http://www.destroydebt.com/blogs/debbie.html I'm In Debt www.destroydebt.com Mon, 27 Apr 2009 04:45:45 GMT webmaster@destroydebt.com webmaster@destroydebt.com http://www.destroydebt.com/blogs/debbie/2247-my-credit-limit-got-lowered-below-my-outstanding-balance.html http://www.destroydebt.com/blogs/debbie/2247-my-credit-limit-got-lowered-below-my-outstanding-balance.html Mon, 27 Apr 2009 04:45:45 GMT Almost a year ago now, I moved into a new place.  The new place didn't have a refrigerator, washing machine, or dishwasher.  These are three appliances that I consider must-have, and since my money was tied up in first and last month's rent, and a security deposit -  I didn't have $15...
I decided to put the appliances on a credit card, despite my desire to be credit card and debt free - there just wasn't time to save money, we needed a refrigerator to keep our food cold.  The other appliances could have waited, but I felt I got a reasonably good deal with a 0% interest promotion from the retailer where I bought the appliances and that even if I wasn't able to pay them off in full before the promotion ran out, at least for six months my payments would be paying down the principle and I could make a big dent in it before the interest kicked in.

I set up the automatic payments through the website of my credit card account, so that my payments would be deducted from my checking account each month before the due date.  That way I wouldn't forget it, and I would never have a late payment.  A late payment would negate the 0% interest promotion and I would receive a higher interest rate if I made a single payment late.

Due to the changes and fluctuations in a billing cycle that is "20 to 25 days" in length (variable apparently, based on the credit company's mood that particular month) within a few months, the date I had scheduled my automatic payments to be withdrawn was suddenly AFTER the due date instead of ON the due date. 

Suddenly, my 0% offer was withdrawn and the interest rate was increased to 22%.  Ouch.

I called and emailed the customer service department to try and find out how the payment could be late when I hadn't made any changes to the automatic payments; and that was when I learned the billing cycle can fluctuate between 20 and 25 days, and that the bill wouldn't be due the same day every month.  They were not willing to make any exceptions to re-instate the 0% interest after I explained I was paying my account with automatic payments and didn't realize the due date would change - since after all, this information could be found on page 18, subsection 24c-2 in the terms and agreement document.  (Ok, so I'm making the page number and subsection up but you get the point).

A month later, after manually making my payment on time (and paying interest and finance fees, I might add) I discover an "over-the-limit" fee on my statement for $39.  I figured it must be a mistake, since I hadn't used the card since buying my 3 appliances. 

But no, it's no mistake.  The credit limit of the card was decreased to below the amount I had ALREADY SPENT, meaning I was over my available credit limit.  This seems low, even for a credit card company!!  How is it possible that they can charge me a fee for spending money they gave me to spend 5 months ago, only to laugh and say "just kidding!" and charge me a fee for using it later?!

After emailing and calling customer service again, I'm told I should have received a letter after the limit was lowered to explain it was a result of new data in my credit report. (I got no such letter, but even if I had gotten it AFTER THE MONEY WAS SPENT there is nothing I could have done anyway).  I explained the letter wasn't really important, since the credit card balance was already on the card when they decided to lower the credit limit to below what I had already used.  The customer service representative said it was fully in their rights to do so, said she'd send me a letter and ended the call.  The email response was about the same.

I did get a letter in the mail.  It basically said that because a payment had been made late on the credit card that they re-evaluated my credit risk and determined they could no longer afford to lend me as much as they had offered originally.

Resigned to not being able to do anything about what seems completely unfair and unreasonable to me, I just started making as many payments as I could to get the balance paid off.  Funny thing, every other month or so, the credit limit is lowered again (but at least not to less than the outstanding balance on the card again).

