become debt free

I found a great site www.prosper.com where you can get a personal loan which will beat the credit card interest, and it’s held by ordinary regular old people who want to help you. I’m thinking of taking out a loan to consolidate all my credit cards into one lower interest payment. I’ve already taken the step of freezing my cards (yes physically placing in a coffee can with water and putting in my freezer). I want to be totally debt free by 2010 (Including my home!).

Last year at this time I was out from all my credit cards, we took out a loan from our 401k (worst thing to do) to pay off the credit cards, which I did. I had $10k in credit card debt and paid it off in one sweep, but then we had hospital bills and other debt which got transferred back over to the credit card… Ouch! Now I have the loan on the 401k plus I have 5k in debt in one year….. Plus car payments and house it is time to dig out again. This time the cards are cut, and I’m not going back. I have a simple game plan:
1) Establish a Budget and Plan of action
2) Save $1500 for emergency
3) Save money on living, and pay off the cards
4) Snowball the payments until I’m only paying on the house
5) At this time I’m going to save another $3500 for a total of $5k in the bank
6) Raise my 401k up to 15%
7) Pay Pay Pay off the house
7) When all this is complete I plan to take a nice vacation with cash and reward my family for their sacrifice.

Will it be easy? (heck no) Will it be worth it? (Think about having an entire paycheck and no bills, heck Yes!) I have a great family, and they actually like to eat rice and beans.

Today I was able to pay off one of my Credit Cards Completely. There are several more, but I know with hard work, they too can be history.

I’ve been swampped in debt for years, the credit cards are maxed out and we (my family) hasn’t been on a Budget. Today I’m changing all that, I’m writing my family budget. I know it’s going to be tough, but it’s the only way we can survive, also I’m going stop using all credit cards, I was given a suggestion from a friend. Take all the credit cards, put into a plastic ziplock sandwitch bag, Place into a steel coffee can and fill with water, then place in freezer. To get to the cards, I will have to thaw out the can gradually (can’t boil because cards will get destroyed).