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Cutting Expenses to Pay Off CC'S

January 10th, 2009 at 03:59 pm

I have been trying to cut expenses, so that I may save a little more money. My husband and I plan to retire with in the next ten years. We are hoping that the stock market recovers in that time and while we are hoping that happens we are still contributing in the market just not with the same gusto as before. We are trying very hard to pay down both of our mortgages before that time and build a bit of savings. As mentioned earlier I have been looking for ways to cut my expenses and a few of the ways I have been able to were to: cut phone service from a line that wasn't really used too often,cut the gym membership, cut paying for my daughters savings and IRA and also cutting the amount invested every month in my sharebuilder account. With the amount that is now left over from not paying these bills every month it is all going to my outstanding balances on my credit card accounts. Once I have hit 0 with the balances that money will then go to savings. I should have the credit cards paid off by April or May.

5 Responses to “Cutting Expenses to Pay Off CC'S”

  1. mooshocker Says:

    My humble advise: All of your cost cuttings are great. Remember, you can borrow for college, but not for retirement.

    About the only thing I would reconsider is instead of plowing all of your money (after CC's are paid) into savings, come up with three months reserves, then hack away at those mortgages. Worst case secenario is that if push comes to shove, you COULD refinance the cash out if serious trouble came about and your savings was not sufficient.

  2. creditcardfree Says:

    I think those are excellent changes considering you will have the cc's paid off within the next 5 months.

  3. Dave Says:

    Until you pay off your credit cards I would not put money in the stock market or paying extra to the mortgage.

  4. Koppur Says:

    Sounds great. And where it will only take a few months to pay off the CCs, you'll be back to saving in no time!

  5. moneycents Says:

    Thank you so very much for your ideas and words of encouragement. I have to keep making extra payments on both of the mortgages. If we stay on course, we will have mortgage #1 paid off in 5 years with the money that was going to mortgage #1 we will take that amount and apply the full amount to mortgage #2 which should shorten that mortgage even sooner than the predicted 10 years. This is provided that the are no unforseen emergencies. Speaking of emergencies I do have at least 8 months of living expenses put away. I did this a long time ago. The kids are all finished with their educations, each are pretty much on their own.The biggest downer is the cc's and the worry that retirement is only 10 years away and not having enough to live on.

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