Well,I just found this forum and I want to share with you what I did to become credit card debt free. I do have a note on my car.

1. I faced my debt.

I finally got the nerve. I pulled every account. Called every one. Found out the ballance and intrest.

2. I face my bills.

I put down on paper EVERY scrap of money I paid each monh. Rent, insurance, XM radio, TIVo...every re-occuring bill including credit card payback minimums..

3. I looked at what I could trim from the bills.

Could I cut HBO? Could I cut down the phonce/cell service? WHERE could I trim fat and save money.

4. I made a budget.

Period. I knew that I made $1000 a paycheck (easy number to round). That means I made $2000 a month. My Bills, just my bills came to $1300 a month. This, for me, did not include gas, grocerys etc. This only was my re-occuring bills (power, cable, phone, rent, insurance etc)

5. This is Key! I opened a bill paying checking account.

This is what got me out of debt. Once I knew my bills came to $1300 a month, I put $1400 a month (700 a paycheck) into the billl paying account. I did get an atm/visa card, but the card NEVER left the house. NEVER. I would put that money into the account and was never late on a bill again. I padded the account because we all know the power bill CAN go up, or maybe the phone bill might go up. I padded for the unexpected.

The best thing was that SOMETIMES I forgot to pay the power on time. A month later I owe for 2 months. The old Gail would spend all the money in my checkng account. I didnt know how much I needed for bills. THIS way the money was ALWAYS there. Never spent. It only went to bills, ever. I ewas never late on a credit card payment again. Power. Car payment. It IMMEDIATLY helped fix my credit because I was paying stuff on time. The money was always there.

6. Now to the extra money.

I was left with $300 a paycheck. That sobers you up cause its not enough to live on. I MADE it enough. Thats what I had to spend on gas and food and anything else I needed. When I made more money I IMMEDIATLY paid more on my credit cards.
*note: I ALWAYS paid more than the minimum by at least $20. JUST paying the minimum is bad for your credit.

This also made me look at my bills and see where I could trim the fat. There were no more manicures and pedicures. I stripped my home phone to unlimied local and used my cell for long distance. I cancelled all the pay cable channels. I stopped eating out and buying lunch at work.

I did what I had to do to get out. It was hard. The hardest thing I did. But I think facing the fear of how much I REALLY spent was the worst. But it was a great accomplishment.

So I hope this helps people. I am now married and came into a marraige with NO debt at all. We can save, go on vacations and just be in a good place.

Very nice approach. Thanks for the advice. I like it.

Good advice. this is as simple as it gets but really tough to put to practice. It's not easy to cut out most options that one is used to in every day life but something must give way for us to have peace.

Thanks for the advice

Tammydavid

Well done. Spending less than you earn is pretty much the only way to reduce debt. But so many people don't want to acknowledge this simple truth!

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Great advice! I have recently gone through the same exercise and even tackled the car insurance. I was paying for miles that I was not driving!