U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics > Frugal Living
 [Register]
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jump to a detailed profile or search
site with Google Custom Search

Search Forums  (Advanced)
Business Search - 14 Million verified businesses
Search for:  near: 
 
 
Old 01-27-2009, 12:21 AM
 
Location: Maryland
1,471 posts, read 2,303,773 times
Reputation: 1961

Advertisements

Previous posters have pretty much covered the ballpark on suggestions. Most are very simple and straightforward. My $.02 is to get serious and stop spending more than you can afford.
Quick reply to this message

 
Old 01-27-2009, 08:53 AM
 
Location: "The Gorge"
895 posts, read 2,159,303 times
Reputation: 672
Quote:
Originally Posted by OneDayAttaTime View Post
I have heard both. Correct me if I am wrong but I believe Suze Orman says work on paying off highest interest first and Dave Ramsey says pay off the one with the lowest balance. I think Dave explained that paying off the lowest balance is the quickest and will get you motivated when you pay off that first one and it inspires you to keep going.
I paying off debt is great no matter how you do it. Perhaps paying off the highest interest rate is best. I think it depends on the person. For me I chose the pay off the smallest debt first. That worked for me because my higher rates had the largest balances which seemed daunting. By tackling the smaller debt first it was easier and faster and provided me with the motivation to continue. It felt so good to cancel those cards as I paid them off, it became an obsession.

Once I paid off my debt I kept the credit card with the lowest interest rate and had them drop my credit line to a very manageable limit. I canceled all other cards but one. That was many years ago and I still have that one credit card and a debit card.

It can be done! Good Luck
Quick reply to this message
 
Old 01-29-2009, 02:53 PM
 
Location: Portland, OR.
493 posts, read 170,701 times
Reputation: 180
Quote:
Originally Posted by michmoldman View Post
Call around different insurance co's and get quotes. We did this a few weeks ago and are now saving $300 a year.
Absolutely.

I dropped my car/renters insurance by $50 a month by getting aggressive on shopping.
Quick reply to this message
 
Old 01-29-2009, 02:56 PM
 
Location: Portland, OR.
493 posts, read 170,701 times
Reputation: 180
Quote:
Originally Posted by Takes1 2 Know1 View Post
Cut the cable. With that extra part-time job that you're going to get, they'll be no time for watching T.V..
I dont give Comcast a dime. I've got a nice little 32" plasma display I got a great deal on at Costco and I get great HD reception for network stations.
Quick reply to this message
 
Old 01-29-2009, 02:58 PM
 
Location: Portland, OR.
493 posts, read 170,701 times
Reputation: 180
Quote:
Originally Posted by sideshow bob View Post
-Refi home or do a loan modification
-Coupons
-Pay off the highest interest rate credit line first with all extra cash.
-Refi Automobile
-Car pool


WHAT ELSE CAN YOU THINK OF?
Garage sale. Most people have at least a few items around the house that arent really used or necessary that would make prime Ebay/garage sale fodder to raise a few extra bucks.
Quick reply to this message
 
Old 01-29-2009, 04:51 PM
 
16,310 posts, read 14,544,105 times
Reputation: 7970
Quote:
Originally Posted by NCyank View Post
For most people the math doesn't make that much difference in the end. (We paid off over $50,000 and the difference one way or the other was less than $300). However, paying off the little ones first, regardless of interest rate, can be very motivating. Say you have 10 debts and can pay off 7 of them pretty quickly if you start with the smallest....then work on the last 3. That is much more appealing to most people than taking a LONG time to get even the first few paid off. In fact, most people who work smallest to largest get so motivated they pay them ALL off sooner than they would have otherwise, saving $$ in the end.
It is not 'how many debts' you have, it is "how much you owe, and the interest rate your are paying". It is really simple math for those that take the time to actually do the math.

While you are paying off a number of small debts, that equal amount of money on your high interest high balance debt is costing you two to three times what you think you are saving, again rather simple math, but you have to do the math.

The only saving you might garner is in a minuscule amount spent on postage.
Quick reply to this message
 
Old 01-29-2009, 06:19 PM
 
Location: Right where I want to be.
4,508 posts, read 5,413,991 times
Reputation: 3254
Quote:
Originally Posted by Asheville Native View Post
It is not 'how many debts' you have, it is "how much you owe, and the interest rate your are paying". It is really simple math for those that take the time to actually do the math.

While you are paying off a number of small debts, that equal amount of money on your high interest high balance debt is costing you two to three times what you think you are saving, again rather simple math, but you have to do the math.

