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Thread: How to get out of Debt...

  1. Army Girlfriend
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    #1

    How to get out of Debt...

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    My DH and I have been living together for a year now and in that year we have racked up some major debt. Any one have ideas on how to start getting out of it? It's mainly interest rates that are killing us!!
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    #2
    i'm not rich but try calling up your lenders and seeing if they can work with you to help lower interest rates or maybe try a debt consolidation depending on HOW much debt you have (i think those consolidation places have a min. of 5k)
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    #3
    Def agree with calling creditors and seeing if they can't lower your interest rate.
    Second start with the lowest bill you have and put all the extra money you can afford into that one bill till you pay it off. once its paid off put all the money you were paying to the bill into the next bill. Like a snowball effect.


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    #4
    Quote Originally Posted by rosebud* View Post
    Def agree with calling creditors and seeing if they can't lower your interest rate.
    Second start with the lowest bill you have and put all the extra money you can afford into that one bill till you pay it off. once its paid off put all the money you were paying to the bill into the next bill. Like a snowball effect.
    If you do that with the highest interest rate you'll pay less interest in the long run.
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    #5
    Quote Originally Posted by J.Ski View Post
    If you do that with the highest interest rate you'll pay less interest in the long run.
    yes but sometimes you keep paying and paying and don't see a result right away. People get discouraged. at least if you are paying things off you feel like your making a dent. after you pay one or 2 off you can switch to the other method.


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  6. Army Girlfriend
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    Thank you all so much for your help it is greatly appreciated!
    You have to walk carefully in the beginning of love; the running across fields into your lover's
    arms can only come later when you're sure they won't laugh if you trip.
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  7. Old Newbie
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    #7
    We did this when we first moved in together and before we knew it we were in DEEP!
    I kept a little paper on the fridge with the amount of debt we had on it and the date. It was a constant reminder to save money by not going out so much and such. We would pay little bits on our card(s) every week and then put the new number up, which was really rewarding.
    Sometimes a visual aid is really helpful.
    Also, stop using the cards. We put ours in the freezer, literally in a block of ice. That way if we truly NEEDED them, we could thaw them out!
    It is really hard to get out of debt sometimes, but it is going to feel AMAZING when you do! I will never go back to spending with credit cards, I'm not good at it.

    We also sat down and worked out a budget that didn't make us feel too restricted. We did sort of a day by day budget.
    If you'd like some suggestions for budgeting, let me know - I'd be happy to share out method.

    Good luck!
  8. Not really a navy gf anymore...
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    #8
    Quote Originally Posted by SoRo View Post
    We did this when we first moved in together and before we knew it we were in DEEP!
    I kept a little paper on the fridge with the amount of debt we had on it and the date. It was a constant reminder to save money by not going out so much and such. We would pay little bits on our card(s) every week and then put the new number up, which was really rewarding.
    Sometimes a visual aid is really helpful.
    Also, stop using the cards. We put ours in the freezer, literally in a block of ice. That way if we truly NEEDED them, we could thaw them out!
    It is really hard to get out of debt sometimes, but it is going to feel AMAZING when you do! I will never go back to spending with credit cards, I'm not good at it.

    We also sat down and worked out a budget that didn't make us feel too restricted. We did sort of a day by day budget.
    If you'd like some suggestions for budgeting, let me know - I'd be happy to share out method.

    Good luck!
    I love the idea. Now I know what to do with DB/Fs when he gets home
  9. Many of the things that can never be, often are.
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    #9
    Amen! Most of our debt comes from when he went into the AF and didn't cancel shit... like his internet... which we now owe a shit ton on b/c of late fee's, etc. Of course it's long since been cut off but since we didn't live together I didn't know about it to take care of it... All these tips really helped me too. We are starting our "plan" on the 1st when his next pay check comes in.. here's to getting out of debt!!



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  10. Amy
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    #10
    What are you doing now to pay off your debt?

    I found this on powerpay.org:

    Prioritize Repayments

    Credit card companies require a minimum payment each month. The next step in reducing credit debt is to be sure you can make the minimum payments on your credit cards. Look at your spending and see if you need to make cuts to find the money to pay your credit card bills.

    If you pay only the minimum payment required each month, it can take a very long time to clear your balance. For example, if you have a $3,000 balance at 18.9 percent interest and you pay $50.00 toward the balance each month (a typical minimum payment), it will take you 15 years and 6 months to pay off your debt, and it would cost you $6,279.85 in interest charges.

    Plan to do more than just pay the minimum. In the example above, if you paid $60 each month instead of $50, it would take you 8 years and 4 months to pay off your $3,000 and cost you $2,947 in interest charges.

    Choose strategies to cut your debts as soon as possible:

    Pay high-rate cards first. At higher interest rates, more of your monthly payments go toward finance charges. Quickly paying off balances on your credit cards with high rates can free up cash to pay other bills.
    Pay off cards with the smallest balances first. Paying off cards with small balances gives you extra money to pay on the bigger balances.
    Make PowerPayments. Once you pay off a bill, next month add the amount you’ve been paying to the check you write to your remaining creditors. For example, let’s say you pay $30 a month to Sears. Once it is paid off, you add $30 more to the check you write for your VISA account. Then when you’ve paid off VISA, add that amount, including the $30 from the Sears account, to the check you write to pay your MasterCard amount, and so on until all the accounts are paid in full. The PowerPay computer program calculates the savings made when you make PowerPayments in three scenarios: 1) paying off creditors with the highest interest rates first, 2) paying off creditors with the lowest balances first, and 3) paying off creditors with the shortest terms first. PowerPay can also customize repayment schedules or add an additional amount should extra money become available.
    Stop making new charges. If you have to, have a "plastic surgery party" and cut up all your cards, hide them, or lock them in a drawer.
    Stay flexible. The key to sticking to your debt repayment plan is to stay flexible. If you find that you set unrealistic spending limits in the beginning, revise your spending plan the next month.
    Get a cheaper credit card. Find one or two low-rate cards and cancel all the others. Switching from a high-rate credit card to a low-rate card can easily save you $200 or more a year.

    You can also enter in your information (debts, payments, interest rates, etc) and see how much you can save in time and interest by making power payments.

    Also, here's a link to more information on getting out of debt, increasing savings, living within your means, etc: https://powerpay.org/education/
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