Debt...the American Way?

[JonoBN41]

Ebay is good for some things - not for others. People need to be careful not to go "ebay crazy". Shop around, especially for new items. I've seen folks bid up new items higher than can be bought retail, even locally.

Shinerbock, you are right about books. I once saw a rare Lambda Chi book bid up to $177.50 on ebay. I threw up my hands and got down to work. There it was on AddAll Books for $25.

A little clicking can pay off.

[AGDee]

I've had to learn quite a few tricks since my divorce because one income just doesn't afford the luxuries that two incomes did. Here are a few of mine:

Take your lunch to work, and soft drinks/water too. I realized I was spending almost $10 a day in the cafeteria.

Carry very little cash on you. It seems like once you break a $20 bill, it disappears. You avoid a lot of little impulse buys if you just don't have cash.

Shop the sales when you grocery shop. You know what you end up buying every time you shop, so if it's not perishable and it's on sale or you have a coupon, stock up. You won't have to buy it again for a while. Plan your meals around what is on sale that week. Check out the generics. As we learned with the Peter Pan peanut butter/Great Value peanut butter recall, they are made in the same plant, probably with the same exact ingredients with just a different label on the jar. I have found that MOST of Kroger's brands are just as good as a brand name (except their pizza rolls, which are AWFUL). Having a coupon for something doesn't make it the best deal. You have to comparison shop.

I agree that restaurants/eating out/fast food are budget drainers.

Toss your change into a jug/jar every night. It adds up faster than you thought.

If you usually get huge tax refunds every year and then use it to pay off credit card debt, then just adjust your exemptions so that you break even at the end of the year and use that money to purchase the things you need instead of charging it. You pay too much in interest otherwise.

Never make a minimum payment on a credit card. Even if you pay only $10 extra on it, the balance goes down more quickly. Suze Orman's plan is good. Pay off one, then apply what you were paying on that one to the next one. Don't wait until the due date to pay it either. Pay it as soon in the billing cycle as you can and you usually accrue less interest.

If you find yourself throwing away a lot of food, especially perishables, like lunchmeat, because you can't use it all before it goes bad, freeze half of it when you buy it. I freeze the lunchmeat that my daughter likes in small ziplock bags, in single servings. I can pull one out of the freezer, put it on her sandwich and by lunchtime it is thawed. I used to buy a whole package of lunch meat, make her two sandwiches and throw the rest away.

Avoid pre-prepared foods whenever possible. They are much more expensive.

[shinerbock]

I think a key to Ebay is to make informed purchases. Buying random things, although fun, can lead to trouble. Rather, if you're considering buying something, price it normally and then check online. I've seen what you're talking about, i've also seen people who will buy something that costs 200 dollars at the store for 199 on ebay, forgetting about the 30 dollar shipping.

[AOX81]

I'm not a big spender...my nickname is actually Bargain Betty, lol. I just dropped my car insurance because I don't drive my car at all. I am fortunate because I have a company car that I don't have to purchase gas for. I just accumulated some debt right before I started the divorce process in August and now I'm getting back on track.

[angelic1]

being debt free is great, of course, but honestly i haven't been that worried about paying off my school loans since my interest rates are so low. instead i use the extra money to put in savings, investments, etc.

i have used money to help pay off my car loan early though (no car payments soon )

my main strategy which works best for me is to use my credit card to pay for everything. then at the end of the month i just pay it off. i can track my spending so much better and keep it under control. i also just limit my spending.

[AOX81]

Well I sucked it up and took out a loan to get my debt paid off quicker. A 6.99% interest rate is much better than whatever I'm being raped by my credit cards these days. Thank God for good credit.

[BetteDavisEyes]

Well, my husband and I have no credit card debt so that's definitely good. We only owe my car, the house, and my student loans.

[KSUViolet06]

The best advice I've ever been given about money is SO simple, but if you go to buy something and don't have the money for it, don't charge it or finance it, put it back.

Also, get your priorities in order:

For example: My neighbors just financed a new $6,000 piano. The husband is a city maintenance worker and the wife stays at home. They have 2 cars apiece (I'm talking Lexus & BMWs, not Toyotas), their kids are into pricy activites (gymnastics) and they just added a new sunroom onto their house. That's all great, but their electricity was cut off last month.