For those of you who have freed yourselves from debt, what are your thoughts on the best methods and what methods have worked for you.
Thank you for your thoughts.
What I’ve noticed is that the way things are set up to get you into debt. For example I’ve switched my online server to the same as my phone so that now it’s a bill and not just something on my already staggering credit card. I have a calander from microsoft works that I print out and write all my bills on. My husbands pay is also marked on there so I know when what bills need to be paid by.
On the mortgage week we need to leave money over because we don’t have enough for groceries on that week. We’ve recently paid off a 10000 credit card and are now working on a smaller and (final) card that we used for our trip to Disney (it wasn’t my idea I wanted to wait until we had the money saved up but got vetoed). So my other suggestions is to have one credit card for long term purchases like a trip to disney and another card for online purchases. That card I had them reduce the credit limit to $500. This is the one I use to online purchases and when my husband gets paid (not the mortgage check the other one) this gets paid off totally. If I don’t have money for gas then I have to stay home. It’s about modifying your behavior.
When I add up my husbands pay and subtract the bills the amount gets divided by four. That’s the money we have to go on. If we get an extra check (sometimes we get small check from stocks) that money goes into the savings. It’s small but it did pay for the emergency $800 water heater that just died. I’m really proud that I had the money and didn’t have to put it on a card. When the last credit card is paid off I’m going to start putting money in our savings account first and then work on our IRA. The only way I’ve found to pay off debt though is to change spending habits and lower bills.
If when you add up your bills and expenses (and yes we’ve been there too) and the numbers don’t work you need to make decisions about what you can get rid of… if you can’t do that they you need to work more it’s just the way it is.