I had quite a few mama's ask to tell them how we got out of debt in a short period of time, so here it is:)

First I will tell you how we got into debt, since that says about as much as how we got out. My dh graduated University with a 21,000 dollar student loan, we were married about a year later. Shortly after we were married he went away for 7 months to train as a Federal Police Officer, it used to be that they were paid for this training but now they only get a small stipend of 200.00 a month. Not nearly enough to cover bills let alone pay his student loan off. He applied for interest relief on his loan and was told he had to let the loan go into arrears before they would consider it. So he didn't pay the loan for a month then applied for interest relief again, this person at the bank (Canadian student loans were done though the government but then were transferred to private banks just before he graduated) told him that his loan had to be current, so he paid his loan and applied again...once more he was told that the loan had to go into arrears before he could apply...ARGH!! So he let it go and this time did nothing when they told him he had to pay. The bank was really messing him around *BUT* he still should have kept on top of it because 5 months later (a month out of training) we were sent to collections to the tune of 20,000 dollars!! YIKES! The collection agency were NASTY!! They called everyday, threatened us, compounded interest DAILY! Anyway dh and I had a big fight and I decided we should go to the bank to take out a loan to pay the collection agency off. Dh view on this was "well now our loan is just at our bank, which is better anyway" as though it was no big deal. I had to GENTLY :P explain that this meant we would have bad credit for 7 years and his loan was at an interest rate of 6.5% where as the loan we have now was at 9.5%!! To him a measly 3% didn't make a lot of difference, not until I showed him the full amount that we would have to pay in interest because of his negligent behaviour! ARGH! (still makes me a little mad, but I don't tell him that LOL) Anyway we paid that loan off bit by bit over the next three years, but our problem were far from over. We were in the habit of buying things on credit, we even took out a line of credit to buy this computer I am typing on now. 19 months ago we were on a trip to Olympia WA when we realized things were out of control, I felt I had no choice but to go back to work changing our spending habits hadn't occurred to me! I mean we were the type to go spend 100.00 at Costco, but I didn't see that as a problem, to me it wasn't like we were buying stereos or new cars so what could we do differently? (BIG ROLL OF THE EYES AT OUR IGNORANCE!) At this pint we had maxed out our CC at 5000.00 (Thank goodness we only had one!) our LOC (Line of Credit) was maxed out at 5000.00 and we still had 16,000 dollars left on our student loan...YIKES at 26,000 we were in deep!

So how did we do it? We got home from our trip and decided we were going to make DRASTIC changes. One thing we noticed was that using plastic be it debit card or CC meant we really had no concept of how much money we were spending. So we switched to a all cash system for spending, we decided that 300.00 ever 2 weeks was enough to buy EVERYTHING we needed, this included groceries, gas, and thing for the house clothes...ANYTHING. Dh would get 40 and I would get 110 every week (I got more because I did more of the grocery shopping) If we ran out of money on Sunday (we are paid on Wednesday) then we just didn't buy anything, sometimes dinners really sucked! LOL but we never went hungry, made me realize how we both believed in INSTANT gratification. Knowing we had limited funds also made me a more consciences shopper. i bought on sale, passed buy those impulse items, we still bought mostly organic but choose the items that had maximum health value for the least amount of dollar value. Next thing we did was streamline all our bills. I figured out all the bills we had, called the company and asked to be put on a budget plan, for those that would, they averaged our bills for the year and we were asked to pay a certain amount each month. Then I set up automatic withdrawal from our account on **THE DAY DH WAS PAID EVERY TWO WEEKS**. For those bills that didn't have a budget plan I sat down figured out my own average, added 10% as a cushion and paid the same amount every two weeks. Same thing with the mortgage, RESP (college funds for the kids) and RRSP(IRA's) we paid it every two weeks on the day dh was paid. Our mortgage was the same but in the beginning we put very little away for the kids and ourselves, later though when we were able we bumped it up. This system works really well because all your bills are paid before YOU can touch your money, so you know EXACTLY what you have to work with. So after the bills were taken care of, the food an necessities paid for there would always be a little left from his cheque at the end of the two week period. With this I started paying back the CC (make your minimum CC payment and LOC payment every two weeks along with you other bills just to make sure you don't run into problems BUT DON'T CONSIDER THIS A PAYMENT,IT IS NOT ALL IT DOES IS GET EATEN BY INTEREST!) I started by paying off the bill with the highest interest rate (usually CC) every extra cent we received for ANYTHING went on the CC debt. In Canada if you earn under a certain amount as a family you get a "child Tax benefit cheque" this went every month on the debt, anything I made from my business that didn't get reinvested went to the debt, any payment I got from passed work (I was a massage therapist and still had the occasional cheque come in from insurance patients) went on the debt, money from grandma, tax returns ANYTHING YOU GET goes to the debt. It is easy to fall back into the "we have worked hard we deserve to spend this money" TRAP but the BEST thing you can do for yourself is get out of debt!! Once the CC was paid we started on the LOC, all the while our student loan payment was coming right out of the bank account every two weeks. Once the LOC was paid off we doubled our loan payments and worked really hard to pay it off. During this period dh never got a raise, yet as our spending habits changed we found we had more and more money to put on the debt, at first you really scrip and save for those pennies then one day it just seems to get easier..I PROMISE! you just have to hang in there. Many people who I have talked to will say to me "ya but we don't earn enough" or "this won't work my husband works on commission" or some other reason why they can not have financial control, and basically if you WANT to believe that that is you prerogative. but if you **REALLY WANT*** to be debt free there is a way and you just have to tailor your own "debt free plan" to work for you. We did it in 19 months, other may do it in 6, still other may take 4 years but the thing is if this is something you really WANT you can do it...but that is the catch...only *YOU* can do it, no one can do if for you. Even if you win a lottery or inherit Aunt Marge's estate, if you don't learn spend only money you have eventually you will just end up in the same hole again..only this time you will be closer to retirement!! YIKES!

