Comments on: What Percentage of Your Income Goes Toward Your Debt Snowball? http://www.financegetspersonal.com/2008/03/29/what-percentage-of-your-income-goes-toward-your-debt-snowball/ Personal Finance Blog of a Girl Trying to Get Out of Debt and Change Careers Tue, 02 Dec 2008 05:19:28 +0000 http://wordpress.org/?v=2.5.1 By: financegirl http://www.financegetspersonal.com/2008/03/29/what-percentage-of-your-income-goes-toward-your-debt-snowball/#comment-120 financegirl Sun, 30 Mar 2008 23:50:04 +0000 http://financegetspersonal.wordpress.com/?p=83#comment-120 There's this book called Debt Free by 30 that's really good. I think I'll be debt-free except the first mortgage by 30 - that will be awesome! 30 is such a "grown-up" age... There’s this book called Debt Free by 30 that’s really good. I think I’ll be debt-free except the first mortgage by 30 - that will be awesome! 30 is such a “grown-up” age…

]]> By: ldub http://www.financegetspersonal.com/2008/03/29/what-percentage-of-your-income-goes-toward-your-debt-snowball/#comment-124 ldub Sun, 30 Mar 2008 18:22:51 +0000 http://financegetspersonal.wordpress.com/?p=83#comment-124 hmm, mine's a little messy! my overpayment (snowball, whatever...) goes, at the moment, to my cc, which, though it has a fairly low interest rate, has a high balance and, frankly, just pisses me off! then will come my car loan (which will finish about a month after the credit card's done), then my higher interest student loan, followed by my fed. loan. the higher interest student loan has the highest interest rate of all of them (at just under 8%), but the interest is still tax deductible, and so i've decided to tackle my consumer/bad debt with a vengeance, and a sincere hope that it'll all be gone by new year's eve. then the high interest student loan will take another couple of months, followed by the fed. should be debt free with a 3 months' ER fund within about 17 months... just in time to turn 30! that'll be a good birthday... hmm, mine’s a little messy! my overpayment (snowball, whatever…) goes, at the moment, to my cc, which, though it has a fairly low interest rate, has a high balance and, frankly, just pisses me off! then will come my car loan (which will finish about a month after the credit card’s done), then my higher interest student loan, followed by my fed. loan. the higher interest student loan has the highest interest rate of all of them (at just under 8%), but the interest is still tax deductible, and so i’ve decided to tackle my consumer/bad debt with a vengeance, and a sincere hope that it’ll all be gone by new year’s eve. then the high interest student loan will take another couple of months, followed by the fed. should be debt free with a 3 months’ ER fund within about 17 months… just in time to turn 30! that’ll be a good birthday…

]]> By: financegirl http://www.financegetspersonal.com/2008/03/29/what-percentage-of-your-income-goes-toward-your-debt-snowball/#comment-123 financegirl Sun, 30 Mar 2008 16:22:59 +0000 http://financegetspersonal.wordpress.com/?p=83#comment-123 Joetaxpayer - You're right, it doesn't make a lot of sense to pay the low interest loans first. My interest rates are 2.99% for the credit card, 3.13-3.5% for the student loans and 7.86% for the second mortgage. I paid off our larger car loan (6.05%) and other credit cards before attacking some of the smaller ones. You can read more about which parts of the baby steps I'm following and what I'm ignoring here: http://financegetspersonal.com/2008/02/16/my-dave-ramsey-hybrid-approach-to-paying-off-debt/. What about you, Idub? What order are you paying off stuff, and what are the interest rates? Joetaxpayer - You’re right, it doesn’t make a lot of sense to pay the low interest loans first. My interest rates are 2.99% for the credit card, 3.13-3.5% for the student loans and 7.86% for the second mortgage. I paid off our larger car loan (6.05%) and other credit cards before attacking some of the smaller ones. You can read more about which parts of the baby steps I’m following and what I’m ignoring here: http://financegetspersonal.com/2008/02/16/my-dave-ramsey-hybrid-approach-to-paying-off-debt/.

What about you, Idub? What order are you paying off stuff, and what are the interest rates?

]]> By: joetaxpayerblog http://www.financegetspersonal.com/2008/03/29/what-percentage-of-your-income-goes-toward-your-debt-snowball/#comment-122 joetaxpayerblog Sun, 30 Mar 2008 16:07:48 +0000 http://financegetspersonal.wordpress.com/?p=83#comment-122 I'm in my 40's with no debt other than mortgage, so mine is a "retirement snowball". About 30% of our net pay goes there. You don't mention how much you owe on CC vs student loans, but I'd consider paying the highest rate items first, Dave's advice notwithstanding. Paying off a 4% loan just because it has a lower balance than some high interest credit card doesn't pass the common sense test to me. Joe I’m in my 40’s with no debt other than mortgage, so mine is a “retirement snowball”. About 30% of our net pay goes there.

You don’t mention how much you owe on CC vs student loans, but I’d consider paying the highest rate items first, Dave’s advice notwithstanding. Paying off a 4% loan just because it has a lower balance than some high interest credit card doesn’t pass the common sense test to me.
Joe

]]> By: ldub http://www.financegetspersonal.com/2008/03/29/what-percentage-of-your-income-goes-toward-your-debt-snowball/#comment-121 ldub Sun, 30 Mar 2008 15:46:28 +0000 http://financegetspersonal.wordpress.com/?p=83#comment-121 i'm glad to have a low cost of living (rent/bills) right now, so my payments toward my student loans, credit card debt, and car loan total just about 50% of my take home pay right now. add to that another 5% toward my savings account, and i budget right at about $100/week in discretionary money (groceries, eating out, gas money, etc). it's feeling a little tight, given gas prices, but i'm going to go another month on this budget (so that i've given it a solid four months) and then see if i need to reevaluate. i’m glad to have a low cost of living (rent/bills) right now, so my payments toward my student loans, credit card debt, and car loan total just about 50% of my take home pay right now. add to that another 5% toward my savings account, and i budget right at about $100/week in discretionary money (groceries, eating out, gas money, etc). it’s feeling a little tight, given gas prices, but i’m going to go another month on this budget (so that i’ve given it a solid four months) and then see if i need to reevaluate.

]]>