Comments on: Reducing Debt – Where Did We Start? http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/ Our Journey to a Debt-Free Life Sat, 07 Nov 2009 20:44:47 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: 27 Powerful Debt Elimination Tips & Strategies. | 7Wins.eu http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/comment-page-1/#comment-502346 27 Powerful Debt Elimination Tips & Strategies. | 7Wins.eu Sat, 09 Aug 2008 00:19:25 +0000 http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/#comment-502346 [...] Happy RockPulling the Trigger: Raising 401K Contribution to 6% | I've Paid For This Twice Already... Reducing Debt - Where Did We Start? » Blogging Away Debt Tags &gt No Tags &lt This product is also listed in Money & Employment Debt New Products [...] [...] Happy RockPulling the Trigger: Raising 401K Contribution to 6% | I’ve Paid For This Twice Already… Reducing Debt – Where Did We Start? » Blogging Away Debt Tags &gt No Tags &lt This product is also listed in Money & Employment Debt New Products [...]

]]> By: LoriLynn http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/comment-page-1/#comment-493849 LoriLynn Wed, 16 Jul 2008 12:47:56 +0000 http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/#comment-493849 Everyone is so helpful at this site, I love it! I think the hardest thing for me is the overwhelming sense of panic and depression that hit me once I realized how far in debt I was and how long it was going to take to weed it out! I started with the smallest card first since I had a lot of small payments and forgetting one $10 minimum payment to Home Depot added a $40 late fee! ridiculous I know, but simplifying the payment schedule by ridding the small $10 and $20 minimum payments for store cards is helping tremendously with the overwhelming feeling! Everyone is so helpful at this site, I love it!
I think the hardest thing for me is the overwhelming sense of panic and depression that hit me once I realized how far in debt I was and how long it was going to take to weed it out! I started with the smallest card first since I had a lot of small payments and forgetting one $10 minimum payment to Home Depot added a $40 late fee! ridiculous I know, but simplifying the payment schedule by ridding the small $10 and $20 minimum payments for store cards is helping tremendously with the overwhelming feeling!

]]> By: Christine http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/comment-page-1/#comment-493581 Christine Tue, 15 Jul 2008 15:34:44 +0000 http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/#comment-493581 I am so glad to have found your site! I have just started my pay down debt journey and realized... we are Broke! And have 60K of CC/loan/Auto debt. But, I am tackling my smallest card first (for near immediate gratification) & am working my way up. And with it my family is becoming grumpy... oh, but the goal will be heaven! so, let them suffer a bit. They'll get over it. :) I am so glad to have found your site! I have just started my pay down debt journey and realized… we are Broke! And have 60K of CC/loan/Auto debt. But, I am tackling my smallest card first (for near immediate gratification) & am working my way up. And with it my family is becoming grumpy… oh, but the goal will be heaven! so, let them suffer a bit. They’ll get over it. :)

]]> By: Stephen http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/comment-page-1/#comment-38664 Stephen Sun, 06 May 2007 19:33:21 +0000 http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/#comment-38664 Don't forget that by paying off the smallest accounts first, you'll be greatly simplifying your monthly payment schedule. If you have a dozen bills due every month, you have a much greater chance of losing track of one or sending a payment out late. By paying off accounts, you can stop feeling like you're under attack from all the payments due. If you pay by mailing checks, this method saves on postage too. Don’t forget that by paying off the smallest accounts first, you’ll be greatly simplifying your monthly payment schedule. If you have a dozen bills due every month, you have a much greater chance of losing track of one or sending a payment out late.

By paying off accounts, you can stop feeling like you’re under attack from all the payments due. If you pay by mailing checks, this method saves on postage too.

]]> By: AverageJoeInTexas http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/comment-page-1/#comment-31433 AverageJoeInTexas Fri, 13 Apr 2007 14:50:04 +0000 http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/#comment-31433 Great Post! I'm very excited for you and your progress. My wife and I used the smallest to largest debt elimination plan years ago and it worked great for us. Getting on a budget was necessary for the debt elimination, but it also allowed us to evaluate our spending habits and make changes. Seeing the sum total of your debt is a very sobering activity. It definitely shocked us into taking action and vowing never to get in that situation again. Great Post! I’m very excited for you and your progress.

