Kicking debt to the curb is exciting, as evidenced by the mountains of mail we recently received from readers eager to share their secrets for financial success. It seems the tougher the odds, the greater the glory.
Most reader strategies include a mix of tools: budgeting or taking on a second job. But they all made the mental changes necessary to take control of and stay out of debt. See how seven readers pulled themselves out of debt and got themselves on the right financial track.
||How readers eradicated debt
any means necessary
When our daughter came along, we pulled ourselves up by our bootstraps and did everything we could think of to get out of debt. At one point my husband was working three jobs at once to support us and pay off bills.
We (meaning I) implemented a strict
budget and now we are nearly debt free! There were
many sacrifices made, but over the months we could
start seeing the light at the end of the tunnel. Our
credit ratings have gone up and we were even approved
for a mortgage. If we could do it, then so can you!
Good luck and happy coupon clipping!
I sat down and actually looked at what I had and what
I had to do to pay it off, starting with the highest
interest credit card and working my way down from
there. I also signed up for automatic bill pay on
my utilities and phone bill and put $20 out of every
paycheck into a savings account.
Did it take a long time? Yes, it did, but it was well worth it. I now have a budget that I can stick to, money going into savings and investment accounts and I just bought my first home! Never, never use credit cards to pay for simple things like groceries and utility bills. You're in way over your head already if you have to do that. Deal with cash only. It can be done. Stick to it!
Trade credit for debit cards
We sold stocks to pay our debt and closed our credit cards. Now we pay cash for every purchase (debit) and it is immediately deducted from our checking account. If we don't have the cash, we don't buy it.
Edward and Debra Skvorc
|-- Posted: March 17, 2008