Talk about motivation for living a 100% debt-free, credit-free lifestyle.]]> http://www.destroydebt.com/blogs/debbie/2181-good-til-the-last-drop-use-it-before-you-throw-it-in-the-trash.html http://www.destroydebt.com/blogs/debbie/2181-good-til-the-last-drop-use-it-before-you-throw-it-in-the-trash.html Fri, 10 Apr 2009 06:05:22 GMT With all the talk about reducing expenses during some difficult financial times, people are finding pretty clever ways to cut back or save money. What about all the times we throw a container in the trash when we know there is a little something left inside? It may seem like that little bit o...
Here are some tips for getting “the last drop” of some common household items:

Toothpaste: Once the tube is just about empty and you can no longer squeeze enough out to brush with, use a $3 toothpaste squeezer (available at most pharmacies or Walmart) or cut the tube in half with a pair of scissors. You'll be able to squeeze it out where you cut.

Moisturizers/Hand creams: if you buy the kind in tubes (similar to toothpaste) you can cut it in half like you would toothpaste to get the last of it out. If you have a pump container, remove the pump (use the moisturizer that will stick to the pump itself) and use a cotton swap/q-tip to pull out the rest.

Shampoos and conditioners: just before you're ready to toss in the garbage, add a little water and shake it up. You can usually get one or two more washes out of the bottles when you add a little water to pull it off the insides of the bottles.

Hand soap in plastic bottle and laundry detergents: Add a small amount of water and shake to loosen from the bottle. Alternatively, you can poke a small hole in the bottom corner of the plastic container, leave the top off the top, and let the soap drain into a bowl.

Lipstick: Use a chopstick to pull out the remaining lipstick product once the tube seems empty. Transfer the lipstick from the chopstick into a small jar with a lid, and use a lip brush to apply the color. You can also mix different shades of lipstick to create a unique color with this method.

Mayonnaise or peanut butter jars: go to the dollar store and get a set of spatulas in all different sizes. You'll have one that fits into the mouth of all different sizes of jars and can pull out the remaining food before throwing in the garbage. Scoop into a small re-usable container until you want to use it again.

Tomato paste and similar thick, canned foods: Use a can opener to remove both ends of the can and push one end through to the other side – the remaining tomato paste or thick food will be pushed through with the lid.

Honey or molasses: Put the jar into a hot-water bath to make the inside more liquid, and it will just pour out. You can also put the container in the microwave for a few seconds if it isn't metal.

Olive oil: Create a salad dressing right in the bottle by adding ingredients like vinegar and herbs and shaking well, or warm it like you would honey or molasses.]]> http://www.destroydebt.com/blogs/debbie/1564-balanced-money-formula-according-to-elizabeth-warren-and-amelia-tyagi.html http://www.destroydebt.com/blogs/debbie/1564-balanced-money-formula-according-to-elizabeth-warren-and-amelia-tyagi.html Fri, 03 Apr 2009 03:41:14 GMT In their book, All Your Worth: The Ultimate Lifetime Money Plan, Elizabeth Warren and Amelia Tyagi discuss an alternative to a traditional budget. Many people have trouble creating and sticking to a budget, so having an alternative method of tracking your finances and getting yourself on track... All Your Worth: The Ultimate Lifetime Money Plan, Elizabeth Warren and Amelia Tyagi discuss an alternative to a traditional budget. Many people have trouble creating and sticking to a budget, so having an alternative method of tracking your finances and getting yourself on track is useful.

The Balanced Money Formula

The authors call their alternative method the “balanced money formula”, which includes percentages for NEEDS, SAVINGS, and WANTS. It's based on your income after taxes (net income) and that ideally you would spend no more than 50% of your paycheck on your NEEDS – with a goal of keeping all necessities under 35% of your net income. Whatever money is left after you accomplish this, at least 20% of it should be devoted to SAVING, and 30% is spent on WANTS.

Here’s what it looks like:


So in a budget, you would have many, many categories of every time of spending, every credit card account, every necessity, want, savings plan. With the “balanced money formula” you have just three categories to keep track of. Instead of tracking it down to the last penny, you have percentages of your income to worry about. It's like the “big picture” instead of the penny-watching method that most budgets rely on.

In the balanced money formula, your needs would be things you must pay no matter what happens – your housing and food, utilities, insurance and cost to commute to and from work.

