My Fight To Be Debt Free At Last!
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To Be Debt Free - That's My Goal
The car breaks down and we have to get it fixed to get to work. Put it on the credit card. The water heater went out, uh-oh; wasn't prepared for that. Put it on the credit card. Mom needs medicine and I don't have any cash. Put it on the credit card.
For me, and I'm sure many others, credit card debt crept up like that proverbial thief in the night. It took my peace of mind, my self-esteem, not to mention credit rating and hundreds if not thousands of dollars in interest.
I've tried paying them off several times, only to be met by some crisis like another car breakdown or home repair for which we were financially unprepared.
At the beginning of this year, I adopted a warrior attitude and said, "ENOUGH!"
Contents at a Glance
- How Is Your Debt Management?
- The First Step - Set Up An Emergency Fun...
- Dave Ramsey Will Help Me To Be Debt Free
- Which Debt Should Be Paid Off First?
- News About Paying Off Credit Card Debt
- My Favorite Money Links
- The 12-Step Get-Out-of-Debt Program
- More About Dave Ramsey's Baby Steps
- Cool Frugal Living Reads!
How Is Your Debt Management?
The First Step - Set Up An Emergency Fund
Hurray!! We did it!!

It took a few months to squirrel it away, but we got our Emergency Fund of $1,000 together.
We've even used it a few times for car repairs, dental work and new glasses, but we always put it back. This to me is the best proof that an emergency fund is a great idea.
We'd be back where we started if we had charged those purchases to our credit cards.
Dave Ramsey Will Help Me To Be Debt Free
Dave doesn't pull any punches about getting out of debt.
I devoured the two books that I have and am working on his "Baby Steps" plan. Great Stuff and I recommend his books.
Which Debt Should Be Paid Off First?
Lowest Balance or Highest Interest Rate? What do you think?
Some financial gurus advise paying off your credit card balances by listing them in the order of balance and paying off the lowest balance card first. This gives the person a quick sense of victory over a debt. The amount used for making that payment can then be added to the payment for the next lowest balance debt. And so on.
Other gurus say you should pay off the debt with the highest interest rate. This gives you the 'biggest bang for your buck' by reducing the principal against which the interest is charged, lowering that amount of interest being charged.
What do you think?
Which debt balances should be paid off first?
Fetching blurbs now... please stand byLowest Balance ~ I need the sense of accomplishment
gleken says:
I would rather save money on the interest but can see how getting rid of the smallest balance would give you a sense of accomplishment
Posted August 16, 2011
Highest Interest Rate ~ I need to save $ on interest
News About Paying Off Credit Card Debt
Credit Card Debt Affects Many People
It was a huge relief to learn that I wasn't the only one with credit card debt out of control and working to get that control back. But it was also painful to see how many folks are having to deal with high interest rates, late payment fees and high interest charges.
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- In 2007, its clients' average income upon entering its debt-management plans was $43000, and their average credit card debt was $22000. Last year, their average income was $54000, and their average credit card debt was $24000.
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- NEW YORK - The six biggest credit card companies reported mixed results for customer payments in January, splitting evenly between those that had lower defaults and those with increased write-off rates. Analysts say the long-term trends point to ...
- Phil Mulkins: Tips for paying off holiday credit card bills
- Next you'll apply that extra cash to the credit card debt. Debt-free calculator: Another strategy you can employ is using a "credit card debt calculator" to find out what you'll have to pay monthly to make it home by Christmas.
My Favorite Money Links
Learn more about saving money, time and frugal living
- The Dollar Stretcher
- Living Better For Less; Saving you time and money each week since 1996
- Thrifty Fun
- ThriftyFun is a site where regular folks can share their knowledge and ideas. Come join the discussion.
- The Simple Dollar
- A personal finance blog focusing on ordinary people dealing with unprecedented levels of debt.
- Zen Habits
- Zen Habits is one of the Top 100 blogs on the Internet, and covers: achieving goals, productivity, being organized, GTD, motivation, eliminating debt, saving, getting a flat stomach, eating healthy, simplifying, living frugal, parenting, happiness, and successfully implementing good habits.
- Bankrate.com credit card debt calculator: What will it take to pay off my credit card?
- Find out how long your payment will take to pay off your credit card balance with Bankrate.com's financial calculator.
