5/11/09

How do you tackle debt???

One of the main reasons that I started using coupons was to get myself out of debt. So the one trick that I have learned is budgeting. I remained on the same budget that I had set for myself before I started using coupons. So for example if I budgeted $120 for groceries and only end up spending $50, I put the remainder towards debt. It's tempting to spend that money frivolously but that will come with time when the debt has been paid.

Another debt paying trick I have learned in my endeavors is to roll payments. What I mean by this is that I choose the highest interest debt first to tackle. I always pay the minimum on all of my debt except this one. This is the one that I roll my "savings" from other places in the budget. Once that debt is paid off I pick the next highest interest debt and use the money that was previously budgeted there to put towards this debt.

There are great calculators on the web that will help you determine how much you have total and how long it will take you to pay it off.

So my question to you is how do you pay off your debt and what tricks can you share?

No comments:

Post a Comment