Post # 1
Just after my wedding I got a credit card for $2000. I maxed it out within a few weeks.
I promised myself I would NEVER get another credit card.
Well, I did. They gave me an $8,000 credit card and I maxed it out. What a fool.
Anyway, on the advice of some lovely ladieson wedding bee the card is now turning into an iceblock in the freezer and I have set up weekly payments of $200. I calculated it should be paid off in a little over 40 weeks. What a relief.
The saddets thing is I am a debt collector- I know the traps of credit and I still went shop happy!
Anyone have any success stories of knuckling down, getting out of debt and saving money? I’m feeling so motivated!
Post # 3
Budgeting is a lot like dieting. You have to make cutbacks, but don’t cut back so much that you won’t be able to stick to it!
Post # 4
@dannielle89: Woo hoo! Congrats!
Post # 5
I’m leaving myself $200 a week (fun money)
For me that is a big cut back- i’m so reckless with my spending but I know I need to grow up.
Can’t wait to be debt free and have some savings behind me!
Post # 7
I was horrible in my twenties, partically out of idiocity and partically out of need as a single parent going to school. I ended up being almost 20k in debt and it took a big chunk of my thirties to pay it off. Totally worth every second of buckling down now. I would suggest that you look into a card that you can transfer your balance to that offers a zero percent interest on transfered balance and then don’t use it, just focus on paying off the balance. That is what I did and it saved me a ton of cash once I was all said and done.
Post # 8
I second transferring to a 0% interest card! Some offers are for 18 months, which is what I did. I also put my cards in the freezer though! Then had a breakdown and tried to get them out so I ended up microwaving the block. Turns out that fries the magnetic strip… should have known lol
Post # 9
Good for you! I’ve put credit cards and cash (for emergencies) in my freezer and honestly I’ve forgotten they were even there. It is a great way to get things under control.
Post # 10
I am a HUGE lover of Gail Vaz Oxlade who runs the show “Til Debt Do Us Part” and “Princess”. She has written several books (all of which I have read upwards of 3 times) and I can’t speak highly enough of her.
My last year of university life went downhill and I lost my job. No one would hire me (bad economy) as a student and I couldn’t work during school hours. Anyways, ended up that “life” went onto my credit cards. A few thousand dollars later I new I had to turn it around. That pulled me out of the hole and I’ve been a saver since!
Her best advice, and the advice I love, is using “Jars” and a “budget binder”. Her theory is that each week (I do it Sat) you go to the bank and take out all the cash you will use for the week. That goes into jars (Transportation, food, clothing/gift, other, etc) and that is the only money you spend. As you spend it, you write it down. Yo uwill be suprised what you WON’T spend because you feel bad writing it down!!!
Congrads on taking the first step!
Post # 11
This has just reminded me of the movie, Confessions of a shopaholic, loved the credit card in the freezer scene, super funny:
Post # 12
treat credit cards like cash. Period. If you don’t have it, don’t spend it.
Post # 13
@hisgoosiegirl: Great recommendation! Something my Darling Husband has taught me over the years.
I can empathize with being in debt. Mine built up over the years. I was given my first card at the age of 18 (when I knew NOTHING about finances). I used it as if it were fun money…went on trips, bought season tickets, clothing, you name it. Needless to say, I built up debt in the range of a nice automobile (think Jeep Liberty). I lived pretty much paycheck to paycheck, thinking it was okay to pay the minimums. Thank goodness my Darling Husband came into my life and set me straight (with some resistance b/c I was mostly ashamed of what I had done to myself). He helped me to consolidate my debt into a bank loan at a fixed rate, which I’ll finally pay off next month! I also took his advice and stopped using credit cards cold turkey, so to speak. I promised never to use them again, unless it was a true emergency. My last bit of advice would be to lower your monthly “fun money”. Cut out dinner once a month, Starbucks, or fancy products that are unecessary. Go to dollar stores to buy some items for a portion of the cost that you’d pay at Target, etc. It’s SO wonderful to become financially responsible and know that I will be FREE of debt soon!
Good Luck to You!!
Post # 14
I love the idea of sticking them in the freezer, I think I will be doing this when I get home this evening?
I am about 3k in debt and I am working to have it paid off by the end of the year!! As soon as I have done that then I will be able to start paying for wedding, providing SO has proposed by then!!!
Post # 15
My parents cosigned for a credit card for me when I started college. They handed it to me and said “pay the bill every month.” So I did.
I honestly didn’t realize until years later that you didn’t HAVE to pay the full balance on your credit card every month. At first I felt like an idiot, but then I realized it was the greatest thing they could have ever “not” taught me.
Treat your credit card bill like your electricity bill. You pay the “amount owed” every month and you never have to worry about going into debt.
Post # 16
@CanAmBride: I think the problem is that with a credit card you can spend above what you make. I was approved for a CC with a limit of $10,000 a month. A-WHAT!?! I have no idea what situation I would be in to need that type of cash. My limit right now is $2,000 which I could pay off in a month without issue. If you aren’t watching what you put on your CC, $100 here and $100 there can add up to the point where all of a sudden a bill comes that is twice your monthly pay.