Questions tagged [debt-reduction]

The act of paying off debts (either partially or completely). One may do this to lower or eliminate a monthly payment and regain control of one's personal finances. There are different ways to do this, but the most popular are based either on the total amount of each debt or on the interest rate. There are different arguments as to which one is better, but either is better than doing nothing but paying the minimums.

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5
votes
4answers
421 views

Should a $150K mortgage @ 6% be paid off with $150K withdrawn from a 401K at retirement?

Should a $150K, 30 year mortgage @ 6% be paid off with $150K withdrawn from a 401K account at retirement?
26
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6answers
1k views

Does it make any sense to directly contribute to reducing the US national debt?

As an American citizen, does it make any financial sense to donate money in hopes of helping to reduce the US national debt? Thanks.
8
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4answers
922 views

What is 'consolidating' debt and why do people do it?

I've seen 'debt consolidation' advised for people who have a lot of debt (from different credit cards, etc). What does that involve, exactly, and why is it a good idea? Say I have: $1000 at 5% from ...
187
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19answers
26k views

How smart is it to really be 100% debt free?

For the last 2 years, I have been trying hard to be debt free without affecting my personal cash flow. I am by no means a rich person, but I have a decent salary. I still have debt, specifically ...
7
votes
2answers
594 views

Do things really fall off a person's credit in seven years?

I'm looking to start repairing my wife's credit on which she has several credit cards from before we were married. These debts are reaching the 7 year window where I've heard things "fall off" your ...
2
votes
2answers
481 views

How to do Credit Card debt consolidation or get rates lowered?

I have a friend that has five credit cards of debt. A couple of the cards have high interest rates (20-25%). The rest are 15% and below. The total debt combined of all five cards is ~$10k. How ...
17
votes
6answers
2k views

Should I pay off my student loan before buying a house?

Should I pay off my student loan before buying a house?
5
votes
3answers
1k views

Use retirement to pay off debt: Should I cash in RRSP to repay Line of Credit?

The amount I have in RRSP savings is exactly equal to the amount I have in Home Equity Line of Credit debt (significant, but aside from home mortgage, my family has no other debt). I know if I ...
6
votes
4answers
311 views

I have a secured line of credit (substantial balance) as well as a retirement account. Am I wisest to pay off my debt before contributing to my retirement account?

What if it will take me 15 years to pay off my debt? Should that ALWAYS be what I pay down first?
26
votes
6answers
3k views

I've often heard of the “snowball” method for paying off credit card debt. How does it work?

How does the "snowball" method of paying off credit card debt work? In what ways is it superior over other ways of reducing one's debt?