Comments on: 4 Counter-Intuitive Ideas to Help You Get Out of Debt http://www.nodebtplan.net/2009/10/01/4-counter-intuitive-ideas-to-help-you-get-out-of-debt/#utm_source=rss&utm_medium=rss&utm_campaign=4-counter-intuitive-ideas-to-help-you-get-out-of-debt A personal finance blog teaching you how to live debt free and use credit wisely. Fri, 10 Feb 2012 15:18:07 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Mesa AZ CPAhttp://www.nodebtplan.net/2009/10/01/4-counter-intuitive-ideas-to-help-you-get-out-of-debt/#comment-49287 Mesa AZ CPA Tue, 01 Dec 2009 22:10:04 +0000 http://www.nodebtplan.net/?p=3843#comment-49287 This post just shows that you have to work hard to really reduce debt and improve your credit score. People too often are just looking for a quick fix or a miracle. With some work and a little diligence you can improve your credit situation. This post just shows that you have to work hard to really reduce debt and improve your credit score. People too often are just looking for a quick fix or a miracle. With some work and a little diligence you can improve your credit situation.

]]> By: Black Coffee: My Favorite Blogs, Money News & Opinions #16http://www.nodebtplan.net/2009/10/01/4-counter-intuitive-ideas-to-help-you-get-out-of-debt/#comment-40572 Black Coffee: My Favorite Blogs, Money News & Opinions #16 Fri, 09 Oct 2009 23:30:47 +0000 http://www.nodebtplan.net/?p=3843#comment-40572 [...] Debt Plan – Kevin caught my attention when he suggested these four counter-intuitive ideas for getting out of debt:   1) Embracing CD penalties (what?); 2) paying off your credit card debt last (huh?); 3) getting [...] [...] Debt Plan – Kevin caught my attention when he suggested these four counter-intuitive ideas for getting out of debt:   1) Embracing CD penalties (what?); 2) paying off your credit card debt last (huh?); 3) getting [...]

]]> By: The Big Bundlehttp://www.nodebtplan.net/2009/10/01/4-counter-intuitive-ideas-to-help-you-get-out-of-debt/#comment-39674 The Big Bundle Sun, 04 Oct 2009 03:52:57 +0000 http://www.nodebtplan.net/?p=3843#comment-39674 [...] 4 Counter-Intuitive Ideas to Help You Get Out of Debt. [...] [...] 4 Counter-Intuitive Ideas to Help You Get Out of Debt. [...]

]]> By: Steve in Denmarkhttp://www.nodebtplan.net/2009/10/01/4-counter-intuitive-ideas-to-help-you-get-out-of-debt/#comment-39396 Steve in Denmark Fri, 02 Oct 2009 14:03:01 +0000 http://www.nodebtplan.net/?p=3843#comment-39396 I better check the Exchange Rate here...Erm...it's not as astronomical as you/we think. 1200Dkr (2 x 600Dkr), comes to roughly $235. We pay that a month (between us). Phew! But, as I say, it will do everything the Emergency Fund would do (ie replace your wages, etc, and therefore pay all your expenses just as if you were still working), and for at least 12 months. Plus, they give you all sorts of help with finding a new job - sorting your CV out, calls, ideas, etc - down to getting you onto courses where you can increase your employability or even re-train for something else, should you wish. If you go onto a course, or take a 'new education' (as it translates to here), you'll get paid as well. The only down-side, is that the money isn't yours' at the end of the day. It's an insurance policy. You don't save it up and so, if you don't need it, you don't get it back. But, I think that the benefits over and above having everything paid for each month, just as if you still were in work and earning, outweigh that particular down-side. I'm just working on a new layout for our budget (make it easier to identify cost saving areas and so include budgets and automation, like old Ramit says) and was trying to figure out if we needed to allow for an Emergency Fund. While most of me says 'no', there is a little voice at the far end of the room there that is saying 'try and work something in'. We could save up the equivalent of a years' A-kasse payments, put it in a high-interest account, then drop the A-kasse payments I suppose. But that's gonna take a bit of doing, won't come to fruition any time soon and will have to be done alongside our regular A-kasse payments. It's a nutty one... I better check the Exchange Rate here…Erm…it’s not as astronomical as you/we think. 1200Dkr (2 x 600Dkr), comes to roughly $235. We pay that a month (between us). Phew!

