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I want to get out of debt. Tips?
Descendant X
Skyrim is my god now.Outpost 31Registered User regular
Skyrim is my god now.Outpost 31Registered User regular
I've got quite a bit of consumer debt. My wife and I have three credit cards, only one of which is below $1000, a store credit card, and a line of credit. We also have student loans and a mortgage, but the idea of this thread is to GTFO of our consumer debt before we start worrying about the others. We're going to be done paying off the car next month, freeing up $289 per month, so that will help a great deal.
We're going to pay off the cards from lowest to highest and snowball the payments, meaning that we'll be paying the same amount on our debt every month until everything is paid off, carrying over the payments from one debt to the next. I've given up my comic book pull box at my local shop and will save ~$80/month, which will be used to pay off a tv. I'm also looking into reducing our cellphone contract to a $25/month single-line contract rather than the $70/month we're paying right now. Unfortunately, we'll still have to pay a $200 fee to drop the other line. This will save us money in the long run though. Finally, I took my CC information off Paypal and my PS3 so it's far more difficult for myself to nickel and dime the card.
We're not personally having severe issues, but it is becoming evident that we need to throttle back on our consumer debt. We don't eat out often, we don't rent movies, and we don't drink or smoke. Some things that we won't be giving up are our cable and our internet.
So I turn to you, H/A. Do you have any tips on getting out of debt? If you do, please share as I'm sure that there are many on the boards who are having financial issues.
We're going to pay off the cards from lowest to highest and snowball the payments, meaning that we'll be paying the same amount on our debt every month until everything is paid off, carrying over the payments from one debt to the next. I've given up my comic book pull box at my local shop and will save ~$80/month, which will be used to pay off a tv. I'm also looking into reducing our cellphone contract to a $25/month single-line contract rather than the $70/month we're paying right now. Unfortunately, we'll still have to pay a $200 fee to drop the other line. This will save us money in the long run though. Finally, I took my CC information off Paypal and my PS3 so it's far more difficult for myself to nickel and dime the card.
We're not personally having severe issues, but it is becoming evident that we need to throttle back on our consumer debt. We don't eat out often, we don't rent movies, and we don't drink or smoke. Some things that we won't be giving up are our cable and our internet.
So I turn to you, H/A. Do you have any tips on getting out of debt? If you do, please share as I'm sure that there are many on the boards who are having financial issues.
Garry: I know you gentlemen have been through a lot, but when you find the time I'd rather not spend the rest of the winter TIED TO THIS FUCKING COUCH!
Descendant X on
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If you have comics, sell some off that you don't need or games you no longer play.
Have a written budget, and try to use cash only to limit your spending.
Also, put away $1,000 for an emergency that you can easily get to.
How are your cars holding up? Nothing major needed as far as repairs?
My comics are worth exactly nothing, and there are no shops in town that take games in exchange for cash. I guess I could always try Craigslist and see if I get a bite there. I don't think I have anything that anyone would really want to buy or couldn't buy elsewhere for cheaper though.
Make a budget. I cannot stress this enough. MAKE A BUDGET. Figure out how much you have to put towards your debt every month after calculating everything you need for the month. Start with the smallest piece of debt and pay that off, then move on to the next biggest and soon.
Also on your credit cards don't forget to make some kind of payment on them every month so you don't end up with extra fees.
You go smallest to largest debt to get momentum, because once you pay off something, you feel good and are motivated to continue. If you have two debts of equal size, then you pick the one with the higher interest rate first.
Everything you have said is good. You are cutting back on your expenses. Only other thing is to make more $$$ somehow. Either through selling stuff you don't use or getting a raise somehow.
It's a common strategy suggested by people like Dave Ramsey. While it's not the most effective at saving you money, the emotional boost at paying off a debt then attacking the next one helps a lot of people stay motivated in the repayment plan.
I've been doing a purge just because I plan on moving in a few months, and you don't realize how much junk you accumulate that you really don't need.
This probably isn't great for right now but once you get a a couple of the cards payed off, you can do this.
BTW - get it from the library and not at the bookstore.
2008, 2012, 2014 D&D "Rare With No Sauce" League Fantasy Football Champion!
I keep the following in my Greader for ideas.
The Simple Dollar
Get Rich Slowly
Tip'd
I made as detailed a budget as I could with all the monthly bills and estimates for food/gas/entertainment etc.
I didn't keep track of every penny, but just being self aware and hanging onto receipts and looking at my credit card bill it was easy to figure out how and where I was spending more money then I thought.
I do OK financially because I'm a bit of a hoarder, I have a couple boxes filled with trinkets and sentimental junk that doesn't really fit in my apartment, but keeping them gives me the same warm fuzzy feeling as knowing my little nest egg is slowly growing in my savings account.8-)
I know one day I'll retire and my little nest egg will be slowly shrinking instead of growing....perish the thought!:x
I'd make a budget that includes an emergency fund and a non emergency fund. So when something happens or comes up that you don't deem a necessity you don't end up feeling guilty for spending on it. Also, if you set it up like this you won't end up slippery sloping it back into debt.
Basically, be aggressive, but also realistic.
Which means your payments now will be relatively small, but they will jack up in X years.
My bill right now is about 316. In 6 years it goes up to 7## something.
I predict in 6 years that won't really be a problem.
we also talk about other random shit and clown upon each other
I DO track almost every penny and it's been so worthwhile!
I'll be socking away some extra cash for an emergency/upcoming bills fund (taxes and utilities).
My wife also bought a file folder today for us to save our bills in instead of my current system (throwing all paid bills into my closet).
I feel really good about this, one might even say that I'm excited about it. It feels good to be focused on taking control of my money, something my mom has told me to do millions of times but I never have really taken to heart.
EDIT: Thanks for all of the encouragement as well. I'm going to PM the mods to see if maybe we can't sticky this for others to take a look at for inspiration/information.
Yes, I just started using this program, and it really does help sometimes to visualize exactly where all of your cash is going.
In case you didn't click on the link, it really automates a bunch of the budgeting process and links to your banks, credit cards, student loans etc, in a really dynamic way. It provides a lot of useful month by month data as well as an overview of the year and your spending habits and should help you really see the areas that you can cut and the ones that you're stuck paying.
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Im going to second mint.
And I know a few more forumers will too.
I also suggest making a VERY detailed budget in excel and sticking to it.
I want to use it so baadly too.
They cast a shadow like a sundial in the morning light. It was half past 10.
Quickenonline works for me fine. What's the upside of mint anyways?
That's why I use quicken. Works fine and I don't have to PHYSICALLY separate money to organize it
Visually pleasing, easy to use (splitting transactions that go under multiple categories is like two clicks), recommends ways to save, doesn't store any of your financial information.