I think deep down inside, most of us know that credit is not the ideal way to purchase things.  However, we revert back to children sometimes, and we want things NOW, and so we use credit.  Many financial experts will agree – the only way to financial peace is to alleviate all credit from our lives.  What?!? (in my best minion voice;)).  It is possible folks, not easy, but possible.  I know there are those who tell you that in order to make big purchases, like a car or home, you have to have established credit.  Well Dave Ramsey tells us there are ways around that – you can check out his explanation on that because he is way smarter than I am!!

So, how do we “destroy” debt?  The first step – stop creating debt.  Get rid of the cards in your wallet.  Not very many people have the kind of will-power it takes to not use them if they are there.  If you are brave, and seriously ready for a change in your financial story – cut them up.  If that terrifies you – freeze them in a LARGE block of ice.  Whichever you choose – DO. NOT. CARRY. THEM.

The second step is intentionally working to pay off the debt.  Everyone knows that “minimum payments” are just there to keep us hooked in.  If we only make minimum payments, we could be paying on this debt forever, and in the end paying hundreds or thousands of dollars more than what we actually spent. 

Dave’s method is called a debt snowball and it looks something like this.

Many of us would probably try to tackle the debt with the highest interest rate.  Which, would make sense. But, Dave appeals to our need of instant gratification and satisfaction by suggesting we start with the smallest debt and work our way up to the largest one.  This way we are able to actually see, and feel, the progress.  The snowball effect happens when we take the amount we were paying on the original debt (after it is paid off) and adding it to the amount of the next debt payment.  

As we work through this process, we chose to pay the minimum on everything except debt A, and then paying as much as our budget would allow on debt A, to make paying that off easier.  Also, during this process you can dump whatever “extra” money you might have left over at the end of the month because of your mad budgeting skills – into debt A to help pay it off quicker.

Remember – we are working to DESTROY the debt.  

The third  step should be common sense, but I must admit we fell victim.  Once you destroy the debt – don’t get more debt.  In order for all of this to work, you must change your habits along with your bottom line.  

This is a tough one for most – so extra blessings to you!!

I have tried several times, with great intentions, to clip coupons.  And, every. single. time. I have failed (whichs means I quit). Mostly because I’m too lazy, but partially because I really want instant gratification – I want to save $100 my first time out – and I just don’t think it works that way.  Or, at least, it’s never worked that way for me.

Maybe you coupon, and maybe it’s the greatest thing for you, and to that I say bravo!!  You go girl!!  But for me, I just can’t seem to make it worth my effort.  I’m sure, as the experts will tell you, if I were to work at it for a time it would pay off.  Any experienced couponer – whether big or small – will tell you it takes time.  And folks, I’ve told you I am not a patient person.  

Also, I don’t buy name brands for the most part.  I have always bought generic or off brand when I can, so there’s that.  

For my family I find that shopping for groceries takes quite a bit of time anyway, without coupons.  🙂  We (yes, we – my sweet hubby almost always goes with me) make a morning of it and hit three stores in one area – Aldi, Sams, and Walmart.

There are four men/boys in my family who must have meat, and lots of it – so we shop at Sams for that and a few other breakfast and lunch convenience items.  I know I could probably save a bit on some of those things by making them myself and I am working towards that :).

If you have an Aldi in your area and you haven’t tried it out before – GO!!  I steered clear of it for years, because it was small, there was hardly anyone ever there, and you have to pay a quarter for your cart and bag your own groceries!!  Well, I am now an Aldi convert.  I LOVE this place!!  

If you refuse to buy off-brand than Aldi may not be for you, but I can tell you that just because the label is different means nothing.  Many of their products are manufactured in the same factory as the name brand stuff, and just labeled differently for Aldi.  I am shocked every time I go there – even still and I have been shopping there for over three years – when the cashier gives me my total.  What would have cost me $200+ at Walmart or any other discount grocer, even with coupons, cost me $100 or less at Aldi!!  No joke, every time!!

I shop Walmart last, because there are a couple of things that I am still a brand snob about, and a few things that I can’t find at Aldi.  

I do need to clarify that I love coupons I receive for some of my favorite clothing, shoe, or department stores – those I most definitely use!!

I am not saying couponing is bad, I’m just saying I’m not any good at it :).  If you are interested in couponing, Ruth has a wonderful step-by-step guide on how to get started and do it right.

Anybody else out there love Aldi??!!??