tag:blogger.com,1999:blog-5089828552519076506.post1595345263750234589..comments2024-03-28T15:55:53.792+10:00Comments on down to earth: Simple Livng Series - Paying off credit card debtUnknownnoreply@blogger.comBlogger47125tag:blogger.com,1999:blog-5089828552519076506.post-34288264251115479702013-01-07T08:43:14.765+10:002013-01-07T08:43:14.765+10:00Oh boy the average American has over 8k in credit ...Oh boy the average American has over 8k in credit card debt: Im a single parent and I've been smart enough not to fall into that trap: I do several things: <br />2 store credit cards that I used to frequent, <br />2 major credit cards that I use for to buy everything<br />1 Amex card for business and travel<br />a huge savings account, <br />coin jars, yup I use them <br />529 college savings plan<br />I cook at home we don't eat out,<br />I payed off a 30 yrs mortgage in 8 yrs, <br />Bought a few houses in another area cash and rent them out, <br />and this is how I am finally living the "American Dream" <br /><br />If you have debt pay it off after you build an emergency fund, I use credit cards for everything but I pay off the balance each month before the bill is due. Remember that all that struggling now will have HUGE positive quality of life impact so grin and bear it for the moment. Don't despair, take heart in knowing others have done it, are doing it and will continue to do it, there's a wealth of support of like minded folks on line, such as HERE, I love this blog< and you are never alone. <br /><br />Kudos to all you wonderful peopleAnonymoushttps://www.blogger.com/profile/02410717717688870232noreply@blogger.comtag:blogger.com,1999:blog-5089828552519076506.post-11849481381358372102010-01-21T13:20:39.552+10:002010-01-21T13:20:39.552+10:00great post! i'm going to take this EXACT advic...great post! i'm going to take this EXACT advice!Karenhttp://www.karenszen.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-5089828552519076506.post-2875689998432304992010-01-18T15:56:08.518+10:002010-01-18T15:56:08.518+10:00We used the change jar to pay off our house. We ha...We used the change jar to pay off our house. We had paid off all other debt first. Also we had a bank account already for an emergency such as you stated in the first part of the post. Next our aim was to pay our home off early. Each month the extra change we had plus any other little bits we could we put together and put in our payment towards the house principle. You must mention that is where it is to go. You do not want it to go towards the interest. Call the place that holds your debt first and find out if you can pay the mortgage off early and any rules they might have. Ours allowed us to pay any amount extra we wanted to each month. Some months all we could put extra was $3 and other months it was the change plus extra $ that amounted to $100, but each month it was something. We paid off our mortgage 13 years ahead only doing this. I called the mortgage holder and made sure the payment was recorded right so the money was going towards paying down the principle. The people in town where I had made payments had off and on recorded it as extra towards the interest till I caught it and had them change it quickly. After the house was paid off we used half each month towards retirement and the other half to save up for any major applience or car that mght later be needed. Sometimes when out and about we did not get a soft drink and that $1 then could be used this way. Other times we made and sold something and added this money. All this while I was a stay at home wife.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5089828552519076506.post-45376713155729552812010-01-17T04:49:57.172+10:002010-01-17T04:49:57.172+10:00Such practical and clearly articulated advice! I a...Such practical and clearly articulated advice! I am really enjoying reading your blog. Thank you!Amyhttps://www.blogger.com/profile/14407340515200525388noreply@blogger.comtag:blogger.com,1999:blog-5089828552519076506.post-25719006748788209882010-01-17T01:19:43.901+10:002010-01-17T01:19:43.901+10:00I second this. Yes, most people think that hitting...I second this. Yes, most people think that hitting the highest interest rate card first makes sense...but when you watch those other cards disappear so fast it is so motivating. We killed 4 cards in three months and it really helped us through the hump for getting used to living on a budget. It was seeing those cards disappear that kept us excited and feeling like we CAN do this. Its a mind