Monthly Archives: November 2009

Get Smart About Debt – Rule #4

By Lon Jefferies | Published: November 4, 2009
The fourth rule of “Get Smart About Debt” is to eliminate the right debts first. Specifically, you need a one-two punch. First, reduce your spending, and second, use the additional money saved to accelerate payment on the debt that has the highest interest rate. Typically, that’s your credit cards. Once you’ve paid off your highest-rate [...]
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Get Smart About Debt – Rule #3

By Lon Jefferies | Published: November 4, 2009
Not long ago you might have drawn on a home-equity line of credit (HELOC) for college costs, emergencies, even a new car. Now, lenders have cut these credit lines and real estate values have sunk. In fact, the average real housing wealth declined 13% from 2005 to 2008. Consequently, home equity is no longer easy [...]
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Get Smart About Debt – Rule #2

By Lon Jefferies | Published: November 3, 2009
Burned by their mistakes, lenders are now far more cautious. To qualify for any loan, you must prove that you’re a low default risk; to get the best terms, you must be a sure bet. Consequently, rule #2 of “Get Smart about Debt” is to position yourself to get the lowest interest rates. This step [...]
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Get Smart About Debt

By Lon Jefferies | Published: November 2, 2009
Money Magazine recently published a brochure about dealing with debt. According to the material, rule number one of debt management is to borrow only when it makes financial sense. During the boom you barely had to be breathing to qualify for loans. Too many people leveraged themselves silly. By 2007, U.S. households owed $1.33 for [...]
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