Now there are MANY other little things we did to get out of debt faster and I will touch on a few of those in a minute but first let me talk about a few other things since right now I may have you crying the DEPRIVATION blues!! LOL We knew that if we COMPLETELY deprived ourselves of the things we enjoyed that this plan just wouldn't work, so we did two things, first started concentration on things we enjoyed that were FREE instead of those that cost. Camping, going to the beach, riding bikes and walking, family stuff that made us feel good but didn't cost money. SECOND (and I think this will make you all happy) we decided we would continue some of our rituals but try to make them cheaper. We go out for lunch every Wednesday, it is a family tradition and we really enjoy it, so we DIDN'T give it up! but it used to cost us about 30.00 every time, now it cost about 17.00. If you do that math that is a saving of 676 dollars EVERY YEAR!! Think about what a chunk of debt that could pay off! So how you say do you cut the bill nearly in half? First..drinks! They add up!! My girls love Italian sodas so now and then they get one to share but not every time. Mom and dad usually drink water and now and then we SHARE a coffee. Second (and this is the most important) order half the food you used to!! As I say to the girls "If you don't order enough you can always go back for more, but if you order too much you can not return it" Dh used to order 2 specials and be stuffed at the end of lunch, now we share one and add a soup and we are both just fine, if we are still hungry will order something else but 9 times out of 10 we are both fine (and my dh is a big man too!! LOL). Dessert is another way to save, I am CERTAINLY NOT SAYING GO WITHOUT!! LOL but one or perhaps two for the family to share is cheaper and HEALTHIER! there are times when we go away that we have to eat out but even then we have come up with great ways to save. Cafes with counter service often have great food (HEALTHY FOOD) but because it is not table service you don't have to tip and prices are usually lower. Vietnamese food is often cheap and filling, we order two bowls of soup (the bowls are HUGE) and it is enough to feed us all (family or four) if we are extra hungry we can order salad/spring rolls but the bill almost never comes to over 20.00, for a dinner out that is not bad! WE bring fruit and other munchies for snacks and breakfast, this saves us a tone of money. If you feel the need for a shopping fix (as many of us recovering shopaholics do) you will do less damage to your pocket book at the thrift store than the mall. Unless you have something SPECIFIC you have to go and get at the mall...DON'T GO!! They are way to tempting! I can now go into one with no problem, but a year ago, 10 to 1 I would have walked out with SOMETHING! You will slip up, we all do but remember if you are only allowed to spend the money in your wallet the damage will only last a week (plus the consequences will be short term so you are more likely to learn from it) DON"T USE THOSE CC or DEBIT CARDS! Take look under you sink in the bathroom and kitchen, how many products do you have under there that you have used never or only once? How much of that crap do we really need? My household cleaning is done with TKO (an orange based cleaner that is eco friendly and economical) vinegar, baking soda, borax, washing soda and water. All these are CHEAP like borscht and eco friendly. I admit I used Aveda face products (we all have vices) I buy them once a year and other than that we use shampoo, conditioner, pit stick, toothpaste and basically that is it. Really take a look at what you buy and how much of it is REALLY needed. let me tell you another perk to this way of living is when you stop buying stuff the clutter goes away, cleaning is much easier when the clutter is gone!!

Ok back to the money side of things. One thing you have to remember is that interest is our enemy when we are in debt. Anyway you can lower you interest rate you should. Many banks offer a low interest CC but they don't advertise this. Ask your bank, and if they don't have one ask other banks. Be careful though not to fall for their low introductory rate, then have them bump you up to some awful rate. Also if you have a loan like we did, always be on the look out for banks who will give you a lower rate. In the end our loan was at 5.5% that was after juggling it about 3 different times with different lenders, plus it was a LOC at the end which gives you 30 day interest free and more control. Always pay off you highest interest debt first and always try to get that rate down!!

