Are you debt free/ on top of your finances? How did you do it?

I would like to hear from others who have dug themselves into a financial hole and gotten themselves out of it. What did you do? How did you do it? We have gotten ourselves into a bad financial situation. We are planning to move into a cheaper house when our lease ends and I was hoping someone could give me some more ideas. Thank you so much!

I don't know if I would say I was in a *bad* situation, but things were starting to get out of hand. It's like I woke up one morning and saw that I had more debt than I realized. I created a very itemized budget that includes things I like to do (eating out, shopping, etc) but in moderation. I've found that I've stuck to this budget more than any other one I ever created because I don't feel that I can't spend on things I enjoy. I put it in Excel so I can keep a running tab of my expenses and even sync it into my Palm pilot so there's no excuse to not know what I can spend.

Additionally I opened a second checking account with a separate check card for my monthly "play" money. So I basically pay bills with one check card and play with the other. Since I have the itemized budget I determine my play money at the beginning of the month and transfer it to the play CC. Once that money's gone I can't play anymore until next month since the other CC is strictly for bills/household stuff. I get paid once a month, so at every payday I take whatever's left in each checking account and transfer it to my money market. So the better I stick to my budget each month the more I put into savings. And doing good one month doesn't give me additional play money next month.

I'll be happy to share more with you one on one if you'd like. Just shoot me an email.

Good luck!

no credit cards.

I have debt of 15000 and it got out of control. I have taken up a debt management plan with a company called promise who I pay 106.00 per month and they manage and pay out to all of my creditors every month. I am now finding I have more money every month for the house and am now planning a wedding for next year

buy cheap used cars to avoid car payments & high auto insurance. i did that for about 7 years, until this last year when i finally got out of enough debt to afford a loan on a new car.

I took the hard way. Got myself into 拢22,000 of debt without a house! and then I made myself bankruopt. Its two years since the B/c ended and just before Christmas I actually managed to save...yes save! just over 拢300.!

Its an unpleasant biz and not a good idea.

You must immediately stop creating any new debt. You need to save 20% of you gross pay to invest. You need to learn to invest for yourself. Consolidate all your debts to the lowest rates possible. Repay your debts starting with the highest rate ones first. Learn to live frugally. Real estate is a good long term investment if picked wisely. It's not so much that the price real estate goes up, what really happens is the value of the dollar keeps going down.

1) Worked hard

2) Didn't waste money

3) Saved money and invested in the stock market

4) Used a financial adviser to look over my shoulder and help

5) Results: Wealthy--NO debts whatsoever==enjoying !!

1. Moving into a cheaper place is a very good start. Those monthly expenses (not just rent/mortgage, but higher utilities too) really break the bank.

2. Don't own more than one car. In fact, if you are childless and live in an area with public transportation, don't own a car at all.

3. Consolidate and pay off all credit card debt ASAP--this is probably your highest interest debt, so it must be your priority.

4. Use automatic withdrawals from your paycheck to begin saving (after your debt is paid off). The automatic withdrawals protect your money from yourself.

This will all hurt at first. But just like people adjust to their higher salaries (unfortunately!) and can't imagine how they used to live on less, within a few months you will psychologically adjust to living on less and wonder why you acted so foolishly in the past.

Good for you for starting to change!

20 years old in college living with parents with a part-time job... no bills, no buying my own groceries. I save 80%+ of what I earn.

Hi, I'm sorry to hear you are going through a rough time. I'm not sure how much advice I can offer since I've never really been in debt, but I can share with you how I save money. Take a look at your bills and what you can spend less on. Get rid of cable/internet if you can. Find a cheap cell phone/land line. See if you can reduce housing payments. Save on electricity by using energy efficient bulbs, etc. Don't go shopping/eating out until you can pay off whatever you need to. It's okay to splurge every now and then, though. I'm debt free and pretty much on top of my finances even though it is sometimes hard. What I have done that helps is try to keep a positive balance in my checking account as much as possible. I saved up about 8,000 before I lived completely on my own, it has helped to this day. Try your best to live within your means, as in try to match your salary with what you have to pay for. I may not make as much as a lot of other people by in comparison my bills are about the same to how much they have to pay. Try not to go for payday loans, that's just asking for a mess. Stop using credit cards if possible and work to pay off the balance. Get a second or third job if you need to, all these have helped me. Work out a payment plan with your creditors if possible, they'd rather get something than nothing. See if you can get your interest rate lower. Hope this helps good luck.