game...but it works.autumnesfhttps://www.blogger.com/profile/04519475352289814754noreply@blogger.comtag:blogger.com,1999:blog-5089828552519076506.post-1415255215841429002010-01-16T23:58:31.468+10:002010-01-16T23:58:31.468+10:00I have never commented but have read your blog for...I have never commented but have read your blog for quite some time. I enjoyed this post because I think it will help people who feel overwhelmed by their debt. I have always been frugal so don't need it myself but thought it was quite clever. I don't think it really matters how you list the cards, either by amount of debt or by interest, I think its more important for the person to feel as if its possible to be debt free. This gives them hope and that is most important of all.<br /><br />My other comment is that I have no debt, not even a mortgage. I have always been amazed how much free advice friends and relatives want to give and most of it over the years has been to stay in debt. People want to be right so instead of engaging in an argument, I would always just nod my head say "I know, I know, but I just like the feeling of not owing money". You don't always get support from others but you don't really need to have it to do what's right.elisenoreply@blogger.comtag:blogger.com,1999:blog-5089828552519076506.post-74617176097689797712010-01-16T15:22:05.283+10:002010-01-16T15:22:05.283+10:00This is such wonderful, helpful advice. It took me...This is such wonderful, helpful advice. It took me several years to get debt free and it is the best feeling. What I found strange was how easy it was to get credit cards but how hard it was to then cancel those cards completely when we had paid them off. The banks kept saying "you never know when you might need them" and we kept saying "JUST CANCEL IT" they made it very difficult, having to go in sign all these forms, quite ridiculous really!Selinahttps://www.blogger.com/profile/13677873091396001547noreply@blogger.comtag:blogger.com,1999:blog-5089828552519076506.post-76256945645505117342010-01-15T16:35:50.193+10:002010-01-15T16:35:50.193+10:00thank you for all those great ideeas....some of th...thank you for all those great ideeas....some of them, like the coin jar, is alreaddy working for me, and I'm cutting down on many things....it does become like a kind of thrill each time I can cut down, without feeling bad....shandorahttps://www.blogger.com/profile/13945627419311409453noreply@blogger.comtag:blogger.com,1999:blog-5089828552519076506.post-22601217901264950352010-01-15T14:13:38.336+10:002010-01-15T14:13:38.336+10:00I was busy paying off my credit cards (using the s...I was busy paying off my credit cards (using the snowball method) when I had my job. And then I lost my job. I really wish that instead of making those huge credit card payments every month, I had saved $2000. It would have been much easier to get through the past few months with cash in the bank instead of having to charge every single thing and borrow from one credit card to pay the other.The Singlutionaryhttps://www.blogger.com/profile/11199194725578216599noreply@blogger.comtag:blogger.com,1999:blog-5089828552519076506.post-83459052131688042862010-01-15T10:22:24.880+10:002010-01-15T10:22:24.880+10:00Thanks for clarifying about not reading Dave Ramse...Thanks for clarifying about not reading Dave Ramsey's book - it's a great one, but it sounds like you and he are on the very same page!! Great blog!Jillhttps://www.blogger.com/profile/06154985248882497123noreply@blogger.comtag:blogger.com,1999:blog-5089828552519076506.post-87049447726443066262010-01-15T09:12:44.919+10:002010-01-15T09:12:44.919+10:00We stopped using our credit cards a few years ago ...We stopped using our credit cards a few years ago - we were almost $24,000 in debt, we worked hard and snowballed our way to debt free. The last one was paid off in October 2009. <br /><br />I heard about emergency funds a few months ago, so we started one last August - we were able to use it to help us over the christmas period when my handbag was stolen. We repaid ourselves some of our cash budget, and also money to replace my driver's licence etc... The insurance cheque came yesterday and I will deposit it back into the emergency fund once it clears.<br /><br />Also just wanted to mention - in our budget I save $10 p/w for tyres - we know that this is something that needs replacing so to me it's not an emergency. By planning ahead even on a long term purchase like tyres the stress is gone. On our 4wd the cost was $1300 last August - I was able to pay in cash with no worries about it.