I know I still have much more info, but gosh this is getting LONG! I will add one last thing and then post, please ask questions on things I forgot to cover, I am sure I will post more as I remember stuff. Ok last thing. Don't expect to be come experts in a day!! or even half a year. Spending is an addiction and as with all addictions needs to be handled with care and FORGIVENESS! Don't beat yourself up, when you do you are just likely to give up! In the end we were paying 400.00-600.00 every two weeks to our loan without blinking an eye...in the beginning 200.00 was a HUGE struggle! Originally our plan was to get out of debt in 2 1/2 years but as we got better at it it was easier to pay. As you become more adept at saving money and living frugally living with less money becomes easier, but it does TAKE PRACTICE. BABY STEPS MAMA'S BABY STEPS! LOL

A great book to read to get you started in Your money or you life jeez I forget who wrote it...I am sure someone here will know. The Tightwad Gazette is also a great resource. I know there are others out there too. Honestly mama's I can say that although it was hard sometimes, the freedom we have now, freedom from debt and freedom for a consumerist lifestyle, well it was all worth it :)

Ok I have to post now before I go cross eyed from typing!! LOL

Namaste

You have accomplished an amazing feat, and it's so much more than paying off your debt, you know?

Tara

Great post!

I should show it my DH - he just does not understand the whole concept of sacrifice. He whines if he can't get take-out pizza once a week or buy a new DVD each month. And it's just an absolute travesty if I make a meatless meal. He was spending $5.00 a day for his lunch ($10 on Friday to celebrate the weekend) because he couldn't be bothered to pack a lunch in the morning. I think he finally was shocked into reality when he got to the mail last month before me and saw our credit card statement. I had charged most of our groceries and all my gas because there was no money in the checkbook. He was upset, but I sat down with him (again), showed him our budget and how much lunches, etc were costing us. So this week he's packing his lunch - hopefully that will last.

Of course, I know that I need to work on things too. Charging groceries was not a good thing. The card is suppose to be for "emergencies" only but after our talk, we ripped up the card since it is just too much tempation to use it for non-emergencies.

Anyways, hope this isn't hijacking your post. :) I've been bummed about bills lately and maybe I just need to talk about it more than I thought I did. Thanks for inspiration and support!

I so admire your perserverance in getting out of debt, Bernice! As you know, we SUCK but are getting much better. We are still in massive debt though, and I love reading your posts, it gives me inspiration. Off to forward this to df....

Haven't read it yet, going to print it out to highlight some of the info's I'm sure! ;)

Thank you sooooo much for sharing what worked for you! Guess I wasn't the only one eager to hear how you did it hun!? lol! ;)

Thanks again B! (((((

We are almost done with debt, too! It will be paid in less than two years since we made our "plan". We had the credit cards up to $20,000.00 My dh used to feel deprived too but now he loves it. We love our simpler lifestyle.

Another good thing to do is clean out your basement, garage, storage, whatever you have and really look at the stuff you spent your money on and don't use. We just finally finished cleaning our basement and paid $76 to dump a bunch of junk and have a huge car full of good stuff to go to Salvation Army. We will never bury ourselves in clutter again!

Your Money or Your Life is a great book and I know one of the authors last name is Dominguez -the first name might be Joe?

Edited

A very inspirational post, and full of good advice. Thanks for sharing Bernice.

I'm amazed at how quickly you paid off all of your debt.

:)
Janice

Thanks, B for the encouragement!

It really helps to see people in the situation get out!

May I share my story, if this bothers you on your thread, let me know, and I will use the delete button, LOL!

We are, taking a deep breath here...$45,000 in debt.
All unsecured.

How?
When we first got together, dh had a student loan and a car loan.
I did NOT want any debt, so we worked our butts off and paid them off in no time

We moved in together with a fresh clean slate

We did great with no credit for several years, then a friend of mine became a bank manager and decided we needed good credit, well, any credit!..
she lied and pulled some strings and got us our first credit card
We felt like we were so mature, hahaha!
We decided it would be best not to use it, and put it away, but then taking the cloth diapers to the laundromat thirty miles away was becoming a drag, so we put a washer on credit card
then, my mom was behind on her bills (I had always paid her bills when I worked, but, I did not work now)
and we took out a cash loan

then, we started getting more credit cards in the mail, my mom needed bills paid, my mil needed bills paid, dh was getting laid off, we needed bills paid

I was always doing small jobs to help out (babysitting, sewing)
and dh was working any odd job he could... but one adult working to support three houses... sigh

I have hated it, hated it, hated it!!!
I have thrown so much on debt, then dh would go buy something, or just pull out money just 'in case'
Them , there were times we needed to pay debt with debt (in the finance biz, this is called pyramiding)

I lost it late last year and decided we were so much in debt, why not take money out to build my business? I felt so apart from dh and ready for divorce..
(LOTS of stuff has happened between us, but this is about debt!)
First the first time, I took out credit he did not know about, I got myself a loan. Dumb, dumb, dumb!!!!

