Comments on: a look at the 7 “debtly” sins http://www.welikemoney.com/2008/08/26/a-look-at-the-7-debtly-sins/ one young married couple's journey from spending it to saving it. Wed, 07 Jan 2009 01:55:21 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Debt-be-Gone Roundup « My Daily Dollars http://www.welikemoney.com/2008/08/26/a-look-at-the-7-debtly-sins/comment-page-1/#comment-216 Debt-be-Gone Roundup « My Daily Dollars Sat, 30 Aug 2008 14:35:34 +0000 http://www.welikemoney.com/?p=401#comment-216 [...] my regular blog reading, I liked We Like Money’s review of the 7 “debtly” sins. Get Rich Slowly has some excellent advice for budget planning. Almost Frugal offers some clever, [...] [...] my regular blog reading, I liked We Like Money’s review of the 7 “debtly” sins. Get Rich Slowly has some excellent advice for budget planning. Almost Frugal offers some clever, [...]

]]> By: TGIF link round up: Labor Day Weekend Edition! « Living Well on Less http://www.welikemoney.com/2008/08/26/a-look-at-the-7-debtly-sins/comment-page-1/#comment-215 TGIF link round up: Labor Day Weekend Edition! « Living Well on Less Fri, 29 Aug 2008 23:44:02 +0000 http://www.welikemoney.com/?p=401#comment-215 [...] at We Like Money explores the seven “debtly” sins from the book “Debt-Free by 30.” It’s an interesting look at the spending and debt problems that plague a lot of college [...] [...] at We Like Money explores the seven “debtly” sins from the book “Debt-Free by 30.” It’s an interesting look at the spending and debt problems that plague a lot of college [...]

]]> By: Mydailydollars http://www.welikemoney.com/2008/08/26/a-look-at-the-7-debtly-sins/comment-page-1/#comment-202 Mydailydollars Wed, 27 Aug 2008 13:15:24 +0000 http://www.welikemoney.com/?p=401#comment-202 Thanks for sharing these! I know that I certainly fell for sin #1 all the time. These days, I'm not even thinking about what to do with bonuses, extra income, until it hits my bank account. Thanks for sharing these! I know that I certainly fell for sin #1 all the time. These days, I’m not even thinking about what to do with bonuses, extra income, until it hits my bank account.

]]> By: See My Money http://www.welikemoney.com/2008/08/26/a-look-at-the-7-debtly-sins/comment-page-1/#comment-199 See My Money Tue, 26 Aug 2008 22:09:52 +0000 http://www.welikemoney.com/?p=401#comment-199 Planning on future earnings is a good one! I think that is too often counted on. Only take on an expense when you can afford it NOW. Planning on future earnings is a good one! I think that is too often counted on. Only take on an expense when you can afford it NOW.

]]> By: Karen http://www.welikemoney.com/2008/08/26/a-look-at-the-7-debtly-sins/comment-page-1/#comment-197 Karen Tue, 26 Aug 2008 11:50:33 +0000 http://www.welikemoney.com/?p=401#comment-197 All very good advice for young people. I was guilty of all 7 "sins" in college ... especially counting on future earnings to pay present debt. Too many college kids are convinced that it doesn't matter how much student loan or credit card debt they rack up because the paycheck after college sounds like a small fortune. The reality is that most college graduates spend a few years slaving away for practically no money (if they can find a job right after college at all). In the meantime, those student loans are in forbearance collecting thousands of dollars in additional interest. The other thing I would add to this, though, is how important it is to think of all the time we have ahead of us as time to save rather than time to pay off debt. I think too many people our age start to get into trouble and they think, "Oh well, I already owe $20,000, what's another $50 or $100 or $1,000? I'll start paying it off before I'm 30." So they just keep racking it up, and they end up bankrupt by 30 in financial ruin. Those 10 years aren't extra time to pay debt; they should be an extra decade to build wealth, save for a down-payment on a house, and save for retirement. The sooner they wake up and start taking control of their financial future, the easier it will be to stay out of debt, avoid future mistakes, and build a healthy retirement fund. All very good advice for young people. I was guilty of all 7 “sins” in college … especially counting on future earnings to pay present debt.

Too many college kids are convinced that it doesn’t matter how much student loan or credit card debt they rack up because the paycheck after college sounds like a small fortune. The reality is that most college graduates spend a few years slaving away for practically no money (if they can find a job right after college at all). In the meantime, those student loans are in forbearance collecting thousands of dollars in additional interest.

The other thing I would add to this, though, is how important it is to think of all the time we have ahead of us as time to save rather than time to pay off debt. I think too many people our age start to get into trouble and they think, “Oh well, I already owe $20,000, what’s another $50 or $100 or $1,000? I’ll start paying it off before I’m 30.” So they just keep racking it up, and they end up bankrupt by 30 in financial ruin.

Those 10 years aren’t extra time to pay debt; they should be an extra decade to build wealth, save for a down-payment on a house, and save for retirement. The sooner they wake up and start taking control of their financial future, the easier it will be to stay out of debt, avoid future mistakes, and build a healthy retirement fund.

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