<br /><br />Regards,<br />Suzanne<br />ToowoombaSuzannenoreply@blogger.comtag:blogger.com,1999:blog-5089828552519076506.post-696204624614049832010-01-15T08:02:50.847+10:002010-01-15T08:02:50.847+10:00I just love your blog and am so happy I found it. ...I just love your blog and am so happy I found it. I'm using your ideas and because of your blog I am teaching myself how to knit!Joanie @Simple Living Mamahttps://www.blogger.com/profile/02461904801905545854noreply@blogger.comtag:blogger.com,1999:blog-5089828552519076506.post-65506938072188783882010-01-15T05:34:37.234+10:002010-01-15T05:34:37.234+10:00I have to say that saving $500 for unexpected emer...I have to say that saving $500 for unexpected emergencies really isn't even enough these days. A set of tires can cost nearly that! You almost have to put a minimum of $1000 away somewhere safe and yet accessible. Make it a game to see how quickly you can put away a lot of $$. Yes, I've done it and I now have them staggered in CDs so each month something matures and if I need I'll cash it, if not leave it and even add to it. AND we are at the most expensive time in our lives with 3 teenage children in tuition paying high school and drving and I do it all in CASH--no credit cards, no loans! It takes years to get there but it's worth it in the end.<br /><br />AliceAlicehttps://www.blogger.com/profile/04562147321756968067noreply@blogger.comtag:blogger.com,1999:blog-5089828552519076506.post-5718864643401845192010-01-15T05:12:01.513+10:002010-01-15T05:12:01.513+10:00Rhonda, this is a great way for people to organize...Rhonda, this is a great way for people to organize themselves and take control of their debt. One small suggestion, instead of paying from the smallest amount to the largest, you should list your debt by interest rate. Then pay off the one with the highest interest, and then work your way down the list, getting rid of the really expensive debt first.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5089828552519076506.post-3534703037975451942010-01-15T04:57:26.627+10:002010-01-15T04:57:26.627+10:00Jill, that book wasn't mentioned because I hav...Jill, that book wasn't mentioned because I haven't read it. This information is a mixture of common sense and info that's available in many places on the internet.Rhonda Jeanhttps://www.blogger.com/profile/00175785349529109084noreply@blogger.comtag:blogger.com,1999:blog-5089828552519076506.post-60829202425868133032010-01-15T02:47:55.876+10:002010-01-15T02:47:55.876+10:00Thank you, Rhonda, for being the voice of reason. ...Thank you, Rhonda, for being the voice of reason. I used some of your ideas years ago and was criticized by my family as being cheap and stingy. I have paid off my house and have no credit card debt, though I do use my card for a few items a month that are easier to pay by card. The card is paid off every cycle so there is no interest or annual fee. When I lost my "real" job in 2008, I did not need to panic as I really didn't need as much as I made anyway. Besides, you should always have plan "b" for additional income as well as the emergency fund. <br />I am learning to live a simple life and have enjoyed your blog for some time now. Thanks for the good advice that our families don't always give us.Malindahttps://www.blogger.com/profile/16417125068082873720noreply@blogger.comtag:blogger.com,1999:blog-5089828552519076506.post-21500813783942876492010-01-15T02:36:01.271+10:002010-01-15T02:36:01.271+10:00Hey Rhonda-Jean
Here we have an old cat shaped mon...Hey Rhonda-Jean<br />Here we have an old cat shaped money jar called fat cat and in it I put all my copper coins and I never ever miss them so far at the end of each year I get it changed up and I have been lucky enoough to be able to buy the ingredeients fro xmass pudding cake and mince pies including the icing and the almond paste. to me this is free treats as I really dont miss the coppers in my change purse amny thanks fro another good post. <br />Rachel<br />Plymouth Devon EnglandAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5089828552519076506.post-41666928342014217812010-01-15T01:11:30.728+10:002010-01-15T01:11:30.728+10:00We just opened a savings account for an emergency ...We just opened a savings account for an emergency fund right before Christmas. It was an awesome feeling. Wouldn't you know, though, that we just found out we have termites! Ugh! Very discouraging... So, less than a month after openeing it, it is g-o-n-e, plus now we are trying to scrape