Welcome to the 2010 Frugal Village Debt Reduction Challenge!!
This is the official discussion thread for the 2010 Debt Reduction Challenge. Any comments or questions about the 2010 Debt Reduction Challenge should be posted in this thread. Posts made to the 2010 Debt Reduction Challenge - Totals thread will be moved to this thread.
Challenge Rules
The goal of the 2010 Debt Reduction Challenge is to encourage all Frugal Villagers to make 2010 a financial success by eliminating as much debt as possible. In almost no circumstances but a very few is paying interest a wise thing to do with money, and it is never a good thing to be beholden to others, and so nothing could be more frugal than to eliminate debt!
For the purposes of this years challenge, some terms have been defined and rules set to make the challenge a bit more precise in terms of the elimination of actual debt.
Debt
A debt is defined as:
Valid Debts
Qualifying Amounts
The amount of interest paid *will* be tracked - but the reason for tracking that amount is not to qualify as "debt reduction" but to show just how much money Frugal Village is throwing down the drain every year in new interest accumulated.
New Debt
Any new debt taken on by members participating in the challenge should be posted here. This new debt will reduce our debt reduction total. We cannot force you to tell us if you've added new debt, but within the challenge threads, no criticism of those adding debt will be allowed.
Posting Payments Made
Because principal reduction is the truly important amount, this amount is *required* as part of your post. You may choose to include how much was paid in interest, fees, etc. if you wish, but if you do not clearly include the amount paid towards actual principal, your post will not be counted.
Suggested style of posting:
Also acceptable:
I realize that this challenge is going to require more effort on everyone's part. It will be worth it both for FV, and for you.
It'll be worth it for FV because everyone will get a much clearer sense of just how much money goes towards interest that could instead be going towards our futures.
It'll be worth it for YOU because if you don't already pay attention to this, it will enlighten you and motivate you to KILL THAT DEBT!
This is the official discussion thread for the 2010 Debt Reduction Challenge. Any comments or questions about the 2010 Debt Reduction Challenge should be posted in this thread. Posts made to the 2010 Debt Reduction Challenge - Totals thread will be moved to this thread.
Challenge Rules
The goal of the 2010 Debt Reduction Challenge is to encourage all Frugal Villagers to make 2010 a financial success by eliminating as much debt as possible. In almost no circumstances but a very few is paying interest a wise thing to do with money, and it is never a good thing to be beholden to others, and so nothing could be more frugal than to eliminate debt!
For the purposes of this years challenge, some terms have been defined and rules set to make the challenge a bit more precise in terms of the elimination of actual debt.
Debt
A debt is defined as:
- A formal agreement between a borrower and a lender; or
- A balance owed for a transaction which could not be paid for in full at the time of the transaction or within the normal terms of the transaction.
Valid Debts
- Any debt already existing as of January 1, 2010 at 12:01 AM; or
- Any debt accrued in 2010 that has been owing for more than 30 days.
Qualifying Amounts
- Principal reduction.
- Interest paid.
The amount of interest paid *will* be tracked - but the reason for tracking that amount is not to qualify as "debt reduction" but to show just how much money Frugal Village is throwing down the drain every year in new interest accumulated.
New Debt
Any new debt taken on by members participating in the challenge should be posted here. This new debt will reduce our debt reduction total. We cannot force you to tell us if you've added new debt, but within the challenge threads, no criticism of those adding debt will be allowed.
Posting Payments Made
Because principal reduction is the truly important amount, this amount is *required* as part of your post. You may choose to include how much was paid in interest, fees, etc. if you wish, but if you do not clearly include the amount paid towards actual principal, your post will not be counted.
Suggested style of posting:
That will clearly spell out what the debt was for, how much was principal, how much was interest, and whatever else you want to include is welcome, but remember, only P & I will be tracked.
Also acceptable:
Not acceptable:
Does not identify principal amount.
I realize that this challenge is going to require more effort on everyone's part. It will be worth it both for FV, and for you.
It'll be worth it for FV because everyone will get a much clearer sense of just how much money goes towards interest that could instead be going towards our futures.
It'll be worth it for YOU because if you don't already pay attention to this, it will enlighten you and motivate you to KILL THAT DEBT!