Debt paydown strategy?

MrsPete said:
I understand what you're saying, and I agree. But I think that people who are "hooked on shopping and spending" SAY that they're doing this, when actually they're just looking for a way to justify spending. For example, I used to look through clearance stuff at Target and buy it because it was cheap -- as often as not, the items were never used. That was not wise stockpiling. I still look at clearance things there, but I'm much more selective. Ditto for the Dollar Store. If you don't need and use the item, it's money wasted -- even if it was only a dollar.

The test is whether you really NEED the things or not. For example, I already have several pairs of black shoes in various styles and height of heel. I genuinely have all the black shoes I need. If I were to go out today and find a great pair at a great price, that would be money wasted. On the other hand, August will arrive all too soon, and my children will NEED school shoes. If I were to find these at a great price and hold them until school starts, that would be a wise buy. I will definitely have to shell out money for tennis shoes in August, so if I could pay $10 now instead of $30 then, it would be smart.

I think you hit on the right words in your post: RECREATIONAL SHOPPING. I think many, if not most women use shopping as a hobby. It's an expensive and time consuming hobby, and I think it doesn't bring long-term happiness.

Keep in mind that credit cards are not the problem -- overspending is the problem. Used wisely and paid off every month, a credit card can be a valuable tool. You can use it anywhere in the country, and you can rack up rewards.

My husband and I didn't have a credit card for the first ten years of our marriage -- we just never thought about it. About five years ago, because my FIL told us we could get money back from Discover, we got one. We've found it to be quicker than checks; however, we've never paid and will never pay one single cent in credit card interest. We use the same rules that we used before we had it: don't spend tomorrow's resources today.

Here's what we had when we were married in 1990: $200 between us, a brand-new mortgage, two jobs, and two cars -- one with a payment. We decided that we'd live frugally in the beginning to get a good financial start in our married life -- aside from accepting Christ, it was the best decision of our lives. We sold one car, and we shared the other for the next three years (we do not live anywhere near public transportation). We furnished our house in Salvation Army furniture. We bought clothes at yard sales. We put every other paycheck straight into savings. We were very happy.

Today we live in a large, paid-for house in a great neighborhood. We have two paid-for cars, retirement accounts that are on track, children's college funds that are on track, and no debt. Those first few years weren't always easy, but they were well worth the effort. We recognized that whatever we would've bought at that point would've been only a bit of temporary happiness anyway -- today we spend much more than we did back in our early married days, but we are not any happier than we were then.

I insulted the manager of Penny's the other day. I didn't mean to do it. He handed me my bag and said, "You saved $42." I said, "No, sir, I spent $20." The conversation went on from there. He was downright angry and didn't understand the point at all.


Wow, what a great post! :flower:

As a divorced, single, full time working mom, life has had its financial setbacks and challenges in the past few years. :sad2: But I know I am also guilty of many of the bad habits you mention. :rolleyes1

Thanks to everyone's inspiration and suggestions, I'm putting myself on a 4 year snowball plan to eliminate my credit card debt. :banana: If I can do it, not only will the cards be paid, but the car note will be paid and my daughter will be out of college. :cheer2:

The idea of being able to live without the worry of all the bills is something I can hardly imagine but can't wait to experience. :cloud9:

Thanks all for this wondeful thread! :goodvibes
 
MrsPete said:
I insulted the manager of Penny's the other day. I didn't mean to do it. He handed me my bag and said, "You saved $42." I said, "No, sir, I spent $20." The conversation went on from there. He was downright angry and didn't understand the point at all.
I don't mean this as a flame, just a gentle FYI. Although I agree with what you said, the next time something like that happens, keep in mind that some stores have a policy that requires their cashiers to tell you how much you "saved." A grocery chain here even requires the cashiers to use a highlighter and mark the savings amount printed on your receipt. I know what you meant, but the manager might have been required to say what he did and then got flustered when you disagreed with him. (I'll bet no one ever pointed out the obvious to him before!)
 
I have been paying down the bills like a lot of you for the past 6 months. I know that it is not long in the grand scheme of things but I have found that I have made some great advances in our financial health. I am proud to say that I havent used a credit card in 6months. And we have paid off about $4,000 in debt. We have a way to go but I find the debt snowball to be working for my family. (My husband is in the military and I am a stay at home mom. So the money is not great but we are making it work for us) It is not to say that I havent gone out in six months because we have and had a great time. But if you dont eat out for a month when you finally do then you really enjoy it. :banana: It used to be that my family would go out to eat twice a week at least and the kids would not appreciate it because it was normal. Now they are on their best behavior and have a good time. (We go to a place that on Tuesday the kids eat according to their weight) So for my family of 4 it costs us about $25. Not bad.