Your wants are everything that isn't saving or needs – cable television, clothes that are beyond the basic need of a few outfits to cover yourself, restaurant and take out meals, entertainment, new furniture when you have usable furniture, etc.

Savings is everything you put into your deposit accounts, retirement, or investments.

Warren and Tyagi write:

When your money is in balance, you always have enough to pay your bills, have some fun, and save for your dreams. And here is the best part of all. Once your money is in balance, you can stop worrying about it. Managing your money becomes automatic.

The authors of this book are more interested in changing behaviors that lead to financial problems, and in fixing the big stuff than they are in knowing where every last penny is spent. They also are firm believers that you must have time and money to enjoy life while you're getting finances in order – hence the formula that includes 30% of your net income for entertainment and wants.

If you've tried budgets and they don't work, maybe take this book out of the library and see if you can benefit from an alternative method instead.]]> http://www.destroydebt.com/blogs/debbie/930-the-part-time-job-method-of-increasing-your-income.html http://www.destroydebt.com/blogs/debbie/930-the-part-time-job-method-of-increasing-your-income.html Fri, 27 Mar 2009 06:19:55 GMT Getting out of debt requires that you learn to reduce your expenses in order to have more money available to put toward your debts, or that you find a way to increase your income and use the extra money to pay down debt. If you are someone who has considerable amounts of debts, it's likely you'...
It's no secret by now that I'm a believer in doing freelance work from home as a means of increasing your income – whether you write articles for clients or start a blog, design websites, or provide other services, I feel there is a lot of money to be made through freelance jobs. I started out getting paid to write, working part time around my full time job; and shortly after decided to make writing my full time career. I just realized that I could earn far more working from home by eliminating unnecessary expenses of commuting to and from work.

For people who don't feel they can manage their own business, or who don't feel they have any marketable skills that could help them earn income on a freelance basis - maybe getting a part time job is a better method for you to increase your income.

Before you start applying for jobs, sit down and work out your budget (again). Figure out how much you are currently earning per month, and how much you currently pay out in debt repayments and living expenses. If there are areas you can still cut back and reduce your expenses, then do so. (Common areas for cutting back include canceling cable tv,  learning to waste less to spend less,  spending less on groceries,  or reducing your utility bills)

Once you know where you're at financially, determine how you will pay off your bills, if you are able to increase your income. For example, will you pay off your highest interest account first or your lowest balance? Regardless of the method you choose, make yourself a plan so you know exactly what to do with additional income you earn from a part time job. If you don't plan it out, chances are you will just absorb the income from your part time job into your regular spending habits and it won't help you get out of debt any faster.

Once you've got a plan in place, start looking for part time work. You want to find employment that doesn't end up costing you more money than you make. For example, if you have to drive an hour to get to your part time job after your full time job ends, the additional gas money and wear and tear on your vehicle, plus the extra time spend in the car, actually reduces the amount you earn. So look for work that is either near your current job, or on the way home from it rather than off in some other direction if possible.

Apply to several places – despite a weakened economy there are many part time jobs available. You will probably have to accept a job doing something you may not feel is the best use of your abilities or skills, but keep in mind you're doing it temporarily for extra income to get out of debt. Once out of debt, most people make more than enough money to sustain a debt free lifestyle with good money management skills. Retail and fast food services experience high turnover, so chances are you can easily get a job at these types of businesses for minimum wage or slightly above. Some fast food employees earn tips – which can help offset the lower hourly wage.

When you get a part time job, plan to use that income on your debt repayment plan. Be careful not to over-commit yourself. Start with just a few days a week for your part time job, and gradually increase your hours if you're able to.]]> http://www.destroydebt.com/blogs/debbie/492-get-out-of-debt-scams.html http://www.destroydebt.com/blogs/debbie/492-get-out-of-debt-scams.html Fri, 20 Mar 2009 03:01:47 GMT  As an increasing number of people are struggling with their debt, debt management companies, credit counseling companies and debt elimination organizations seem to be coming out of the woodwork. There are a number of companies that exist to help people get out of debt, but unfortunately, many ...

