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anyone know how to get out of debt?

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jmama090708

Asked by jmama090708 at 9:26 AM on Aug. 5, 2010 in Money & Work

Level 3 (18 Credits)
Answers (13)
  • Google Dave Ramsey. He has great advice! GL!
    renea20

    Answer by renea20 at 9:29 AM on Aug. 5, 2010

  • Stop buying anything that is not an absolute necessity. Start paying a little extra each month on your smallest debt. When you have knocked that one out, pay all that you were paying on that one as extra on the next smallest one, and so on until you have them all paid off. It really does work. I recommend Dave Ramsey's material on this subject, because it is excellent. He believes in paying cash for everything except your home. And he was once completely broke, so he knows his stuff works.
    NannyB.

    Answer by NannyB. at 9:29 AM on Aug. 5, 2010

  • Budget, budget, budget. Figure out your take home pay minus every single expense and go from there. Write down every penny you spend, even if it's a pack of gum, for an entire month and see where your money is going. Pay off credit cards as fast as possible, they tend to be the biggest financial drain. Good luck.
    shanlaree

    Answer by shanlaree at 9:30 AM on Aug. 5, 2010

  • Having no idea how much debt, all I can suggest is to save any amount you can and apply it to your debt. Write down a detailed list of what you spend money on and see if there is any way to cut out some things. You will be surprised what you might find to cut (needs to be a very detailed listing). Then set up a budget and stick to it. You can feel proud of yourself as you chip away at the debt little by little. I listen to a very good radio money show online every sunday, 9AM to 12 noon(EST). It is on www.wtkk.com. Susan Kaplan is the host I like the best. She is on almost every week. They give invaluable advice. Just one idea........good luck.
    elizabr

    Answer by elizabr at 9:33 AM on Aug. 5, 2010

  • Dave Ramsey has the best financial advice, there is even a group on CM about him. It's hard to do, but so worth it.
    Scuba

    Answer by Scuba at 9:37 AM on Aug. 5, 2010

  • I, too, vote for Dave Ramsey. Read his book The Total Money Makeover. It will totally change how you view debt and money. Best yet, it WORKS!

    JawgaMom1

    Answer by JawgaMom1 at 9:47 AM on Aug. 5, 2010

  • I definitely recommend Dave Ramsey and the book The Total Money Makeover. Also join the group Dave Ramsey Fans here at CafeMom. We did Dave's plan and paid off $30k, we have an emergency fund, we have a retirement fund, and we are currently working on paying off our house.
    slw123

    Answer by slw123 at 9:51 AM on Aug. 5, 2010

  • Paying off your credit cards is a GREAT way to get out of debt, but first you have to stop charging on them. We all run into situations where we NEED something but don't have the $$, so we charge it. Dave Ramsey's FIRST step is NOT to pay the credit cards off, but to build a baby emergency fund so that you can take care of those pesky emergencies like a sick child that needs meds you didn't budget for, or a sudden car repair. Cut every expense that you don't NEED to survive. Clean up and cut back on your grocery budget by not eating out, using coupons when possible, and cooking more from scratch. Sell everything that you don't NEED. Put every extra penny into your emergency fund. Once that emergency fund is ready, you start throwing EVERY extra penny you have at paying off your credit cards, auto loans, and student loans.

    Join the Dave Ramsey Fans group here on CM for many tips, ideas, and support!
    michiganmom116

    Answer by michiganmom116 at 9:56 AM on Aug. 5, 2010

  • As others have said: Dave Ramsey!
    SAHMinIL2

    Answer by SAHMinIL2 at 10:31 AM on Aug. 5, 2010

  • I don't like Dave Ramsey personally, so here is some other advice-
    1) We had to consolidate our debt into our mortgage with a loan deal- it made the payments take longer, but I no longer have to worry about how to payoff 4 cards and the mortgage every month
    2) We redid our entire household budget- I made a spreadsheet in Excel, and instead of waiting for weeks to update it now, we are entering our costs day by day
    3) My hubby refuses to stop charging things, but I personally would like to stop and start using cash. The recommended way is to put the money you have set aside per week or month in an envelope- then only spend that amount
    4) We have also decided to discuss any purchase over a set amount before one of us goes out and buys it- purchases that cost a lot should even be put off for a few months if you are able so you can save for it.

    Hope this helps!
    Littlejem

    Answer by Littlejem at 10:37 AM on Aug. 5, 2010

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