I am not a pro or a financial wizard just a mom who wants a better financial future for my family. Although I was tempted by Disneys latest offer of free dining to book a trip rather then next year when it is planned but I know better. And I feel better about my decision. There will be no guilt next year when I go because it will be paid for by saving and with cash. :cheer2:

By the end of this year we will have about an additional $3,500 paid off. Going to Disney feels great but I can tell you paying off Sears at 23% interest feels pretty darn good. :cool1:

So my thoughts are will all of you and I have been reading some great ideas that I will incorportate into our plan (like the paying whatever is left in our checking account to a card the night before payday just to get the extra payment in)

Everyone keep your head up and look at where you will be next year at this time in the financial situation if you pay off some stuff now and not use plastic. Our future is so bright that we've got to wear shades! :cool1:

Look out Best Buy you are the next card to be attacked! No more interest for you my friend.
 
have to go through this with a fine tooth comb when I'm home and can make sense of it.
 

I Hate those high interest cards! That was my first priority. I balance transfered my high interest store cards unto low interest ones. That saved me $$$$ right off the bat in the long run. I've been very good for about 6 months and according to the quicken pay down your debt plan we are well on our way and ahead of schedule. :cool1:
 
etwinchester said:
Is there anywhere to get a free copy or download of quicken?

Tracey,
When/if you purchase a copy of Turbo Tax around tax time, you can get a free copy of the current year of Quicken. My dh loves Quicken and we have been users for over 8 years. We have always done just fine with Quicken Basic.
 
geetey said:
Tracey,
When/if you purchase a copy of Turbo Tax around tax time, you can get a free copy of the current year of Quicken. My dh loves Quicken and we have been users for over 8 years. We have always done just fine with Quicken Basic.

I've been using it since 1993! Early on we would buy a new version almost every year. But my current version is Quicken 2000! I've found that most of the "needed" functionality is already built into the program, the new bells and whistles included in each years upgrade haven't seemed worth the upgrade price. I'll keep this version until it won't run anymore!

Keep the positive vibes coming everyone! :grouphug: :wave2:
 
Oh, thanks!!!!!!! I actually have my turbo tax disk in my desk drawer. I guess I always deleted the icons off my desktop and forgot all about it coming on the disk.

Thanks again, now I can reinstall just the quicken...
 
ksoehrlein said:
I don't mean this as a flame, just a gentle FYI. Although I agree with what you said, the next time something like that happens, keep in mind that some stores have a policy that requires their cashiers to tell you how much you "saved." A grocery chain here even requires the cashiers to use a highlighter and mark the savings amount printed on your receipt. I know what you meant, but the manager might have been required to say what he did and then got flustered when you disagreed with him. (I'll bet no one ever pointed out the obvious to him before!)

I hear what you're saying, but I always say -- politely, even jokingly -- that though I've "saved" X amount, I now have Y amount less in my checking account. I say this because I don't like the perpetuation of this "savings" lie, and -- most importantly -- because I want my children to understand the difference in saving and spending.

In this particular case, the manager became hostile immediately and genuinely didn't understand what I was saying -- it wasn't obvious to him.
 
Help...I'm trying to install the copy of quicken 2005. Now that I click on the icon, it's asking me to pay for the product or use an unlock code. What do I do? I thought it was free?
 
We are making great progress on our debit, paid debt down by about $7000 in the last year. We have transfered our cc balances to a zero interest rate for the life of the balance and don't use that card for anything else. The balance decreases by our full monthly payment of $250. We also don't use cc's unless it is required (camping reservations, etc.). My biggest tip and stay at home Mom's may relate is that I stopped going shopping as an avenue to get out of the house. I got a part time job at a restaurant that I used to work at. I now hostess, cocktail waitress or bartend depending on their need. Sometimes I work one night, sometimes they may need me 3 nights. It is only a few hours a week, but I get out of the house and am around adults. Best of all instead of spending money on things that I saw while browsing I am earning money. I've been doing this since February and my stress levels have dropped dramatically and my family has noticed that I am in a better mood too. I never realized how getting out a few hours a week (as little as 4 hours) would help us mentally and financially. My boys also like Daddy time.
 
Now I think I really messed something up. I decided to uninstall turbo tax and then reinstall. Well, I went to reinstall and it states that it's checking the components. The screen then dissapears and nothing happens. Now I can't reinstall turbo tax. I guess I could just do the quicken again but I don't have a code to unlock it. Anyone who can help????????
 
"We furnished our house in Salvation Army furniture. We bought clothes at yard sales."