My wife and I used the smallest to largest debt elimination plan years ago and it worked great for us. Getting on a budget was necessary for the debt elimination, but it also allowed us to evaluate our spending habits and make changes.

Seeing the sum total of your debt is a very sobering activity. It definitely shocked us into taking action and vowing never to get in that situation again.

]]> By: Julia http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/comment-page-1/#comment-28878 Julia Fri, 30 Mar 2007 12:21:53 +0000 http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/#comment-28878 I've flip flopped between #1 and #2 quite a bit over the last two years. The nice thing about #2 is that the progress you're making on your debt repayment is more visible. For some people, that's more important. Ideally if you can do #1, that's the best, as it'll save you money on the interest. BUT, depending on your interest rates, it might be fairly negligable, so you might as well go for #2. For now I'm sticking with #2, as I like to see the items drop off my list completely. :-) I’ve flip flopped between #1 and #2 quite a bit over the last two years. The nice thing about #2 is that the progress you’re making on your debt repayment is more visible. For some people, that’s more important. Ideally if you can do #1, that’s the best, as it’ll save you money on the interest. BUT, depending on your interest rates, it might be fairly negligable, so you might as well go for #2.

For now I’m sticking with #2, as I like to see the items drop off my list completely. :-)

]]> By: Carnival of Personal Finance #90: Quick Picks → We’re In Debt http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/comment-page-1/#comment-26619 Carnival of Personal Finance #90: Quick Picks → We’re In Debt Sat, 10 Mar 2007 02:18:51 +0000 http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/#comment-26619 [...] Tricia from Blogging Away Debt has a great post on where they started with their debt reduction. [...] [...] Tricia from Blogging Away Debt has a great post on where they started with their debt reduction. [...]

]]> By: Tight Fisted Miser » Reducing Debt on an Irregular Income http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/comment-page-1/#comment-26461 Tight Fisted Miser » Reducing Debt on an Irregular Income Thu, 08 Mar 2007 21:29:26 +0000 http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/#comment-26461 [...] Reducing Debt-Where did we start? from Blogging Away Debt.  If you need an idea on how to start paying off your debt this post is very helpful. [...] [...] Reducing Debt-Where did we start? from Blogging Away Debt.  If you need an idea on how to start paying off your debt this post is very helpful. [...]

]]> By: Mapgirl’s Fiscal Challenge / Carnival of Personal Finance #90! http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/comment-page-1/#comment-26094 Mapgirl’s Fiscal Challenge / Carnival of Personal Finance #90! Mon, 05 Mar 2007 13:31:23 +0000 http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/#comment-26094 [...] Tricia from Blogging Away Debt presents Reducing Debt - Where Did We Start? [...] [...] Tricia from Blogging Away Debt presents Reducing Debt – Where Did We Start? [...]

]]> By: Money Smart Life » Personal Finance Articles This Week – Market Sell Off, Insurance & Haircuts Tips, March Madness, Alternative Income, Debt Reduction, Sneaky Best Buy, & Money Saving Tips http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/comment-page-1/#comment-25516 Money Smart Life » Personal Finance Articles This Week – Market Sell Off, Insurance & Haircuts Tips, March Madness, Alternative Income, Debt Reduction, Sneaky Best Buy, & Money Saving Tips Sat, 03 Mar 2007 20:59:56 +0000 http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/#comment-25516 [...] is half the battle. Tricia from Blogging Away Debt took this to heart and tells her readers the steps she took to begin her battle against [...] [...] is half the battle. Tricia from Blogging Away Debt took this to heart and tells her readers the steps she took to begin her battle against [...]

]]> By: March 2nd Friday Five - Birthday Edition : Generation X Finance http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/comment-page-1/#comment-25296 March 2nd Friday Five - Birthday Edition : Generation X Finance Fri, 02 Mar 2007 21:59:05 +0000 http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/#comment-25296 [...] Reducing Debt - Where Did We Start? - Tricia take a look at getting started on reducing that debt. It always helps to hear personal experiences. [...] [...] Reducing Debt – Where Did We Start? – Tricia take a look at getting started on reducing that debt. It always helps to hear personal experiences. [...]

