Comments on: How to Hard Reset Your Financial Life

By: Stacy

Stacy — Tue, 25 May 2010 14:52:41 +0000

I really like the “financial map” concept. I’m going to apply this into my financial strategy so i can get out of debt.

By: well...

well... — Sat, 03 Oct 2009 04:02:09 +0000

Funny map though…

By: eric

eric — Tue, 14 Jul 2009 09:31:21 +0000

I’ve noticed that the amount of accounts I have is slowly increasing too. It’s like subtly putting on weight. Bad, bad, bad.

By: DDFD at DivorcedDadFrugalDad

DDFD at DivorcedDadFrugalDad — Mon, 13 Jul 2009 03:20:15 +0000

Solid advice– sometimes you need to rethink and reevaluate your situation and this is a good approach.

By: Lazikiwe

Lazikiwe — Fri, 10 Jul 2009 19:48:29 +0000

You probably need to write another plan for those of us with a financial life that has already hit buttom, with credit cards that have been closed and credit score that have been decimated

By: dilbert69

dilbert69 — Wed, 08 Jul 2009 19:58:05 +0000

Everyone who has a mortgage uses a lot of credit. A high credit score can save you tens, if not hundreds, of thousands over the life of the loan if you live in a high-housing-cost area as I do. Also, credit cards aren’t a temptation for me (I spend well below my means), but I realize they are for some.

By: Kevin at OutOfYourRut

Kevin at OutOfYourRut — Wed, 08 Jul 2009 19:37:34 +0000

So true, but I’d rather eliminate the temptation, er credit cards, and suffer a small drop in my score. Staying out of debt is a tangible benefit, a credit score is mostly a decoration–unless you use a lot of credit.

By: dilbert69

dilbert69 — Wed, 08 Jul 2009 19:06:24 +0000

Not quite true. I have three credit cards which give me rewards, one on supermarkets, drugstores and gas stations; one at a large online merchant I shop at frequently for all manner of goods; and one which gives me enough frequent flyer miles that I can fly from California to New York each year for free to attend an important annual event. Also, outside the USA, some merchants take VISA or MasterCard but not the other. So at a minimum, if you travel, you should have one of each.

By: Jim

Jim — Wed, 08 Jul 2009 18:57:50 +0000

While true, unfortunately closing accounts can hurt your credit score. What a system, huh?

By: Kevin at OutOfYourRut

Kevin at OutOfYourRut — Wed, 08 Jul 2009 18:21:56 +0000

None of us really need more than maybe one credit card each anyway, so the more closed the better.

As far as the bank accounts, three or four are probably better than one, given the current banking situation. We’ve had failures/shotgun marriages with a couple of the banks we deal with, and while none went under, the customer service did get a bit weird.

By: MoneyNing

MoneyNing — Wed, 08 Jul 2009 16:46:33 +0000

I used to joke with my wife that all her credit card limits added up allow us to seriously bid for a whole country (were one be for sale).

This is a great idea, but when closing accounts, mind the transactions that aren’t booked in the accounts yet.

For example, bank accounts may have uncredited interest rates. Brokerage accounts may have uncredited dividends etc. Do your homework to make sure those won’t make the closure a little messier than need be.

By: dilbert69

dilbert69 — Wed, 08 Jul 2009 15:30:00 +0000

If you never plan to use a card again but want to keep it open so as not to impact your credit score, you may want to consider running it through the shredder.

By: Viviana

Viviana — Wed, 08 Jul 2009 15:04:33 +0000

This is a great idea. Simplifying accounts and credit cards makes life so much easier. The less cards you have the less likely you are to forget a payment.

I would love to reset my Credit Cards but I need to chip away at more of the debt first.

By: Jim

Jim — Wed, 08 Jul 2009 13:29:50 +0000

Yeah, this afternoon I discuss how to do a soft reset if this seems too extreme. Either way, it’s always important to take stock and try to simplify things.

By: Miranda

Miranda — Wed, 08 Jul 2009 13:23:20 +0000

I like this idea of a hard reset. Sometimes we let things get out of hand, and it seems that suddenly things are a tangled mess. It is good to review your financial life every now and again, and put together a plan that works better.