Do you have any tips to get out of debt?

over the last 6 months i have paid off over 10,000 in debt on a salary of about 35,000 a year.

the biggest reason i was able to do so was not because of a disciplined style of living (which i am doing) but the advice and the accountability provided by my brother who keeps track of my finances.

my advice is to find a good friend and work out a budget with them. and then, stick to it by your friends encouragement and oversight.

it becomes much easier to pass over small purchases (or large ones) when you have someone watching your purchases and providing some support.

here’s to being 10,000 closer to being debt-free.

-joe

With the new year right around the corner, commit to using your “raise” to paying off debt. You won’t miss the raise because “you didn’t have it anyway” and it’s like paying down debt for free.

Todd

My wife and I have made significant strides in paying off debt as well. My few pieces of advice is…
- Pray, with God anything is possible
- Organization, create a realistic, workable budget and stick with it. This blog has GREAT tips and ideas. Read, Read, Read.
- Do whatever is possible and legal to increase your income short term and set goals to increase your base income long term.
- Stay focused, stay disciplined, see the end, see yourself debt free. You can do it! It wont be pretty and it will be frustrating at times but you can do it. In other words, keep yourself encouraged

Good tips everyone,
and Joe, you know I like you advice about having someone to keep you accountable. I helped my wife start a budget when we were engaged and the accountability factor helped her a lot - so she says

My wife & I got into some credit card debt some years ago - to get out of it we cut up the cards, paid them off thru strict budgeting & going without.

We have since gotten new cards but we pay them off every month thru an automatic withdrawal from our operational bank account. This forces us to never go into c/c debt again.

We’ve succesfully avoided c/cd debt ever since & now save 10% of our income as well.

I am a Crown Money Map Coach through my local church. If you are not able to find a friend who might help you, you could consider looking for a Money Map Coach. It’s free.

http://www.crown.org/ForChurch/Solutions/MMCoaching/MMCoachingMain.aspx

Strict budget, competitive shopping, and paying for routine purchases in cash. Keep off the cards– it’s too easy to go over.

We posted our debt free goal on the Fridge. It was a graph and every time we paid on that goal we colored it in. Celebrate the small successes!

Does help going thru with an accountability group to share success and struggles with.

* part time job,
* ebay — something you make yourself (careful about how much your actual cost is),
* ebay — stuff around the house
* ebay — stuff you get cheap (I have a friend who shops garage sales for kids clothes and resells them on ebay)

the normal cutbacks –

* cable,
* cell phone (maybe change plans),
* home phone (either ditch it or cutback to no long distance, no outgoing calls, etc.,
* internet — switch to dial up, share with a neighbor, use the library
* check your insurance rates, raise your deductible

There are always a number of ways to decrease yor debt, but I will list a few here:

* Contact creditors and negotiate lower rates

* Reduce the “source” of the debt (ie; sell the car with the high loan note and buy a less expensive car)

* Quit any vices you have (drinking, gambling, smoking, comic book collectinng ) and use that money to pay down debt

* Change your housing situation if possible to one that is less expensive / take on a roommate ( again, the point is by saving on spending here, you use the money to pay off debt )

* Lower your insurance costs by increase your deductible and/or review your insurance policy and see if you can find a less expensive one

* Regardless of what anyone says about debt snowballs, etc…. pay off the highest interest rate first. Mathematically, you come out better

* Shop smart - pool coupons with others, plan a menu around what is on sale at the grocery store, buy in bulk if it is reasonable… etc….

And if nothing else… realize how you got into debt in the first place. If you can’t learn from your mistakes, you are sure to repeat them.

Thanks everyone for sharing, I think I might turn these tips into a new post - so keep em coming!

@Joshua
This isnt about mathmatics, it is about someone staying with it.

Debt snowball works for those that need motivation. You have to get sick and tired of living in debt. As you knock off each bill that is one less check/bill pay you have to do.

It seems there is no easy answer to getting out of debt except sucking it up and doing it! It’s not fun, but the reward is worth it—just like most things in life. And determination goes a long way!

I think another good tip is to just do what you can. If you goal is to pay it off fast, then don’t spend anything outside of what you HAVE to spend. If it’s just to eventually get out of debt and not accumulate more, then I am a firm believer in doing one step at a time—stop using the credit card. Master that and then start paying toward the debt. If you go in full force and you can’t handle the discipline, you’ll quit fast. When I get overwhelmed, that’s what happens to me. I just stop working toward my goal and actually go backward.

You can try debt consolidation loans as one method.

Cut all spending to the bare minimum. Rent out all available space in your home. (I live in a house with nine people.)

Do you have any tips on how to earn money for those who can’t land a job?