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 13 people | Log in to rate

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Credit Card Debt - 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 Is Your Debt Management? 

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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. We've even used it a few times, but we always put it back. This to me is the best proof that an emergency fund is a great idea.



Dave Ramsey's Tools As My Debt Reduction Method 

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: $16.47 (as of 11/11/2009) Buy Now

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

Amazon Price: $10.40 (as of 11/11/2009) Buy Now

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

Amazon Price: $10.88 (as of 11/11/2009) Buy Now

The Total Money Makeover: A Proven Plan for Financial Fitness

Amazon Price: $14.61 (as of 11/11/2009) Buy Now

Dumping Debt (Dave Ramsey's Financial Peace)

Amazon Price: (as of 11/11/2009) Buy Now

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.

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

We're Not Alone - 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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Favorite Links About Saving Money & Debt Reduction 

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.

Featured Lenses About Dave Ramsey's Baby Steps 

Debt reduction, emergency funds and more - check them out

Cool Frugal Living Reads! 

Every bit of info you can arm yourself with helps!

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TipHero Tips For Saving Money 

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Lensmaster boutiqueshops, aka Sylvia Mayfield, has been a member since April 29 2006, has rated 999 lenses, favorited 395, and has created 113 lenses from scratch. This member's top-ranked page is "Soldiers' Angels Project Valour - IT". See all my lenses

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Anyone can comment

millstonerobert wrote...

Excellent lens, for those of us that are unawares immediate debt relief is a real possibility through several avenues including, debt settlement, bankruptcy/loan defaults and debt consolidation in a sense. I think it's imperative that everyone knows their rights as well as the choices they have available to them if they find themselves in any sort of real debt.

ReplyPosted November 08, 2009

poutine wrote...

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

ReplyPosted September 23, 2009

kimmanleyort wrote...

Very useful information with a personal touch. Nice!

ReplyPosted September 19, 2009

wombat666 wrote...

Very impressive lens. Great information about getting rid of debts and visually interesting. Good work.

ReplyPosted September 18, 2009

DOUA wrote...

Definitely will be using some of these tips. Very well done lens.

ReplyPosted October 26, 2008

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Hi! My name is Sylvia! I'm retired & doing what I love--selling online, crafting and gardening, reading, watching movies, crochet, learning to knit... (more)

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