Category Archives: Success Stories

The Story of the Frugal Mom: Escaping $100,000 of Debt

Gary North

This article indicates that people can get debt-free if they put their minds to it. But it takes a plan.

http://www.kmbc.com/money/19367879/detail.html

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Getting out of $30,000 of Debt

Gary North

You have to cut spending. You have to save on what you buy. This woman outlines the program that worked for her.

http://articles.moneycentral.msn.com/SavingandDebt/ManageDebt/after-5.5-years-finally-debt-free.aspx?page=all

A 5-Part Series on Deliverance from Debt

Miss M

Miss M was facing this:

$20,500 on credit card
$1,800 to Thomasville furniture

$5,500 student loan

$28,000 car loan

$340,000 mortgage

That’s a sobering amount of debt, in fact the total minimum payment for all that debt is nearly $3000 a month. Focusing on monthly payments is one way people hide from their debt problem. It didn’t work in my case, my minimum payments alone were more than most people make in a month. Now it is your turn.

How did she escape? Read about her strategy here:

Part 1
Part 2

Part 3

Part 4

Part 5

Out of Work Family Hit by the Recession Finds Ways to Cut Costs: A Continuing Series on Coping

Harriet Robbins Ost

This is a continuing series. Here is how it begins.

The recession hit us last autumn. We didn’t know, however, just how disastrous things would get until — in an instant — we had no money.In early March, we tried to transfer funds from our home equity credit line to pay a bill. There was no money available. Our lender had reappraised our house, depreciating the value by more than $100,000, and wiping out the money that would have carried us for at least a year.

When my husband learned in mid-November his last day of work would be Dec. 31, he wasn’t too worried. He’d always enjoyed long-lasting jobs with easy transitions and had never experienced unemployment. He was shocked when he didn’t get another position open at his company.

As December wore on with no prospects, we tightened our belts.

Here is a series on belt-tightening.

Part 1
Part 2
Part 3
Part 4
Part 5
Part 6
Part 7

Testimonies from Recovered Debt Junkies on How They Escaped

Gary North

This article appeared in Redbook. It includes testimonies from wives who have put their household finances back on track. Here is the first one. It’s typical.

“Life is more simple, and simple is less stressful.” — Lynnae McCoyI got a credit card my first week in college and graduated with $4,000 in debt. When I got married, my husband and I would pay down our debt, then charge it back up again. But two years ago, we made a commitment to get out of debt — we had given our word that we would repay what we owed, and as Christians, we needed to stay true to our word. Then Jim lost his job. With an unemployment check as our only source of income, it was easy to see how quickly our credit card debt could eat up our savings and leave us on the verge of bankruptcy. So I threw our cards into a Tupperware container with water and stuck it in the back of the freezer. I figured if they were hard to get to, I wouldn’t be tempted. I even started a blog, beingfrugal.net, to help hold me accountable to our goal of getting out of debt.

She then goes on to explain what they did.

“Do As I Say, and as I Do!” Parents Rein in Their Spending and Their Children’s Spending

Gary North

This article from Money Magazine reports on a family that has pulled the credit card plug on their daughter. They had to follow suit in order to make their case convincing. The article raises these issues.

It’s easy to fall into bad habits with regard to how you spend money on your kids. (You know what they say about the best intentions …) The first step to correcting such behaviors is identifying them. Be honest with yourself about whether – and how – you’ve been spoiling your child: Do you frequently give in to your kid’s pleas for cash or stuff? Do you hand out your credit card freely? Think, too, about why you’ve been spoiling your kid (you might start by asking what money values you learned from your parents), and what the consequences might be if you don’t stop.

http://money.cnn.com/2009/06/01/pf/spoiled_kids.moneymag

Cutting Bread Costs from $45 to $15 Per Month

J Peters

This report is from a Mt. Airy, North Carolina journalist who is in cost-cutting mode.