Tips on becoming Debt Free

[simphhcc]

One of my biggest prayers is to one day become debt free. Had I only known 15 or 20 years ago what I know now..... If I had only known and diciplined myself, I would have at least opened up an account with compounding interest when I was in my twenties. At least I would be much better off than I am now. I have many more tips but i would like to hear what others have to say.

[f-mattox]

Learn to live below your income--you're going to have to some day--might as well start now.

Save as much as you can, as early as you can, and invest it as aggressively as you dare.

Time and the compounding of interest and dividends are your greatest friends.

Fear and greed are your worst enemies.

[Chef Ken]

Use debit cards rather than "credit" cards, (which I think should really be called "liability cards".)

Living below your income level is very good sense. Often we get the most house we can afford, buy cars by the amount of the monthly payment and hinge today's purchases on tomorrow.

Plus read Dave Ramsey's book about reducing debt. It really works. "Total Money Makeover"

[goin' cruisin']

Don't give in to the "I wants." Get only what is truly needed.

Pay off that liablity card at the end of each month. In doing so, the air miles or cruise fares really will be free. I have been given $4,500 towards 2 cruise fares by charging everything, and paying it off at the end of each month. Not bad since I've had the card for just under 4 years, which means every other year I get a free cruise for 2.

Yes, f-mattox: Not only do I concur, but I agree whole heartedly; invest aggressively, especially if you are young. If your company matches your deferred compensation, then you take at least as much deferred comp that will kick in the matching contributions from your employer.

[Svein]

It's exactly like f-mattox says: Don't spend more than you earn. Simple as that. Then, put a little amount aside every month.

[Kentishgirl]

If you can't afford it, don't buy it!!

[Cruise Specialist]

Never ever pay just the minimum on your credit card debts. Set up a plan to pay them off one at a time. Start with the card with the lowest balance or the highest interest and pay anything extra you can afford. Always pay at least twice the minimum..once that card is paid off, do not think you have extra money to blow, take everything you paid on that card and apply it to the next card. Destroy the first card you paid off. If you continue this you can be credit card debt free in a short time.

[Kentishgirl]

Better still, don't buy on credit card unless you can pay off the bill in full when it arrives. Interest rates are too high otherwise.

[Hooked-on-HAL]

Learn to say "NO" to your children. When they are 16 they can get part-time jobs to help pay for their extras. They need to know what money is worth.

You really do not need a 51" television. 27" TV still gets the same shows. Just sit closer. Buy responsibly. (apply the above to SUVs, Hummers, Corvettes...)

You don't need a camera (etc) phone. You just need a plain cell phone. Mine is $30 every 4 months. It makes/receives calls. Period.

Think before you buy....shop around....never buy something if it is NOT on sale.

[simphhcc]

Teach your children at an early age, what it is and how to save. My children ages 4 and 8 both have bank accounts. They know whenever they get money to put half of it in their account. When they are 18 they should have a nice savings. I'm training them in the way they should go and when they are old I pray they will not depart from it.