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Retiring a Debt?

A classic rant from 2007 about spending too much and going into debt.

Retiring a Debt Plan

So what do you do when you retire a debt? I have heard a bunch of folks make the following interesting remarks when they have retired a major debt (car loan, credit card debt, student loan, or mortgage):

  • “Now I can afford to go on vacation”
  • “We can order those new drapes for the living room”
  • “We can afford to buy a new car”

All of these statements have the common theme of putting yourself BACK into debt after climbing out of a debt hole.

To quote a well-known philosopher,


 If you have worked hard enough to retire a debt, celebrate that, but don’t use it as an excuse to tie yourself back up in debt! Adding debt load is not your goal, and shuffling debt load shouldn’t be either.

Figure out what you can do with the extra money to save, or try to retire another debt (after you have had a modest celebration of retiring this debt). Seems obvious to me, but then again, maybe I have done the same?

Buy, Buy, Buy!!!

Seems spending has recovered in the Retail area, as we can see from this graph.

The increases in Ontario (+2.0%) and Quebec (+0.6%) accounted for almost the entire advance in retail sales, with the automotive sector mainly responsible for this increase. The increase in August in Ontario almost totally offset the decline in July, which followed the strongest quarterly growth since the first quarter of 2002. In Quebec, growth in retail sales cancelled out most of the decline in July, which followed the strongest quarterly growth since the second quarter of 2001.

So spending on Cars in Ontario and Quebec are helping things along? I guess this is good, but what will these numbers say in the next few months with the sudden explosion of cross border shopping? My bet is a steep drop.

Feel Free to Comment

  1. Hey Cajun,

    Good topic…

    When you retire a large debt, it’s a big relief.

    I would suggest that people take the time to get their new perspectives into place. IE… instead of buying all of the stuff you’ve been starving for like big TVs , new car etc, why not take a break from spending money and reprioritize.

    It’s hard to believe that people want to reacquire new debts to buy big ticket items.

    When take a yoga meditation type approach… Breath in, Breath out… take some time in a quiet moment to think about what you really should be doing with your money…

    Putting away proper financial reserves is a good idea.

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