Mamas, I bought alot of stuff for my site.
As you may notice...
I have never ever been a shop a holic. I was now...
I am really ashamed when I look at all this stuff here in the name of business.

We do not have new cars, new furniture, we live in a rented singlewide trailer in the most hicksville town possible , and appear to be dirt poor (and, we are) who IRL would know we have this debt?

Several months ago, dh started getting a pay cut every few weeks, then he lost his job... this was a big blow!
Here I was with lots of new bills, and one person's pay gone...

The other night, I was checking around sites about buying a home, I used their little debt ration calculator, wow!
According to that, we should not even be able to pay our rent. I just cried and cried!

Now, we could file bankruptcy, which we do NOT and will NOT do

We have decided to pay this... you are right, interest will eat you up!
We talked to our bank (since we are 'great' customers! In our five years of debt, we have NEVER missed a c/c payment, and we keep a high balance, a creditor's dream!!!)
They gave us free checking, ok, may not sound alot, but that does save us $144 a year, $288 actually, since I also have a biz account there, too
They lowered our interest on our credit card by 5%! and on our line of credit by a whooping 10%!!!! Quite alot if you carry a high balance like we do!

We have moved several cards over to cards with a 0% interst for several months (which later go to 12.5%, which is not too bad-be careful, some cc offers offer 0% for a few months, then go up to 22% or more! read, read, read the fine print! also, if you are someone that pays late these offers may not be for you, as if you miss one payment, I was reading some go up to 23% or more! yikes!) Then, after we moved the cards over, we CANCELLED the other cards!!!

We are trying to get settled here, and so far so good...
We cut the mothers off, sorry, but at almost fifty, time to fend for yourselves!
I know we will have them when they are older and unable to work, but that is later...

In two months, I have almost paid off one of my smaller cards, it really feels great!!!!
I can not wait until I have it all paid off, and can move on to the next one

Today, I cancelled the option to pay for anything on paypal with my credit card, ah freedom!!!

Ramble, ramble!
Sorry!
I needed to have a release..

I really am sickened by my business buying frenzy, remember my dress fiasco, well... had I only purchased what I could afford, would not have bought those dresses in the darn tooting first place!
Important, very important lesson, do NOT take the loss if you can't afford it!!!!

Also, I put a serger on c/c, guess what I am too silly to figure out to use it!
How is that for a slap in the face!


(I am currently writing a novel, 101 things NOT to do when starting a small business!

Also, had my friend not pulled strings to get us a c/c, we would not have been been able to get one, and that would have been a good thing!
See, living beyond just gets you in trouble!


I am sooo glad you posted this Bernice!
I agree with 100% of what you said
I grew up really harsh, and have been raising myself and paying my bills for a long time, and I know/knew better than to get into this mess!
I know my grandfather's ashes are stirring in his little box right now as I write this! (A man that worked very hard his whole life, paid for everything with cash, gave so much to help people, and died with a very fat bank account- he taught me to always save and never get in debt, man did I stray!)

I am so glad to be able to share my story, and be encouraged my others going through this and getting out of debt!!!
Can we start a forum or a email loop!

I really like the Mary Hunt books, she has a great program for paing for the expected unexpecteds in life....

Hope - you can cancel the option to pay w/ cc on paypal? That's my biggest downfall! It's easy o not take my cc into a store, but I have the # memorized AND have it attached to my paypal. I spend spend SPEND online! I will look into that, thank you!

thank you all so much for sharing...i am in a similiar situation....i just moved to canada from texas with husband who is canadian and i am trying to find the 1500 to become a citizen....of course this all depressing so i have over spent until we are maxxed out everywhere.....yalls posts have made me realize i am not alone and i can get thru this....i posted last night that our bank acount is at 3 dollars and some odd cents and i have a 50 dollar bill in hubby's wallet..thats it till end of month but we have groceries and most things are paid...i went on a trading spree which was good but the shipping was over 80 bucks this month....sigh..ok enuff of me but thanks to you all again,
carla
ttc first child stuck in toronto second mama to nephew will, caretaker to inlaws and disabled hubby, mommie to a spoiled pug and rat-rescuer with 15 furry fuzzbutts of joy three of whom are very ill and need lots of extra care and meds (((((

I want you all to use this thread to talk about debt, how it is effecting you and how you are conquering it ! I love to hear stories of other who have won battles with debt and I am happy to know I can help. Don't you dare delete your post Hope!! :P

I think starting a forum or a email group is a great idea, I will even moderate if anyone wants me too. I have been there mama's I know how hard it is to see the top when you are under a mountain of debt.

