Thrifty Mommy

Frugal Challenge Saturday - 30 Great tips to get out of debt

by kellys on August 25th, 2007

I am enjoying the frugal challenge Sautrdays.  Your challenge today if you choose to accept it is to find a new way to get out of debt.  Jay over at Dumb Little Man has some great tips on how to get out of debt.  My favorite ones are:

• Create rewards - We have a bill we are trying to pay off.  Our reward is to look at minivans when that bill is paid off.  Until then, we won’t let ourselves look too hard.
• Stop using credit cards - This is a big one.  I don’t even have one.  MY DH is the only one that uses it.  When I have to purchase airline tickets, I have to call for the #’s.
• Pay cash - This is my favorite!  My grandparents did it and our goal is to get there.
• Debt snowball - This is excellent.  Pay off the smallest bill first.  This gives you confidence that there is light at the end of the tunnel and then take that payment and put it towards the next smallest bill.  You will feel great each time you cross off a debt on your list.
• Use a 30-day list - This is an excellent idea for you impulse buyers.
• Stop shopping -  Brick and morter or online, this is the hardest one for me next to …
• Eat at home - My weakest link in debt reduction.
• Bargains and used stuff - I already love this practice.

So here are some more tips to use when trying to pay off debt.

1. Swap stuff - I loan my baby stuff out and borrow from other friends.  Our kids are not always at the same stage so don’t buy what you can borrow or swap.
2. Stash the cash - If you can stop yourself from spending money on something, take that cash and stash it.  You would be surprised how fast it adds up.  Take that money at the end of the month and pay extra on your smallest bill.
3. Ask your grandparents how to save - They lived through the great depression and know how to save money.  Use their wisdom.
4. Eat cheap - When you are asked to go out to eat, make sure you say yes to treat yourself but ask to go someplace cheap.  That will encourage others to eat cheaper as well.
5. Find the places your kids eat for free - Do some research and find the places your kids can eat for free each day.  That will save a lot of money!
6. Direct deposit your savings - You don’t have to put alot away.  $5-20 per paycheck adds up without pain in your wallet or mind.
7. Sock away surprise money - Stop spending that tax refund, holiday money, or surprise refund from the utility company.  Put it into your emergency fund or towards a bill.  You weren’t expecting it anyway so make it work for you.
8. Rework your taxes - Every debt elimination list or seminar I have been to tells you to stop getting a big tax refund at the end of the year.  Use your money when you need it and get your refund down to around $100 a year.  That way you don’t pay at the end of the year but you get more money each check.
9. Ever play with your money - Take a month and look at every 1 or 5 dollar bill.  Pick a random 2 digit number and if that bill has that combo, save that money and don’t spend it.  See how much you save at the end of the month and put it towards the bill you are trying to eliminate.
10. Save those coins - They add up.  Take that money and use it to treat yourself for all the hard work you are doing to eliminate debt.
11. Haggle like it’s going out of style - Don’t be afraid to walk away from a good deal if you honestly believe that it should be better.
12. Toss the catalogs - They are only a temptation.  Don’t put yourself in the position to say no.
13. Dismiss the fees - Don’t pay the $1.50 fee at the ATM.  Either get cash at the grocery store when you check out or stop by your bank.
14. Live without your raise - Take your raise and put it towards a bill.
15. Don’t pay full price - Shop at ebay or amazon for used stuff that is in good condition.  No sense in paying full price when you don’t have to.
16. Shop consignment - Find the good consignment stores in town and enjoy them.  Don’t pay full price at the mall.
17. Sell your stuff - If you have things that are worth selling and you can do without, sell it.  Have a yard sale or take it to the consignment shops.  $5 is $5.
18. Change your own oil - This can save you bunches of money each year.
19. Avoid the Dry Cleaners -There are great products out there for your delicates that will help you avoid the dry cleaners.
20. Go to the Library - Get your books and videos at the library.  It’s much cheaper as long as you return them online.
21. Get those credit card rates down - I know Jay had this one but negotiate to drop those rates.
22. Get a home equity line - If this works for you, get a home equity line and consolidate your bills into one bill and deduct it on your taxes.
23. Do your own maintenance - If you can, do all your home maintenance yourself.  Mow the yard for exercise.  Paint that room yourself.  We saved over $1000 just by painting our bedrooms ourselves.
24. Clip coupons - I love The Coupon Clippers myself.  It saves time and money since I don’t normally get the paper.
25. Wash in cold water - This is even better now that there are laundry detergents specific for cold water.
26. Use online bill pay to your advantage - Save on stamps, envelopes, and time.
27. Run all your errands in one day of you can -  This saves on gas.
28. Turn off the lights and fans - Your electric bill will thank you for it.
29. Have a picnic - This is a great family day out that doesn’t cost much.
30. Reuse bags -Rinse out ziplock bags and save those plastic bags for dirty diapers.

So there you have it - another list to help you save your hard earned money.  Then again, it’s just my opinion.  You can take it or leave it.  But you WILL save money with it.

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