But, as I say, it will do everything the Emergency Fund would do (ie replace your wages, etc, and therefore pay all your expenses just as if you were still working), and for at least 12 months. Plus, they give you all sorts of help with finding a new job – sorting your CV out, calls, ideas, etc – down to getting you onto courses where you can increase your employability or even re-train for something else, should you wish. If you go onto a course, or take a ‘new education’ (as it translates to here), you’ll get paid as well.

The only down-side, is that the money isn’t yours’ at the end of the day. It’s an insurance policy. You don’t save it up and so, if you don’t need it, you don’t get it back. But, I think that the benefits over and above having everything paid for each month, just as if you still were in work and earning, outweigh that particular down-side.

I’m just working on a new layout for our budget (make it easier to identify cost saving areas and so include budgets and automation, like old Ramit says) and was trying to figure out if we needed to allow for an Emergency Fund. While most of me says ‘no’, there is a little voice at the far end of the room there that is saying ‘try and work something in’. We could save up the equivalent of a years’ A-kasse payments, put it in a high-interest account, then drop the A-kasse payments I suppose. But that’s gonna take a bit of doing, won’t come to fruition any time soon and will have to be done alongside our regular A-kasse payments.

It’s a nutty one…

]]> By: Kevinhttp://www.nodebtplan.net/2009/10/01/4-counter-intuitive-ideas-to-help-you-get-out-of-debt/#comment-39394 Kevin Fri, 02 Oct 2009 13:33:57 +0000 http://www.nodebtplan.net/?p=3843#comment-39394 Steve, an emergency fund is private (as in, you own it) savings for future unknown expenses. Most financial gurus recommend 3-6 months or 6-12 months worth of your living expenses saved up for emergencies. So if your living costs (mortgage, food, utilities, etc.) are $2,000 per month and you wanted to have a 6-month emergency fund... you would save $12,000 on your own in a savings account. That way if you lose your job, the roof needs replacing, etc. you have money set aside for it. Are you saying you put $3,000 USD in this A-kasse thing? Holy cow -- that is a ton of money they you potentially will never see again! Steve, an emergency fund is private (as in, you own it) savings for future unknown expenses.

Most financial gurus recommend 3-6 months or 6-12 months worth of your living expenses saved up for emergencies. So if your living costs (mortgage, food, utilities, etc.) are $2,000 per month and you wanted to have a 6-month emergency fund… you would save $12,000 on your own in a savings account.

That way if you lose your job, the roof needs replacing, etc. you have money set aside for it.

Are you saying you put $3,000 USD in this A-kasse thing? Holy cow — that is a ton of money they you potentially will never see again!

]]> By: Steve in Denmarkhttp://www.nodebtplan.net/2009/10/01/4-counter-intuitive-ideas-to-help-you-get-out-of-debt/#comment-39359 Steve in Denmark Fri, 02 Oct 2009 06:45:27 +0000 http://www.nodebtplan.net/?p=3843#comment-39359 I'm curious about the 'Emergency Fund', our man recommends here. My wife and I pay into something called an 'A-kasse'. There are many of them here in Denmark and it seems that most people pay into them. They are basically glorified unemployment insurance funds. If you get made redundant, they pay your wages for a certain period, I think it's often a year or so. The more you contribute each month, the more you'd get each month, should you be made redundant. We're with Kristelig Fagbevægelse and they also will help with most aspects of finding a new job. We pay 600kr each a month (I think you would currently times that by 5 or so, to get it in Dollars). What I'm thinking is, that this must be the equivalent of the Emergency Fund most of the (US) finance bloggers talk about. Am I right, or should I also start one? They would seem to be one and the same, the only difference being that we won't get the money we've paid in back, if we (hopefully) never need the service. I’m curious about the ‘Emergency Fund’, our man recommends here.
My wife and I pay into something called an ‘A-kasse’. There are many of them here in Denmark and it seems that most people pay into them. They are basically glorified unemployment insurance funds. If you get made redundant, they pay your wages for a certain period, I think it’s often a year or so. The more you contribute each month, the more you’d get each month, should you be made redundant. We’re with Kristelig Fagbevægelse and they also will help with most aspects of finding a new job. We pay 600kr each a month (I think you would currently times that by 5 or so, to get it in Dollars).
What I’m thinking is, that this must be the equivalent of the Emergency Fund most of the (US) finance bloggers talk about. Am I right, or should I also start one? They would seem to be one and the same, the only difference being that we won’t get the money we’ve paid in back, if we (hopefully) never need the service.

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