A healthy thought pattern?

mrs_mug_2

Am I the only person to put their debts in to categories? I've got 3 boxes in my head. Short term debt box that I can pay off over the next month or so - thats the overdraft for me. Then there is the box that is the middle term debt box- for me that is the loan. Then there is the looooong term debt box that feels like it will be there forever. I've put the mortgage and the secured loan in that box. In my head, I'll deal with those at the same time. I guess that means I treat the secured loan as a mortgage and not a loan. Should I change that thought pattern do you think?

I know I can sort out the short term box. The middle term box is going to take a lot of doing. And I daren't even think about the long term box.

I've also got a car loan, well its one of these 3 year lease jobbies with a balloon payment at the end or give the car back. Which box does that go in to? For me that is a bill. The set up suits us, a new car every 3 years with out worrying about reselling the old one etc. But should we look for a more cost effective way to have a car? We need a reliable car as my husband travels at least 300 miles a week.

Any thoughts on my attitude to my debt? I worry that I've got it all wrong and I know that if I have it won't help me achieve my end goal.

amosworks

You might want to look in to a debt repayment system called Cumulative Accelerator Margins. It's slightly different to the (IMHO) grossly over-hyped snowballing method. I used it to pay off my debts and I guess it suits your way of thinking.

Let us know how you get on!

mrs_mug_2

Thanks Amosworks, off to google that now

amosworks

Your results will find books also listed in the DFW Virtual Book Club, i'd go through other similar books mentioned for more information on the subject.

DO NOT buy anything off the Internet! Yes, it is a debt-elimination program put together by John Cummuta (one of my gods) which he sells, but the information is also available for free - legal or otherwise

QueenB.

I do think of myself as having two types of debt.

The first debt box is all the flexible debts such as O/D and CC's, these are the ones i consider the debts i can really change and so they are the ones i consider the real debts, for now at least. It also means i do not have such a scary debt total in my head.

The second debt box is a loan that has a fixed payment period. That one i leave to one side as i make the payments but other than that there is not much more i can do...........at the moment.

If i pay all the other debts off before the end of the loan then i will see if i can do something about the loan.

As long as you are being truthful with yourself then thinking of your debt in terms you find helpful is acceptable as far as i am concerned.