up cash every where we can think of to pay the rest of the treatment. We will NOT use a credit card, though! We have enough to pay off as it is! As we are trying to be better stewards of God's gifts to us, I am certain He will make a way! Then, back to building up the emergency fund. I am SO enjoying these posts! Thank you!Michellehttps://www.blogger.com/profile/03157289790776824381noreply@blogger.comtag:blogger.com,1999:blog-5089828552519076506.post-70284077961530930112010-01-14T23:13:58.168+10:002010-01-14T23:13:58.168+10:00Thank you so much for the last three posts. I wan...Thank you so much for the last three posts. I want to tell you and your readers what a difference you have made in my peace of mind. About a year ago whenever I started reading your posts, I earnestly started focusing on paying down our credit card debt while building up our emergency fund. In the beginning, I could only put $10 per week into the emergency fund, but I have gradually built up to $25 per week and by next month I will be putting $50 per week toward that fund. All our credit card debt is gone and we have literally "frozen" our credit cards (I put them in the freezer), except for one that we need for gas and it's paid off every month. At first paying off the credit cards seemed impossible, but we did it in a year's time (the amount was over $10,000). Now mind you we didn't have any sort of extra income - I just concentrated on paying every possible cent I could round up toward that debt. <br /><br />Another thing I did was follow your suggestion about the bagging of cash. I didn't like the way the ziplog bags felt (a quirk of mine, I guess), so I splurged about $10 and bought an eighth yard of different fabrics and made small cloth zippered bags. The one for my pocket money has piggy faces on it because I mainly use it whenever I want a drink from a fast food place. I deposit $16 per week into that bag and if I don't spend it all, the left over money is split among several other bags. Some I put into a zippered bag with turtles on it. That bag represents long term savings (like a slow and steady turtle) for projects that can wait a while. Some I put into a zippered bag with chickens and eggs printed on it. That bag represents savings for birthdays, other gifts (makes me think of how women used to sell eggs to get extra money). Some I put into a zippered bag with colorful insects on it. That bag represents savings for Christmas (makes me think of how I used to scurry around before Christmas like a little ant buying with no thought to how I'd pay for the presents). The next week I again put $16 into the piggy bag, but I never dip into the other bags once the leftovers are distributed. I limit myself to not more than $16. <br /><br />The last bag I have is for grocery money. It has ladybird beetles printed on it just because I like them. That bag gets $65 per week. That covers groceries, including pet foods, cleaning supplies, etc. I do make an exception and leave any leftovers in that bag from week to week to take advantage of a sale that the weekly $65 might not take care of. <br /><br />The rest of our fixed bills are paid the day the bill arrives, so that I'm not tempted to use the money for something else. The wonderful thing is that now that there's no credit card debt, there's money there to pay them right away. I feel like a bird out of a cage and I am especially touched by how my husband is so proud of how I (we - because he cooperated) have managed to become debt free. I must tell you that I've read Dave Ramsey and other debt management gurus, but until I read your posts, it didn't seem real that I could actually accomplish those goals. As another poster said, you have literally changed my life and I am so grateful to you. I sincerely hope that every single person who is struggling with credit card debt will take your messages to heart and begin the journey to a more peaceful life.<br /><br />I hope you and Hanno have a wonderful day.<br /><br />Diane in North CarolinaAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5089828552519076506.post-22258760791245939392010-01-14T22:47:02.552+10:002010-01-14T22:47:02.552+10:00I thought I would add this...
