As I have stated in other posts, I had my “Come to Jesus” meeting in July and decided to finally get out of debt once and for all. How the DW & I have been accomplishing this was by making a budget and sticking to it without fail. It was the only way we could get a handle on where the money was going every paycheck. I made a simple Excel spreadsheet, listing all our monthly obligations (rent, all utilities, car payment, insurance) and debts, including collections. I have been able to pay off 4 loans since July and two collections so far, and it gets better each pay period.
I’ve shared this template with several people on this board (If you would like a copy, just send me a PM and let me to where to email it). If you’ve used my template, post your success stories in this thread- I’d love to hear if it has helped anyone else get their finances under control while rebuilding their credit!
Before I made my budget I was always robbing Peter to pay Paul, always more month than money. I started this budget in July and it’s the best thing I ever did. Not only have I been able to get my finances under control, but I can see just how much money I have left over every paycheck.
My strategy was not to start on credit card debt immediately, but to pay off the things that would increase my cash flow first. I paid off 3 title loans within two months that freed up $260 every paycheck. I then applied that $260 to the next debt I wanted to pay off. In two weeks I should have another debt paid off that will give me another extra $97/paycheck. So that will be $720/month that I will now have to throw towards paying down the next debt. Knock on wood I should be completely debt free (except for the car & student loans) by June 2019!