if he has been given back his life. It's a dramatic statement -- and the story behind these words is, indeed, pretty extraordinary...

It was 2005, and the couple had rung up approximately $92,000 in charges on their credit cards. At one point, they had 17 of them.

(Excerpt) Read more at m.aol.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: credit; discipline; money
Inspirational.
1 posted on 09/22/2012 4:32:43 AM PDT by SoFloFreeper
[ Post Reply | Private Reply | View Replies]

To: SoFloFreeper

$92k on 17 cards? I can’t even imagine what the yearly interest payments were. Glad to hear they are zeroed-out now. Keep 1 or 2; cancel the rest and destroy them. Pay cash if you can.


2 posted on 09/22/2012 4:40:50 AM PDT by carriage_hill (Libs, dems, unions, leftist scum & murderous muzzies - are like bacteria: attack, attack, attack!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SoFloFreeper
After getting rid of all credit but the home mortgage, we got rid of that too, $90,000 in a year and a half. Was layed off three fourths of the way, but still did it.

Used no credit counseling service, just listened to Dave Ramsey.

3 posted on 09/22/2012 4:43:29 AM PDT by sr4402
[ Post Reply | Private Reply | To 1 | View Replies]

To: SoFloFreeper

IMHO, reading thru the link, it looks more like a promotional story for a specific “credit services” operation.


4 posted on 09/22/2012 4:49:41 AM PDT by C210N ("ask not what the candidate can do for you, ask what you can do for the candidate" (Breitbart, 2012))
[ Post Reply | Private Reply | To 1 | View Replies]

To: SoFloFreeper

I don’t get why there are 7 pages to this story. Each page is about a paragraph long. They’re not even driving ads on each page. Stupid format.


5 posted on 09/22/2012 4:56:43 AM PDT by TangoLimaSierra (To the left the truth looks like Right-Wing extremism.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SoFloFreeper

Credit card debt needs to be avoided, especially at the usurous rates they charge. Everybody with debt problems is there primarily because of credit card debt. But eating beans to pay off your mortgage, especially at today’s fixed rates? That IMHO is foolish. Refinance to a current low fixed rate. In a few years when interest rates are back up where they belong, you will look like a genius sitting on your 3.5% mortgage. If you are into the austerity thing, then eat beans and amass cash or take advantage of today’s great real estate bargains.


6 posted on 09/22/2012 5:07:41 AM PDT by beef (Who Killed Kennewick Man?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SoFloFreeper
I didn't see what the income was.

What would even been better if they never acquired the debt.

7 posted on 09/22/2012 5:16:01 AM PDT by riverrunner
[ Post Reply | Private Reply | To 1 | View Replies]

To: TangoLimaSierra
The m.aol.com means it's formatted for a smartphone.
8 posted on 09/22/2012 5:18:27 AM PDT by oprahstheantichrist (The MSM is a demonic stronghold, PLEASE pray accordingly - 2 Corinthians 10:3-5)
[ Post Reply | Private Reply | To 5 | View Replies]

To: beef

Yeah, notice that they had expected to have their mortgage paid off by 2013. Why not just refinance and pay off the cards?


9 posted on 09/22/2012 5:29:45 AM PDT by GOP_Party_Animal
[ Post Reply | Private Reply | To 6 | View Replies]

To: TangoLimaSierra

7 page format kept me from reading it


10 posted on 09/22/2012 5:33:29 AM PDT by yldstrk (My heroes have always been cowboys)
[ Post Reply | Private Reply | To 5 | View Replies]

To: carriage_hill

I use cards on purpose to drive up my credit score. Of course they are set to pay in full every month. I purchased a new car this month and that score gave me 0.9 at the Honda dealership. Total cost of interest is less than 500 after 5 years. I’ll take it.

I believe this couple learned quite a few lessons along the way of eliminating debt. Discipline is a powerful vice.


11 posted on 09/22/2012 5:34:00 AM PDT by eyedigress ((zOld storm chaser from the west)/?)
[ Post Reply | Private Reply | To 2 | View Replies]

To: SoFloFreeper

Congratulations, Mr. Bailey!