There are a number of tactics that a get out of debt scam might use, but there are a growing number of companies who convince their customers that the money they owe to banks and credit cards is illegal and therefore the customer is not required to pay for it. This scam involves the company having “legal expertise” and the ability to take the customers creditors to court for a quick retraction of the debt since the creditors wouldn't want the information to be “leaked” to the public.




The get out of debt scams are very convincing, and often use bits and pieces of actual laws to help them appear legitimate. There are many variations of this “your debt is illegal” scam going around, and people with all types of debts are being targeted. Whether you have credit cards, mortgages or other types of debt, chances are you may be contacted for such an offer to save your home or get rid of your “illegal debts” without paying for them. Don't fall for this scam – you will still have to pay your debts and you'll be out the money the company running the scam charged you.


There are many legitimate ways to get out of debt. They always require time and discipline, even if you enlist the help of a credit counseling agency or reputable debt management company. If you are serious about getting out of debt, you'll have to put the time and effort into it. If a “get out of debt” company seems too good to be true, it probably is.]]> http://www.destroydebt.com/blogs/debbie/472-debt-snowball-highest-interest-debt-first-or-avalanche.html http://www.destroydebt.com/blogs/debbie/472-debt-snowball-highest-interest-debt-first-or-avalanche.html Fri, 13 Mar 2009 04:05:51 GMT For years I've been all about the debt snowball, the method Dave Ramsey recommends for getting out of debt.  I've used it to reduce just about all of my credit card debt (I say “just about” because when I moved recently I needed to purchase a refrigerator and washing machine, and after paying f...
Debt Snowball

The idea of Dave Ramsey's debt snowball  is that you can get out of debt faster than you would by arbitrarily sending extra payments to some of your debts here and there.  It gives you a repayment schedule that will accelerate your debt pay off.  Each time you pay one of your debts off, the money you had been sending to those debts is then applied to the next account on your list.  It builds momentum and motivation since you generally pay your first account off quickly, and free up extra money to send toward the next debt on the list (your payments get larger with each account you pay off; like a snowball rolling down a hill).

Highest Interest Debt First

On Destroy Debt, there is a Debt Tracker tool that will generate a variation of the snowball plan for you.  In our method, the system will recommend that you pay the highest interest debts first, because while it may take longer to pay off the first debt on your list if your highest interest debt isn't your lowest balance, you will save money over the long term on the amount of interest you pay.  Log into your account (create one if you don't have one, it's free) and click Debt Tracker on the right menu.  Enter your debts with interest rates and balances owed, and you can get a series of reports and charts to show you how long it will take you to pay off debts using the highest-interest-first snowball method of debt repayment.

Debt Avalanche

On ConsumerismCommentary.com, Flexo gives a better way to build a snowball.   He calls it the Debt Avalanche.  I love the image that comes to mind with “avalanche”... think of all that snow crashing down quickly, and who could resist paying off debt in the avalanche manner, right?  

The Debt Avalanche method advocates for establishing an emergency fund first.  You know that ideally you should have several months of living expenses saved in an accessible emergency fund (like a high interest savings account, for example)  But, considering you're reading this because you're trying to get out of debt, I'm thinking it would take a VERY long time to set aside that kind of money and in the meantime, you've lost that time to start focusing on paying off the debts that eat up your income each month.

So if you are going to work on the Debt Avalanche method, I would think setting aside about $1000 or so would be good enough to get started, and you can do this with your tax refund if you receive one, or by setting aside $25 a week (or as much as you can afford).  Flexo then recommends that you negotiate with creditors and of course, commit to avoiding more debt (which should be obvious whenever you are working on paying off debt).  The Avalanche has you paying off debts interest-order first, and using automated methods to pay your bills to ensure everything goes according to schedule!

