doing it
2 months ago
finally working on paying it off slowly.
How to pay off all of my debt
It made me
feel liberated! 
"Really opening my eyes by crunching the numbers and looking at the bottom line motivated me to throw every cent I had at my debt."
How I did it: I downloaded an Excel spreadsheet that let me plug in numbers: of balances and interest rates for every card, tinker with which one to prioritize. It really made a big difference to see that bottom line (total interest I'll pay over the life of the debt) go down, lower and lower, if I put the lower-interest cards on minimum autopay and throw as much money as possible at the highest interest loan.
I also took the big step of moving my educational loans, which had a very high rate of interest, onto a line of credit on one of my cards, that was offering me a very low rate of interest. It was scary, because I lost the fallback of being able to defer it, if necessary. But it turned out to be fine. I was able to pay it off and I saved THOUSANDS by doing that.
Lessons & tips: Pay the minimum on all but the loan/debt/credit card that charges you the highest interest. Period. That will get you there the fastest. If you don't believe me, get the spreadsheet and run the numbers yourself. Pay attention to the rate you're ACTUALLY paying, not the expired promotional rate you started out with.
If you're one of those who wants to start with the smallest balance first, it helps to put all but the highest interest cards on autopay at minimum. It helps to focus on one card at a time; then you can be rational, instead of emotional, about which one to prioritize.
Resources: The spreadsheet. Get it! See my earlier entries if you can't locate it on the Web through Google.
1 person found this helpful
People doing this are also doing these things:
Entries
How I paid off all my debts
3 months ago
I made it a personal goal & a priority to become debt free.
1. I controlled my spending
2. Managed my debts
3. Created a payment plan & stuck to it.
I created a spreadsheet with all my outgoings & income on to show what i was spending money on & what I had left to service my debts.
I looked at my various debts & tried to ensure I got them on the lowest possible interest rates (balance transfers onto 0% rates etc) Interest is the killer so once I got to grips with limiting how much interest I was paying that really helped!
I then created a plan to pay a certain amount each month to show when the debts would be paid off. Once I had that milestone to aim for it was easier for me to stick to the plan. Getting out of debt was my priority and I had to make a few sacrifices (nice cars, toys, luxuries etc) but I’m glad now I did.
stargazerlilly is hungry!
Untitled
3 months ago
Phoned both the companies i owe money to and sorted out some payments…just knowing the demanding letter’s have now stopped is a great feeling !!!!
looking better
8 months ago
Things are looking much better now. We have no more credit card debt! So just two car loans and a mortgage…. We are trying to decide right now about paying off my car completely to improve our credit score.
personal debt done, partner debt to go
11 months ago
I just put in my final payment for the last credit card I had to pay off. I feel really damn good about that.
I still have my rewards credit card on which I put almost all my spending, but this acts like a debit card since I pay it immediately and don’t rack up interest. This way I earn rewards for things I would be paying for anyway such as groceries. I do not recommend this method of living for anyone who has not gotten a handle on their spending patterns.
My spending/saving patterns aren’t where they should be yet. I could have paid off all this debt a lot faster if I had curbed my spending even more, sold more of my stuff, recycled more, and travelled less. But I’m happy with the progress thus far.
Now that my personal debt is gone in my mind, it’s time to work on the partner debt. This would be things bought together with your partner but were not in your name so it’s not “your debt” it’s “their debt”. Now I have to adopt the mindframe of “our debt” and tackle it, even things given to me as gifts. Oh and building a nice savings to fall back on wouldn’t be a bad thing either.
Sam is starting a new chapter of her life.
Untitled
12 months ago
down to 823.
Im doing about 100 every two weeks.
I want to be down to 500 by Christmas.
Sam is starting a new chapter of her life.
Getting there
13 months ago
Paid my dad 100 dollars this week.
were at $923 now. Thank god Im not over 1000 any more.
I was going to pay 50 this up coming week but my employer and I decided we can go bi weekly in my pay cheques so Im not going to get paid for 2 weeks after this up coming pay cheque.
And I have to buy my go card and bus pass this next week.
I think I will give him the 23.
atleast thats something.
Im getting there :)
-Sam
weighing me down
13 months ago
If I could do anything it would be to lose 20k in credit debt and 50lbs. I think I have “eaten and spent” to cover unhappiness in other areas of my life. I will do it and it may take some time but unless I have settled for this “life for rent” I need to do it soon…
→ See all 164 entries
Ask for advice: Get help from people who've accomplished this goal
|
|
keisha12 asks,
“how can i pay off my debt”
— 3 years ago |
|