]]> By: AllFinancialMatters » Blog Archive » JLP’s Weekly Roundup XL http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/comment-page-1/#comment-25266 AllFinancialMatters » Blog Archive » JLP’s Weekly Roundup XL Fri, 02 Mar 2007 18:14:57 +0000 http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/#comment-25266 [...] Tricia has a great post on how to GET STARTED getting out of debt. [...] [...] Tricia has a great post on how to GET STARTED getting out of debt. [...]

]]> By: MVW http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/comment-page-1/#comment-25134 MVW Wed, 28 Feb 2007 19:18:53 +0000 http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/#comment-25134 We opted to pay off our debts starting with the smallest balance and moving up from there. It's been working great for us. But one suggestion I haven't seen is buying a home/office budget booklet at your local office supply store. It helps to put all your expenses and income on paper each month. We've been doing it that way for 15 mos. and just recently switched to Pear Budget, a simple, free, excel-based software program. But I'd highly advise doing your budget on paper first to really appreciate where all your money's going. We opted to pay off our debts starting with the smallest balance and moving up from there. It’s been working great for us. But one suggestion I haven’t seen is buying a home/office budget booklet at your local office supply store. It helps to put all your expenses and income on paper each month. We’ve been doing it that way for 15 mos. and just recently switched to Pear Budget, a simple, free, excel-based software program. But I’d highly advise doing your budget on paper first to really appreciate where all your money’s going.

]]> By: kris http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/comment-page-1/#comment-25126 kris Wed, 28 Feb 2007 17:20:09 +0000 http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/#comment-25126 Until last September I was plodding along in a Debt Management Program that was scheduled to continue through Feb 2008. Not sure why-probably my 50th birthday-I got motivated to to do something about it. Turns out that the DMP was structured to pay the highest interest, highest balance cards the longest. Think long and hard before entering a DMP! As of Feb 15th, I was able to knock down the remaining 7,200 bucks. Once I realized how out of whack the DMP plan was, I called them up and rearranged payments as best I could(given certain minimum DMP payments to creditors) to a combination of the Ramsey method (pay off lowest balance) and the more efficient pay off highest interest method. A bit of luck in the opportunity to work all the overtime I could stand from October to January helped immensely as well. While struggling up the learning curve, I found this little freebie spreadsheet online: http://www.geocities.com/snidecl/debtsnowball.html ..that also helped tremendously by helping to visualize my reduction strategies. Although it is setup for the snowball (Ramsey) method, I modifed it to show "Total Payments" by adding up the payments at the end of each row, and then subtracted the initial balance to come up with "Total Paid Interest". I was pretty amamzed to see how much more money a pure snowball strategy can cost you. Sara, I will opine its not as insignificant as you characterize. That said, back in December, I did pay off a small account instead of pumping the money into a higher balance higher interest one because my motivation was flagging. And I must say, it felt damned good too. Seeing an account go Buh-Bye may well be worth the extra money it may cost you if it keeps you from giving up and going on a buying splurge. But now I am dealing with the aftermath as the euphoria of having that debt gone begins to fade. Somebody on one of these PF blogs has suggested that being in debt is just like being in the throes of an addiction. I couldn't agree more. Perhaps the hardest struggle of all will be to keep spending habits under control as you shed the debt. Economists call it "pent-up demand". I call it "hard not to get stupid with your money"! Until last September I was plodding along in a Debt Management Program that was scheduled to continue through Feb 2008. Not sure why-probably my 50th birthday-I got motivated to to do something about it.
Turns out that the DMP was structured to pay the highest interest, highest balance cards the longest. Think long and hard before entering a DMP!
As of Feb 15th, I was able to knock down the remaining 7,200 bucks. Once I realized how out of whack the DMP plan was, I called them up and rearranged payments as best I could(given certain minimum DMP payments to creditors) to a combination of the Ramsey method (pay off lowest balance) and the more efficient pay off highest interest method.
A bit of luck in the opportunity to work all the overtime I could stand from October to January helped immensely as well.
While struggling up the learning curve, I found this little freebie spreadsheet online:
http://www.geocities.com/snidecl/debtsnowball.html

