Foreclosures: 'Worst three months of all time'

[Guest]

I don't see how you can disagree with this. There is no way to borrow your way out of debt. It's a mathematical impossibility. If you keep borrowing money you will never get out of debt. It's very simple.

At an early point in my previous marriage, ex Mrs. JR was out of work for two years on workmans comp. We were already in debt and ended up even more in debt with higher interest credit cards (e.g. ~15% - 20% range).

I attended grad school while working full-time in my previous job. As long as I attended school part-time, I could borrow student loans that covered way more than the cost of my tuition. Those student loans are currently compounding interest at 2.25%.

Most of my student loans covered the cost of high interst credit cards and prevented new charges being made on those cards.

By my math, 2.25% << 15% and thus significantly lowering not only my monthly payments but dramatically reducing the total payout of the debt. In my humble opinion, I bought my way out financially crushing debt by borrowing at a lower rate with better terms.

Just sayin' ....

JR

 

[Dleg]

Here's the answer:

 

[Chucktown PE]

I agree, you borrowed money with better terms and reduced your payments. But to get out of debt, at some point you had to pay principal. That's all I'm trying to say. There are millions of dumbasses walking around under the illusion that is not the case.

 

[Capt Worley PE]

And by the way, it isn't necessarily always advisable to pay off debt if you can get a larger return on the money than the interest you have to pay on it. It's simple math.

Yeah, I decided it was a lot better to put an extra 200 a month into the 401k and 457 rather than pay down the mortgage principal on the house.

 

[Guest]

Interesting .... article from today's paper regarding foreclosures in Detroit:

DETROIT — A lawyer who has filed a proposed class-action lawsuit says tens of thousands of foreclosures in Wayne County are unlawful because sheriffs did not follow state law when they conducted foreclosure auctions.

The suit filed in federal court by Bloomfield Hills attorney Paul Nicoletti seeks to set aside the foreclosures of 46 plaintiffs in Wayne County and potentially hundreds of thousands of others statewide.

The suit claims former Wayne County Sheriff Warren Evans was required by law to sign the sheriff's deeds. But, as in most Michigan counties, the undersheriff signed.

Nicoletti tells The Detroit News it's a "hyper-technical argument, but it's due process."

Evans, now Detroit police chief, and current Wayne County Sheriff Benny Napoleon declined comment.

JR