depressed i sold off 30x rolls of 40% 2 weeks ago and i could have made another 150 if i waited...
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$ilver$urfer said:clovis97 said:$ilver$urfer said:I am strategically selling off my holdings so I can pay down debt
HH,
$ilver$urfer
I think that this is an excellent move. You are a very wise man for doing this.
Thanks Clovis and Jim for your positive comments! I am sick and tired of carrying excessive credit card debt racked up when money was cheap and easy to come by (i.e. - 12 months no interest CC loans that ended up jacking my rates and chasing my balances once the CC reform act was passed last year). "The rich ruleth over the poor, and the borrower [is] servant to the lender." Proverbs 22:7 -- I am sick of having a feeling of debt over my head and being beholden to others...I want to live without worrying about it anymore.
Most of the debt was racked up through improvements to my real estate holdings, heck, at one time two-three years ago I had well over 100K in CC debt (all of it at 0% to 8% interest). I am down to about 25K now and hope to be completely debt free (minus mortgages of course) by year's end. That is why I am strategically selling 7.5%-8% of my holdings at intervals - I think my next sell point will be about $44.50.
HH,
$ilver$urfer
clovis97 said:$ilver$urfer said:clovis97 said:$ilver$urfer said:I am strategically selling off my holdings so I can pay down debt
HH,
$ilver$urfer
I think that this is an excellent move. You are a very wise man for doing this.
Thanks Clovis and Jim for your positive comments! I am sick and tired of carrying excessive credit card debt racked up when money was cheap and easy to come by (i.e. - 12 months no interest CC loans that ended up jacking my rates and chasing my balances once the CC reform act was passed last year). "The rich ruleth over the poor, and the borrower [is] servant to the lender." Proverbs 22:7 -- I am sick of having a feeling of debt over my head and being beholden to others...I want to live without worrying about it anymore.
Most of the debt was racked up through improvements to my real estate holdings, heck, at one time two-three years ago I had well over 100K in CC debt (all of it at 0% to 8% interest). I am down to about 25K now and hope to be completely debt free (minus mortgages of course) by year's end. That is why I am strategically selling 7.5%-8% of my holdings at intervals - I think my next sell point will be about $44.50.
HH,
$ilver$urfer
You've already paid off $75K of debt WOW!!!! That is impressive!!! WTG!!!!
Are you working the Dave Ramsey Plan
If you are, I'll promise you one thing: You will sleep so peacefully at night after the debt is gone. I'm not kidding. I had heard that many times, and am here to verify that it is true.
I don't have much, but what I do have, is paid for in full, free and clear.
FWIW, everyone and their brother made fun of me through my long journey of getting out of debt. It has been one of the best things I've ever done, and it saved us financially. You see, I was diagnosed with a tumor in my head that destroyed my career, a small business that I owned, and my income. I have no idea what we would have done, or where we'd be living had we not paid off all that debt.
You are doing the right thing...stay at it!!!!! WTG!!!!!!!
mts said:jim4silver said:TheRandyMan said:Question...why pay down debt when governments are diluting their paper money supplies in an attempt to make it easier for THEM to pay down their debt? Why not just wait as every month that goes by the paper money that you use to pay the loan off is worth less and less and costs you less and less to pay off the debt with? Why not take the extra money that you would have used to pay off debt and BUY gold and silver, watch it move up up UP and make your debt even EASIER to pay off a year or two from now when it has DOUBLED in value while the worthless paper has HALVED in value??
In theory you might be correct, but it does not take into account the interest costs each month as you wait for the $$$ value to drop. Plus having excessive debt will affect other options you might otherwise have such as getting business loans, buying a home.
I read somewhere that debt = slavery. I personally would rather be completely debt free (talking about credit card, student debt, etc, not a mortgage).
Jim
I agree 100%. I have always advocated living within ones means. Because of that, I'm completely debt free (including mortgage and cars). When you pay off your debt quickly, it becomes a non-issue.
I also don't believe all of the doom and gloom about the value of the dollar going down as quickly as some people claim. Ten years from now it will definitely be worth less than it is today. But probably not enough to offset the interest payments that you will be making on that loan.
Let's put it this way... the value of the dollar has been going down for a very long time. Yet banks still loan out money to people and end up making out like a bandit most of the time. If the amount of money they make in interest doesn't more than make up for the declining value of the dollar by a very wide margin, then banks wouldn't lend you money. It would be a losing proposition for them. They are well aware of what the value of the dollar is currently doing. And yet they still loan money all of the time.
Now you could in theory do very well by betting on the declining value of the dollar. But the risk would be significant. And don't believe for one minute that this whole "sky is falling attitude" is something new and this time the dollar really is going to take the plunge. People have been warning us about this stuff for a very long time. If you had bet back in the 80's on the declining value of the dollar like everyone was claiming you would have been disappointed in how much you wasted in interest over the years when those predictions failed to pan out.
I'm not saying that the value of the dollar isn't going down. But are you willing to bet a significant amount of money on it? That mortgage interest is a sure thing. It isn't going anywhere and you are guaranteed of losing money on it. The value of the dollar on the other hand? Heck, it could go UP. Well... I guess miracles CAN happen right?
clovis97 said:Another side note to this discussion is that if the dollar ever fails, we'll see hyper-inflation, just like Germany did after WWI.
I've read stories where people had to have an entire wheelbarrow full of money just to buy one loaf of bread. If we had the same type of inflation, a gallon of gas could easily cost $20 or more. In that situation, people will be spending every dime of their locked-in, measly wages just to eat and for gas to get to work, and not pay things like house payments, car payments, etc.
For us, I believe it has been better to do without extravagant vacations, fancy leased cars and Starbucks every day, and live below our means without debt. If hyper inflation ever sits in, I feel protected, because I'll only have to worry about what we are going to eat in the long term, and how I'm going to pay the property taxes.
I don't buy into the 'sky-is-falling' mantra either...but if it happens, I'll just deal with it when it gets here. I'm not going to lose a minutes sleep over it until it gets here.
Not sure if any of this makes sense, but it is my story, and I'm sticking to it.
An interesting thread...
TheRandyMan said:Silver will hit $75 per ounce by November of 2012 at election time.
TheRandyMan said:These responses I have been reading are akin to an ostrich sticking its head in the sand. We are entering a time period the likes of which the computerized/industrialized/modernized world has never experienced. This will make the Jimmy Carter era inflation look like a walk in the park...some of you do remember that, don't you?
I will certainly agree with not having credit card debt as I cut up 38 of my 40 and paid them all off 10 years ago and swore I would never carry a balance again...and I have not. I am speaking of "good debt" as it only makes sense to me to protect myself from the severe depreciation of the dollar that inevitably will occur.
Do what you wish, of course. Just do not say you were not warned...
$ilver$urfer said:Like I mentioned earlier in this thread, I sold off some of my silver last week and made quite a nice profit and paid off three credit cards. For those of you holding out for the magical $936 an ounce silver...right now a 40%er can buy a value meal at MickeyD's or BK ($6). In 15 years a 40%er may be worth $42 and I would be willing to bet that would be the price of a value meal at that time as well. What I mean to say is the value of your precious metals will pace themselves with inflation. That being said, your future cost of living will substantially increase if our currency keeps going in the same inflated direction. It is my feeling that the only thing that will help you in the future is to pay off your debts NOW and become more self-sufficient! If you can do that the gold and silver you are hoarding will definitely help protect your wealth. Remember though, your living costs (food, fuel, cable, internet, clothing, health care, sundries, etc.) will increase along with the value of your holdings.
HH,
$ilver$urfer