Regardless of how you decide to pay off your debts, there is one common piece to the puzzle that I think most people forget or avoid:  you have to reduce your living expenses to make it possible to pay more toward your debts.  I write about saving money and living frugally a lot, as do a lot of other bloggers on Destroy Debt, here are some links to help you if you're new to this lifestyle (you might be surprised to find it's easier than you thought and it IS possible to still have a good lifestyle while cutting back expenses!)

Save Money On Groceries
Finding Money to Pay Off Debt Faster
Make Your Own Laundry Soap]]> http://www.destroydebt.com/blogs/debbie/468-coupon-organizer.html http://www.destroydebt.com/blogs/debbie/468-coupon-organizer.html Sat, 07 Mar 2009 02:58:15 GMT I have tried about four different methods for organizing coupons, and while I probably could have made any one of them work it wasn't until I discovered a simple little organizer from Day Runner at Staples the other day that I was finally satisfied!  If you're looking to save money grocery sh... I have tried about four different methods for organizing coupons, and while I probably could have made any one of them work it wasn't until I discovered a simple little organizer from Day Runner at Staples the other day that I was finally satisfied! 

If you're looking to save money grocery shopping, you absolutely need to find a system of organizing your coupons that works for you.  If you don't believe coupons make a difference, check out the details of this experience that shows you really can save money using coupons.

Previously, I had tried the expanding file-folder type, but when I wanted to check the coupons while shopping, I always had a hard time finding the one I wanted because the accordion would literally close up around my hand every time!  Yes, I know.  It shouldn't be such a big deal, but when you're shopping in a hurry and you just want to find your coupon, these little annoyances matter!

I had also tried keeping my coupons organized at home in a full size binder with page protectors.  I liked that I wasn't clipping every coupon, simply pulling out the page from the fliers and sliding it into the page protector, but I didn't like that it created an additional step or two in the coupon process.  Once I filled my page protectors with the coupon fliers, when it came time to make my shopping list and go shopping, I had to pull them back out, cut out the coupons I wanted, slide the rest back in, and then still needed another coupon organizer to use at the store during the shopping trip itself.  

I tried using a plastic file box, designed for 3x5” index cards.  I separated them with index cards that I physically created those little “tabs” on the top to designate my coupon categories (yeah, I guess I have too much time on my hands sometimes).  This was my worst attempt because once you slide your coupons into the plastic box, into the appropriate category, the first time you move the plastic box they all seem to slide out and get mixed up at the bottom (and underneath the index card file tabs I created!)  

So what's the big deal about the Day Runner coupon organizer?  It's so SIMPLE, I can't believe I didn't figure out a way to make it myself!  It's a spiral bound notebook, about 7x4 in size, with sturdy cardboard-like pages.  On each page is a pocket, and on each pocket is the name of the category.  Mine includes categories for your shopping list, receipts, baking, beverages, breakfast and cereals, canned goods, cleaning and laundry, dairy, frozen foods, meats, paper products, pasta and rice, personal care, pet supplies, snacks and candy, and other.

It's the perfect size to slide into my purse so I always have it with me.  The coupons can be clipped and placed into the appropriate pockets and you can quickly see what you have in each category with a few flips of the pages and either pulling out the coupons for the category or just rifling through them with your index finger.  The coupons stay put!

I found my Day Runner coupon organizer at Staples for $7.99, but I have also seen the exact same organizers with different cover images made by other companies online for the same price or less.]]> http://www.destroydebt.com/blogs/debbie/464-what-to-do-during-a-layoff.html http://www.destroydebt.com/blogs/debbie/464-what-to-do-during-a-layoff.html Thu, 26 Feb 2009 02:00:04 GMT Seems everyone I know is getting laid off, afraid of being laid off, or has been affected by a layoff. What would you do if you were laid off from your job? Being laid off temporarily might not be too bad. Sure, the lack of income will not be easy, but it might give you an opportunity to tackle so...
What would you do if you were laid off from your job? Being laid off temporarily might not be too bad. Sure, the lack of income will not be easy, but it might give you an opportunity to tackle some things that you might not otherwise be able to accomplish.  Why not look at it as a blessing in disguise and make the most of the situation?