..that also helped tremendously by helping to visualize my reduction strategies. Although it is setup for the snowball (Ramsey) method, I modifed it to show “Total Payments” by adding up the payments at the end of each row, and then subtracted the initial balance to come up with “Total Paid Interest”.
I was pretty amamzed to see how much more money a pure snowball strategy can cost you.
Sara, I will opine its not as insignificant as you characterize.
That said, back in December, I did pay off a small account instead of pumping the money into a higher balance higher interest one because my motivation was flagging. And I must say, it felt damned good too.
Seeing an account go Buh-Bye may well be worth the extra money it may cost you if it keeps you from giving up and going on a buying splurge.
But now I am dealing with the aftermath as the euphoria of having that debt gone begins to fade. Somebody on one of these PF blogs has suggested that being in debt is just like being in the throes of an addiction. I couldn’t agree more. Perhaps the hardest struggle of all will be to keep spending habits under control as you shed the debt. Economists call it “pent-up demand”. I call it “hard not to get stupid with your money”!

]]> By: Jade http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/comment-page-1/#comment-25107 Jade Wed, 28 Feb 2007 06:58:16 +0000 http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/#comment-25107 Thankyou for these tips -- I am looking forward to reading the post about your motivations :) Thankyou for these tips — I am looking forward to reading the post about your motivations :)

]]> By: NCN http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/comment-page-1/#comment-25077 NCN Tue, 27 Feb 2007 22:08:22 +0000 http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/#comment-25077 Yes! Great post. Getting started is ALL about recognizing where you ARE and creating a plan for where you want to BE. NCN Yes! Great post. Getting started is ALL about recognizing where you ARE and creating a plan for where you want to BE. NCN

]]> By: Leanne http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/comment-page-1/#comment-25075 Leanne Tue, 27 Feb 2007 21:08:28 +0000 http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/#comment-25075 Adding up all your debt and seeing that total glaring at you certainly is an eyeopener. I know when I did that and realized that as single woman with one income and debt higher than my salary, I wanted to crawl into a hole. I look forward to hearing where you get your motivation from. I paid all of mine off and it feels great! Great post! Adding up all your debt and seeing that total glaring at you certainly is an eyeopener. I know when I did that and realized that as single woman with one income and debt higher than my salary, I wanted to crawl into a hole. I look forward to hearing where you get your motivation from. I paid all of mine off and it feels great! Great post!

]]> By: Poorer Than You http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/comment-page-1/#comment-25065 Poorer Than You Tue, 27 Feb 2007 18:08:45 +0000 http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/#comment-25065 If there's an interest in improving your credit as well, I recommend adding $1 to the minimum payment for each debt, especially credit cards. If you just pay the minimum every month, that will show up on your credit report. However, if you pay even $1 more than the minimum, it will just show up as a payment, instead of "minimum payment." If there’s an interest in improving your credit as well, I recommend adding $1 to the minimum payment for each debt, especially credit cards. If you just pay the minimum every month, that will show up on your credit report. However, if you pay even $1 more than the minimum, it will just show up as a payment, instead of “minimum payment.”

]]> By: Sara http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/comment-page-1/#comment-25062 Sara Tue, 27 Feb 2007 17:07:26 +0000 http://www.bloggingawaydebt.com/2007/02/reducing-debt-where-did-we-start/#comment-25062 The difference in interest paid between #1 and #2 is minimal. The amount of time it takes to pay off your debt is one to two months shorter with #1. (There have been studies done on this!) But with #2, you get the ssatisfaction and MOTIVATION of seeing your debts disappear! The difference in interest paid between #1 and #2 is minimal. The amount of time it takes to pay off your debt is one to two months shorter with #1. (There have been studies done on this!) But with #2, you get the ssatisfaction and MOTIVATION of seeing your debts disappear!

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