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My Fight To Be Debt Free At Last!

1 - I can do better 2 - Jury's out 3 - Pretty darn good 4 - Splendiferous 5 - Awesometastic (by 8 people)   Your rating: 1 - I can do better 2 - Jury's out 3 - Pretty darn good 4 - Splendiferous 5 - Awesometastic

Ranked #4092 in How-To, #40416 overall

Rated G. (Control what you see)

That creepy feeling when you just know...

 

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 has taken 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!"

How about you? 

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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 together.


The 12-Step Get-Out-of-Debt Program 

Again, from 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.

3. Make small cutbacks. This third week, take a look at things you normally buy and see if you can cut out a few of them, or spend less on them. Groceries? See if you can buy house brands instead of name brands. Coffee? Make it yourself at home instead of buying out. Lunch? Try packing it to work instead of eating out. Add up what your cutbacks will save you this month.

4. Start an emergency fund. This fourth week, set up a savings account, if you don't have one already, for an emergency fund. Now take the amount you saved in Step 3 (and even in Step 2 if you think you can make them last for awhile) and set up a regular automatic deposit from your checking to this emergency fund savings account for this amount. It's important that before you start paying off debt, you have at least a small emergency fund. Aim for $1,000 at first, and you can grow that later. The reason: if unexpected expenses come up, and you don't have an emergency fund, you will skip your debt payments to pay for the unexpected expenses. The emergency fund protects your debt payments.

5. Take inventory. OK, this is a step that we don't like to take. But take a deep breath. You need to do this. Remember what you said in Step 1? You can do this. This fifth week, set up a simple spreadsheet. In one column, list all of your debts - credit cards, medical bills, auto loan, etc. You can leave out your mortgage, but put everything else. In the second column, put the amounts you owe for each debt. In the third, put the minimum monthly payment, and put the percentage interest in the fourth column. Total up the second and third columns to see your total debt owed and how much you have to pay, at a minimum, towards debt each month.

Read the rest at Zen Habits

I Picked Dave Ramsey's Tools As One of My "Weapons" 

Down to earth and plain English, that's what I like. Dave doesn't pull any punches. I devoured the two books that I have and am working on his "Baby Steps" plan. Great Stuff and I recommend his books.

Financial Peace Revisited

Amazon Price: $16.29 (as of 10/08/2008)

More than Enough: The Ten Keys to Changing Your Financial Destiny

Amazon Price: $10.88 (as of 10/08/2008)

How to Have More than Enough: A Step-by-Step Guide to Creating Abundance

Amazon Price: $10.88 (as of 10/08/2008)

The Total Money Makeover: A Proven Plan for Financial Fitness

Amazon Price: $14.99 (as of 10/08/2008)

Dumping Debt (Dave Ramsey's Financial Peace)

Amazon Price: $10.17 (as of 10/08/2008)

Bittersweet Encouragement To Learn I Wasn't Alone 

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.
Scott Bittle and Jean Johnson: National Debt Passes $10 Trillion ...
Ten trillion is an almost unimaginable number -- so colossal that the even the people who worry about debt had trouble anticipating it. The National Debt Clock in Times Square, for example, didn't even have room for that many digits. ...
Discussing debt at America's kitchen table
And it's worth noting that the $700 billion loan is actually money we are borrowing from China since our national debt, the cumulative amount the federal government has borrowed and not repaid, is a record $9.5 trillion. ...
Massachusetts postpones $750 million short-term debt sale due to ...
Further, although the municipal market differs from the corporate commercial paper market, the Fed's action aimed at easing conditions in the credit market overall, via both guaranteeing debt payment and by moral suasion. ...
Our romance with debt — we’ll pay for it later
Unless we value fairness, reciprocity, and honest dealing, and the concept of balances ? for debt and credit depend on them ? and unless we are able to trust our systems, we would not be able to have debt and credit ? no one would lend, ...

Great Links for Saving Money! 

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.

More Tips & Info About Credit Card Debt 

Arm yourself with information - it's your best weapon!

Pack away your debts with the payment push

Get rid on debt in record time saving on fees and more...0 points

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 of more...0 points

How to Dig Yourself Out of Debt and Save - Banking & Budgeting Guide on Yahoo! Personal Finance

Banking and Budgeting Guide: How to Dig Yourself O more...0 points

Cool Frugal Living Reads! 

