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Budget101 Discussion List Archives Budget101 Discussion List new to this group….and searching for answers :o )

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      I think the best advice for getting out of debt I have received was from Dave ramsey and Crown Financial. They follow the same sorts of advice.

      1) Keep an emergency fund of $1000

      2) Determine what is in your budget from the last 30 days. Determine what yearly costs you have that are at different intervals (Insurance, Vacation, Medical). Put everything down and spend exactly what you have determined in the budget on **paper** each month before spending for the month.

      Have a Spending Plan

      3) Determine where you can cut extra spending. Lots of ways to save money on food/entertainment.

      4) Sell whatever is worth money you can get at rummage sales/ebay

      5) Stop using credit cards. I saved about 15% of extra spending by not using a credit card except when we go on vacations to a hotel (once a year or so).

      6) Temporarily stop paying extra on the house

      7) Temporarily stop putting money into your 401K. (WARNING : This only works well if you are planning on getting out of debt in 1 YEAR or so. If you are intense about it you can do it.)

      8) Adjust your withholding so you don’t get so much of a huge refund and be certain to put every penny of that money on the DEBT.

      8) Take up a second job temporarily

      9) Cut expenses in all areas of your budget if you are able. For entertainment budget spend more time at the library.

      10) Do a debt snowball. Pay off the debts that are the lowest balance first and do minimum payments on the others. Then when done with the small ones move onto the next biggest sizes

      11) Live in a house/rentthat is less than 25% of your take home pay

      For more information I would truly check out Dave Ramsey or Crown Financial. They were the most helpful to me at first trying to get out of debt. They helped me specifically.

      I had paid off about $14,000 in car debt in8 months in 2007last year by following all of the lessons


      1) I used all but$1000 in savings topay off some of the debt.

      2) I stopped paying extra on the house temporarily

      3) I stopped using a credit card. In the past we had used credit cards and then paid them off each month however I could never keep up with savings by doing this method and I spend between 15% – 20% using a credit card over the budgeted items.

      4) I stopped contributing to the 401K for a short period of time (only during the time I did rapid payoff of the debt for 8 months)

      5) Got intense about paying off debt and saving in all areas of the budget

      6) My wife and I purposed to only spend a budgeted amount each week for all items based on the budget. We never were off but more than $10 or so. We saved tons of money this way.

      7) Goodwill, Library, Picnics, Biking, Walking, Reading, Free Hobbies, etc all helped

      I’m so glad I did this since now I have raised enough for 3 months emergency fund for home expenses and am working on making that larger and plans to pay off my house and fund my retirement better.

      I did follow the same sorts of thing when I paid off my college loans in about 1.5 years after completing college in 1998 but forgot all of this stuff when I startedhaving kids.



      Here’s the websites to check out, but the budget101 website has some awesome tips as well.

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Budget101 Discussion List Archives Budget101 Discussion List new to this group….and searching for answers :o )