The company in Alaska who processed and shipped DH's fish charged us for his AND his boss' fish. The good news is we are getting $125 back. Yay!
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I was thinking yesterday about debt. I think we can all agree that there is bad debt and worse debt, but how would you "rank" it?
Here is what I came up with in order from not-so-bad to worst.
Mortgage Debt
Student Loan (IF you're using what you learned to make money)
Auto Loan
HELOCs
Medical
Student Loans (when you're NOT using what you learned)
Personal Loans from family/friends
Credit Cards
RV/Boat/Recreational Loans
"Rent to Own" places for furniture/appliances
Personal Loans/Check Cashing places
So what do you think? How would you rank these?
***Edit: Disclaimer
This list is just for fun. My musings about debt. I'm assuming these debts under "normal" conditions. Of course there is exceptions to every debt. Underwater mortgages, using HELOC as an ATM, "buying" a new car every three years, a personal loan that destroys a friendship or a medical loan for butt cheek implants vs. heart surgery.
Good News & Ranking Debt
September 22nd, 2010 at 05:30 pm
September 22nd, 2010 at 05:44 pm 1285177497
Student loans can be pretty nasty. Even if the rates are low, they are not dischargeable in any sort of hardship. So I would put them high on the list to be paid off.
Auto loans can really be good or bad. I have hardly purchased a car without borrowing a small sum for a car. I don't think perpetual/lifetime of car loans makes sense for anyone, on the other hand.
I think HELOCs are bad bad bad, personally. (I seem to be alone on this one - I have never liked the idea of HELOC as emergency fund - common advice from most financial gurus).
PErsonal loans come with non-monetary consequences.
Mortgage is the only debt I have actually ever been a fan of, but I think it's more due to regional economics than anything else. I could pay more to rent a smaller house. I like my mortgage - thanks!
September 22nd, 2010 at 06:18 pm 1285179488
I know we would pay more than our mortgage P & I (& probably PITI) to rent a house around here.
September 22nd, 2010 at 06:34 pm 1285180443
September 22nd, 2010 at 06:40 pm 1285180835
September 22nd, 2010 at 06:44 pm 1285181068
September 22nd, 2010 at 09:39 pm 1285191580
I think I would rank check cashing places the highest because of their highway robbery rates. HELOCs I would put above the mortgage. Regardless of whether you are using your degree or not does not matter. Student loans definitely should be paid off, but they are not as high priority as necessities, such as a mortgage payment.
Personal Loans/Check Cashing places
Credit Cards
HELOCs
Medical Debt
Mortgage Debt
"Rent to Own" places for furniture/appliances
Student Loan (IF you're using what you learned to make money)
Student Loans (when you're NOT using what you learned)
RV/Boat/Recreational Loans
Auto Loan
Personal Loans from family/friends
September 22nd, 2010 at 09:40 pm 1285191653
September 22nd, 2010 at 10:22 pm 1285194177
Worst: ARM mortgages. Helocs. Payday Loans. Rent-a-center. Cash advances on credit card
Not great, but better: Car loan, 30-yr mortgages. Credit cards.
Dangerous due to the age and polly-annaism of the target market: Student loans.
Sad debt: as in, can't America do better for its citizens: Medical debt.
September 23rd, 2010 at 04:37 am 1285216679
Ima-Great plan to keep your hubby in "check"!
CLL-My list is from better to worse. Not really a list of what should be paid off first, second, third and so on. My list is more like what I think is an okay debt listed down to what I think is really bad. I't looks like you've got the same idea, but your list is upsidedown from mine (worst to better?) Good input.
Thrift-Exactly! Maybe I should have put it like that.
September 25th, 2010 at 12:12 am 1285373575
Jerry