Originally posted by magnoliamom

Can we start a forum or a email loop!



YES, yes, yes!!!!! Can we have a manage your money, manage your life kinda forum!? I think alot of us would benefit from it! :)

Great idea Hope!!! :thumbsup:

I'll mod too! LOL!!!! I need a purpose to come here, can you see? ;)

I think support would be a big help. I am so sick of dh working 6-7 days a week and never getting ahead. We need to suck it up and get through. We have pared down most everything but can do better, I know! The biggest change I have made is paying bills first- HUGE reality check when you see you can't afford most of what you used to buy-LOL! But, it feels good to know that most of the bills are paid most of the time :) For the first time though, we have a birthday coming up that I am stressed about, before I would just do/get whatever I wanted but now we are so tight(in a better way- paying bills) that I can't just do that! It will all work out, but mostly I want to get rid of debt- and save money ahead for things like holidays and birthdays nevermind our cars that always break:rolleyes:

Thanks for sharing your stories mamas, it is hard to admit when we've goofed our money, but the best thing we can do is get control of it NOW so our children can learn to be responsible with their finances from us:)

B~ that is an awesome story. Thanks for taking the time to help us all out!
Jen

thank you for the inspirational post. I'm going to print it and tape it to my fridge. I'm a spender. Dh is a saver. I know I spend way too much. We've been married 9 years and have no savings or retirement, none.:( Ig you all start a list, I'd like to join.

I'd love to join a list like this!!

Our problem is we HAVE a lot of money put away, so that gives us the illusion we are okay, when we have all this debt that is basically cancelling out our retirement funds :( Df disagrees with me and says we are making more on our money put away than we are paying in interest but I don't think so. Oh well. B, he was impressed with your post, but I dunno if he's willing to do anything about it. Truthfully, I have to cut back too, been buying too much. Especially online. And the wedding...ARGH.

Anyhow, daily inspiration would be a nice thing :)

B, instead of fly lady you could be debt lady :)

It helps to have someone there supporting you besides dh! B is my 'get outta debt' friend. Whenever I buy something (like the digital camera) I have to justify it to Bernice. We will be out of debt this year!!! Whoohoo! And we will never be in debt again! That includes a mortgage. Next everyone has to read "Mortgage Free!"

We need help too! this is something we are struggling with big time. I've got a job interview this weekend because we cannot keep our heads out of water. We always pay our bills first. I have every bill for the month written down in a notebook with the due date and amount and I cross it off when paid. dh gets paid twice a month so I split them up and subtract them from his pay to show what we have to spend on groceries and gas. on payday I sit down and pay the bills for that half of the month and we immediately go grocery shopping. I make my list based on a 2 week menu that I write. We don't buy soda or chips or snacks. We barely have enough to buy the groceries to get us through the 2 weeks. with gas we usually end up putting it on a credit card or picking a bill not to pay and push forward so we can buy the gas. Right now I've got 3 bills from last payday not paid and the next payday won't be enough to cover it all so I'll have to push something else forward. this is not working :( part of our debt is from a voluntary repo. 5 years ago. We still owe them this money and so every bank that we've got to for debt consolidation turns us down. I don't know what else we can do to pay this off. We are already depriving ourselves. we can't go out to eat at all, much less spend less on it. Right now we have 6 days until payday and only enough groceries for 3 more dinners. The kids need summer clothes and I've been out of some beauty essentials (shaving gel and powder foundation) for a couple of months now. We don't do birthday presents or mother's day/father's day at all. I don't see any other choice but for me to go to work. We have about $25,000 total debt with our loans and cc and car. We don't have cable and only have internet becasue it's a contract, so we have to keep it for 2 more years at least.

We are ready to file bankruptcy....any ideas??

Thank you so much for this post--you have truly inspired me.

And I would love a group--it would be great to support each other and share ideas.

tandemmama--
i dont have much time to post right now, but have you considered credit counseling??/ We went through Genus credit management. They will "consolidate" your debt into one payment that they draft from your account. It is NOT a loan though-- they simply work with your creditors to lower your interest-- boy I am feeling like a commercial--lol! But it really woked for us-- we still have some debt-- I have student loan we havent started paying on yet, and we owe on our house, and both vehicles (although one of these is from consolidating thae last bit of our debt-- we basically used the vehicle as collateral) Anyway, both vehicles will be paid off in Dec., then we plan to start putting that money towards my student loans-- my economic deferrment should end around then !:) Anyway, through Genus we paid off about 7000 worth of debt, and then we consolidated the last little bit with a car loan so we could pay it off more quickly (and it would show positively on our credit report! Anyway, you CAN do it!!!
heather

Here's our story!