I cut up my AmEx card in the late eighties, and never looked back.


12 posted on 09/22/2012 5:39:37 AM PDT by Terry L Smith
[ Post Reply | Private Reply | To 1 | View Replies]

To: beef

In a few years, assuming you’re right about interest rates being back up, they can put the money formerly being spent on a mortgage payment into an interest bearing CD or moneymarket account and look like a genius for being paid interest instead of paying it, regardless of how “cheap” the interest they were paying might appear at that time.

What you’re advocating is the sort of advice I was hearing along about 2005, that fueled the refi and home equity line boom, home equity was regarded as money laying unused.

We see how that turned out.


13 posted on 09/22/2012 5:40:37 AM PDT by RegulatorCountry
[ Post Reply | Private Reply | To 6 | View Replies]

To: GOP_Party_Animal

“...why not just refinance and pay off the cards?”

Because you don’t move unsecured debt (cards) to secured debt (house) especially if it’s you primary residence!

I’d rather take my chances working through the credit card debt than losing my house to foreclosure.


14 posted on 09/22/2012 5:50:02 AM PDT by brewer1516
[ Post Reply | Private Reply | To 9 | View Replies]

To: RegulatorCountry; beef

What you are both talking about is opportunity costs. Which for a homeowner is whether it is better to have the money in hand (bank?) or to pay off the mortgage quicker. The big question is what does the homeowner consider the likelihood that interest rates on savings (or investments) are going to be higher than the interest rate on that loan.

Considering the way I was wrong on how interest rates would move in 2006, I am currently using maturing CDs to pay down my mortgage.


15 posted on 09/22/2012 6:02:17 AM PDT by Fraxinus (My opinion, worth what you paid.)
[ Post Reply | Private Reply | To 13 | View Replies]

To: eyedigress

So did I, but after I got over 810, I backed-off on cards and am down to 2 now. I paid-off my mortgage 30-yrs ago, and always buy vehicles/equipment for cash now, so those are factors in FICO anymore. I’m due for another free yearly set of reports from the 3 reporting agencies, in December.

I’ve been debt-free for many, many years, and it feels great. I hope they learned that lesson, too.


16 posted on 09/22/2012 6:08:35 AM PDT by carriage_hill (Libs, dems, unions, leftist scum & murderous muzzies - are like bacteria: attack, attack, attack!)
[ Post Reply | Private Reply | To 11 | View Replies]

To: carriage_hill

Very well. I am in debt on mortgages but have tenants paying it. I am in debt on my new car because I believe the rate of inflation will erase the interest. The principle remains.

People need to take a class on money. It moves and it is helpful to know where. God Bless


17 posted on 09/22/2012 6:15:51 AM PDT by eyedigress ((zOld storm chaser from the west)/?)
[ Post Reply | Private Reply | To 16 | View Replies]

To: Fraxinus

Good advice for high income, high net worth individuals isn’t necessarily good advice for individuals of more modest means. I aspired to the former category and came quite close, but had my proverbial @ss handed to me in 2007, so now I find myself in the latter. My gut strongly tells me to shed the debt, wherever possible. The consequences of no longer being able to service the note far outweigh any putative future benefit, and the future is far from certain. It’s as uncertain as it’s been in my lifetime.


18 posted on 09/22/2012 6:28:33 AM PDT by RegulatorCountry
[ Post Reply | Private Reply | To 15 | View Replies]

To: carriage_hill
"I’ve been debt-free for many, many years, and it feels great. I hope they learned that lesson, too."

We have several credit cards, but zero credit card debt. ALL cards get paid off every month. The cards we have are mostly "store cards" which give cash/credit incentives for shopping ther, which we already do. One card is issued through our credit union. House has no mortgage, both cars bought for cash. I think we've been debt-free for twenty years now.

Both my wife and I came from (relatively) dirt poor but hard-working parents. We both earned PhD's in chemistry paid mostly from our own earnings/scholarships and "some" student loans. We paid off the student loans in five years after graduating. Both sets of parents imbued us with a work and save ethic (they all having lived through the Depression).