The only saving you might garner is in a minuscule amount spent on postage.
I think you missed my point entirely. We did the math on $50,000 in debt and the difference was $300 more paying them off smallest to largest by amount owed rather than what most financial people recommend, largest interest rate first. If you are considering the big picture $300 doesn't matter much.

You also missed the part about people becoming more motivated with the success of wiping out the smaller balances first, getting the ball rolling. They often pay off the total amount faster, so the $300 difference/penalty (as in our example) is completely eliminated. You can't do a mathematical equation that will factor in motivation and intensity.

Of course some people still will prefer to go with the simple math and that's fine, others will get more motivated the other way and disregard the math....maybe even surpassing the 'simple math' plan and paying less in the end. I've seen it happen LOTS of times. It's NOT just about the math.
Quick reply to this message
 
Old 01-29-2009, 07:06 PM
 
Location: Way upstate NY - Where the snow flys
1,130 posts, read 887,408 times
Reputation: 1206
My father said his father told him:
Save at least 10% of what you earn regardless of how small or large.
If you can't afford to pay cash for something you don't need it. Exceptions are a home and a good USED car. Like someone said "sleep on it" and if you still think you need it save in a separate account for it until you can pay cash.
Credit cards are to be used as cash only - Pay them off every month
LIVE WITHIN YOUR MEANS - DON'T TRY TO KEEP UP WITH THE JONESS'. THEY ARE IN DEBT UP TO THEIR EYEBALLS.
My son and daughter have heard the same and try to live up to these 'rules'. I'm sure their kids will too!

I did my best to live that way although there were times when I had debt.
As for paying off debt it depends on the amount owed on each and is a personal preference.
If you owe $20,000 on a 20% loan and $300.00 on each of 3 12% loans you may not be able to pay off the larger debt first because you don't have extra money. Pay of the smaller loans (motivation has been mentioned) and it will give you the extra cash needed to pay off the larger and if need be take a second job and put the entire paycheck (except the 10% you save) toward paying off that larger loan.

It's worked for me - I'm retired and living on SS and a small retirement. 401k remains untouched. I live within my means, spend frugaly (sp?) and am still able to save money with which I now by 'toys' - a saw mill, a tractor loader etc. The older the boy, the bigger the 'toys'.

Just because the government believes so strongly in debt doesn't mean you have to!
Quick reply to this message
 
Old 01-29-2009, 07:33 PM
 
Location: La lune et les étoiles
14,692 posts, read 9,797,402 times
Reputation: 15224
This is simple yet effective.

Don't spend your change. When you use cash, don't spend the coin change. I save mine in a large glass jar. When its full I take it to my credit union (they have Coinstar type change counting machine) And I deposit into my savings. For me it usually adds up to about $80-100 or so every month extra that goes straight into savings.

Another thing. Don't feel obligated to spend money when in social settings. My boyfriend and I have decided to be more selective about events (parties, dinner w/friends, etc.) It is tempting to try to make it to each evite that is sent your way. But if an event is for someone that we really aren't that close to, we decline the invite. This saves a lot of $$$ on gifts, dinner & drinks bills for people who are merely acquaintances.

Lastly...pay yourself first.

I opted to not do direct deposit at my job. But on payday I deposit my check into SAVINGS and only transfer into Checking the minimal amount that I will need to pay bills and buy essentials until the next payday. Any money left in my checking account the night before payday also gets transferred into my savings acct
Quick reply to this message
 
Old 01-30-2009, 03:12 AM
 
3,460 posts, read 2,575,470 times
Reputation: 6677
Quote:
Originally Posted by NCyank View Post
For most people the math doesn't make that much difference in the end. (We paid off over $50,000 and the difference one way or the other was less than $300). However, paying off the little ones first, regardless of interest rate, can be very motivating. Say you have 10 debts and can pay off 7 of them pretty quickly if you start with the smallest....then work on the last 3. That is much more appealing to most people than taking a LONG time to get even the first few paid off. In fact, most people who work smallest to largest get so motivated they pay them ALL off sooner than they would have otherwise, saving $$ in the end.
I agree with this method too. Its demoralizing to nearly bankrupt yourself every month for several years before you manage to pay off that first debt (the one with the lowest interest rate).

If you pour your heart and soul into knocking out the little debts first, you can get rid of one every couple of months. It gives you a sense of accomplishment that keeps you going through the hard times, and that self-confidence is nearly priceless when you don't have anything else to show for all your hard work.
Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:
Over $84,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Frugal Living
Similar Threads

All times are GMT -6.

© 2005-2014, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25 - Top