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Group Blog Post: Debt Reduction


3:24 pm
January 4, 2011

Freddie @ Invest With Passion


posts 204

Hello Yakezie,

I am doing a blog post on getting your financial house in order, but wanted to do something different. The idea is to incorporate the Yakezie family into the blog post. Here is what I am asking.

I will ask a question and you post a paragraph or two max answer below in the thread. At the end of your paragraph, include a byline about your blog and the html text for the link back to your site. Here is the format for the html link and an example.


Freddie Taylor blogs at about <href="">keyword phrase</a> and other personal financial matters.



What's the best way(s) for people to reduce their debt in 2011?

Newest Blog: How To Save Money & More

Or view my real estate investing community today and join the conversation.

5:37 pm
January 4, 2011

Jaymus (RealizedReturns)


posts 86

Post edited 5:37 pm – January 4, 2011 by Jaymus (RealizedReturns)

Cutting down your debt always amounts to simply controlling spending and steering your money towards debt repayment first and foremost.  Making the minimum payments isn’t enough.  It isn’t always easy, but once you start paying down the debt with large payments, you will be amazed at how fast it will start to erode.  For those with multiple high-interest debts (such as credit card balances), debt consolidation can be a good option (just be careful and do your research).

Jaymus blogs at about <a href="">Canadian personal finance</a> topics including working, investing, saving, and even spending.

5:42 pm
January 4, 2011

Budgeting in the Fun Stuff


posts 3048

In my opinion, the best way to reduce debt at any time is to overpay it automatically via a bank account.  Automation reduces the chance that you will "accidentally" spend the money before signing it over to debt repayment.  It also makes repayment significantly less stressful since you aren't personally having to write the check every month.  It's amazing how fast real progress can be made without even having to think about it!

Crystal runs <a href="">Budgeting in the Fun Stuff</a> and covers spending, savings, and the fun stuff along the way.

Thanks Freddie!!!


Yakezie Member Site: 

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6:47 pm
January 4, 2011



posts 727

The most important thing anyone can do to get out of debt is to stop using it.  If you continue to use debt, it will never go away.   It is possible to us a credit card to pay your bills and still get out of debt, but only if you pay it off every month without fail.   Anything else, and you are just digging a deeper hole.

Jason runs <a href="">Live Real, Now</a>, a blog about spending and saving in the real world.

7:51 pm
January 4, 2011

Cents To Save


posts 435

Getting your "financial house"  in order requires a strong framework.  Setting up a reasonable, well thought out budget is the first step in securing your "financial house".  After you have written, rewritten your budget about a jazillion times, you can start to automate your budget.  Set up weekly, biweekly or monthly withdrawals to cover expenses that you know are going to occur.  For instance, Christmas can be a huge budget buster.  Decide what you will realistically spend for Christmas and then calculate the proper amount to deduct each pay-period. Send it to an online bank, because out of sight is out of mind! If you have a significant other, work with them as a team to strengthen your "financial house". 


Lisa blogs at <a href="">Cents To Save</a>, a blog about saving, budgeting and other issues that can affect your finances. where "Saving Money is Enjoyable"! (Yakezie Member Site)

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8:37 pm
January 4, 2011

Kay Lynn Akers

San Diego


posts 904

The best way to reduce debt this year is a two step process.  First step is to stop accruing new debt.  You are never going to make progress if you keep adding to the total.

Next, list all debts and figure out the priority in paying them (highest interest rate, lowest amount to highest, etc.).  Pay the minimum on all but the first priority debt and pay all excess income towards it until it is paid off.  Repeat the process until you are debt- free!


Kay Lynn Akers blogs at <a href="">Bucksome Boomer</a> about life and money on the way to retirement.

Visit me at Weight Chronicles

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4:04 am
January 5, 2011



posts 1298

There are two ways to reduce debt. (1) Learn to live more frugally – cut the budget (if you haven't made one, then it's time!) and force yourself to put money towards the debt. (2) Make more money – I am currently building revenue through my website, and any money created through this avenue goes directly to our debt.


If you have more than one debtor, make sure to incorporate the debt snowball. Start with the highest interest, lowest balance and pay it off. Once paid off, put that money toward the next debt, etc etc. After that debt snowball gets moving, your debt will disappear in a hurry!


Derek blogs at <a href="">Life And My Finances</a> and writes about getting out of debt, saving money, and creating wealth.

Derek @ Life And My Finances 




4:49 am
January 5, 2011



posts 664

Post edited 4:50 am – January 5, 2011 by Jackie

The most important step to successfully reducing your debt is committing to doing so. You have to change your habit — the habit of looking toward debt as a solution when you come up short of money or want something immediately. Instead, you need to look at things with an attitude of "OK, how can I make the extra money to do that?" (if it's really necessary) or an attitude of "Yes, I want that, but I want to be debt-free <i>even more</i>". You will be tested, too, but once you get past the tests (a mini emergency or a forgotten item popping up) you'll find that getting out of debt becomes more of a fun challenge than something you dread. And the days you pay off your first and last debts will be amazing.


