Debt...the American Way?

AOX81 · #1 02-21-2007, 10:57 AM

Well like most of you I sometimes feel like I am a$$hole deep in debt. In October I decided to do something about it! I got my poop in a group and paid off my Student Loan (yay!!), my car (that I never drive because I have a company car), and my Best Buy bill (had to buy a new computer and a few items for my new apartment). I only have two credit cards left to pay off and I will be debt free!! I'm hoping it will be around June when I will only have to pay my rent and utilities. I thought about going through one of those debt consilidation companies but I decided I got myself into the mess and I will get myself out!!

Anyone else in the same situation?

RU OX Alum · #2 02-21-2007, 11:01 AM

yeah, my card was maxed out cuz of holidays, I bought a computer and a car, but I worked hard and got good commision and paid off everything. Except the car.

shinerbock · #3 02-21-2007, 11:12 AM

Not in the same situation, but don't worry, its not just the American way.

LouisaMay · #4 02-21-2007, 01:21 PM

I've been following the Money Map from Crown Financial Ministries. They call it the "Road to Financial Freedom." It's Christian-based, and I love it! They have a radio show, too, and I've learned so much.

Good job with getting that debt down!

Kevin · #5 02-21-2007, 03:15 PM

What is Christian about being smart with money?

Oh, I see. Call it Christian and you have instant access to an audience who will instantly recognize you as credible if you throw in a few Bible verses.

MysticCat · #6 02-21-2007, 03:34 PM

Quote:

Originally Posted by Kevin

What is Christian about being smart with money?

Well, while I would not say that being smart with money is a uniquely Christian principle by any means, I would say that being a good steward of one's possessions, including money, is a practice and a perspective that is firmly rooted in the Christian tradition. That is certainly the religious perspective that we are trying to teach our children.

That said, I tend to have the same kind of reaction as you to enterprises that peddle things like financial planning or money management based on "Biblical principles" to churches and church members. LouisaMay, I'm glad Crown working for you, but unless part of the Road Map includes things like "give away all you have," "it's easier for a camel to enter the eye of the needle," "blessed are the poor," and "woe unto you who are rich," I'm afraid I'd have to question just how Biblical the principles are.

But perhaps I am judging it unfairly -- admitedly I know little about it. I suppose I have just become jaded by all the "preachers" who have assured their flocks that God wants us all to be prosperous.

Congrats, AOX81 and Billy.

shinerbock · #7 02-21-2007, 04:03 PM

I agree with Mystic. I think living relatively debt-free fits in well with the ideal of Christian stewardship.

I think there are many faith-based companies who try to exploit people. However, I think there are many who provide a service by Christians, for Christians. A lot of Christians tackle problems in their life from a faith perspective, and companies like this allow them to do so. I think it also helps to instill trust between consumer and service. Now, this may be at times misplaced depending on the company, but its like anything else. If you're in the auto repair business and you're a UGA grad living in a place with a mix of other school alums, you might emphasize (got called on in class at this point) that to form a common bond and indicate that a consumer with a similar background can trust you. Of course this can mislead consumers and induce fraud, but it can also be valuable in a society filled with consumer fraud.

LouisaMay · #8 02-21-2007, 04:21 PM

Wow...I had no idea my little comment would produce such interest...

Crown isn't a debt consolidation company or anything like that. They teach good stewardship as other posters have suggested. Their use of scripture is sound. The Bible actually has a lot to say about finances, and Crown applies those principle to contemporary financial issues (such as getting loans, giving loans, charitable donations, saving, retiring, co-signing, etc.). They certainly do not teach that all believers will be financially prosperous.
It's very practical. It's helped me anyway...

JonoBN41 · #9 02-21-2007, 07:17 PM

AOX81, congratulations on cutting down on your debt (no matter what the religion, as if that matters). The best way to get out of debt is to not get into debt in the first place. There are ways to have what you want without spending so much money. Here are a few suggestions:

Buy boneless, skinless, chicken breasts and steam them for 20 minutes. Makes a nice dinner, then a salad or sandwich for lunch the next day or two. My cat likes it too. Spending $1.99 a pound beats $8.99 at the deli counter.

Someone who smokes two packs a day can save $3,000 a year by buying at the Indian reservation (if they have one) instead of the corner convenience store.

Buy the "oldest" new computer instead of one with all the bells and whistles. I could have paid $2,000 for a computer, but got a new Dell for $600. That was February 2001, and it still runs fine. Saved $1,400.

Change some light bulbs to flourescent. I just replaced the one in my kitchen. It's brighter than the 65 watt incandescent, but uses only 15 watts.

Next Christmas I plan to replace the C9s for my outdoor Christmas tree with LEDs, which will save me $100 for the season in electricity - and they're guaranteed for 15 years.

Do you like chocolate? Buy them on sale after any holiday. I just got $68 worth of Russell Stover for $16 at CVS. Valentine's Day is over. Easter's next!

Do you like to drive fast? Slow down. Every traffic ticket costs more in auto insurance.

Check out a local thrift store for furnishings, picture frames, and clothing. I was in one today and saw a nice sports jacket from Saks Fifth Avenue for $50. Nothing wrong with it.

See something on ebay you just HAVE to have? Wait a bit. A cheaper one will come along.

Stay away from restaurants, unless you're on a date. They are the biggest wastes of money mankind has ever created.

Look at your your phone bill. I pay $30 a month.

Buy winter shoes in the summer, and summer shoes in the winter (time flies).

Finally, bring home a lobster every now and then. You've saved so much money, hell, you can afford it.

Jono

raggann03 · #10 02-21-2007, 08:38 PM

^^^ awesome list

shinerbock · #11 02-21-2007, 08:51 PM

On a related ebay note, if you're really trying to save money, theres not much you can't get on ebay. I buy there for convenience, but the deals are good too. I got a (supposedly) week old iPod video for 160 bucks. I don't know how long the guy really had it, but it came with all the stuff and looks brand new.

For students, if you don't buy your books from Amazon, you're out of your mind. I spent over 800 bucks on law school books (time constraints) buying them at the bookstore. I priced them on Amazon and I can get the whole set, used, same editions, with little or no highlighting (big deal for me), for like 300 dollars. I actually bought most of my Gilberts on there as well (saved me another 100 dollars).

JonoBN41 · #12 02-21-2007, 10:02 PM

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 · #13 02-22-2007, 12:06 AM

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 · #14 02-22-2007, 12:28 AM

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 · #15 02-22-2007, 03:42 AM

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.