Welcome to the 133rd Carnival of Debt Reduction!
Beginning January 1st of this year, I started my blog regarding personal finance specifically about debt reduction and frugal living. I have had the pleasure of reading many of the PF blogs and have been enjoying it a lot.
This is the end of the first quarter of 2008 so I decided to share with you some of the headlines from these past three months along with the great debt reduction articles.
So onto our carnival.
Editor's Choice
NCN presents Moving Debt Is Not The Same As Paying It Off posted at No Credit Needed.
Editor's choice
paidtwice presents Small Changes Make a World of Difference posted at I've Paid For This Twice Already....
1st Quarter -January 2008
source wikipedia January 2008
(If you want to see the articles you might have to click the navigation Current Events or Portal Current Events on the Wikipedia page.)
January 3: Caucus vote in Iowa (BBC)
The Happy Rock presents Why APY Matters And The APR Lies posted at The Happy Rock.
January 6: Greece is hit by an earthquake 6.5 magnitude (RTE News)
Steve Faber presents - How to Get Out of Debt Fast posted at Debt Free.
January 13: "A team of researchers from the University of Minnesota announce the creation of a beating rat heart using cells from the heart of newborn rats and a heart structure from a dead rat." (The New York Times)
Praveen presents IVA - British Alternative to Bankruptcy posted at My Simple Trading System.
January 26: "The United States government warns that a spy satellite is losing power and propulsion and could hit the Earth in February or March." (BBC News)
Jim presents 7 Steps to Debt Consolidation Using Balance Transfers posted at Cash Back Ideas.
1st Quarter -February 2008
source wikipedia February 2008
(If you want to see the articles you might have to click the navigation Current Events or Portal Current Events on the Wikipedia page.)
February 21: "Singapore is elected by the International Olympic Committee as the first city to host the Youth Olympic Games in 2010." (IOC)
Debt Freedom Fighter presents Debt Advice: How to Defeat Your Debt Once and For All. posted at Discover Debt Freedom!.
February 24: "A Virgin Atlantic Boeing 747 becomes the first commercial aircraft to make a flight powered by biofuel flying between Heathrow and Amsterdam." (CNN)
FMF presents 790s Credit Score Barely Enough In Today’s Loan Market? posted at Free Money Finance.
1st Quarter -March 2008
source wikipedia March 2008
(If you want to see the articles you might have to click the navigation Current Events or Portal Current Events on the Wikipedia page.)
March 4: "A manmade flood is created in the Grand Canyon in Arizona in an attempt to replenish the ecosystem in the gorge." (CNN)
FIRE Finance presents Three Quick Steps To Get Out of Debt! posted at FIRE Finance.
March 12: "The total amount of digital information is estimated at 281 exabytes in 2007, exceeding available data storage for the first time." (Ars Technica) (IDC via EMC)
Helen Anderson presents 8 Easily Avoidable Causes of Business Debt at Personal Finance Blog, Budgeting, Debt @ Bankaholic posted at Bankaholic.
March 16: "Italian airline Alitalia is purchased by a consortium of Air France and KLM for €138 million." (BBC)
sara l presents $500 Phone call posted at paying off my future.
March 17: "World War II Royal Australian Navy warship HMAS Sydney is discovered off the coast of Western Australia after being missing for 65 years with the loss of all 600+ crew." (ABC News Australia)
Broke Grad Student presents How To Quickly Pay Off Student Loans posted at Broke Grad Student.
March 24: "The Olympic Flame of the 2008 Summer Olympics is lit in Olympia" (CNN)
glblguy presents Gazelle Intensity: How fast is it? posted at Gather Little by Little.
March 27: "The oldest known recording of a human voice, created with a phonautograph by Édouard-Léon Scott de Martinville on April 9, 1860 is replayed by American researchers." (The New York Times)
William Blake presents What Does Your Debt Ratio Mean? posted at Becoming Debt Free.
Have a great spring!!
Sunday, March 30, 2008
Monday, March 24, 2008
Next Host for the Carnival of Debt Reduction
Motherhood101Aplus will be hosting the next edition of the Carnival of Debt Reduction. Please submit your posts if you are interested in participating.
Thursday, March 20, 2008
Not All Homeowners in America have a Mortgage
This sounds like good news. Normally I feel that I am in a very small majority trying to get my mortgage paid off while my children are still in grade school.
Gallup has a few polls regarding Mortgages and Home Equity Loans and Lines of Credit.
The first one that I wanted to mention says that "59% of the people have a fixed rate mortgage and 9% of the people have a variable rate mortgage." (April -May 2005)
http://www.gallup.com/poll/16468/Should-Consumers-Wary-Home-Equity-Lending.aspx.
Another Gallup Poll indicates that "85% of the people aged 30-49 have a 1st lien mortgage; 78% of the people aged 18-29; 61% of the people aged 50-64; and 24% of the people aged 65 or older." (October - December 2006)
http://www.gallup.com/poll/26488/Americans-Hooked-Home-Equity-LoansLines.aspx.
Gallup has a few polls regarding Mortgages and Home Equity Loans and Lines of Credit.
The first one that I wanted to mention says that "59% of the people have a fixed rate mortgage and 9% of the people have a variable rate mortgage." (April -May 2005)
http://www.gallup.com/poll/16468/Should-Consumers-Wary-Home-Equity-Lending.aspx.
Another Gallup Poll indicates that "85% of the people aged 30-49 have a 1st lien mortgage; 78% of the people aged 18-29; 61% of the people aged 50-64; and 24% of the people aged 65 or older." (October - December 2006)
http://www.gallup.com/poll/26488/Americans-Hooked-Home-Equity-LoansLines.aspx.
Tuesday, March 18, 2008
The Power of Paying Off a Mortgage Early
We have been in our home for 10 years. Our principal has really not gone down very much each year until now. Last year (April 07-April 08) we reduced our principal by 12K. If we follow along using our debt reduction snowball, we will reduce our principal by 14K next year and an additional 16K the following year.
Each year the amount of the principal reduction will be more because our interest owed will not be as high.
Each year the amount of the principal reduction will be more because our interest owed will not be as high.
Home Equity Going Down
Apparently the equity in your home is related to the amount that your home is worth based on the housing market rather than the original purchase price of your home. So what is going to happen to the home equity loans when the market price of people's homes goes down? Will the home owners no longer be able to sell their home for a profit but instead will need to take a loss b/c they have essentially two mortgages that add up to more than the selling price of their home?
Debt Reduction 101
1) Don't get into debt in the first place
A) Normally that advice comes too late
B) Debt comes with living in America
C) We all want the American dream of being mortgaged to the hilt
I have been trying to figure out the history behind how the home equity loan got started. Did someone realize that home owners actually had some equity that they could borrow against? How is this good for the consumer? The home owner already has a mortgage and then they get a home equity loan.
Several times we have been approached to get a home equity line of credit "just in case" it was needed.
A) Normally that advice comes too late
B) Debt comes with living in America
C) We all want the American dream of being mortgaged to the hilt
I have been trying to figure out the history behind how the home equity loan got started. Did someone realize that home owners actually had some equity that they could borrow against? How is this good for the consumer? The home owner already has a mortgage and then they get a home equity loan.
Several times we have been approached to get a home equity line of credit "just in case" it was needed.
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