Get Debt Free With Me in 2011 (or closer to it !!)

Sorry it took me until now to get this posted, but it's been a busy day around here. We were out most of the day and then had to go back out for my nephew's 7th birthday party. It was a fun, busy day!

Let me start by saying that I love to help other families get debt free. I am passionate about it. My own family is almost debt free except for the house. We've been working at it for a few years now and have paid off a whopping $111,563.62 in debt including both of our vehicles, a $30,000 student loan and over $26,000 in credit card debt.  We are getting rid of a furniture bill this month and will then be debt free except for the house.  My husband always jokes that we don't get any mail anymore so we need to get some more debt~fat chance.  Once you see life without debt, you will NEVER go back.  I can tell you that I will NEVER have a car loan again. I will also never pay interest to anyone again(except for the mortgage company until that's gone too).  It's like driving down the highway, opening your car window and throwing money out the window.  I saw a TV show the other night where a woman thought she was SO smart because she was a coupon shopper.  When looking closely at her finances it was discovered that she was paying $500 per month in interest charges.  That totally negates every coupon she uses EVERY month. Work towards getting rid of interest as quickly as you can so that you can keep more of your income.

As I said in last night's post start by writing down every debt that you owe from your smallest debt to your largest (probably a mortgage or student loan).  Don't focus on the interest rate. I know some people want you to do it by interest rate, but this is more effective because you get such a boost from making progress that you end up being MUCH more successful.  Additionally, the goal is to ditch debt FAST so that the interest rate is secondary to getting rid of the debt quickly. After you have your list composed find a way to save $1000 as a baby emergency fund. This may take a little time if money is tight, but get creative (what can you sell on Ebay or Craigslist to add to your fund for example) This will be used to pay off minor repairs or things that come along while you're repaying debt.  Make sure that you put this money in a place that is accessible.  Your emergency fund is just that, it's for emergencies and NO, new shoes are not an emergency.

Once you have your baby emergency fund in a safe place you are ready to start your "debt snowball". Begin to attack your first debt on your list. Use every spare cent to get this bill paid off ASAP.  The intensity is absolutely key to getting your debt repaid fast. You'll be amazed at how quickly your debt will go away when you are extremely intense.  Think before you spend every dime. Stock up on deals to lower your out of pocket costs (that's where mommyluvs2save comes in he he!).  Once debt #1 is paid off, move on down your list keeping the same intensity. 

Some things to remember...

• Your debt will not magically go away. It takes work! If you want to be in a better place this time next year~do it. You are in charge of your own destiny.
• Driving a paid for car feels great. Typically car payments are our second highest bill each month.
• Paying interest is like throwing away money! Pay as little of it as possible by ditching your debt!
• Driving a paid off Chrysler makes more sense than working 14 hour days to afford the car payment on a Mercedes or BMW.  Instead of impressing our friends with fancy cars, lets impress our kids with spending more time with them because the bills are paid off.
• Our income is our single greatest asset. When we pay down our bills we get to keep more of it to invest in our future and the futures of our children.
• When 500 millionaires were interviewed on the single best way to become wealthy, EVERY one of them said becoming debt free !
• Make a list of FREE fun activities that you can do with the family on the weekends * I post a list of free activities for the weekend every Friday (took a break for the holidays~will start again next Friday).
• Brain storm with your significant other about ways to increase your income and other ways to make extra cash to put towards debt repayment. Think about putting stuff on craigslist or ebay. I've done both.  When the weather gets nicer plan a yard sale etc...

I could go on all day. As I said I REALLY want to help each of you be successful! I will be posting much more debt free content in 2011 so stay tuned!  Also, please let me know your progress because I really like being a support system for you!

*One more thing and you may really hate me for this one (he he!). Plan to use your tax refund for debt repayment. I know that's seems mean, but we've done it for the past few years and it really gives your debt repayment a boost.  My hubby always tries to talk me out of it, but I always stand firm on this one.  Most financial experts tell you to adjust your withholding so that you don't get a refund at all, but I personally like tax time and using it for debt repayment. The choice is yours, but if you get one use it for your debt snowball!

Good luck and YOU CAN DO IT !