Comments on: The Infomercial Copycat Method of Debt Reduction http://www.realmofprosperity.com/2009/08/the-infomercial-copycat-method-of-debt-reduction/ Tue, 16 Mar 2010 01:13:09 -0700 http://wordpress.org/?v=2.9.1 hourly 1 By: Larger Bills Get Less Action | Realm of Prosperity http://www.realmofprosperity.com/2009/08/the-infomercial-copycat-method-of-debt-reduction/comment-page-1/#comment-1205 Larger Bills Get Less Action | Realm of Prosperity Wed, 06 Jan 2010 02:21:17 +0000 http://www.realmofprosperity.com/?p=968#comment-1205 [...] similar to the concept behind the Infomercial Copycat method of debt reduction, we are more comfortable with parting ways with smaller amounts of money than larger [...] [...] similar to the concept behind the Infomercial Copycat method of debt reduction, we are more comfortable with parting ways with smaller amounts of money than larger [...]

]]> By: Coupons, Discounts, and Sales Do Not Mean You Are Saving | Realm of Prosperity http://www.realmofprosperity.com/2009/08/the-infomercial-copycat-method-of-debt-reduction/comment-page-1/#comment-985 Coupons, Discounts, and Sales Do Not Mean You Are Saving | Realm of Prosperity Fri, 23 Oct 2009 12:49:06 +0000 http://www.realmofprosperity.com/?p=968#comment-985 [...] like my proposed Infomercial Copycat method of debt reduction, coupons, discounts, and sales provide the feeling that you are losing money in tiny amounts so [...] [...] like my proposed Infomercial Copycat method of debt reduction, coupons, discounts, and sales provide the feeling that you are losing money in tiny amounts so [...]

]]> By: American Banking News http://www.realmofprosperity.com/2009/08/the-infomercial-copycat-method-of-debt-reduction/comment-page-1/#comment-916 American Banking News Wed, 19 Aug 2009 22:38:52 +0000 http://www.realmofprosperity.com/?p=968#comment-916 Haha, I love the infographic. Nice work. Haha, I love the infographic. Nice work.

]]> By: Neil http://www.realmofprosperity.com/2009/08/the-infomercial-copycat-method-of-debt-reduction/comment-page-1/#comment-914 Neil Tue, 18 Aug 2009 20:25:05 +0000 http://www.realmofprosperity.com/?p=968#comment-914 While this isn't a terrible idea if you are having difficulty wrapping your head around paying $2000 in one pop to pay off your credit card, it's not really sound financial advice. Credit cards - provided you actually pay the whole bill every month - are an interest free loan. You can profit (marginally these days, unfortunately) by hanging onto your cash as long as possible and putting it in an interest bearing account. Your smaller payments concept reduces the amount of time you're in control of your money. Of course, if these payments are going to a card that you are paying interest on, there are real savings to paying earlier, so the opposite dynamic applies. Still, you should pay as much as possible instead of picking an arbitrary number because it's psychologically pleasing. And maybe it's just me, but I never got the psychological effect. When I see a number ending in 9, it gets rounded up in my head. While this isn’t a terrible idea if you are having difficulty wrapping your head around paying $2000 in one pop to pay off your credit card, it’s not really sound financial advice.

Credit cards – provided you actually pay the whole bill every month – are an interest free loan. You can profit (marginally these days, unfortunately) by hanging onto your cash as long as possible and putting it in an interest bearing account. Your smaller payments
concept reduces the amount of time you’re in control of your money.

Of course, if these payments are going to a card that you are paying interest on, there are real savings to paying earlier, so the opposite dynamic applies. Still, you should pay as much as possible instead of picking an arbitrary number because it’s psychologically pleasing.

And maybe it’s just me, but I never got the psychological effect. When I see a number ending in 9, it gets rounded up in my head.

]]> By: Monetary Psychology | Beyond Paycheck to Paycheck http://www.realmofprosperity.com/2009/08/the-infomercial-copycat-method-of-debt-reduction/comment-page-1/#comment-909 Monetary Psychology | Beyond Paycheck to Paycheck Mon, 17 Aug 2009 19:28:32 +0000 http://www.realmofprosperity.com/?p=968#comment-909 [...] I just finished breezing through this week’s carnival of personal finance, which featured my Negotiate your cable bill – How I lowered my cable bill. A great article which takes the ups and downs of psychology and decision-making to a most humorous yet effective level is Realm of Prosperity’s The Infomercial Copycat Method of Debt Reduction. [...] [...] I just finished breezing through this week’s carnival of personal finance, which featured my Negotiate your cable bill – How I lowered my cable bill. A great article which takes the ups and downs of psychology and decision-making to a most humorous yet effective level is Realm of Prosperity’s The Infomercial Copycat Method of Debt Reduction. [...]

]]> By: Beyond Paycheck to Paycheck http://www.realmofprosperity.com/2009/08/the-infomercial-copycat-method-of-debt-reduction/comment-page-1/#comment-908 Beyond Paycheck to Paycheck Mon, 17 Aug 2009 18:57:58 +0000 http://www.realmofprosperity.com/?p=968#comment-908 Great post - love the image atop the post too! Great post – love the image atop the post too!

]]> By: Carnival of Personal Finance #218 : Carnival of Personal Finance http://www.realmofprosperity.com/2009/08/the-infomercial-copycat-method-of-debt-reduction/comment-page-1/#comment-906 Carnival of Personal Finance #218 : Carnival of Personal Finance Mon, 17 Aug 2009 15:21:06 +0000 http://www.realmofprosperity.com/?p=968#comment-906 [...] Realm of Prosperity: The Infomercial Copycat Method of Debt Reduction [...] [...] Realm of Prosperity: The Infomercial Copycat Method of Debt Reduction [...]

]]> By: J. Money http://www.realmofprosperity.com/2009/08/the-infomercial-copycat-method-of-debt-reduction/comment-page-1/#comment-897 J. Money Sat, 15 Aug 2009 15:20:16 +0000 http://www.realmofprosperity.com/?p=968#comment-897 Yes! Absolutely brilliant - love it. Esp with the purrty pics and examples ;) keeps my A.D.D. levels down. Yes! Absolutely brilliant – love it. Esp with the purrty pics and examples ;) keeps my A.D.D. levels down.

]]> By: Flexo http://www.realmofprosperity.com/2009/08/the-infomercial-copycat-method-of-debt-reduction/comment-page-1/#comment-893 Flexo Wed, 12 Aug 2009 04:33:54 +0000 http://www.realmofprosperity.com/?p=968#comment-893 This is awesome! Such a great idea. This is awesome! Such a great idea.

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