Fail to recognize the difference between assets and cash flow or between principal and interest, and you could wind up learning painful lessons.
Two stories that illustrate why it is so important to pay attention to and distinguish principal from interest and assets from cash flow. (more…)
Better quality counsel should put a bigger smile on Liza’s face . . . without risk it might suddenly disappear.
Tim Cardon, a professional financial counselor, told Liza, “The Girl with the Three Loans,” to clear out her IRA in order to pay off her car loan. I thought that was terrible advice. Here’s what I believe would have been better. (more…)
Cash Flow Index says, “Pay off the car loan.” Good idea? Or bad?
A critical look at the “Cash Flow Index”-based advice a financial counselor gave to a woman who felt like she was slowly drowning in debt.
Last time, I summarized the advice Tim Cardon, an advocate for Dale Clarke’s “Cash Flow Index,” 1 gave to Liza, The Girl with Three Loans. He told her to use her IRA to pay off her car loan. It would give her much-needed cash flow. When she heard his advice, Liza was thrilled.
Today, I want to critique Mr. Cardon’s advice. (more…)
A professional financial counselor’s advice to a young woman who feels like she is drowning in debt. Counsel based on Dale Clarke’s Cash Flow Index idea.
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Yesterday, I summarized the predicament of Liza, The Girl with the Three Loans. I asked you, considering Liza’s circumstances, to think about what she should do (or should have done) to address her seemingly hopeless situation.
Today, I share the advice of Tim Cardon, an advocate for Dale Clarke’s “Cash Flow Index.”1 It was Mr. Cardon who told me Liza’s story. He hoped it would help me understand and embrace the value of CFI. (more…)
Three loans weighing her down; which should she pay off first?
A nuts-and-bolts, real-life analysis of how to counsel someone who feels like she is drowning in debt. How can she escape the rip tide?
Today, I will set up the situation. In future posts, we will consider possible solutions to her problems. (more…)
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