There were two things that helped me get out of major debt. First was getting a grip on my monthly budget. It took me three months of doing nothing but staying at home, but I was able to get one complete month ahead of my expenses. Doing this meant that I had a month worth of paychecks to do my budget. This allowed for a good bit of extra money to pay off any extra debt. Second was starting with the smaller balance credit card first. Once that was paid off, the extra money went to the next smallest amount card and so on, until the cards were paid off. I also cancelled each card as it was paid off. Now, I have only two credit cards and a house payment which should be done in four years. I'm hoping that I can retire when I turn 62.

 

I followed the Dave ramsey course for a few years, and it really helped alot. I was super dumb in after high school and racked up a bit of debt, and it wouldnt be paid off today had it not been for his course.

I was just able to speed up paying everything off after i recieved my settlement from my motorcycle accident, and i paid everything off and paid cash fro my house. But the snowball effect he talks about really does help tons when paying off debt!

 

the ol snow ball effect never heard of it.

 

https://www.daveramsey.com/blog/get-...snowball-plan/

Basically it is once you pay off one debt, you use the money that you pay monthly on that debt and apply it to your monthly payment on the next smaller debt. It will be paid off sooner. And it continually grows as debts are paid off.

Im sure that your post included sarcasm skip, but maybe someone doesnt know it, so i thought it would be good to explain it for their benefit.

 

no i was serious, thanks for the link.

 

No worries man, I beleive in alot of his stuff. We are almost programmed from an early age that we have to live in debt in order to be successful in life

 

Almost? Nah, no doubt about it. People are brainwashed all through school. Orientation at the universities include credit card companies ready to sign up new meat.

Don't get me wrong, borrowing money is OK, I disagree with Dave to some degree, it's just that people borrow money at high rates of interest for depreciating crap. This is the recipe for the poorhouse.

Another way of putting it, "people borrow money they don't have to buy stuff they don't need, to impress people they don't like." This includes things like getting stupid international relations college degrees and being in hock till you're 39.

Borrowing money and being able to handle credit, bank accounts, checking accounts are absolutely critical for young people.

 

Did you not ever move to SC? Well, that would help 4 getting out of debt, If u move to the right place!
In answer to your question about getting out of debt: #1 Keep on listening to Dave Ramsey! Listen every time you get a chance, and pay attention. If you buckle down and follow his sage advice, it just might turn your life around.

 

Can always sell crack in the playground,,just kidding guys.
Thats a great link Micah. I have heard of Dave before from some local guys. Reps on the way

 

Add me to the group who suggest never going into debt, especially for crap that loses it's appeal and joy of ownership long, long before its paid off in full.

Being self-employed I'm maybe a bit more cautious, knowing that although my business is sound income is still subject to huge swings paying COD has always made the most sense. The peace of mind alone far out weighs any "sacrifice" I might have to endure in the short term.

I'm also one who doesn't think home ownership is quite the benefit its touted to be---even when/if a mortgage is paid off the costs don't stop nor do the responsibilities of upkeep. That's just me----if you do buy a home work to pay it off ASAP.

Having gotten myself into a minor bit of trouble back in the mid 80's once free of all that I vowed to never again incur debt. From that point forward I've always paid cash or done without something. Its odd that after letting an idea or want stew a few days our more practical side takes over and we chuckle how ill-advised most purchases would have been.

Another upside of having cash readily available is a huge leap in purchase power. Its not a well kept secret so many retail sellers of anything offer financing as its a huge second profit center. Many retail prices are set thinking some sort of financing will be needed, most people not too aware of the full and final price they'll pay, more concerned with the monthly payments. Can you hear me Snap On Tools?

The other advantage to paying as you go is when something really needed or wanted you're able to go ahead without hesitation--another huge leap in the peace of mind thing. Vehicles are a great example----if I wanted/needed to buy a brand new Transit I can write a check for it on the spot---and never miss the money.

Which brings up another debt-free thing---try to forego that need to have the newest greatest most impressive vehicle, buy something a few years old. Brand new vehicles are a huge money pit, ones two years old probably the best deals out there. Again, "money (cash) talks, BS walks...." is a good thought to keep in the mind.

Anyway sorry to ramble and rant on---been doing the debt-free thing too long to not try and share a bit of advice.

 

Ten years ago I was $50k into credit card debt with no real assets other than a truck and an old Falcon. I went into the Credit Card counseling service and they worked out the details with my creditors. I paid $1175 / month for 4 and a half years to pay it all off. My suggestion is if you go this route, buy new tires before you do LOL.

The other half of the equation is to make more money. I know that's easier said than done, but you really need to get some advice from someone who makes a lot of money in your area, and how can you do the same. For me, I went from Purchasing/Planning to Manufacturing Engineering. My total compensation is about 4X my age in thousands. Now, I realize I live in fantasy land here in Silicon Valley so that's why I suggest finding out how people make good money in your area.

Less than a year ago I sucked it up and bought my first house. It turned out good, thanks to luck more than anything, and I've more than doubled my $62k I put down in equity.

I guess the point is you need to eliminate debt, increase investment(s), and make more money. I use an Excel spreadsheet where I track every debt and every asset and also CHART them over time so I can visually see progress which is important to keeping it up.

 

50k in cc debt.ouch.i can't imagine the stress that must of brought you.congrats on being able to get out! that must feel just about as good as someone getting out of prison i would imagine.WTG man!

 

another option is to marry a rich woman.

a guy i know married a woman with lots of money, she ugly as sin though.

 

50K is nothing.
in 84 when my ex walked she ran up $110 K in credit card debt in 4 weeks. then split with everything she bought.
4 of the 6 cards were in my name but she signed for, and her signature was on all of the purchases.
within 18 months i had everything paid off, a court order that i was not responsible for credit cards or debt she incurred in my name or not, her name was removed from the title of the body shop, a new truck, and i bought a house.

 

Very funny