Comments on: The Secret to Staying Out of Debt: Control Your Spending

By: Linda

Linda — Sat, 14 May 2011 00:16:19 +0000

I have reads a lot about debt reduction. You could cut up your cards so you won’t be tempted, but cancelling your card will hurt your FICO score. It’s not a good idea to do that unless they are paid off. If you cancel them they can make you pay the balance immediately. I have just cut up the cards.You’ll know that when the card expires they will send you a new one. Another temptation , but hopefully you will be well on your way to paying it off and you won’t want to go back into that sort of slavery.

By: Debt Tips

Debt Tips — Thu, 11 Feb 2010 17:46:13 +0000

A friend of mine used to say if you are having money troubles the answer is simple – make more and spend less. How true. Yet how hard for so many of us to truly understand, and to implement.

By: Andrea

Andrea — Tue, 02 Feb 2010 16:25:03 +0000

Regarding credit cards, first I highly recommend reducing the number of cards you have to one or two. I eliminated all gas and department store cards, and so I only have two cards: AMEX and Discover. Next, I only have one in my wallet at a time. Third, my newest budget trick is to LOWER my credit limit – so when the limit is reached for the month – I’m done!! It’s easy to check balances by phone or online, so I frequently verify my credit available and thus always know how much is left for my budgeted expenses.

For those of us who are still working on controlling impulse buying ( and I mean even buying that extra pack of paper towels because it’s “on sale”), this has really helped me slow down the spending.

By: Construccion

Construccion — Sun, 31 Jan 2010 21:11:37 +0000

By not buying what I cannot afford to pay for with cash!!! Genious right?

By: knoxville cars

knoxville cars — Fri, 29 Jan 2010 16:48:45 +0000

It was hard to control spending and it took a few years till I really got it. Now it’s not so bad.

By: Julie

Julie — Fri, 29 Jan 2010 14:20:36 +0000

My husband and I are on Step 2 of Dave Ramsey’s Total Money Makeover – paying down our debt. Before he heard Dave talk or got into any of this, my husband said “Julie, you’re just freaking out because money is tight this month. We’ll be fine in a couple of weeks. Debt is normal.”
Now that he’s on board I find he’s such an enormous help, reminding me constantly that we can’t use the credit cards and have to find the money somewhere else.
That said (sorry to take so long to get to this!), I read above “Cancel your credit card if you are ever in a position that you can’t make your first payment”. Now, we’re so badly off that we’re anywhere near not being able to make any payments, but it made me wonder – instead of simply cutting up the cards, could I cancel them – remove the temptation? But would I then have to pay them off right away (impossible)?

By: Craig Ford

Craig Ford — Fri, 29 Jan 2010 12:15:17 +0000

@kenyantykoon
Your right on – fancy gadget to impress friends is a terrible reason to go into debt.
@Melisa

Feeling uncomfortable about credit cards never financially hurt anyone. In fact, you’re probably better off for it.

@Financial Bondage
Yeah, those two rules are fool proof. Unfortunately, too many people break the rules .

@Jason
To many people the idea of feeling free by being disciplined does sound silly. However, there is no doubt in my mind that it is true. Thanks for your comment and thanks for the good reminder.
@mal
Thanks for the great tips. Quick and simple, yet full of wisdom.
@Joe
I’m a huge fan of the old fashioned budget. Thanks for highlighting it in your comment.
@Craig
Restraint – something so many people want and need, yet too few people have restraint. Personal finance is so simple, but so hard at the same time. Thanks for your comment.
@D
Thanks for your great comment. Sounds like you have some pretty good boundaries in place and those have really helped you live on what you earn. Keep up the good work.

By: kenyantykoon

kenyantykoon — Fri, 29 Jan 2010 07:54:17 +0000

to stay out of debt i just make sure that i logically reason out whaever that can make me get into debt. if it is just a fancy gadget that i want to impress my peers, i beat myself down. if it is something important like a business load, i make sure that it is almost a sure thing and not a gamble. so far, i am not in any bad debt and i am not about to give up this sweet freedom for anything fancy or shiny or anyone

By: Melisa

Melisa — Fri, 29 Jan 2010 04:24:31 +0000

Thanks for sharing these great tips, Craig. I also agree with FinancialBondage’s two rules.

Personally, I do not advocate using credit cards. I can’t explain why, but it really makes me feel very uncomfortable to know that I’m using something I haven’t paid in full.

By: FinancialBondage

FinancialBondage — Thu, 28 Jan 2010 23:40:17 +0000

2 rules.

1. If you don’t borrow money, you can’t get in debt.
2. If you don’t borrow more money, you can’t get further in debt!