How do you find the extra money

We looked at our monthly forevers and decided what we could do without for awhile…cable was one. We borrowed videos through the libray and intra library loan.

look for places you can let go of spending money …It is addictive though its fun to find those spots.My husband stopped smoking saved many thousands of dollars that way…you have to feel your own way through this…

Check to see if you can get a lower interest rate loan on your House mortgage 2 or 3 interest points lower is good.Make sure you have the loan officer check what your payments would be if it was a 25,15,10 ect year loan sometimes their is only a 20 to 50 dollar difference monthly between them. It is better to go for the lowest years you can .Also make sure there isn’t a prepayment penalty.

House insurance; do some comparisons….we found a company called Maine Mutual to be the cheapest for car and house ins.if you are under 50.

if you are 50 or older aarp can cut your car insurance bill in half but their house insurance was triple ours from Maine Mutual for the same coverage.

Ebay things you don’t use

yardsale anything you can

Our Credit card debt

Our credit was actually fairly good as dh paid mortgage and credit cards but nothing else… everything else was years and months behind….

so we would roll over our credit card debt to lower interest or non credit cards when the low or free interest time was about to be up he rolled it over to another low or no interest card and so forth.We always paid more on the cards each month.When we would get a sum of money in our hands we would call the credit card companies and make a deal… they settled for less because we would pay a lump sum payment which would pay off that card. It went on our credit report for 7 years as bad debt but since we had no plans of using credit we didn’t care of course all that has cleared up…. We did this till all credit cards were paid off…

other options:

if your credit is bad and your interest rates on your credit cards are high.Call the company and let them know that your are considering bankruptcy…..they will usually lower the interest and help you get straightened out. Very important to get the interest down……

We had personal loans and paid the minimums until they reached the top of the list.Paid it off and rejoice!!!!!!!

Any other debts you pay the minimum until it comes to the top of the list…

The morgage was paid off by coming to the top of the list and we took the monthly payment plus all the extra we had been paying on the other bills slapped it on there till it was paid off. .We also recieved some extra money during that time and all but 10 percent went to the debt.

This did not go off without a hitch…we had many major financial challenges but we stuck with the plan and it worked….

set your chin like flint….and you can do it!!!!!!!!!!!!!!!!!!!!!!!!!!!

any questions?

I got out of debt one step at a time

financial strategyWe had 3 young children at the time also.

Decide you are willing to do what it takes to live debt free.

Think of it as a game….and you are going to win it!

Steps: this is very different for each person.

I am a christian so I prayed first.

Secondly, since our income was so meager and we had bounced check fees all at once that could have paid for a whole month of food we decided it was cash living for us……closed my bank accounts.Paid by money order or cash………. We also began titheing 10 percent to our church. Those that are not christian could give to their favorite charities first.

Dire circumstances calls for extreme measures and that is where we were at.

Organize your debt into categories monthly, loans, credit card, medical – all debt into a category

Look at the crises debt first..rent,mortgage,heat,elect..gotta have those

Evaluate your income

mobilize income from work,money in the bank..wherever you have income

use it to pay that crises debt…..you have to have a place to live…

you will need some money for gas and food…..but pay off the over due rent or mortgage…

at this point people do many things

debt consolidation is one of them. I did not do this.I know others who have and in some ways it does make sense…

but for me I just wanted to pay off the debt one debt at a time…..that worked for me very well…

People who have done debt consolidation often go back into debt again….

Not always for those of you who have suceeded with debt consolidation and have stayed out of debt….

here is what we did:

created a budget and lived by it and still do live by it.

What do you put on your monthly budget?

First you have to know:

The difference between debt and the monthly forevers!

Monthly forever bills are bills you will pay monthly forever electricity,gas,insurance ect

Debts are all the extras that you owe…….

Create a budget putting both the monthly FOREVERS and the DEBTS you owe.

Organize your monthly forevers first. Then the debts

Reevaluate your debt and organize the debt you owe from the least owed to the debt you owe the most on….

Pay minimums on everything except the first debt. Plan on being a DEBTBREAKER for that first debt….pay the minimum plus every extra penny you can come up with.When that debt is paid off roll over that payment for the first debt plus the minimum payment for the second debt you were already paying: Keep doing this until all debt is paid. Remember to rejoice over each paid debt. I did!