I recently changes my strategy. My problem was I would pay my credit card bills then the next day have it back up to the limit because we were so tight for money. we never got anywhere with the debt. But over the past few months I have been focusing on that cushion. We went so long with having no savings...so when we got a bonus recently it all went to the savings account. Now we don't have to use the credit cards for gas a groceries. If I need money I just take what I need from savings. The money being saved has much more meaning now. And within the next few months, I should be able to see a change in our debt situation.

Oh wow susanmary, that sounds great! I can't wait until I get to that point.

If you're looking for a debt consolidation company, you should check out Clearpoint Financial Solutions. They are the company that we have used and they are a non-profit, which means they do not make a commission off of consolidating our debts, and they are part of the BBB. They have reduced all of our interest charges and we pay them one monthly amount and they disburse it amongst all of our bills for us. We get a statement and actually get to see our balances going down! It is a great idea if you need some help getting yourself into a discipline to pay off debt. They also have counseling services as well. I have a great home based business with a legit company that pays me to use their products, also with the BBB. See my website at http://happy.truewealthathome.com

Aubrey

I have found the best way to obtain that cushion and make ends meet is to establish a good budget and stick to it.

I know exactly what my monthly income is. I know exactly what the regular recurring bills are and I have budgeted the miscellaneous expenses to be in line with my typical monthly expenses. I have stuck to my budget so I am spending less than I make.

I work hard and keep my spending under control so I can stay within my budget. So far it has worked for me and I have been able to keep myself in the black and have been able to have a cushion at the end of each month. This year (since Jan) I have used that cushion to put an additional $1000 towards a consolidation debt that I took on as part of my divorce settlement. It takes discipline but it has worked for me.

I recently read a book by Dave Ramsey, he suggests saving $1000 for an emergency quick, but then making a good budget, paying off your lowest bill, and putting that payment on the next lowest bill, once that is paid off, putting that payment on the next lowest, it's called the Debt Snowball. I am using it now and will be debt free except student loans in June.

This is all good advice for me. I am wondering why you pay the lowest first, wouldn't you pay the least about of money the other way around due to interest rates?

Does anyone know some good websites with debt or financial advice?

Dave Ramsey is excellent. The "Debt Snowball" aproach is wonderful. I know it sounds like you should pay off the debt with the highest interest rate first, but if that balance is high, it can take a long time to get it paid off. If you focus on the debt with the lowest balance and get it paid off, then you can apply that money to the debt with the next lowest balance and so on... The results are faster and you really feel like you're accomplishing something. The "snowball" really picks up momentum after a few months. You'll be surprised at how well this works.

The problem with paying off the highest interest rate first (for me) was that the highest interest rate was a credit card that I paid $100 extra on each month for the past 5 months and finally had to take out a loan with a 7% interest rate to pay it off because the card was HIGHER in balance than 5 months ago. It was eating me alive. In hind site, I could have put that $100 towards medical bills instead and gotten them paid off and rolled it all towards the credit card when I was done. It would be five months later and I would be posting a triumph instead of still being in debt. I would have about $500 to put towards it rather than $100 and it would actually be going down. I cut up the credit card! NEVER again will I get a credit card from them.

We should all focus on staying away from credit cards in general. I haven't used a card in about two years and its hard sometimes, when you buy something it is bought and thats that. Also, you focus on the things you need rather than spending money on stupid shit.

Think of all the times you bought a pair of shoes or something that maybe were $30, but in actuality those shoes probably ended costing a lot more after interest, late fees, and whatever other fees. It sucks and it is stupid.

I now have more than 3000 in credit debt and although most of the things I got I needed, I probably could've survived without the cards even though it would have been a little tougher. However, now I am suffering more because I do it without the cards and I owe on the cards.

Paying off the debt that has the lowest balance on it is a cash flow approach to debt management. When you pay off the debt with the smallest balance first, it opens up that cash to apply to other debts.

My ex wife tried to use the interest rate approach to debt management ... that is how she buried herself in debt up to her eyeballs. Cash flow management is a better approach.

Automatic Millionaire by David Bach is a great book. It really opens your eyes to what is possible. He probably has a website too. Everything you need to learn is in there.