Debtors Anonymous?

Alright, so I know money problems tend to be one of the more taboo subjects to talk about, but does anyone have experience with Debtors Anonymous, debt counselors or financial planners?

I'm watching True Life "I'm a compulsive shopper" right now...I'm not nearly as bad as these kids on here, but I know I need help reigning it in and getting life on a budget figured out before ... well, many things (it gets too out of hand, I share a budget with an SO, that kind of thing).

So I'm looking for thoughts on DA/financial planners, as well as general advice/tips and tricks that you wise folks might have to share...

 

Put the credit cards away, and keep them away. That's what I've been doing for the last few months.

I'm not in good shape. I'm making decent coin and paying off my debts all right, but because of medical bills, previously high living expenses and frivolous spending, I've had to cut back a lot. I do everything I possibly can do to save as much money, but cutting the credit cards out of my life -- unless they're essential -- was the best thing I did.

 

Learn to cook. Learn to buy your own groceries. Learn to comparison shop.

Consolidate trips so you don't waste gas.

And Mike's right about credit cards. Only keep one for an emergency. And no, buying a 42-inch plasma TV doesn't count as an emergency. An emergency is if your car gets smashed up and it costs $1,300 of money you don't have to fix it on the spot.

 

Make a monthly budget broken into two segments -- one for each check of the month. Figure out what bills you need to pay in the first half of the month and what bills you need to pay in the second half, and if there's any room for savings, figure that in as well. Then, on the two paydays each month, first thing you do is write your checks for all the bills and put those withdrawals in the check register. At that point, what you have left is your spending/savings money for that pay period.

Also, as mentioned previously, use your credit cards judiciously. I only use my credit card about an average of once a month, but still, those expenditures tend to be relatively expensive. Just make sure you don't use your credit card for everyday stuff. If you need it as dispoable income, you're living beyond your means and it will get out of hand quickly.

 

Pallister's advice is good except for one thing.

You ALWAYS pay yourself. Even if it's only ten dollars out of your paycheck, you put something in savings each and every paycheck. Pay it just like any other bill, actually deposit a check into your savings account if you must.

But always, ALWAYS set aside a little something for savings.

 

I agree, to an extent.

If you're in over your head, get to where you're afloat first. THEN pay yourself first and always.

 

I mentioned that what's left is spending money/savings. Nowadays, I always put away a percentage of my monthly pay, but there have been times when, after paying bills, I had maybe $50 left until the next paycheck. I at least needed to have access to some money for food/gas/incidentals if they came up before I got paid again.

 

Another thing that helps is to call utilities and such and ask if you can get put on their budget plan. That way, you'll have the same payment every month, which makes budgeting easier, and you won't get caught unable to pay a $200 electric bill in the summer or $200 gas bill in the winter.

 

I think if/when my grandmother dies, my family might ditch the home phone entirely. We're on a plan where we have to pay for each phone call we make on the home phone as of now.

If I lived on my own, I wouldn't get a land line. Then again, I probably also wouldn't get cable or anything similar. I'd be royally fucked when Feb. 17, 2009 hits and all I've got are rabbit ears.

 

Agreed. That's exactly the "afloat" I was talking about.

 

My priorities are, in order: Rent/utilities/bills, gas, groceries, savings/spending money. That's how I'll be for a long while. Any extra money I've got, goes toward my debts for now.