Monthly Archives: January 2016

Dealing with debt

Most will suggest that you pick one and pay it off as fast as you can while making minimum payments on the other credit. Which one you pick is where there is always a discussion. Some say the lowest balance to get it out of the way (snowball effect) and the other is the higher interest rate to save on interest. I will not stand and say either is right or wrong. I actually chose to pay off my wife’s car with an extra three thousand that came in that was owed to me. I chose the car, because that freed up $400 a month in cash flow that I can use on other credit.

Whichever you decide, stick with it and good luck!

You will find this is a great blog with numerous amounts of different experiences and advice of being in debt, getting free of debt and finding ways to make ends meet without going into debt again. Being debt free (especially without credit card bills) is the absolute best feeling in the world. I can relate – I was almost $14,000.00 in credit card debt. I wasn’t a homeowner then, my car was almost paid off (then it got stolen) but that’s another story. I had a savings account accumulated too (not as hefty as $3000). I did use some of the money for car repairs after my car was recovered (very rare occurrence) but other than that I left that savings account alone. I chose not to add the savings while paying off my credit card debts- they had more in interest rates than my savings account. Because of my debt to income ratio, I was basically broke at the age of thirty. I was determined to change, because I was miserable with all those bills. I downgraded my spending to the bare minimum to live for about 3-4 years in order to ramp pay my credit card bills. I had like eight to start of with.

Later I consolidated them slowly or had a few of the smaller balance ones paid off and canceled quickly. I was so determined to get rid of those credit card debts, I made a decision to live without cable TV, no cell phone and use only all generic very cheap products to survive for awhile. I lost weight because I put myself on very strict and limited daily food intake everyday, to save money. I stopped buying new clothes PERIOD. I learned to live with what I had, which is still a hell of lot more clothes than I ever feel like I really wear. If you have kids – there are other ways to spend a very little bit of money on clothes for them. If you have extra money left over each month, use it toward paying off those credit cards first. Get rid of that as fast as possible.

Continue to pay the regular payment on the vehicle. Once your credit card debt is almost or nearly gone you can pay more to get rid of the vehicle payment sooner. Or downgrade to a lower cost, more fuel efficient vehicle. Although I had a van for awhile and it was nice for the room! We went camping in it and had the ability to haul stuff while we refinished our basement.

Well, I could go on forever about getting out of debt. You’ll probably hear more from me later. Their are others that you will gather great info from too.