Interesting thread re DEBT FREEDOM

AOL has an interesting discussion board regarding consumer credit and debt. If you have AOL, then you can use this AOL-only url to get there:

aol://5863:126/mBLA:275464

Someone posted how badly they were in debt, how they didn't see how they could manage because everything was so expensive these days, etc. Someone named JJuuddee (in other words, JJuuddee@aol.com) posted the following response which I thought was good enough to share here. I also went ahead and posted the responses that followed as well...


--------------------begin AOL thread--------------------

Subject: Re: Help
Date: Mon, Oct 15, 2001 12:44 PM
From: JJuuddee

You requested advice on where to begin.

When my husband and I were having debt problems, we began by eliminating virtually ALL monthy bills. We turned off the heat (literally!) and bought quilts at a yard sale for our beds. We wore sweaters and socks to bed and cuddled with blankets on the couch at night.

We cut out cable tv. We turned off the computer for over a full year........no internet, no computer.

We stopped the newspaper and every magazine.

We cut down on the phone bill and got the minimum service. With no internet calls, we didn't need much. I wrote letters instead of calls. You can fit 5 pages into one envelope for a single stamp.

We turned off every light in the house that wasn't absolutely required.

We used the library for books and museum passes.

The biggest change was selling my car. We went down to just one car for the family. We bought bikes, used the bus, or walked.

I quit my job and took up a consulting job that was on the busline. I changed my working hours and eliminated childcare costs.

We stopped going out to eat. We home cooked meals and ate only what was on sale.

We stopped hotel bills by buying and learning to enjoy tent camping. We went on some great trips for a few bucks a night at state run campgrounds. We bought good sleeping bags and also used them for blankets on the kids beds for warmth.

We stopped buying expensive gifts. I made presents for holidays and they seemed to be enjoyed just as much.

We began saving 10% of every dollar we earned for retirement.

We started an "emergency fund" with a few bucks. We started to repair (sometimes with help from friends) anything that broke, rather than purchase a new appliance/tv/radio/etc. We asked a friend to help with car repair and we paid him with "stuff" instead of cash, it worked well for both of us for quite awhile.

We didn't buy ANY new clothing. We used up all the outfits stuffed into our closets. I couldn't believe how many shoes I owned. I shopped yard sales for the kids clothes (including shoes).

We did "free" activities with the kids......picnics, playgrounds, walks around the neighborhood, library videos etc.

We volunteered for our church instead of donating money. I volunteered at the school rather than donate to the PTO. They seemed plenty happy to have our "time".

My husband got a second job. I worked on independent "projects" as a consultant whenever we had a large expense to pay.

We did an "envelope" system to plan for expenses. For example, I knew how much property taxes would cost each quarter, so broke that down into weekly payments and paid it in smaller installments.

That was years ago. We became debt free 10/99. We have not paid one dime to a bank in interest since that time. It was SO worthwhile! The freedom is incredible. We can now travel anywhere we please, make improvements to our house and buy whatever we want with cash. We continue the "emergency" fund, which now has nearly $10,000 cash. We also continue to save 10% of our income for retirement and depending on the stock market, have between
$100,000 and have been as high as $120,000.

We are committed to never having a loan again. We still don't have cable tv. We have loved tenting (although we have a beautiful trailer now) and still tent frequently. We still share a car.......it's been far easier than I ever imagined. We will be married 18 yrs next month and there is little stress to our relationship regarding $. I think being commited to a debt free existance has also helped our personal relationship!

If we can do it, you can too. Our salaries have always been small. My husband never went to college. I work full-time only when I want to, and generally work just 4 days a week. There is freedom waiting for you! Just keep focused and you can make it!

Judy........

Living a debt free lifestyle since 10/99


-----


Subject: Re: Help
Date: Mon, Oct 15, 2001 1:49 PM
From: KarenL413

Judy, you and your husband are perfect examples of "living within your means." Your post was one of the best I've read since I started semi-lurking on this board. Thank you for sharing.