These things might be something to consider should you find yourself in this predicament. Hopefully you've got a little money set aside in case you should get laid off, or can sustain until your unemployment pay kicks in - otherwise you're going to have to make finding another source of income a priority before you can do anything else.   So, here's what to do if you get laid off:

Take a temporary job. If you are in dire financial straits, you will probably have to take something just to make ends meet. Being humble enough to do almost anything to bring in money will help. There are some businesses which would consider a temporary worker to help them if they are busy enough. Look for those jobs that reward effort. Being a server at a restaurant does just that, but there are others.

Try another career path. If you have always wanted to try a different career, now might be the time to jump-start that dream. As long as you have the knowledge and some background or experience in your interest, you might be able to get started and replace your old career with a new one, or even start your own freelance business.  I'm partial to finding freelance writing jobs, but you can do whatever it is you're good at.

Fix things around the house. There are lots of items on the ‘honey-do’ list that need to be tackled. That leaky roof, broken downspout, rusted fence. Those are the big projects that never get accomplished because you are too busy with work and too tired when you come home from work to start them.

Go on a vacation. Granted, this depends on money, but if you have ever wanted to go on a vacation abroad or nearby and have the money, then why not? As long as it does not affect your retirement account or other long-term savings, then you should consider it. What a great way to take your mind off of your circumstances and take advantage of the time-off from working.

Volunteer your time. If there is a charity that you identify with and are inclined to donate your time, you can help make a difference not only in your community, but around the world. There are plenty of ways and places to affect society for good. Habitat for Humanity, your local church or parish might need some assistance, food pantries, the hospital... so many options and ways to give your time. The best part of performing these deeds is the good feelings that come from knowing you made a difference in someone’s life. Those are memories that will last a lifetime.

A layoff can be a blessing in disguise should you choose to look at it that way.  What's that saying? When life gives you lemons, make lemonade?   One thing is for sure, you will remember your "lay off" time for the rest of your life, and tell your children and grandchildren about this rocky time in U.S history... so make it worth remembering.

* * *
If you've been laid off and you pay child support, this article about the impact of job loss on child support might interest you.]]> http://www.destroydebt.com/blogs/debbie/452-more-grocery-shopping-saving-tips.html http://www.destroydebt.com/blogs/debbie/452-more-grocery-shopping-saving-tips.html Thu, 19 Feb 2009 01:55:14 GMT Did you catch the big experiment?  Grocery Shopping: Before and After is an article in the Budget section of DestroyDebt.com that demonstrates shopping without coupons and sales followed by a trip using coupons and sales.  The savings were a very healthy $40+ for a week's worth of grocerie... Grocery Shopping: Before and After is an article in the Budget section of DestroyDebt.com that demonstrates shopping without coupons and sales followed by a trip using coupons and sales.  The savings were a very healthy $40+ for a week's worth of groceries - but could you increase those savings even more with a few other tips and tricks?

Yeah. You really can.

I was one of those anti-coupon people.  I'd watch my mother flip through the coupons in the Sunday paper and roll my eyes when she'd spend time cutting out something that would save her a whopping 20 cents.  I'd think - "instead of cutting these things out, you could be doing something more productive right now that's worth more than 20 cents!"

Then I grew up, had a family, and a whole lotta bills to pay and I had to figure out how to cut expenses.  The price of food is not cheap! Raising a family is costly!  You know how it goes.  So here are some other tips for saving money grocery shopping that are not difficult and will save you money.  The first few times you try these tips, it may seem like a lot of effort, or that it takes a long time - but like anything else, the more you do it the faster you'll get at it.  Before you know it, you'll have a system in place and it may even improve your grocery list planning and shopping efficiency!

Combine Sales with Coupons-  I used to shop at Walmart for everything, groceries included.  If you buy all the Walmart or Sam's Club brands, you usually end up saving over the price of the same items in name brand versions.  But what I found was I never knew what was on sale until I got to the store (they don't put grocery fliers in the paper); and because Walmart is so much more than a grocery store, I would almost always pick up other stuff at the same time and spend far more than I intended.

