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Here's how we eliminated $31000 of our debt in the last year.

Starting debts: numbers are approx.
16900 LOC
1000 credit card
2000 student loan
10000 truck loan
10800 van loan

First thing I did was put our enmax bill (natural gas) on fixed rate. Now I know I won't go above $350 a month, and much lower in the summer. I budget 350 for it each moth. Extra goes into savings. The bill before fluctuated between 180 and nearly 700 a month.

Next I went down to $1000 emergency fund. We had 5000 in our savings, but 40000 in debt. Stupid.

Next food and variable spending had to be put under control. Once a month eating out. No extra spending money unless we sold something. And groceries, paper products, health, beauty and cat was done with 120 per week for a family of three. No more steaks or ribs around this place!

Next every expense was sliced, things were cancelled, dh phone bill cut in half. If it wasn't in the budget, it wasn't gonna happen. I tracked every dollar. No unauthorized debit purchases. I make do with what I have. Make food from scratch. No impulse buys. Infact I've only been in a mall 5 times this last year- no joke my dd3 asked what it was when we drove by a few weeks ago.

I have an overly detailed way to track money with a yearly calendar and 3 notebooks. I check my account at least once a day. Perhaps a bit over the top.

DH took a few months of whining to come around. But then he realized what I was doing when I paid off the truck in April with the tax return and some employee shares we cashed in. Now he tells people about Dave Ramsey and is excited to buy a travel trailer in cash!

So by May LOC, visa and truck were paid. Combination of savings, tax return and shares. Literally every extra dollar went to debt.

After this we loosened up and upped food to 200 a week and just piled up money. DH got on board and did extra work/sold stuff for spending money.

I calculated that we only used %61 of our take home money on expenses. So all the rest went to savings and debt repayment.

I paid my student loan in November. I could have paid the van loan this year but I wanted to make a lump sum contribution to RRSPs instead. So far I have 3000 saved to pay the truck, I'm waiting for march for the next tax return just incase Murphy comes knocking at my door.

So nothing special but a loathing for my debt and a husband willing to let me dictate finances.
 

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I have an overly detailed way to track money with a yearly calendar and 3 notebooks. I check my account at least once a day. Perhaps a bit over the top.
So...tell us your secret. Do you use a computer program?...If so, which one? I need to learn your ways because you sound like you've become quite wise! :D
 
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You did great:)
 
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Excellent! This is a wonderful, inspiring story! That's a huge amount of debt to pay off in such a short time! Color me impressed! :clap:
 
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Congratulations!:hurray: You are incredible! Great job!
 
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This is such an imspiration! I racked up $24K in cc debt. stupid me. outta control. But I can pay it back - it's just going to take discipline. and random inspirational reads like yours.

Thanks so much for posting this. You did absolutely great.



Cheers!
 

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I don't use any computer programs. I tried mint, but I didn't like it. I use plain old pen and paper. I have an iPad only....can you use excel on and iPad?? Cause I might like excel.
 

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Awesome! Thank you for sharing. :)
 

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I agree - thank you for breaking it down and sharing with us :)

I too like the simplistic but tried and true method of pen and paper. :thumb:
 

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Awesome Nadders we did the same. House is paid. Home equity is down from the original $50,000 to $13,600.
I am a paper and pencil person too. I have budgets from 2009-2012 to reference. We own our cars and DH also must do side jobs for spend money.
I track the accts and check daily also so if your over the top...lol.
I also keep a sheet of paper over the computer w/ exact totals and change it every 2 weeks (pere pay period) as totals fall. We started at $176,000 and are now at $38,000!
Great going.
 

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Congratulations! Thanks for sharing.
 

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First off: Wow, just wow. I'm very impressed and thank you for sharing.

I don't use any computer programs. I tried mint, but I didn't like it. I use plain old pen and paper. I have an iPad only....can you use excel on and iPad?? Cause I might like excel.
You may want to give google docs a whirl and see if it works on the iPad. I believe it should. The actual document will be online, so not sure if that is of interest for you (you can protect the docs, though).
 
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Way to go! Thank you for sharing your inspirational story with all of us and for explaining how you did it. You were very dedicated at eliminating your debt.
 
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