Similar Posts


  1. Good points. It does not make much sense to start a savings account when there are credit cards due with interest accruing. Just the same, if one does not set aside some money for emergencies, the credit card will have to be used and it becomes a viscous cycle.

    The best thing is a budget, and then saying no to a lot of spending.

  2. Good guest post. I like the advice to prioritize your creditors. When I was a practicing advisor, I’d often have people come in to meet who were paying all the wrong people first while the important stuff was only getting worse.

  3. Good guest post. I like the advice to prioritize your creditors. When I was a practicing advisor, I’d often have people come in to meet who were paying all the wrong people first while the important stuff was only getting worse.

  4. I have a little over $1000 in debt on a zero interest home depot card for some carpet I put in a home a recently sold. That’s all the debt I have and that will be paid off soon. That will change soon as I just bought a new home today. So much for being debt-free!

  5. Loved the article……. this is a lot more info than we have ever gotten from our bank…. which is why we are thinking of changing banks. Our daughter went to a different bank than we use as the husband of a co-worker was loans officer…. he was the first one to sit down and try to work something out budget wise for her. Something neither she nor we had received from our currant bank….

  6. I think it depends on the return. I have a really low interest rate on the remaining balance of my student loan and when I calculated how much I would “save” in interest by cutting my savings this year, it was so negligible that I just stuck with my current plan. But I think that’s because I’m already paying quite a bit back.

  7. There isn’t really room in the budget for it right now, but I’d love to build up some sizable savings. We now have 2 medical loans to pay for hospital services not covered by our insurance. We are talking about $6000 in debt just because we didn’t have enough of an emergency fund.

  8. Sadly there’s no negotiating with student loans. . . so they are next on our list of things to attack. The credit debt is gone, the cars are paid off, and the 8-month emergency fund is just $850 shy of where we’d like it to be.

  9. I definitely agree that paying off your debt before savings should be the priority! Unless you can find me a place where my savings will pay me 20% return. 🙂 Unfortunately, I find some of my clients so used to making the monthly payments that they would rather put some money aside to build a savings cushion and/or contribute to an RRSP to get the tax refund instead. This doesn’t make sense from a numbers standpoint, but emotions usually win out!

    1. As long as the money is working for them. I agree that we should have a cushion, I would. I also agree with paying off debt as fast as they can especially with high interest rates. I’m not talking about mortgages I’m talking consumer debt. Balance is key, for me at least! Thanks Vicky

  10. Negotiating debt is something people are afraid to do, or just assume can’t be done, it is actually super easy and companies prefer that rather than chasing you for years or having you filing for bankruptcy.

    1. Companies figure they might as well get what they can get so if they can negotiate something that will work they will do it. It’s up to the consumer to say, “listen, I’m going to go bankrupt” or whatever the case and if you want some money please work with me to come up with a solution that works for both of us.

  11. Good tips, many of which we do now that we live by a budget. I would add though, that even if you’re in debt you still need to have at least $500 or $1000 saved some how. I know this might be counter-intuitive, but having that as a backup will help in the large majority of emergencies and can help avoid further debt. I would also add that attacking the card with the highest rate is just as effective as the snowball method in many cases. You can potentially save a good chunk of money by knocking out the highest rate card first. Ultimately, having that mindset to get rid of debt is vital and should be aided with the implementation of a budget.

  12. Great article Mr. CBB! I did a dual prong approach. I did have the typical $1000 in savings for emergencies when I started to pay off my credit cards, but when I did I still put money into my savings. It was like 90/10 between credit card payments and savings. I did this so I wouldn’t be so far behind when I got done.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.