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Anonymous
cutting out extras to pay off debt
by Anonymous
December 5, 2012 at 11:57 AM

My dh and I recently noticed that our spending has gotten out of control. We have accumulated a hefty credit card debt. In order to pay it off, we are cutting some of the fat out of our budget. Tell me if this sounds crazy to you.

1-no going out to eat

2-only have on $30 cell phone

3-pack all lunches

4-no cable or netflix

5- my dh demanded his work pay half of our internet bill since they insist he have it for work.

I think this is a good plan and we only need to be this tight for 6 months to completely pay off our debt

my dh is also starting a 401k at work to make sure we save every month

Replies

  • dee1603
    by dee1603
    December 5, 2012 at 11:58 AM
    I'm on the pay off debt train too.

    Good luck!!

    Also call your car ins co see if you can get a reduction in your rate. I make changes about every 6m to save where I can
  • Anonymous 1
    by Anonymous 1 - Original Poster
    December 5, 2012 at 11:59 AM


    Quoting dee1603:

    I'm on the pay off debt train too.

    Good luck!!

    Also call your car ins co see if you can get a reduction in your rate. I make changes about every 6m to save where I can

    good idea, thanks!

  • Anonymous 2
    by Anonymous 2
    December 5, 2012 at 12:00 PM

    Looks and sounds good to me. We're trying to pay off come CC debt too. Will be cutting cable and switching phone plans.

  • kellymarie323
    December 5, 2012 at 12:01 PM
    Good plan and good luck! It worked for us. Eating out was our worst enemy. We do it now but spend less, use coupons, etc. And it's allowed no more than once a week :)
  • VannaMae307
    December 5, 2012 at 12:03 PM

    We cut cable and got netflix, that saves us $100 a month right there.

    Our cell phone plan is a big dick in our asshole, we can't do anything about it, so we have to live with that...it sucks.

    Packing lunches is good.

    Eating at home is good.

    Can you limit the amount you drive your vehicles (other than to work and back)? And, if you do leave, take the car with the higher MPG.

    Shop around your car insurance, you may actually be able to save.

    You didn't mention debt, so I can't help you if that's applicable


  • emandab
    by emandab
    December 5, 2012 at 12:04 PM

    Dave Ramsey is a great getting out of debt financial guy.  I listen to him all the time on the radio. You should look him up, he has tons of worksheets and goal lists and helps you figure out which debt to concentrate on first and so forth.  He's great!

  • Fields456
    December 5, 2012 at 12:06 PM
    Us too and dh takes his lunch everyday. He was spending crazy amounts of money on food while at work


    Quoting kellymarie323:

    Good plan and good luck! It worked for us. Eating out was our worst enemy. We do it now but spend less, use coupons, etc. And it's allowed no more than once a week :)

  • Anonymous 1
    by Anonymous 1 - Original Poster
    December 5, 2012 at 12:08 PM

    we share a car and only go out of town to take my son to school twice a week.

    we don't have a phone plan, so we just cut home phone and am using one cell

    just got off the phone with my insurance agent and she gave me the number of another insurance that would be better and cheaper

    we owe 1.100 in credit card debt


     

    Quoting VannaMae307:

    We cut cable and got netflix, that saves us $100 a month right there.

    Our cell phone plan is a big dick in our asshole, we can't do anything about it, so we have to live with that...it sucks.

    Packing lunches is good.

    Eating at home is good.

    Can you limit the amount you drive your vehicles (other than to work and back)? And, if you do leave, take the car with the higher MPG.

    Shop around your car insurance, you may actually be able to save.

    You didn't mention debt, so I can't help you if that's applicable

     


  • VannaMae307
    December 5, 2012 at 12:14 PM

    $1100 in debt is less than $100 a month in payments.

    Take the amounts that you save from your other cuts (ie, you save $30 a month on insurance) and apply it toward the credit card + monthly payment. So if your regular minimum payment for credit is $35 then you add $30 and you now have $65 a month going toward credit.

    Now let's say you saved another $30 a month in cutting your home phone. Apply that toward your credit as well so now you have $35 +$60 = $95 a month toward credit card payments

    If you stick with this (and save more) you will be out of CC debt in a year, even with the interest payments if there is no ADDITIONAL balance the interest will stay the same and drop throughout the year. And for God's sake, cut the credit card up and DO NOT USE IT! We have failed that part more than once, we were on a roll, too.



    Quoting Anonymous:

    we share a car and only go out of town to take my son to school twice a week.

    we don't have a phone plan, so we just cut home phone and am using one cell

    just got off the phone with my insurance agent and she gave me the number of another insurance that would be better and cheaper

    we owe 1.100 in credit card debt


     

    Quoting VannaMae307:

    We cut cable and got netflix, that saves us $100 a month right there.

    Our cell phone plan is a big dick in our asshole, we can't do anything about it, so we have to live with that...it sucks.

    Packing lunches is good.

    Eating at home is good.

    Can you limit the amount you drive your vehicles (other than to work and back)? And, if you do leave, take the car with the higher MPG.

    Shop around your car insurance, you may actually be able to save.

    You didn't mention debt, so I can't help you if that's applicable




  • Des10ed2b
    December 5, 2012 at 12:16 PM

    i think it is a very good idea. we were in a similar situation recently. We dropped our cable package to a lower one, switched our home phone to magic jack, switched our cell phones to cricket, really started watching our sale items for groceries and doing lots of coupons, and selling off anything that is cluttering up the house. it is making a BIG difference!

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