Every bit of info you can arm yourself with helps!

The Complete Tightwad Gazette by Amy Dacyczyn

The Complete Tightwad Gazette by Amy Dacyczyn

At last--the long-awaited complete compendium < 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

The Ultimate Cheapskate's Road Map to True Riches: A Practical (and Fun) Guide to Enjoying Life More by Spending Less by Jeff Yeager

<p>It used to be that "stuff" made 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

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 mone 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: 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

My Super Shameless Plugs 

Hey...it's how I pay the bills now! =)

Having left eBay, I struck out on my own & built my own sites. Well, three of these are my own, anyway. =) Nothing like freedom, though! Do me a favor and BUY SOMETHING, will ya? LOL! I'll keep a weather eye on the news and keep this lens updated as best I can, too. Oh yea...grab the list and put it on your lens? Thanks!

#1

The Boutique Shop Online ~ Cellophane gift bags, candles, country home decor, Stanley and more! - Home

Offering cellophane gift bags, curling ribbon, shr more...3 points

#2

Boutique Chic Gifts ~ Country Decor, Candles, Stanley Products, Cellophane Gift Bags, Watkins - Home

Boutique Chic Gifts - Your Gallery of Gift Shops! more...2 points

4 more links: See all

created by boutiqueshops

TipHero! WOOT! Tips For Saving Money! 

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New Payment Processor In Town - Revolution Money Exchange 

Better Backing Than Paypal - Invite Your Friends & Family & Earn Some $$

Launched in 2007, a new payment network - Revolution Money - was created to deliver significant value to both consumers and merchants through two products, RevolutionCard and Revolution Money Exchange.

The RevolutionCard eliminates costly interchange fees for merchants while simultaneously providing consumers with enhanced PIN-based security, identity protection, and periodic merchant discounts and incentives. Money Exchange offers an easy and secure way to send and receive money online between account holders for free. The accounts are issued by First Bank & Trust, Brookings, SD, Member FDIC and part of the Fishback Financial Corporation. These products are leading the transformation of the payment industry by providing secure, easy, and instant payment solutions to everyone.

Revolution Money is based in St. Petersburg, FL and is part of the family of companies within Revolution, LLC, which was founded by Steve Case to drive transformative change by shifting power to consumers.

With series B venture capital funding from Citi, Morgan Stanley, Deutsche Bank, Revolution LLC, and a world-class Board of Directors, Revolution Money has strong financial resources and leadership to compete and grow.


Refer A Friend using Revolution Money Exchange

Leave Me Some Words! 

Anyone can comment

Rob3

Excellent lens full of useful information and advice. I agree, cut up the credit cards!
Thanks for visiting my Beginners Wine Guide.

Posted September 24, 2008

funcoolcollectibles

Excellent informative lens! 5 stars

Posted September 04, 2008

All_Played_Out

Great stuff. Haven't had a credit card own me for years now and never miss it.
http://www.squidoo.com/tips_for_saving_money

boutiqueshops if you dont' mind lol I'm going to put a link to you on my lens.

Posted August 08, 2008

BABYKITTY

Good information and yes, zero debt is the only way to live!! It's so much better with no money worries or the stress that goes with them.

Check out my credit sites, too.

Posted June 15, 2008

ShawnsBidness

What an important topic especially with the way things are with the economy now. Great tips to live by.

Posted June 10, 2008

 
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About boutiqueshops

Hi! My name is Sylvia! I'm a Squid-a-holic.

It started innocently enough. Build a couple of lenses to showcase my store. Then I thought of another, and another. Now, I'm making lenses about all sorts of stuff! About topics I feel strongly about. My favorite hobbies. More about what I sell, LOL! Some about my favorite authors. I always have some in draft status.

Help! I'm Squidoo-ing and I can't stop!

Thank you so much for visiting! Hope ya like my pages; each one was a labor of love for me.

I'm retired & now "working" at home doing what I love--selling online. WOOT! Can that really be called work? LOL!

My interests are all over the place--reading, watching movies, crochet, cross-stitch, learning to knit (LOL), spirituality, simple living, getting organized (a never ending process!), learning, selling online and hey, lots of other stuff, heh...

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And then, there's my store--do stop by for a visit!

cellophane gift bags, candles, Stanley Home Care

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