A Quote by Paul Krugman
The real danger with debt is what happens if lots of people decide, or are forced, to pay it off at the same time.
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There are two definitions of deflation. Most people think of it simply as prices going down. But debt deflation is what happens when people have to spend more and more of their income to carry the debts that they've run up - to pay their mortgage debt, to pay the credit card debt, to pay student loans.
In numerous years following the war, the Federal Government ran a heavy surplus. It could not (however) pay off its debt, retire its securities, because to do so meant there would be no bonds to back the national bank notes. To pay off the debt was to destroy the money supply.
But credit card debt is unsecured debt, which means if you get in trouble and cannot pay off your credit card, you can discharge it in bankruptcy. What are they going do to you? If you're in a financial position to just methodically pay off both credit card and student loans, pay them all.
You're trying to sleep off a debt that you've lumbered your brain and body with during the week, and wouldn't it be lovely if sleep worked like that? Sadly, it doesn't. Sleep is not like the bank, so you can't accumulate a debt and then try and pay it off at a later point in time.
First, pay off your high-interest-rate debt. If you have student loan debt - that's low interest rate; that has a tax benefit - you can leave that out. A mortgage can be an OK one. Credit card debt is poison. That needs to be paid off right away.
Shipping first time code is like going into debt. A little debt speeds development so long as it is paid back promptly with a rewrite. The danger occurs when the debt is not repaid. Every minute spent on not-quite-right code counts as interest on that debt. Entire engineering organizations can be brought to a standstill under the debt load of an unconsolidated implementation, object-oriented or otherwise.
There are lots of women and lots of men in the business that the powers that be decide are the right people and they'll stand with them for quite a long time.
I use a "Debt Dash" approach to paying off debt. I recommend people focus on paying off the debt with the lowest balance first. So if the primary has less debt you would focus on that.
Pay off your debt first. Freedom from debt is worth more than any amount you can earn.
A liberal is someone who feels a great debt to his fellow man, which debt he proposes to pay off with your money.
Goals work. Pick one debt, and then put every dime into paying down that one debt. Once that debt is paid off, start paying down the next debt. Pretty soon it's time to move from paying debt to building savings.
If you are, consolidating at a lower interest rate can help you pay off your debt faster. But if there's even a small chance that you'll spiral back into debt, it's not for you.
God's dream is that you have an abundance, that you be totally out of debt, pay your house off, pay your credit cards off, and have so much overflow that you can be a blessing to everyone around you!
A debt is just as hard for a Government to pay as it is for an individual. No debt ever comes due at a good time. Borrowing is the only thing that seems handy all the time.
We're all living on borrowed time. The trick is to come up with works of sufficient interest to pay off the debt.
Develop discipline of self so that you do not have to decide and re-decide what you will do when you are confronted with the same temptation time and time again. You need only decide some things once.
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