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As a bill payor, consumer, patron..

To resist the former backsliding of going into debt, what are some ways , (list please)... not to ---go into debt. and stay away from debt.

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coffeeyum

Asked by coffeeyum at 7:57 AM on Aug. 11, 2010 in Money & Work

Level 17 (4,486 Credits)
Answers (10)
  • Don't get any credit cards that aren't necessary. And don't charge unnecessary things on a credit card. Pay more on your bills each month (for principle). Let's say you have a bill that is $100 a month. When you are finished paying that debt off, take that $100 and put it towards another bill. People call it the snowball effect. That way you are paying more than just the minimum, and you will pay that one off a lot faster. You can look into the Dave Ramsey class through some churches. I've heard some amazing things come from that class. It's a financial self help class. Has tons of great ideas on how to do exactly what you want to do.

    Luckily, I have been paying off my debts like crazy, and only have one student loan to pay off. I have not one credit card to my name. I can't tell you how good it feels to be able to not use credit! I just save and use cash. If I don't have the cash, I don't buy. Good luck!
    Aingls

    Answer by Aingls at 8:03 AM on Aug. 11, 2010

  • -buy only whatyou can PAY FOR in cash. if you wantt o keep a credit card thats fine, but charge nothing you cannot pay off before acquiring interest on it.
    -live well within your means. dont try to keep up with the neighbors
    -pay yourself first from every money source even if its only a $1. always put SOMETHING in to savings for those rainy day events
    -pay your bills off one at a time focus your attentions on getting the smaller to larger debts PAID OFF.
    sati769leigh

    Answer by sati769leigh at 8:13 AM on Aug. 11, 2010

  • When you go shopping, only pay cash, and I mean cash not the debit card. Before you even buy something ask yourself a few questions. Do I NEED this or do I want this? Can I function WITHOUT this? If you are grocery shopping, make a list and stick to it. Believe it or not its all the little purchases that can bite you later. I really think that it is a change in mindset that will help you. Redefine in your mind the difference between a Need and a Want, and a Necessity and a Luxury. Some of the simplest changes helped us through our economic disaster.
    WoodWitch

    Answer by WoodWitch at 8:39 AM on Aug. 11, 2010

  • Join the Dave Ramsey Fans group here on CM for support & more tips.
    Build an emergency fund (savings) of about $1000 - $1500 first to avoid "having" to charge an unexpected necessity on a card.
    Cut back on everything possible: phones, food, insurance, transportation costs, clothing, utilities.
    Sell everything you don't need to survive & put that money towards establishing your small emergency fund or paying off debt.
    Pay cash for everything.
    Stop using credit cards & unsecured loans & throw every extra penny at them, starting with the lowest balance first.
    Once you've got the unsecured loans paid off, build an emergency fund equal to 3 to 6 months worth of living expenses.
    THEN you can worry about establishing college funds for the kids, dumping money into retirement accounts, & paying off your house.

    (we just went to the bank and paid off our home yesterday!!!! Yippeee!!!!!!!! all on below-poverty-level-no-PA income! )
    <
    michiganmom116

    Answer by michiganmom116 at 8:44 AM on Aug. 11, 2010

  • I think what I was looking for was the simplest way. Too much detail going on, rambling, ....

    Just don't buy if you don't have cash saved. AHEAD.

    Why isn't anyone getting this ?
    coffeeyum

    Comment by coffeeyum (original poster) at 9:34 AM on Aug. 11, 2010

  • Some person who gets this fact please type in next...answer, so i can select as BEST ANSWER.

    thanks
    coffeeyum

    Comment by coffeeyum (original poster) at 9:36 AM on Aug. 11, 2010

  • Oh, the biggest, don't make any purchases that you cannot pay cash with. No credit of any kind. That's my motto and that's how I live.
    m-avi

    Answer by m-avi at 10:13 AM on Aug. 11, 2010

  • 1. Pay off your credit card bills complety. Don't pay interest.
    2. Live within your means.
    3. Find less expensive alternatives to things you already buy.
    HotMama330

    Answer by HotMama330 at 10:24 AM on Aug. 11, 2010

  • It's easy to say "don't buy if you can't pay cash," but in these modern times it's just as easy to pay with a credit card and many people have a self-satisfying mindset when it comes to purchases.

    You asked how to avoid it? Go to a cash only system. Don't have credit cards. That way, you HAVE to have the cash in your pocket to buy ANYTHING.
    michiganmom116

    Answer by michiganmom116 at 10:34 AM on Aug. 11, 2010

  • I only use my debit card (comes out of my checking account). If I have to make a purchase on a credit card, I pay the balance off IN FULL when it's due. I've lived like this for over a year and we haven't accumulated any debt at all.
    Scuba

    Answer by Scuba at 10:43 AM on Aug. 11, 2010

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