Category: Paying debt down

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After a couple of months, you can begin to see a trend with a program like MS Money. I prefer Quicken but MS Money syncs’ to my handheld computer easier so I’ve been learning that.

We have also been successful on the program where you pay off a credit card and then close it. We have eliminated two cards so far, and are well on our way on the other ones. It does work much better than making the minimuns everywhere and making payments on each. Find some extra money and get one paid off. Then when it’s gone, you take the minimum that you were paying on that one and apply it to another one. Pretty soon they will disappear and make sure you close them. That is the key.

Buh bye Brick card, and buh bye Leons. Thank you for playing Teppermans.

We each have one credit card with fairly low interest rates that we use sparingly.

It might help to eliminate some bills if you can as well.

I remember when I was a teenager and our household bills were telephone, oil (we used wood for a wood furnace, but oil as backup), mortgage, insurance, and a car payment.

Nowadays we have cell phone, home phone, wife’s cell phone, gas, water heater, internet access, mortgage, insurance, car payment, two or 3 or 10 credit cards, kids. The world sure is changing fast, and I’m only 34. The key is to cut back where possible.

If you own your home, it’s FAR cheaper to buy the water heater than it is to rent it. Find out if you can buy it out. The money you save on rent easily covers replacing it in 10 years.

Oh, and if your kids aren’t too small, turn the thermastat back two degrees, and wear a long sleeved shirt in the winter. You will cut your gas bill by 1/3.

I’m new to this blog, but having been trying to pay down debt for some time. It’s a slow process, but it works if you stick with it.

Deciding whether to do a 0% transfer or a fixed low rate transfer depends on how much debt you have and how long the low rate transfer is for. Some low rate transfers will charge a fee (say $50), but will keep that rate until the entire debt is paid off. For this type of transfer, make sure you DO NOT add more debt to the card. The company may also have a no fee transfer with a slightly higher rate. You’d have to decide which works best for you. As far as the 0% transfers go, find out how much the rate is after the promotion and see if you can negotiate that down as well. The 0% may be best if after 6-9 months, you can transfer back to your original card at a 0% rate.

Everything’s negotiable. Even if your old card doesn’t have a current promotion going, call them to see if they’ll give you one if you transfer the money back. It never hurts to ask. Good luck. Hope some of this helps.

Adam (hopefully credit card free in 1 year)