- Pack away your debts with the payment push
- Get rid on debt in record time saving on fees and interest using the
- How to Dig Yourself Out of Debt and Save - Banking & Budgeting Guide on Yahoo! Personal Finance
- Banking and Budgeting Guide: How to Dig Yourself Out of Debt and Save
- Money Saving Tips - TipHero
- TipHero is an encyclopedia of money saving tips submited by users like you.
The 12-Step Get-Out-of-Debt Program
Zen Habits - I love that blog! I'm using these tips too.

Debt is a major problem for a lot of people these days. The problem is, even if they know they want to get out of it, they have a hard time figuring out how to start.
If you fit this description, this 12-Step program spells it out for you.
Now, there isn't one way to get out of debt, and the best program should be tailored to each person's individual situation. But if you feel like you just don't know how to begin, this program is designed to give you a sort of guide - one that should be adjusted to fit your financial situation.
It's aimed not at people who have their finances together and are just trying to pay off a credit card or two. It's aimed at those who have trouble finding any extra money to pay off debts, who seem to find themselves getting deeper and deeper into debt, and don't know how to stop it. In other words, it's a bit of an emergency program.
Disclaimer: I'm not a financial advisor, and if you are in need of one, I suggest you find a qualified advisor. My only qualification is that I've made great strides in getting my finances under control, in starting an emergency fund, in paying all my bills on time, in not getting further into debt, and in eliminating my debt (I should be done by the end of this year). This program is based on my experiences, and on the large number of books and websites I've read.
The Zen Habits 12-Step Get-Out-of-Debt Program
1. Acknowledge the problem. The first step is admitting you have a problem. The first week, all you have to do is say to yourself, "I have a problem with debt. I got into this because I spend money I don't have. But I believe that there's a way out, and I can do this. I can control my spending, make a plan, and slowly get out of debt." That's a major step. Now set aside just 30-60 minutes a week to deal with your finances - make it a set day and time, and don't let yourself miss this appointment.
2. Stop digging. If you're in a hole, the first step is to stop digging, and that's what you're going to do this second week. For 30 days, see if you can stop any non-essential spending. If you have a major problem with credit cards, cut them up. If you're not so bad with credit cards, at least put them away and don't buy stuff online for one month. What's essential? Obviously your bills, housing, auto, gas, groceries %u2026 that kind of stuff. Non-essential? Clothing, CDs, DVDs, books, magazines, gadgets %u2026 you know what I mean. Just 30 days. After that, you can decide how much to spend on these things.
Read the rest at Zen Habits
More About Dave Ramsey's Baby Steps
Debt reduction, emergency funds and more - check them out
Cool Frugal Living Reads!
Have You Read These? Vote Up Your Favorite
Every bit of info you can arm yourself with helps! I've read these cover to cover and back again. They're my favorites; hope you find them helpful too.
The Complete Tightwad Gazette by Amy Dacyczyn
At last--the long-awaited complete compendium of tightwad more...0 points
The Ultimate Cheapskate's Road Map to True Riches: A Practical (and Fun) Guide to Enjoying Life More by Spending Less by Jeff Yeager
It used to be that "stuff" made you cool. more...0 points
America's Cheapest Family Gets You Right on the Money: Your Guide to Living Better, Spending Less, and Cashing in on Your Dreams by Steve Economides, Annette Economides
Do you have too much month at the end of your money? more...0 points
Baking Soda: Over 500 Fabulous, Fun, and Frugal Uses You've Probably Never Thought Of (Lansky, Vicki) by Vicki Lansky
Baking soda gets its due in this fun collection ga more...0 points
TipHero Tips For Saving Money
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greenlife17 Sep 25, 2010 @ 6:42 am | delete
- simple and precise..nice article. definitely a must keep for me. thanks!
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callinsky
Jun 17, 2010 @ 9:25 pm | delete
- I have a home loan and a car loan. With the economy in the shape that it is even they scare me. I keep trucking away with the future in mind. It's hard sometimes though.
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poutine
Sep 23, 2009 @ 1:33 pm | delete
- Lots of excellent tips and links in this lens for helping people
who want to get rid of their debt the sensible way.
A 5
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kimmanleyort
Sep 19, 2009 @ 12:26 pm | delete
- Very useful information with a personal touch. Nice!
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Sep 18, 2009 @ 5:38 pm | delete
- Very impressive lens. Great information about getting rid of debts and visually interesting. Good work.
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