-----


Subject: Re: Help
Date: Mon, Oct 15, 2001 10:16 PM
From: ChazInv

Judy

These are all excellent ideas, many of which I use myself. These are excellent examples to the folks who are in debt, but refuse to let the "trappings of life" go. A little sacrifice is all that is needed to get you out of your debt problems. I find it funny how some people consider things like cable TV, the internet, $7.00 movie tickets a necessity. Great Job!!!...and never go back to that lifestyle. I hope to be "debt free" soon, and I won't
let nothing get in my way!!! In fact, I am enjoying this "life challenge", it takes ingenuity, creativity, self-reliance and sacrifice to get where you need to go. I wish the other folks on these boards would hear the "wake-up call". Many spout off about not making enough money, but it's not what you earn, but how you spend that really matters.

ChazInv


-----


Subject: Re: Help
Date: Tue, Oct 16, 2001 12:21 PM
From: MKMAASSEL

Judy,

That was a great post. It really does show that with enough determination you can make it out of debt. As someone else mentioned, it doesn't have to do with how much you make, but how much you spend.

Too many people think they have cut back as far as they can. Then it comes out that they have the $60 cable bill, $40 - 50 cell phone bill, etc. They don't understand that those are optional. My toughest thing to get rid of would be AOL, but if it came down to it, I would do it.

If you don't want to be bogged down in debt your whole life, sometimes you have to be creative in how you think. You have to evaluate EVERY expense, even your fixed expenses. You need to look at that house payment and decide could you really get by with a cheaper house? You look at those vehicles and decide do I really need to buy or LEASE a car that is way too expensive for what I can afford? The next time you absolutely have to purchase a new
vehicle, does it have to be NEW? You look at your electric bill and figure out how to make it lower- turn down the thermastat, get your windows tinted, get a blanket for your hot water heater. There are many creative solutions if you just look for them. Some of these bills are not things you can change overnight, but they can be life long strategies that will help you change the future. Debt isn't a one time thing that you suddenly get out of and
then are on easy street. You have to continue to make the decisions that keep you out of debt.

The key is to be truly determined to SOLVE the problem vs. just looking for an easy way out that isn't going to be too painful so you can get back to your regularly scheduled spending!

I can't tell you how much happier my DH and I are since we made the resolve to get rid of our debt. The credit card bills are gone. Now we have two student loans, a car loan and the house. I am paying off one of the student loans this week. The goal is to have the second loan paid by the end of next year. Then we accelerate payment on the car loan. Meanwhile, we continue to build our emergency fund and work on our retirement funds.

You are a great inspiration Judy and hopefully others will see that it can be done!

Karen

--------------------end AOL thread--------------------

 

Re: Interesting thread re DEBT FREE

LOL, I'm not recommending what she posted, I said I thought it was "interesting." It really represents a point of view almost never embraced in our world of creature comforts, instant-on everything, and have-it-now-pay-later. (Believe me, I enjoy my creature comforts, instant-on everything, and in some cases paying later so I can have it now.) Assuming the kids weren't miserable (and I'll bet at least a portion of my Citibank LOC that this was the part of the story that was conveniently left out -- "MOM, ALL OUR FRIENDS HAVE HEAT FOR CHRIST'S SAKE"), these people really revolted against consumer culture. The world of credit, marketing, brand names, designer clothes, banks, car dealers, mortgage holders, etc., etc., etc., clearly turned nasty on these people (irrespective of whose fault it was), and instead of fighting they simply signed their own little personal declaration of independence.

In one respect, it's hard not to admire the statement they made: "Look, creditors, we're just fine, so wait your turn. You'll get paid on our schedule, and you'll detect no worries here, because we don't care about credit. In fact, we don't care about cable TV, having two cars in the garage, expensive HDTV-DVD-CDRW-MEGAHERTZ, or any of the other crap your friends in the office next door are selling. Seeya, don't wanna be ya."

I think I could do most of it (except turning down the heat, or doing without internet) if I absolutely had to. Free broadcast TV would be fine if I was really pinched. We could get along with one car if our feet were really held to the fire. I actually enjoy garage sales. Camping might be a problem, though... I like to hear a door close and lock before going to the bathroom.

Doc