I know that credit c...I thought I would add this...<br />I know that credit cards are not a good thing to have however that is only if you are not paying it off every month. <br /><br />We have only the one card with dh as a primary card holder on it. We always pay it of at end month.<br />SO we have good credit in case we need it.<br /><br />Now if something was to happen to him (g*d forbid) I would be left with NO credit history in my name. Which means I would not be able to borrow even 10 bucks if i needed it from a bank. <br /><br />I have decided that I would get one in my name only and just rotate the cards so that my credit builds and dh's stays the same. Once I have a good credit score dh said we will cut up his cards so that we only have the one again. He does not feel that he would ever need them.<br /><br />Too many cards in the house is not a good thing either.<br /><br />I asked the bank yesterday if I could get one and they said I could under the household income. I am and always have been a SAHM. So this was my only concern. <br /><br />Just thought I would give you something to think about. <br />Just my opinion.--- KrystalAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5089828552519076506.post-68813650900401495092010-01-14T22:16:18.834+10:002010-01-14T22:16:18.834+10:00We also enjoy living by these principles based on ...We also enjoy living by these principles based on Dave Ramsey's book, The Total Money Makeover - funny - you didn't mention it at all.Jillhttps://www.blogger.com/profile/06154985248882497123noreply@blogger.comtag:blogger.com,1999:blog-5089828552519076506.post-90964988441320555192010-01-14T19:26:51.922+10:002010-01-14T19:26:51.922+10:00Hi good advice but doesn't it make sense to pa...Hi good advice but doesn't it make sense to pay of the card with the highest interest first rather than the one with the smallest debt?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5089828552519076506.post-6033347173289255652010-01-14T18:31:21.136+10:002010-01-14T18:31:21.136+10:00Great blog! I love the co-op and follow it regula...Great blog! I love the co-op and follow it regularly now. <br>I'm actually filing for a Debt Relief Order in the UK - it's sort of a "mini-bankruptcy"; it's not quite as hard-core as a full bankruptcy and is designed for people who have no more £50 spare after living expenses, and for those who have under £15,000 in debt. It works well for me as one thing they won't count as income is any money you receive for disability - whereas the bank would claim that I should be using money for my son to pay off my debts. Not likely! As I only have the one credit card to deal with, it's actually a good thing for me. I'd suggest folks in the UK to get information on a DRO.<br> I've always had a change jar and always pop pence into it. Last November that came in handy as I had no money for groceries, so I grabbed the change jar and lo and behold, there was £60 in there!Oya's Daughterhttps://www.blogger.com/profile/01184649716540468970noreply@blogger.comtag:blogger.com,1999:blog-5089828552519076506.post-65891330494204062742010-01-14T17:45:59.385+10:002010-01-14T17:45:59.385+10:00We're lucky enough to not have credit card deb...We're lucky enough to not have credit card debt. We do have a credit card, though, and I'm posting a comment because this may be of interest to other readers in the UK. We bank with the Cooperative Bank and with them you can choose to have the whole balance transferred from your current account every month. I am pretty sure (but may be wrong) but no other bank does this; you can only set up a direct debit for the minimum payment with other companies. I know this isn't of help to people wishing to reduce their debt, but for those of us who use cards to purchase online and then pay at the end of the month, the Coop way means that there's no risk of forgetting to pay and being tempted to then either incrue interest and pay the following month, or to just pay off the minimum and thus set yourself off on the path to incurring long term debt.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5089828552519076506.post-80368039376075409292010-01-14T15:40:16.801+10:002010-01-14T15:40:16.801+10:00Hello Rhonda,
We have just returned from 2 days i...Hello Rhonda,<br /><br />We have just returned from 2 days in the big smoke and we had need to pass through one of the big shopping centres. Nearly every shop had a SALE sign in their window. I feel sorry for the young ones who get tempted by all this. Advertising is in their face daily and it must be so hard not to use the "fantastic plastic". Your post today was so good and I totally agree with every word written. May I encourage all you parents and grandparents to instill this message into their young folk. <br />Blessings Gailgailhttps://www.blogger.com/profile/11474172270399240621noreply@blogger.com