I agree with this SO much!! My husband and I became devout Goodwill believers as we are paying off our debt in two years. I never thought I would be a person that bought used clothing, however I like to wear good, well-made clothing. You wouldn't believe the clothes that we have found at the Goodwill. Ralph Lauren, Tommy Hillfiger, Nautica, Gap, Limited Brands, etc. We have bought many things with tags still on them. At $2.00 for a $60.00 shirt - you can't beat this. My husband turned into a Goodwill junkie when he was able to get a new wardrobe for spring for $25.00. We have fun now going to Goodwill stores whenever we are out of town.

Another tip from a financial book. If you are committed to paying off the CC debt - go ahead and call the company and cancel the card and CUT them up. This way you can still pay the debt off, but you are unable to charge any more. We have a debit card for a CC anyway. :wave2: :wave2:

Hope some of you will give the Goodwill a try!!!
 
MayMom said:
"We furnished our house in Salvation Army furniture. We bought clothes at yard sales."

I agree with this SO much!! My husband and I became devout Goodwill believers as we are paying off our debt in two years. I never thought I would be a person that bought used clothing, however I like to wear good, well-made clothing. You wouldn't believe the clothes that we have found at the Goodwill. Ralph Lauren, Tommy Hillfiger, Nautica, Gap, Limited Brands, etc. We have bought many things with tags still on them. At $2.00 for a $60.00 shirt - you can't beat this. My husband turned into a Goodwill junkie when he was able to get a new wardrobe for spring for $25.00. We have fun now going to Goodwill stores whenever we are out of town.

Another tip from a financial book. If you are committed to paying off the CC debt - go ahead and call the company and cancel the card and CUT them up. This way you can still pay the debt off, but you are unable to charge any more. We have a debit card for a CC anyway. :wave2: :wave2:

Hope some of you will give the Goodwill a try!!!

My sis and I also love Goodwill :wave2: which we refer to lovingly as "Bonwits", a high end clothing store ;). As you say, there are really nice things to be found there, some never worn with the tags still on. And you can't beat the prices! :cheer2: :banana: :Pinkbounc

If I compliment sis on a new outfit, she often says, "Thanks, I got it at Bonwits!" :rotfl2:
 
etwinchester said:
Help...I'm trying to install the copy of quicken 2005. Now that I click on the icon, it's asking me to pay for the product or use an unlock code. What do I do? I thought it was free?
Usually there is an offer when you purchase TurboTax to get Quicken free via rebate (we got Quicken 2005 free when we purchased TurboTax at Office Max but haven't even installed it yet). It's not free off the TurboTax disk.
 
poohj80 said:
Usually there is an offer when you purchase TurboTax to get Quicken free via rebate (we got Quicken 2005 free when we purchased TurboTax at Office Max but haven't even installed it yet). It's not free off the TurboTax disk.
Thanks. It is on the disk but I guess you have to purchase it first and then maybe send in a rebate or have an unlock code. I don't have either...

I still don't know why I can't reinstall turbo tax now. I unistalled it the proper way. I even tried installing a different year and as it starts searching for components, it halts again and disappears. Oh well.
 
my3princes said:
We have transfered our cc balances to a zero interest rate for the life of the balance and don't use that card for anything else.
That is fabulous! How did you get such a great rate? Was there a balance transfer fee? I thought I was hot stuff, snagging a 1.99% for the life of the loan (no balance transfer fee), but you've got me beat!
 
I just want to thank everyone for recommending Financial Peace! I'm halfway through and loving it!
I've read A LOT of financial books, but this one is really hitting home with me. The thing that especially hit me hard was the fact that even if you pay off your CCs every month, you're probably spending more because you are using them. Recently, I think this has become very true for us. I'm going back to groceries and gas only!

I've been resisting coming up with a concrete budget for a while, but the book and all of you :grouphug: have inspired me to get going. I have Quicken (got it with Turbo Tax) and DH is installing it now :)

Thanks again everyone!
 
ksoehrlein said:
That is fabulous! How did you get such a great rate? Was there a balance transfer fee? I thought I was hot stuff, snagging a 1.99% for the life of the loan (no balance transfer fee), but you've got me beat!

It was an offer for a new american express card. I have never had AMEX. We decided that we would apply for it and only transfer our high balance which was on one card. I think that it was a $50 transfer fee, but interest would have been that for one month. It is awesome to see the balance decrease each month. We pay off any other card balances monthly and really only use our Disney Visa and only for gas. I'm sure that we could charge just about everything to rack up rewards, but I'd rather pay as I go and not have a large balance each month that I may not be able to pay. It seems that using credit cards ends up being an out of sight out of mind mentality and then the bill comes and surprises me.
 

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