Wednesday, July 26

Paying Off Debts

Several years ago, when I was unemployed for a short while, I was forced to survive on my credit to buy food and pay bills. I've been carrying some amount of that debt for quite a while now. Every month I have an interest fee that I pay which is annoying because I see how much value I could be getting out of that money with my frugal ways.

Of course, if you can, paying off your debt is simply the best plan. However, if you can't afford to pay it off, you might be able to reorganize it. If you can convert it into a personal loan or a second mortgage you might find you are paying a lot less interest on it. You will want to be be disciplined and use some of that saved money to speed up your payments.

Right now I'm slowly whittling away at a car payment, my personal line of credit and a low interested credit card balance. Yippee! I realize it is my own fault, and I did whittle down my spending as fast as I could once I was unemployed, but nonetheless, I am not where I had expected to be. I wonder if there are people out there with fantastic frugal living habits that didn't earn them by finding a way through tough times?

I was working two jobs for a while. That was helpful! I am considering finding some part time second job work again in order to start taking some chunks off of my debt. The alternative is to develop my income to the point that it becomes sizeable enough that my debt is completely shrunk in comparison. Both are good ideas, I just have to put either one of them into practice -- with the second being harder than the first.

Frugal Guy said...
First time visitor? Start on my blog overview page...

Have your own blog? Please add it to my blog directory!

If you've found help, hope or laughter here, please consider linking to my blog or perhaps a particular post...

Thanks!

4 comments:

Mom2fur said...

Good luck to you! I've also been trying to pay off a large debt. Too long a story to relate, but let's say it didn't happen because I blew money on fun stuff. It crept up on me gradually, compounded by health problems and (I admit) sheer dumbness when it comes to the fine print on credit card bills. I'm so much smarter now and it's slowly disappearing. I hope that it happens quickly for you!

Frugal Guy said...

Hey mom2fur,

Thanks for the note!

I'm hoping that I get another shot at being on the upside so I can be much wiser this time around.

Sally Parrott Ashbrook said...

Certainly, there are people who learn to be frugal without ever hitting tough times. One of my best friends is part of a whole family of frugal people who have amassed quite a fortune by never giving up those ways. For example, with my friend's dad now being the VP of a bank, her parents still buy used cars under $10k--and then they drive them many, many years. They learned the behaviors from their parents and passed them on to their kids. My friend makes REALLY good money but also bought a used car. She puts a lot of money in savings every month. I want to know enough about finances by the time I have kids to teach them those habits.

Frugal Guy said...

Hi Sally,

Thanks for the note! It does make sense now that you mention it. Of course we learn habits based on our parents.