We each have over $26,000 in student loans. No car loans, we rent, and less than $500 in credit card debt. Our student loans are in deferrment right now, becuase we wanted to save the $400+ dollars a month for a downpayment on a house. We pay all our bills on time (excpet for the gas bil lately, becuase it's ourageous, but I got us on their budget plan last month so we'll be caught up next month)

Not too bad, you'd think, right? Well, we just ried to get pre-approved for a mortgage. Our credit SUCKS. When we first started dating, Dh wasn't paying on his student loans, and they almost went into default, so he had to do this huge repayment thing for a year. I had a credit card charged off in college (was on my own, no help from parents, and stupid!) There are like five or six collections accounts from medical bills that we had NO IDEA about. So we were denied.

Point is, check your credit, it's a real wake up call. We thought we were doing okay. Of course, we don't have any money invested for the boy's college, and nothing for retirement. We have a little over $5000 in savings, and that's it! We keep deluding ourselves into thinking because we're only in our 20's we don't need to worry about retirement yet. WRONG!

I'm all for a new forum, I think it would be a huge help to keep us all on track :)

OK, I was really nervous about posting what I did!
I always seem to say the wrong things (sagitarius! I have 'open mouth insert feet' pretty bad!)
But, I am glad I did!
I would really love to have a forum!

I felt I needed to come forward and admit my problem.
Can not talk to anyone IRL life about it.

Dh works in this type of business, and sees it every day.
He used to get upset at our debt, now, it is, everyone else is in it, see it everyday.

Renne
How my paypal is set up is it takes money first from my paypal balance, then I have it where if there is not enough funds in my account, it takes funds from my checking account (through my debit card)
This is a good thing for me, because I am very careful about my checking accounts, and keep them balanced.

BUT, I had a little box I could check called other funding options, I had a credit card there..
Not anymore! :)

This works for me, because I am not going to go on a shopping spree using my checking account... some might...
You have to do what works best for you.

As I mentioned earlier, has always been hard because we do so many things already that budget cutting books suggest.
Dh takes his lunch I pack every day (he is lazy, and if I don;t pack it, he buys out, so, I pack it!), I iron his clothing for work instead of dry cleaning, I use a clothesline (except for diapers!), I buy our clothing second hand, we do not eat meat,no cable, we make our own cleaners, do not use make-up, and, except for my business shopping frenzy! I never was a big consumer,etc...

However, I see areas where WE can do better... (and I know we are in some very bad debt for our income! we are one serious case here! you may not have to do what we do!!)
I am going to go back to making our own soymilk.
I can buy a big 50 lb bag of soybeans and they last us a year.
I buy really expensive toothpaste, and to make it worse, I order it, so that really makes the cost go up with shipping! We can use baking soda and a bit of peppermint oil in it-
I splurge and buy a cartoon , ok, TWO! of chocolate silk every week, it costs $3.29 where I live, that is $368.48 plus tax a year
Because I will be making soymilk for pennies, I can make my own carob ice cream for lots less (in our $3 yard sale ice cream freezer), something I enjoy more than the silk!

Something I can do is charge actual shipping with my business!
I mis calculate terrible and lose quite a bit at the post office every week.

I know by doing these small things, that will add up to quite a bit at the end of the year!

OK, enough from me until we get a forum on this! :)

That's it! I'm cancelling my paypal account. The hubby and I are working our way out of debt, but reading the orignal post I realized We could have already been debt free. Since I only seem to go on spending sprees here, and on-line ... The best way to curtail that addiction is to stop using paypal. that way the money I was spending here can go to debt!

Thanks for inspiring me!


Nikki

It is so important to get your debt under control, and the sooner the better. It takes some major self-discipline, but it certainly can be done.

Please do remember me though if you are considering bankruptcy and before you go to debt consolidation companies...please???? I am a WAHM who provides debt counseling and I promise I'm not pushy or rude.;) I just really like to help those who feel like their debt is beyond the point they can do it themselves...and sadly, that does happen.
My company's plan isn't for everybody, and if it doesn't fit your needs, then I wouldn't try to convince you to do it, but I would be so grateful for the opportunity to offer help!:)

My web site is below if you want to check it out!

Hey B!

I had printed out your post to look it over again, and I just wanted to double-check - did you pay all your bills twice a month? So let's say, your electric bill averages out to $50.00 a month, would you pay $25.00 at each payday? And then at the end of the year, would you skip payment on utilities for a month? I've heard about your type of budgeting plan before (though never explained in such detailed) and it is my understanding that one of the best things about this method is that you actually end up making an extra payment each year on your debt. Of course, this is great for paying down debt, but probably not necessary for utilities. I'm just wondering how you dealt with this. Also, did any of the companies give you a problem about paying twice a month? I can't imagine they would, but I don't know if they would think we were being a big bother.

