Till Debt Do Us Part

I love watching 'Till Debt Do Us Part' on Saturday nights on Channel 63 at 9:00 pm right after Suzie Orman's show on CNBC. During the middle of this week's show they flashed a website to go on to and get 10 steps of getting out of debt. I went on after the show to see if I could find out something new.

After reading the steps, I thought this is what Summit Credit Union has already taught us and everyone that comes through the door asking for a plan to get out of debt. This is what they had to say:

1. Cut up your credit cards and set up a cash budget. Log every expenditure. They even gave percent suggestions. Housing 35%, Debt 15%, Life 25%, Transportation 15%, and savings 10%. I looked up my own percent before I started Project Money. It was 16% debt and 84% life, including household expenses. Zero to savings. Oops.

2. Reduce your interest rate. Transfer all of your credit cards to zero interest cards. I went to Bankrate.com and looked to see who offered the best rate or the zero rate. And that may be Summit Credit Union.

3. Bring in extra money. They suggested overtime, babysitting, dog walking, tutoring or any skill or hobby that you have to bring home the bacon!

4. Get your priorities straight. Make a list of things that you want to do. Travel, home purchases, a new car or a boat. I had trouble with this one in the beginning. I had to have a mindset shift to realize that I could and will be out of debt. That opens your mind up to a world of possibilities. This week I looked at a tour package for a train trip through Switzerland and Austria. Was that ever fun!

5. Chip away at the debt. Pay the one with the highest interest rate first. Not the one with the most amount due. If you pay one off, put that money on the next debt so that you double the payment.

6. Keep things in perspective. Don't let the debt get the best of you. There is an end in sight, even if it is 10 years away, at least you are not adding to it. Don't let it affect your relationships. People are more important. Fighting about it only makes you less productive. Stress causes illness. Just focus on the day that you will be out of debt. Work as a team. You know you both are working on the same goal.

7. Getting out of debt doesn't mean you can't ever spend again. Look for cheaper alternatives. You don't have to cancel your wedding or the purchase of a car, you just have to look for the best bargains. Figuring how to do it on a cheaper budget.

8. Stop eating out. It's so much cheaper and healthier to eat at home. It helps you to interact with your family and discuss events of the day at the dinner table. Eat out only as a reward when you reach a financial goal. I have the most trouble with this one because it's lonely to eat alone. So, I have tried to make my lunch meal the biggest one of the day and just eat light at night. I love having lunch with my co-workers. It's like a big family and everyone is sharing stories from home.

9. Get organized. Get your paperwork, documents and taxes all filed in a safe place. Make sure all of your bank statements are reconciled. Take a peak at your bank charges. Were they wasteful? Try to do better next month. Make sure you file all of your credit card statements. And take a look at those too. Did you purchase things that you really needed? Or was it just something that you wanted? Forgive yourself and don't do it again. The spending on this card is over. Give yourself a pat on the back for that one.

10. Be willing to part with the toys. Sell something. Craigslist or Ebay. Have a garage sale. Etsy, or Made It Myself are two hobby websites. Look around for things to sell. You will be surprised at things that you have to sell. Even antiques. Be creative. You could really earn some extra money for things that have been sitting around a long time in a box. Just do it!