If you are really on a fixed income, you cannot live beyond your means or you will eventually go bankrupt.
Is Dish crazy...162.48 per month?
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We struggled with money issues until we discovered how to pay off debts.
Make a list of all your debts, some are set per month like utilities, mortgage, etc. but others are entirely voluntary.
Pull out the mandatory payments that you must make monthly like utilities and list the others in order from the lowest to the highest amount owed.
Start paying off those discretionary debts from the bottom up, while maintaining the mandatories like utilities and minimum Credit card and mortgage payments.
As you p[ay off the smaller debts, apply the payments made on them to the next higher debts and so on, and so on, until you retire your entire debt up to and including the mortgage.
Lay aside each month a small amount to treat yourself and stick to it, don't spend more.
If you get unexpected money from any source, apply ALL of it to retiring the debt you are working on.
It is only OK to buy a new automobile of it is absolutely needed, never give in to new car fever.
Right now we have only a mortgage and 1 car payment, we pay all our bills with credit cards and pay them off every month so we pay no interest or fees and we get points/miles etc. off all these cards.
I have gotten quite a few things absolutely free with credit card points this way - 2 Play Stations and a Very nice SLR digital camera with telephoto lens, not to mention some cards let me apply my points to pay on my balance.
It is not easy, but once you learn how to take advantage of the situation instead of letting it take advantage of you, it relieves your pocket book and your mind.
Make a list of all your debts, some are set per month like utilities, mortgage, etc. but others are entirely voluntary.
Pull out the mandatory payments that you must make monthly like utilities and list the others in order from the lowest to the highest amount owed.
Start paying off those discretionary debts from the bottom up, while maintaining the mandatories like utilities and minimum Credit card and mortgage payments.
As you p[ay off the smaller debts, apply the payments made on them to the next higher debts and so on, and so on, until you retire your entire debt up to and including the mortgage.
Lay aside each month a small amount to treat yourself and stick to it, don't spend more.
If you get unexpected money from any source, apply ALL of it to retiring the debt you are working on.
It is only OK to buy a new automobile of it is absolutely needed, never give in to new car fever.
Right now we have only a mortgage and 1 car payment, we pay all our bills with credit cards and pay them off every month so we pay no interest or fees and we get points/miles etc. off all these cards.
I have gotten quite a few things absolutely free with credit card points this way - 2 Play Stations and a Very nice SLR digital camera with telephoto lens, not to mention some cards let me apply my points to pay on my balance.
It is not easy, but once you learn how to take advantage of the situation instead of letting it take advantage of you, it relieves your pocket book and your mind.
Very smart Jim, I wish more people were taught this and used this strategy at a younger age. I for one am very grateful my parents and my brother taught me about these types of things. Some people just have to learn the hard way and it's not easy getting out of debt.
Charles Givens (remember him?) taught me how to live debt free when I was in college and bought his program at a deeply-reduced student discount.
Since 1996, I haven't had a car payment, I use my credit card to pay for almost everything for recordkeeping and pay off my balances monthly (no interest charges), etc. The only debt I have is my mortgage at 3%
Since 1996, I haven't had a car payment, I use my credit card to pay for almost everything for recordkeeping and pay off my balances monthly (no interest charges), etc. The only debt I have is my mortgage at 3%
Here is the best trick I learned to rapidly pay down a high-interest debt (like a mortgage or car payment).
Get an amortization schedule for the loan (which displays monthly how much of each payment is going toward interest and how much is going toward principal.
So, if your monthly payment is $280, and first 6 payments look like this:
Interest Principal
1) 250..........30
2) 248..........32
3) 246..........34
4) 244..........36
5) 242..........38
6) 240..........40
make your first payment of $280 and add to it the principal of the next payment (in this case, $32). Then cross off the 2nd line, as that payment has been eliminated. Your next payment would be line 3 plus the principal from line 4. Each time you do this, you are eliminating an entire payment you would have to pay in the long run. You have to make sure that the loan doesn't have prepayment penalties, but most don't anymore.
Get an amortization schedule for the loan (which displays monthly how much of each payment is going toward interest and how much is going toward principal.
So, if your monthly payment is $280, and first 6 payments look like this:
Interest Principal
1) 250..........30
2) 248..........32
3) 246..........34
4) 244..........36
5) 242..........38
6) 240..........40
make your first payment of $280 and add to it the principal of the next payment (in this case, $32). Then cross off the 2nd line, as that payment has been eliminated. Your next payment would be line 3 plus the principal from line 4. Each time you do this, you are eliminating an entire payment you would have to pay in the long run. You have to make sure that the loan doesn't have prepayment penalties, but most don't anymore.
I learned the hard way and am now out of consumer debt. The best way I've found to stay out of debt and avoid living paycheck to paycheck is something that most people ignore: Work hard and earn more money.
That's a really good point as well. If a person doesn't want to give up certain hobbies and unnecessary spending then just work more so you can afford it. No sense in complaining about it.