I switched to shopping from Price Chopper, which is our big, local grocery store.  It's not a little corner market (stay away from those for your full shopping trip, as much as you want to support small, local businesses their prices are almost always inflated over a big market.  Go there for their sale priced items or to pick up an extra gallon of milk when you forget it at the store instead of doing your weekly shopping there).

Price Chopper puts a sales flier every week with the Sunday paper.  Sometimes they print coupons inside their flier, too.  I don't make a grocery list until I have the flier in hand, because I will literally plan our meals around what's on sale. 

Once you know what's on sale at the store, you can browse the Sunday paper for coupons.  Surprisingly, many of the items that go on sale are the same ones you can clip a coupon for.  My favorites:

Buy One Get One Free offers through the store sales... combined with a coupon to save money off the purchase of one or two of that product.  So if the frozen pizzas cost $5 each and are on a Buy one get one free sale, you are getting 2 pizzas for $5.  Then when you check the coupons and discover a $1 off that brand of frozen pizza, you're getting 2 pizzas for $4.  Wow right?! 

2 For $5 offers through the store, on items that usually cost $3 or more each.... combined with a coupon to save money off the purchase of one or two of that same product.  So with the store sale, you're getting them for $2.50 each, already a decent savings, and then with the coupon to save a few more cents off, you increase your savings.

Buying Less Means More- HEY! Did you know that in most grocery stores, if they say 2 for $5 you don't have to buy 2 items to get the sale price?  So if Oreo cookies are on sale for 2 for $5, you can buy one package at $2.50.  Stores purposely set up sales for multiple items to encourage us to buy more, but you can save more by buying only as much as you need at the discounted prices (and make it even better by using a coupon with the discounted price).

Store Brands Are Not Always Cheapest - Before I became an "expert" on grocery savings (yes, I think I've earned expert status lately with the amount of money I've been learning to save on my grocery shopping!) I used to think you should just grab the store brand of everything you buy and you'll save money.  Surprisingly, this is not always true.  For example, cereal can be purchased in store brand economy bags, right?  So you get more cereal for less money when compared to the brand name version.  However, store brand cereals don't go on sale as often as the name brand cereals, and if you're not paying attention your store brand bag is going to cost you more than buying the brand name on a sale (with or without a coupon).  Watch for Buy one get one free, half price cereal sales, and buy one get one half off.  You can often get more cereal for less money buying brand names on sale and if you happen to have a coupon, you'll really be cooking with gas!]]> http://www.destroydebt.com/blogs/debbie/432-obamas-stimulus-package-passed-what-will-you-do-with-your-400-tax-credit.html http://www.destroydebt.com/blogs/debbie/432-obamas-stimulus-package-passed-what-will-you-do-with-your-400-tax-credit.html Sat, 14 Feb 2009 05:32:13 GMT The house has approved the $787 billion stimulus package (even without Republican support), and the result includes a $400 per-worker tax credit for 2009 and 2010.  The tax credit means the government will take a little less out of your check each week toward taxes, and has been estimated to be...
For those of us who are really struggling financially, the first thing we're all thinking is how much of a joke $13 a week is, right?!  After all, what can you possibly do with an extra $13 a week that you couldn't do before?  Not a heck of a lot, but let's see if we can make the most of it anyway. Here are some tips for using your tax credit to stimulate your financial situation:

You Can Pay Debt Off Faster

Again, I can hear you laughing at me.  How can $13 a week help you pay off your debt faster?  Well, $13 a week is about $52 a month. If you've got a credit card charging you 18% interest... add the $52 a month to your current monthly payment of $120 and the card that would have taken you 19 months to pay off will now take 13 months to pay off.  You can use Destroy Debt's Budget Tracker to see how extra payments will help you pay your accounts off faster.

Whatever you do, don't just act like the money isn't there, because you'll spend it and not realize it.  After all, it's only $13 a week!  But if you plan to use it toward debt repayments each month, your extra $52 will go a lot further.]]>