3 Ways To Fall Into Debt, 3 Ways To Climb Out

There are countless ways to wind up in the red, and many of them start with the best of intentions. Seemingly smart investments, luxury purchases you thought you could afford and once-in-a-lifetime vacation deals can all place you in the chokehold of compound interest.

So Over Debt identifies three types of debt and suggests ways to avoid or crawl out of it:

* Impulse. Spur-of-the-moment purchases can crack your nest egg and leave you scrambling to recover. To get out, curb your access to credit and chip away at your balance.

* Crisis. Medical and financial catastrophes can push you to the limit in order to survive to pay another day. Once you get back on track, build up a reserve fund to guard against the next crisis.

* Calculated. Taking out student loans and investing beyond your means can pay off in the long run, but can also backfire. Be aware of the terms of your financial arrangements, and make contingency plans to fall back on if your plans go awry.

The 3 Types of Debt (and How to Get Out) [So Over Debt]

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  1. AlteredBeast (blaming the OP one article at a time.) says:

    “Description: Unable to locate the server named “ww.sooverdebt.com” — the server does not have a DNS entry. Perhaps there is a misspelling in the server name, or the server no longer exists. Double-check the name and try again. “

  2. Cat says:

    One Wat To Fall Into Debt, One Way To Climb Out:

    * Spending more than you earn. Don’t buy stuff you can’t afford.

    Damn. That’s easy.

  3. consumed says:

    How did I know this was going to be a Phil article?

    • Cat says:

      I was going to say that, but I knew someone else would say it for me. Thank You.

      To his credit, he did list all 3 things that were in the original list of 3 things in this list of things.

      • AlteredBeast (blaming the OP one article at a time.) says:

        Next…”Top 10 Consumerist Lists”

        • Gman says:

          Nahh too on topic. Phil is only allowed a maximum on one on topic post per day. the rest must be click & google search bait.

    • Chronopoulos says:

      I wonder if he ever reads the comments and knows how much we all truly adore him.

      • Princess Beech loves a warm cup of treason every morning says:

        What, we all love Phil’s List-o-Rama :D Yay!

    • exit322 says:

      The number “3″ in the title.

  4. Gman says:

    Phil: Close..ohhh so close. This is definitely on par with what should be here. But your title is so misleading. That or the article was pushed early before you finished it.
    I am still waiting for “3 ways to climb out”.

    I mean those three ways have got to be better than “Once you get back on track, build up a reserve fund to guard against the next crisis.” Right?

    What about the right type of savings account to boost my annual return? A good government related link to find assistance to get out of debt? Maybe a discussion with a financial adviser from a local bank near you on their suggested payment plans to maximize your living expenses while shrinking the debt mountain? Maybe an executive tip line phone number to some big health insurance companies when the emergency healthcare debt gets too much to pay?

    Something?

    • YouDidWhatNow? says:

      Here they are:

      1. Win the lottery.
      2. Win a jackpot at a casino.
      3. Wait for your communique from a Nigerian Prince who needs to give you money.

  5. Phil Keeps It Real [Consumerist] says:

    Phil V. for el Presidente !

  6. aleck says:

    I don’t know what kind of deal Consumerist of Phil gets for referring us to the “Captain Obvious Blog”, but I am getting to the point of ignoring these posts for lack of any useful information.

  7. DrRonster says:

    Get out of debt:
    Buy out of the money puts on Best Buy, Radio Shack, Groupon, and Facebook after the runnup following its IPO in May.
    Calls on the VIX, although thats a little trickier.
    Its a hellava lot easier to find garbage companies. Legal gambling. Favorite was Kispy Kreme in 2004-2006.
    Nice thing about options is the most you can loose is what you bet. And dont loose over $3000 per year, IRS limit. I think its a lot better than playing the casino or the horses. Google with 15 minutes or less till close on options expiration Friday is a nice play provided its near the strike price. If its at strike then play both calls and puts, only a few cents per share and wild swings during that time.

  8. brinks says:

    Medical emergencies and monthly prescriptions are keeping my household in debt. But only socialist terrorists want universal healthcare, so I’ll be in debt forever.

  9. brinks says:

    Medical emergencies and monthly prescriptions are keeping my household in debt. But only socialist terrorists want universal healthcare, so I’ll be in debt forever.

  10. brinks says:

    Medical emergencies and monthly prescriptions are keeping my household in debt. But only socialist terrorists want universal healthcare, so I’ll be in debt forever.

  11. Rick Sphinx says:

    College loans, be sure the amount your being lent, is not way out of range of what your going to earn in the profession your going into. Many people pay way, way too much for school, and the job they are trying to get, doesn’t pay enough, and they will be in in student loan debt for 25 years or more!, as for paying down, pay off the highest interest first. Try free credit counciling services. Save save save. Don’t eat out. My neighbor ways eating out is a waste of money; “eat today, poop tomorrow”, he’s right in a way.

    • Kate says:

      So you can predict when the real estate bubble pops and the country falls headfirst into a recession and jobs that were once plentiful disappear completely?

      Cool – when is this recession finally going to go away?

  12. rstark says:

    Oh, whew. thank you. Next time I have 600,000 in medical debt due to my daughter almost dying from MRSA, I will be saved by your words of wisdom….