Tuesday, July 27, 2010

Twist on daily cost of debt - the giving possibility

When thinking about how to chronicle life in the future, I decided to peruse the blogosphere for for debt free living blogs. I found this interesting blog not about living debt free (yet) but about achieving freedom from debt called Debt Free Adventures...which just so happened to be one of the site names I had thought of...

All that intro to bring you to an interesting blog that Matt wrote here entitled How Much Our Debt Costs where he records that his debt costs $37/day. This took me back to a comment by a friend that stated that he paid roughly $10,000 in interest and was able to get about $3200 back on that through state and local tax deductions. What that made me realize is that $10,000 in interest is about $27.40/day or $18.63/day if you count the money saved on taxes.

Whats amazing is that if you took that $10,000 you could sponsor 25 kids all year long, deduct the money on your taxes, and still have extra money in your pocket. Is anyone else amazed by that? Have you figured out how much your debt costs and what you would or could do with that? What else could you be doing with $25/day or whatever your daily cost of debt is?


Matt Jabs said...

The thing that keeps me going is the fact that every month I lower my "cost of debt." Persistence pays off! Soon enough I will be paying $0/day in interest on debt.

Erik Burckart said...

I think that is awesome Matt - I enjoyed reviewing your blog. We'll pray that you join the $0/day club very soon and can freely give!