Today's younkers don't have a clue.

19 posted on 09/22/2012 6:34:26 AM PDT by Wonder Warthog
[ Post Reply | Private Reply | To 16 | View Replies]

To: SoFloFreeper

Great to see it can be done!

This can be done without the “credit services.” Debt Proof Living is just as good and very inexpensive. A person can buy the book and make it work. I’m afraid that with Obamawan we’ll never be able to get out of debt.


20 posted on 09/22/2012 7:09:47 AM PDT by madison10
[ Post Reply | Private Reply | To 1 | View Replies]

To: oprahstheantichrist
The m.aol.com means it's formatted for a smartphone.

Ah. Thanks.

21 posted on 09/22/2012 7:14:11 AM PDT by TangoLimaSierra (To the left the truth looks like Right-Wing extremism.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: SoFloFreeper

With the money supply being expanded at the rate it is, being in debt makes sense. I can’t bring myself to do it, but it makes sense.


22 posted on 09/22/2012 8:08:46 AM PDT by Born to Conserve
[ Post Reply | Private Reply | To 1 | View Replies]

To: sr4402

“After getting rid of all credit but the home mortgage, we got rid of that too, $90,000 in a year and a half. Was layed off three fourths of the way, but still did it. Used no credit counseling service, just listened to Dave Ramsey.”

NICE JOB!!! The whole key is to look at the small expenses and cut them out. It’s not that hard, and you wake up the next morning with less debt, but still feel human (i.e., most of those expenses simply aren’t needed).

It amazes me how many of my co-workers buy Starbucks a couple of times, some snacks, and then go to lunch. They’re out $20 per day, out of pocket, for stuff that would otherwise add up to $2 per day if spent more carefully (i.e., supermarkets, or especially Sam’s Club).

By the way, that $20 per day is about $5,000 per year. If the misses does the same, then $10k per year (i.e., in 3 years, at most, you could buy a new car with cash).


23 posted on 09/22/2012 8:10:31 AM PDT by BobL (You can live each day only once. You can waste a few, but don't waste too many.)
[ Post Reply | Private Reply | To 3 | View Replies]

To: GOP_Party_Animal

They apparently couldn’t qualify for a loan. Besides, they needed to learn a lesson.

If they’d refinanced and paid off 17 credit cards, they would’ve then had a much larger mortgage PLUS 17 credit cards with newly available zero balances. And, the fun times would’ve started all over again.

Don’t make credit card payments...lose the card and your credit score.

Don’t make house payments...lose your house.


24 posted on 09/22/2012 8:30:35 AM PDT by moovova
[ Post Reply | Private Reply | To 9 | View Replies]

To: Wonder Warthog

The United States is an awesome place. I have not finished a degree, yet am able to be very productive.


25 posted on 09/22/2012 8:33:00 AM PDT by eyedigress ((zOld storm chaser from the west)/?)
[ Post Reply | Private Reply | To 19 | View Replies]

To: Wonder Warthog; eyedigress

God Bless all of you & yours.


26 posted on 09/22/2012 8:37:42 AM PDT by carriage_hill (Libs, dems, unions, leftist scum & murderous muzzies - are like bacteria: attack, attack, attack!)
[ Post Reply | Private Reply | To 19 | View Replies]

To: SoFloFreeper

Really not so hard to do it you take out another 20 credit cards.


27 posted on 09/22/2012 9:30:12 AM PDT by ProtectOurFreedom
[ Post Reply | Private Reply | To 1 | View Replies]

To: RegulatorCountry

You might want to go back and read my whole post. I am not advocating cashing out your equity and going on a world cruise. But, what the hell do I know? I have never been bankrupt, nor have I ever ruined some poor suckers fleet of trucks.


28 posted on 09/22/2012 10:21:24 AM PDT by beef (Who Killed Kennewick Man?)
[ Post Reply | Private Reply | To 13 | View Replies]

To: beef

I have no idea what you’re talking about.


29 posted on 09/22/2012 10:48:47 AM PDT by RegulatorCountry
[ Post Reply | Private Reply | To 28 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson