On February 6, 2006, I made the final debt reduction payment and finished paying off all of my debt.  Since then, I’ve been living debt free.

I do not make monthly payments to creditors.

I do not pay interest to credit card companies.

I am free to do what I want to do, when I want to do it, with my money.  Life is good.

I loathe the thought of paying interest.  I spent 15 years of my life paying interest - on cars, trucks, furniture, appliances, clothes, food, and dozens of other silly things.  Now, however, if I don’t have the money to pay for an item, well, I just don’t buy that item.  I have to wait until I can actually afford it and then I buy it, with cash.

(This is a novel concept, I realize, and one that has been soundly rejected by both our federal government and both major political parties, but I digress.)

Do you want to save some real money?  Then, get out of debt (especially credit card debt), learn to live debt free (with a long-term plan for remaining debt free), and stop borrowing money (and paying interest).

Now, there are those who will reject my idea of paying cash and they will extol the virtues of credit cards, with low interest rates, and the power of using other people’s money.  Hey, I’m cool.  If others want to borrow money, that’s fine by me, but I don’t want to use other people’s money, I want to use my own.  And yes, I am aware of the thirty-day float afforded to those who use credit cards… and the five percent back that you can get with each transaction… and the security features.  I still don’t like them, I don’t want to use them, and I’m convinced that most people spend more when using a credit card than they would if they had to live on a cash only budget (with no wiggle-room for going over).  I am very open to the idea that I am wrong, and I know that many of my personal finance blogging brothers and sisters love their credit cards, but I’m just not going to use them.  (Not to belabor the point, but let me say this.  With credit cards, I was in debt, I was paying interest, I lived month-to-month, and I was fiscally irresponsible.  Without them, I’m debt free, I’m funding 5 retirement accounts, 3 education savings accounts, and I have six months’ worth of expenses saved in the bank.  I think I’ll stick with what’s working for me.)

If, however, you must use a credit card, please, pay if off in full at the end of each month.  Credit card interest rates can be very high and credit card companies are constantly looking for ways to improve their bottom lines.  Be careful.  Make your payments on time, always open notice letters from your creditors, and keep tabs on your interest rates.  Credit card companies are constantly changing their policies and procedures!

If you click any of the links in this article, you will be directed to other articles about how I got out of debt and how I live debt free.

Click here to view all of the articles in the Top 10 Ways To Save Money series.  Rock on.

• 7 Comments

I am not going to start this post with the words “Due to the recent economic downturn…”

I am not going to start this post with the words “Due to the recent economic downturn…”

I am not going to start this post with the words “Due to the recent economic downturn…”

I have already written about my financial priorities and my annual goals - and now I think I’m ready to put together a comprehensive plan for the next decade (or two).  Thinking about the future, I couldn’t help buy wonder -

How Far Out Are You Planning?  Are you thinking about future, or are you just trying to get through the month?  I’d love for you to vote in the poll - and leave a comment, explaining your vote.

By the way, when I say “planning” - I mean - “thinking about, running the numbers”.  In other words, do you have a vision for the future and a real plan to get there?

Edit:  To clarify - If you are planning for 5 years out, then I’ll assume that you are ALSO planning for next month and next year.  What I’d like to know is, how far out do your plans go, at their maximum.  For the purposes of the poll, let’s assume that, if you are thinking long-term, you are also thinking short-term.

Thanks so much for participating.

If you are viewing this via Email or RSS, you’ll need to click through to vote.

• 13 Comments

The other night, as I was flipping through channels, I stumbled upon this segment from ESPN’s E:60.  Take 15 minutes out of your busy day and watch this video.  I promise you: You will be very, very glad that you did.

DJ Gregory’s story really inspires me. It’s amazing what can be accomplished through determination and hard work. Each time you find yourself struggling to reduce your debts, remember this video - and walk on! DJ, you rock!

• 5 Comments

Normally, I write about wight loss topics over at my fitness blog, No. Calories Needed, but today’s resources straddle the line between frugality and fitness, so I thought I would share them here, where they will find a larger audience.  (Just reading the run-on-sentence that I just wrote burned five extra calories!)

3 Free Weight Loss Podcasts That Really Rock - And Keep Me Motivated

(New to the world of podcasting?  Read my article - How To Listen To A Podcast - and introduce yourself to a world of free, on-demand, audio or video.)

Get Fit Pod - The producer, Skip, has broken fitness down into five, easy-to-understand, elements - Diet, Exercise, Knowledge, Music, and Journaling.  Each podcast focus on one of these five elements.  Skip is in the second year of getting fit.  I just love this ‘cast.

Yell At Your Fat - A relatively new podcast, with only five episodes, I’m already a big fan.  Wendy is hilarious, she has an awesome laugh, she makes up songs that rock, and she knows a lot about losing weight.  Do yourself a huge favor - subscribe to this podcast.

The Livin La Vida Low-Carb Show - While I’m not technically following a low-car diet, I am avoiding sugars and starches.  Jimmy has been podcasting for years, but I only just recently found his podcast.  I especially enjoy the archives, where he talks about his own weight loss journey.

2 Videos That Rock -One Is About Running, The Other Is Just For Fun

I really like this video, produced by the folks over at realbuzz, about proper running technique.  I began using this technique last week - and I’m already increasing my running distance by 50%!  Plus, dude has a cool accent.

The next video has nothing to do with fitness or weight loss - except for the fact that when I saw this video, I really, really dug the music in it, produced by Ronald Jenkees, and now I listen to his music during every workout.  Check out the video, and then head over to Amazon Ronald Jenkeesand purchase some of his music.  It rocks!  (Check your speakers before pressing play.  Also, Ronald has a unique look, and outlook, and I just think his music is very cool!)

• 6 Comments

From my other sites -

No. Calories Needed - Guess who has lost 14 pounds?!?

99 Changes - Change 21: Time To Wake Up!

No Credit Needed Network - Chart Updates Aplenty.

From around the web -

Green Pastures - Hosts This Week’s Carnival of Debt Reduction

The Digerati Life - Hosts This Week’s Carnival of Personal Finance

Frugal Dad - Remember To Check Your Statements

The Simple Dollar - 25 Best Actions For Saving Money

Paid Twice - Why We Have An Emergency Fund

About the Midnight Meanderings -

The Midnight Meanderings are published two or three times a month and highlight articles I like from across the web as well as the most recent articles from my other sites.

• 4 Comments