1. Welcome to Baptist Board, a friendly forum to discuss the Baptist Faith in a friendly surrounding.

    Your voice is missing! You will need to register to get access to all the features that our community has to offer.

    We hope to see you as a part of our community soon and God Bless!

Getting out of debt

Discussion in 'Money Talk$' started by SaggyWoman, Apr 2, 2013.

  1. SaggyWoman

    SaggyWoman Active Member

    Joined:
    Dec 15, 2000
    Messages:
    17,933
    Ratings:
    +9
    What has successfully worked for you to get out of major debt?
     
  2. annsni

    annsni Administrator
    Administrator

    Joined:
    May 30, 2006
    Messages:
    20,490
    Ratings:
    +1,013
    Understanding needs and wants - TRUE needs and wants - and then to stop spending on wants.
     
  3. webdog

    webdog Active Member

    Joined:
    Mar 31, 2005
    Messages:
    24,691
    Ratings:
    +0
    A lot depends on how far in and what type of debt.
     
  4. Crabtownboy

    Crabtownboy Well-Known Member

    Joined:
    Feb 12, 2008
    Messages:
    17,402
    Ratings:
    +637
    Faith:
    Baptist
    List all your debts.

    1. Put them in numerical order, the highest first the lowest last.

    2.Keep making payments.

    3. If you have any extra money, pay off the lowest debt first and as fast as possible by using the extra money as additional payments.

    4. Take the payment you have been making on the lowest one and add it to the new lowest debt.

    5. As soon as that one is paid off, take the two payments and add it to the new lowest debt.

    6. Keep doing this until you are out of debt.

    7. When all the debts are paid off, take those payments and pay yourself by putting them into some type of savings or investments. Do not increase your spending!
    -----------------------------------------------------------------------

    In the future never go into debt for anything that depreciates in value.

    It is my belief that as a Christian the savings are not just for self, but also to help others that God brings into your life who are in need.

    Blessings.
     
  5. sag38

    sag38 Active Member

    Joined:
    Jan 26, 2008
    Messages:
    4,394
    Ratings:
    +1
    Personally, I am following the democrats plan for debt reduction. I am borrowing and spending. It will catch up one day but in the meantime who cares?
     
  6. Salty

    Salty 20,000 Posts Club
    Moderator

    Joined:
    Apr 8, 2003
    Messages:
    22,741
    Ratings:
    +669
    Faith:
    Baptist
    May be best to pay off loans with the highest interest rates first
     
  7. Crabtownboy

    Crabtownboy Well-Known Member

    Joined:
    Feb 12, 2008
    Messages:
    17,402
    Ratings:
    +637
    Faith:
    Baptist
    Not a bad idea Salty.

    I put from the lowest to the highest and pay off the lowest first because psychologically it is very satisfying to see a debt erased.
     
  8. annsni

    annsni Administrator
    Administrator

    Joined:
    May 30, 2006
    Messages:
    20,490
    Ratings:
    +1,013
    To do the snowball effect, you list your debts from lowest to highest and pay off the lowest debt first, while making minimum payments on the rest. When the lowest is paid off, use that money that was going towards that debt and add it to the next debt's minimum and pay off that debt now with the greater payment. Once that is paid off, take the money from the first and second debt and add it to the payment for the third and get that paid off. By the end, the largest debt should be able to be addressed well because you have the amounts of the minimum payments of all the others going into it as well. It's a very effective system.
     
  9. Salty

    Salty 20,000 Posts Club
    Moderator

    Joined:
    Apr 8, 2003
    Messages:
    22,741
    Ratings:
    +669
    Faith:
    Baptist
    Both points are valid
    I suppose its how you see the glass - half full or half empty
     
Loading...