I tend to obsess about things and about a year ago budgeting was my big thing. I read just about everything I could find on the subject and made all sorts of budgets. I think I just found one that might work for us, but I really like your system so I might do a sample one and see how it works out for us. My biggest problem is that I love to plan and research, but when it comes to actually following through to do something, I seem to lose my motivation. :o

Maryalene- YES EXACTLY! I was going to go into that but my post was getting too long already LOL! Ok so say our budget amount is 58.00 a month, I pay 30.00 EVERY 2 weeks, so basically they are asking for 696.00 a year, but we actually pay 780.00 a year, PLUS since you are beginning to get frugal you will likely buy enviro friendly bulbs to save money, keep your furnace running less, turn down you hot water heater, line dry etc and so even though you are paying for you OLD gas/electric habits you will actually burn less and therefore at the end of you 12 month period have only used 620.00 worth of gas/electricity. This method also safe guards you if you have an exceptionally cold winter or something else that ups you bill. There is nothing worse than working hard to lower you debt only to be surprised by another! So if all goes well you will be issued a check for 160.00 at the end of the year which you can smack right down on you debt. The thing is it is really only costing pennies a day pay a little extra but in 12 months this amounts to 160.00 that likely would have never found it's way onto your debt. Last year we got natural gas price rebates from the Alberta government, since I was on a budget amount for our old consumption I never used the portion that was paid by the government, so with my slight overpaying, decreased energy usage, and Gov. rebates we got back a whooping 650.00!!! Let me tell yo how nice that was!! Our utility company does not mind that we pay extra though they do call now and then to see why we have a credit (want to know if I am a little old lady who doesn't understand my bill LOL) Allison thought that in her State the utility company wouldn't issue a cheque, in this case once it hits a certain point stop paying you bill until it runs out **BUT** make sure to then redirect that money onto you debt so that it doesn't just get absorbed and be sure to contact you utility co and tell them you are doing this so they don't get their knickers in a twist. As for motivation, I bank online and every time I see that debt drop it keeps me motivated LOL. I like that I always have access to my accounts so that I can be reminded on an ongoing basis. I have been know to log on and transfer 10.00 to the debt LOL...hey every little bit counts!!

Nikki- good for you!! I know my paypal account is one of my weak point too.

Hope- I have to come clean with ya mama....we have a carton of chocolate silk in our fridge right now too! We have yet to start making our own milk. I really would like to get a vita mix for making things like milk, nut butters, etc. I have to be able to justify to myself first though that I will be able to not only cover the cost of the vita mix but then save money in the end. Though a vita mix is certainly a more environmental choice given the waste produced when we buy soy milk. What do you use to make your milk? Just a regular blender or something else?

Littleturtleknit-why can't I remember your name mama? Even though we are doing a transaction right now? YIKES mama brain! LOL You are so right about having a credit check done, it can be a REAL eye opener! UGH. Though I must say that sometime in the future it could turn out to be pleasant experience! We look at ours now and the money lenders are always SO SO SO impressed with us, telling us we are dream clients. I always ask about dh default on his loan and they tell me oh that was 5 years ago and your credit is fantastic now...of course that is when they want to give us a BIG FAT LOAN to get us back into debt!! Because we have juggled our student loan three time we have three sizable completly paid loans on our credit bureau, and even though they are the same loan (we paid the first with the second, the second with the third and then paid it off) they don't care. They don't care if you are in debt up to your eyeballs as long as you have made all your payments on time KWIM? They really are vultures!!

herc-I don't know a lot about credit counseling, as we never did it. Plus the systems in Canada and the US work differently. Anyone who can share with me how they work, I would appreciate it. I have heard some are a scam, how does one tell the difference?

tandemama- Oh mama I have been there!! IT feels like your drowning doesn't it?! I wouldn't even open the bills when they arrived! My first suggestion would be to get "your money or your life" (from the library since that is FREE!) and follow the first few steps. This way you will get a COMPLETLY ACCURATE picture of where your money goes. Try that first mama and let us know how it goes. {{HUGS}}

Amy- I know that dh was much wore than me in the beginning but now I would say he is even better than me at not spending. He used to eat out when he worked, now he has have a "just in case" 20$ in his desk at work for over 6 months! (I think I might have spent it by now, but shhh don't tell him! LOL) It definitely helps to have a spouse who is willing to work with you. Good luck on Thursday! When the debt forum opens please let us all know how it is going.

