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If you don't mind me asking, doesn't this lose some of its effectiveness when one spouse is in a lot of debt (the article mentions $80k)? It seems like it'd be
by fishtoaster 13y ago
If you don't mind me asking, doesn't this lose some of its effectiveness when one spouse is in a lot of debt (the article mentions $80k)? It seems like it'd be harder to make a useful estimate of utility when you're so deep in debt. What's another $10 when I own 80k? I'll just bet really high to avoid doing the chore.
- dreeves 13y agoHappy to answer such questions! (I'll ask Bethany to chime in later as well.) I guess at our age (lots of future earning ahead of us, etc) $80k doesn't seem like a big deal. We could actually wipe that debt out immediately by an adjustment to our cap table. :) I guess the danger is if you start to worry that the debt will never actually get repaid. But that doesn't seem like a worry right now. We'll come up with payments plans and whatnot if it ever does. We do use a 6% interest rate on that balance, which seems steep at current market rates, but not so much so that Bethany would want to transfer Beeminder equity to me to pay it off.