Jackie writes about life, money, and goals at <a href="">MoneyCrush</a>, and is the creator of a debt snowball app called Pay Off Debt.

MoneyCrush (Member Blog) • @moneycrush • Facebook

6:04 am
January 5, 2011

Frugal Confessions

Houston, TX


posts 1622

Committing a percentage of your budget towards paying off debt is really key, but it's not very exciting. A great way to kick it up a notch is by throwing any extra money you receive for the next year towards your debt repayment. Think about all of the times throughout the year when we get an extra $50, $100, or even $1,000 dollars. The trick is to take all of this extra money and put it towards your debt, thus accelerating your payoff. Imagine how much faster your debt would cease to exist if you put a tax return, a bonus, and/or stimulus money towards it on top of the amount you have budgeted for debt repayment each month.


Amanda L. Grossman blogs at <a href="">Frugal Living</a> about living in frugal decadence.

Amanda L Grossman

Frugal Confessions

Frugal Confessions @ the Houston Chronicle


6:21 am
January 5, 2011



posts 3

Debt reduction has only one way to be done: finding extra money to pay down the debt. There are two ways to find that extra money. 1 is to reduce your spending, 2 is to get a higher income. Most of the time, the faster one is reducing spending (stop using that credit card, eliminate take out food, do not spend on new clothes, etc.). Once you chose wich way you are most comfortable with, use that extra money to pay out your debt. But, in order to succeed, you must have a clear, defined goal with an achievement date. Don't just say "I will pay some debt this year". Plan a specific goal such as "By June 30th this year, I will reduce my credit card debt by 40% by paying $250 each month" or "By December 31st this year, I will get rid of my car loan ($15,000) using my two bonuses of $7500 each". Really, the choice is yours, but be as precised as possible.


VeRo participates in <a href="">Green Panda Tree House</a>, a blog about personal finance for the 20's.

7:50 am
January 5, 2011



For those suffering from credit card debt, I think the very first step is to give up those rewards credit cards.  For one, the enticement of cash back is probably encouraging you to use your credit card too much, when you should really be locking it in a drawer and focusing on paying it off.  Additionally, rewards cards typically carry the highest APRs, so you're accumulating unnecessary amounts of interest.  Instead you should switch to a low APR, no annual fee credit card that will minimize the interest you end up paying.  Or if you think you can get your debt paid off in a year or two, consider a 0% introductory APR balance transfer credit card that will allow you to avoid interest altogether for anywhere from 12 to 24 months.  Just make sure you pay it off, otherwise the interest rate will jump much higher after the intro period!


Tim Chen blogs at <a href="">NerdWallet</a>, about consumer debt issues and <a href="">low apr credit card offers</a>.

10:06 am
January 5, 2011

Miss T @ Prairie Eco-Thrifter


posts 2213

There are three ways to start reducing your debt.

1) Cut back. Start recording every transaction that you make; every penny that goes in and out of your account and what it is spent on. Then go through this log and see if there are any areas where you can cut back or cut out. For example, if you eat out a lot, start trying to cook at home more. If you have a gym membership, see if you can work out at home using videos and minimal equipment. Instead of going out with friends to a club or restaurant, invite them over for some games and a visit. 

2) Use the money that you save from cutting back and put it towards your debt, preferably the debt that has the highest interest rate. If you have consolidated your debts, use this money to make additional payments.

3) Find sources of side income. This could simple things like shoveling for neighbours, babysitting for friends, or driving seniors to appointments. Every extra penny you make could go towards paying off your debt. 


Miss T blogs at <href="">Prairie Eco-Thrifter</a> about going green, saving money, getting healthy and yet still having fun. 


PS: Great idea Freddie. What will you think of next?!

Miss T

"Helping you save money, go green, and have fun"

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10:15 am
January 5, 2011

Sustainable PF


posts 2759

Believe it or not you can reduce debt by going "green".  How you ask?  There are many ways you can save money by going green.  By saving more money you can apply these savings to your debt.  Sure, some green initiatives cost a lot of money (like solar panels) but there are many day-to-day activities you can do that cost virtually nothing but will pay off in energy savings.  For instance, switch to CFL lightbulbs – they last 10 times as long as a normal bulb but use way less power, which you pay for.  Call your utility company and have them turn your hot water tank down from 160F to 120F – you don't need to maintain the water that hot, and pay for it.  If your water is billed, when washing your hands turn the water of while lathering up with soap – you will save water and not have to heat more.  Turn your lights off when you exit a room.  Unplug items that use phantom power.  Lower the thermostat on your heat or A/C and dress appropriately.  All these things can save you money each and every year, money that will pay off your debt.