ALLISON!!--Yes Allison has been a BIG help to me, not only because it helps to have someone to have to justify spending to and commiserate with when you want to eat out but also because she is the THRIFT STORE/CO-OP QUEEN!! She finds me things I had used to pay full price for, helps me with making my own stuff, and always has great tips on saving money. Plus we have canned together which saves money and is SO much easier (and LESS boring) to do with a friend. Having a friend to help you on your path is of immeasurable benefit. LOL Only problem we have is our phone bills are too high! Oh and I DEFINITELY want to talk about living mortgage free, I have not read the book yet but it is next on my list!

Tamara-As much as I hate to say it (and you better not tell him I said this) Darryl is partial right LOL We have put money away along the way because interest earned now while we are still young will be of great benefit in retirement. One thing he hasn't realized yet though is that learning to live on less money means you guys will have a whole lot more to save once the debt is paid. Think about this we paid over 400.00 every two weeks to our debt every two weeks. If we were not to have to move this year so our mortgage stayed the same we would over 10,000 dollar extra next year to put towards retirement. If we put away 10,000 a year for the next 10 years and then just stopped, the interest by the time we were ready to retire would carry us no problem. WE WOULD NOT HAVE LEARNED TO SAVE THAT AMOUNT OF MONEY HAD WE NOT WORKED TO PAY OFF OUR DEBT AND LIVE ON LESS MONEY!!! .PLUS if you are used to living on less you don't have to have a million dollar to retire on because you are not that expensive to keep!! LOL So you can retire earlier! This is explained very well in "your money or your life" Now we do put away 150.00 every two weeks because as Darryl said earning interest while you are young is important, but you really can do both. (Ducks from Darryl's evil glare LOL) Early retirement is almost 100% dependent on learning to live on less. the guy who makes 100,000 a year will likely not be able to retire until he is 65 so long as he lives on 100,000 a year...KWIM? Plus if he wants to continue to live on 100,000 a year his retirement fund is going to have to be AWFULLY BIG! We plan to retire at 49(dh) and 47 (me) all on one income but it sure as heck is not a 100,000 dollar income!! P.S. Hope everything is coming along well for the wedding SMOOCH!

Ok that is all for now, LOL I am going cross eyed again and dh is bugging me to go outside and enjoy our first day of weather above 9 degrees. Amity contacted me about starting a new forum, hopefully it will be up and running soon :)

Namaste

Thanks B :)

The more I think about it, the more I think a two week system might be a good thing for us. We live hand to mouth and even though we make just enough to cover all our bills, we never have the money when the bills are due since we are both paid bi-weekly. If nothing else, at least this way, maybe we could avoid late fees since the company would have at least a part of our month bill by its due date. Thanks again and have a great evening everyone!

Thanks so much for this great advice. We managed to get way into credit card debt while dh was in school. I knew how to be a smart consumer myself, but when I found out that dh didn't I (stupidly) decided that if he wasn't going to go without that I wasn't either. It has take years for me to finally get over this ridiculous attitude and take control of my life. Instead of wondering why I had to do all of the cooking and refusing to do it half the time I have learned to really enjoy cooking. Instead of letting my husband buy a pizza every weekend I have gotten into the habit of making pizza every weekend. And since I know that he gets bored with the same thing every day for lunch (which leads to fast food instead) I have learned to be creative and give him lots of variety. When he knows that food is already waiting for him he doesn't seem to mind eating it as much as when I wait to ask him what he feels like today. And of course, my biggest enemy (myself) has learned that the only one I hurt by buying unnecessary things is myself. Thanks again.

Cary

Ugh, let me say I hate making soymilk, but it is something I can do and I know it is a real cost saver
The price I quoted was JUST for the chocolate soy milk treat, that did not include the price of regular soy, almond, and rice milk!
YIKES!!!

I use a regular blender, a big pot, some cheesecloth, and my stove.
And, soybeans and water :)

I use the recipe from the Farm Cookbook
(the people that brought you Spiritual Midwifery)

I had an electric soymilk maker and loved it,but it broke in less than a year :(
Not sturdy enough for the use I put it through I believe!!!!

I do not think everyone needs to do this, as I stated above, we all have areas we can save in, where to others, it would not make a difference... (maybe not everyone is a soy-milk-a-holic ;) or everyone is $45,000 in debt- that hurts everytime I say it, but makes me see what a serious issue it is!

Thanks again for bringing it up!

THANK YOU, THANK YOU for posting this thread! We are finally stabilizing our debt. We live on a military base and only have cable and phone bills, our car payment, and pay a small amount toward the land we own. I find myself spending WAY too much money here online and when I go to Walmart. The Wal-Mart thread made me decide to very rarely go in there, and avoid at all costs.

I'm gonna make a budget tomorrow, so that we can start putting more money on our car loan (our only debt besides the land). I want to build a house next year on our land, so I need to get myself together.

I'd LOVE to see a support group set up. THANKS AGAIN!

x