Sustainable PF writes at <a href="">Sustainable Personal Finance</a> which is a blog that he and his wife write while striving to balance their financial goals with their beliefs regarding sustainable living.

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2:15 pm
January 5, 2011

Freddie @ Invest With Passion


posts 204

Debt Reduction really hits a nerve with the Yakezie group! GREAT CONTRIBUTIONS FROM EVERYONE SO FAR, MUCH APPRECIATED!!


This thread is still open, so looking forward to getting some more insights from the Yakezie!!

Newest Blog: How To Save Money & More

Or view my real estate investing community today and join the conversation.

4:39 am
January 6, 2011



posts 198

Post edited 4:41 am – January 6, 2011 by mbhunter

Reducing debt is best accomplished with a combination of two things: spending less money, and making more money.  Spending less money is straightforward: do the little money saving things again like bringing your lunch to work, clipping coupons, buying generic when it makes sense, getting rid of subscription services that don't really provide the value they once did, etc.  Making more money can be through a traditional route like getting a second job or putting in overtime when it's available.  Having said that, though, I'd strongly recommend starting up a side business — something that's your own, ideally something that you really enjoy doing anyway.  Not only can a side business pack a little extra snow on your debt snowball, it can provide a Plan B that can last the rest of your life, and provide an enjoyable, possibly substantial, supplement to your income well into your retirement years after your debts are paid off.

John, aka mbhunter, has blogged at <a href="">Mighty Bargain Hunter</a> since 2005.  He also maintaints the long-running <a href="">Carnival of Debt Reduction</a>.


(Note:  I included the second link because it was on-topic for the question.  You're more than welcome to remove if you want only one link per blogger.)

Mighty Bargain Hunter — blogging on personal finance since 2005

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2:12 pm
January 7, 2011

Suba @ Wealth Informatics


posts 1876

In my opinion, reducing debt is more than maths and numbers. It is a mind set. You have to take responsibility, accept that you need to change some of your habits and then commit to do whatever you can to get rid of the debt. Because if there is no change in our mentality or life style we will always end up using debt as a solution for our luxuries-disguised-as-necessities. Once we commit to getting out of debt, then the next step is to find the money – (1) spend less (2) earn more. Start by going through your spending, credit card bills, utility bills, anything you spend money on. This will clear a clear idea on where your money goes and where there is some fat to cut. Keep your necessities and cut all the extra that is not very important to you. And at the end of every month (or even week) apply the money saved immediately to the debt. Take any side job to bring in some extra income to throw at the debt. Start a business, this will provide a steady stream to save even after the debt is gone.

Suba runs <a href="">Wealth
Informatics</a> which strives to provide Information empowering debt reduction,
financial planning, informed consumerism, savvy investing, fun &
frugal living leading to financial freedom.


Great idea Freddie! I would love to steal it :)


PS: I just wrote about this yesterday in my blog – http://www.wealthinformatics.c…..t-of-debt/

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12:34 pm
January 9, 2011

Invest It Wisely


posts 2019

Sustainable PF said:

,,,  Call your utility company and have them turn your hot water tank down from 160F to 120F – you don't need to maintain the water that hot, and pay for it…

A caveat; you don't want the household to get sick:…..index.html

Temperature affects the survival of Legionella, as follows:

  • At 60 °C (140 °F) – Legionella dies instantly – pasteurisation occurs.
  • At 55 °C (131 °F) – 95% die
  • 50 to 55 °C (122 to 131 °F) – Can survive but do not multiply
  • 35 to 46 °C (95 to 115 °F) – Ideal growth range
  • 20 to 50 °C (68 to 122 °F) – Growth range

12:45 pm
January 9, 2011

Invest It Wisely


posts 2019

Tips on debt reduction:

  1. Pay yourself first — pay down debt and contribute to your savings before spending on luxury items. 
  2. Aim to never purchase most items if you cannot pay for it in cash. 
  3. Get into a mindset of deferred consumption — ask yourself not only once, but a few times, if you really need it.
  4. Spend on things that will provide the most value for the buck — don't be cheap, but if spending $5 provides almost as much enjoyment as spending $25, then that's $20 leftover for something else, and thus you'll have more enjoyment overall for the same spending level!
  5. Stop keeping up with the Joneses. Beyond the utility value, much of the money spent goes toward status seeking and recognition. A Ferrari is not 10 times better at getting you from A to B than an Accord even though it costs 10 times more. Get out of the mindset of having to compete and spend more than those around you, and you'll find much more value for your money.

Kevin writes at <a href=""
target="_blank">Invest It Wisely</a> about maximizing your life

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