KUDOS! :)

Thats great! But most people don't have 10k worth of extra expenses that they can trim.

Very impressive. Congratulations!

This is really awesome. I love reading real stories like this. It gives me hope for the future!

Enjoy your well-deserved vacation!

@TracyHamandEggs!: Yes, they do. Cut your cable completely. Cut phone. Get the lowest internet speed and use skype. Stop eating fast food, Sell the newish car, get a used car and the cheap insurance that goes with that. If you want out of debt, there's ALWAYS something you can cut out.

I did something very similar to clear my debt, and it is very satisfying indeed. Kudos to you and your new debt-free life!

@TracyHamandEggs!:
While I agree to a point, when we got serious about debt, we found all sorts of things we were doing. We kept takingvacations that put us in debt, we would eat out a ton, etc. There is always somwhere that can be cut. I think scaling back our lives temporarily was good because we valued the things we spent money on all the more.

@TracyHamandEggs!:

That's not the point. The point is to take an honest look at how you are living and see what you can temporarily give up to reach a goal. It's not like trix* can't ever have starbucks or a new book again. Those are just some of the sacrifices she made in order to make her goal a reality.

My wife and I are paying about that much across car, student loans, house payments (extra to principal, not the standard payment). Takes a while to get it done, but it's certainly doable. Gratz.

@TracyHamandEggs!: I'm guessing Trixare4kids didn't think she did either, which is why this takes work and finagling and note-taking and figuring. Not to mention that she didn't just-like-that cut $10K. She trimmed $365 a month out of her budget. Doable for everyone? No. Doable for many? I'm gonna bet yes.

That's pretty good. Only thing I would have done differently is to keep the credit cards that don't have annual fees open and just cut up the cards to avoid the credit score hit, just in case you absolutely need credit later on. But everything else was great.

WooHoo!!! Nice job. I did the same thing about 4 years ago with almost the same amount of debt. I was great to wake up every morning and not to have that on my mind weighing me down every day.

I'd love to be able to pull this off. Unfortunately, I have a roommate that insisted on a 3BR (instead of 2) and a land line with the cable and Internet bundle.

Congrats on getting out of debt! Wow. I agonize over getting a mani/pedi every few MONTHS, let alone once a month. My usual person told me ideally, I should get a pedicure every four weeks. I did the quick math and began to look at her as if she were nuts. And she was.

I agree, not everyone has 10K to trim, but I personally can attest to having some things that I could trim. BUT, I'm also not at liberty to cancel my internet or my phone or reduce my plan in such a way. We considered getting rid of one TV service (and getting something else that was cheaper, not giving it up entirely) but the early termination fees were outrageous and I doubt we could've gotten out of those. Bottom line, some places require a contract, and finding one that doesn't is pretty difficult.

@TracyHamandEggs!:
Yes, but you're missing the point.

Please, everyone take her advice on free theatre. Volunteering is insanely easy if you do it for smaller or mid-sized theatre companies, and the show is absolutely free. A lot of smaller companies don't even make you do the white shirt/black slacks thing. We're just happy you're there; because if you weren't there, we'd have to do it while selling tickets at the same time, which is not fun - trust me.

With theatre tix costing anywhere from $10 to $50 a pop, how can you go wrong?

takes a lot of dedication to start using free hair dryers and shopping thrift stores, not sure I'd be able to handle that.

One thing though, I don't really get everyone's aversions to credit cards when they are in debt. You can use credit cards just the same way as you do cash if you only use it for what you need and pay it off at the end of the month, plus that way if you have a decently high interest savings account you can accumulate a little interest on that money before paying it at the end of the month. Credit cards, when used correctly, are IDENTICAL to using cash except you just pay in one big lump sum. The only reason not to use credit cards is psychological, and if that's the reason for it, cool, but if people are somehow imagining a difference I don't understand why...

@billbillbillbill: But when you already take vacations once every 4-6 years (if ever), don't eat out unless someone else is paying, don't own a car, haven't had a landline in 7 1/2 years...

There really is a floor beyond which you cannot reasonably go, in many cases, and it's frustrating to be at or near that floor and still have debt. I think that's the gist, there.

The snowball method does work, we compiled it and it stated that it would take 39 months to pay off $20k in debt. We set a goal for 2 years and amoritized all of our debt, and got it paid off in half the time of the snowball for a $14/month difference.

I should write a book and get on the radio. I could be a multi-millionaire like some other guy in my city.

www.daveramsey.com

@TracyHamandEggs!:

You would be surprised.

People have monthly expenses that they pay unconconciously. 120 comcast bundle? That's $2400 a year. And some of it is rounding up. Someone might not get lunch out every day, but calculates it as if they do.

Really this is the full plan for putting the financial house back in order. If everybody did this, in a year or two, everybody that had a job would be debt-free and contributing to their savings. As an added plus Starbucks would be out of business.

That's awesome. Reading good news makes my cold little heart smile a bit.

I'm on my way to debt freedom. I can't wait to feel like she did. I'm doing the snowball too. I got rid of 2 small credit cards and now I'm tackling the big boys.

I've ushered in theaters numerous times. As the article indicates, it's free and pretty easy (depending on the layout of the theater). I've seen big names like Rodney Dangerfield, David Copperfield, and Penn & Teller this way. I've also seen plenty of well known dramas & musicals like A Christmas Carol, Who's Afraid of Virginia Woolf, etc.

Another way to save money, if you like live theater, is to go to amateur community theater productions instead of the big professional ones. True, some amateur productions can be pretty bad, but there are a lot of community theaters in the towns around where I live and work, and many of them have very good reputations. You can likely volunteer at them to see shows for free, or if you just want to see the show they're usually 2 to 3 times cheaper than a professional one. You can find some community theaters in your area using this search form: [aact.matchingneeds.com]

Amazing! Congratulations. I will forward this story to my brother-in-law as he has $14,000 in debt too...

Now we know who's sending the economy down the crapper!!

I kid... this is inspiring. Well done Trix. We should all be so disciplined!!

@TracyHamandEggs!: Me included, I can cut out energy drinks, that's about it. I don't eat out much, don't have cable, don't have a landline, and don't go shopping. I suppose I could get slower broadband but I really don't want to.

I'm moving to an apartment in the ghetto to try to pay off my debt faster. *shakes fist at health insurance company

Wow, awesome job! This is why the Consumerist is AWESOME! It's really cool to see some good news about debt! I think you do deserve a vacation after accomplishing that.

@EtoilePB:
Everyone figures out what works for them, and there are really very few people who absolutely cannot cut costs any more than they do and be in debt. Those people should be on some sort of government assistance.

@TracyHamandEggs!: Oh yes there is. I think the concept should be what you are wiling to "sacrifice" rather than "trim". You don't have to have cable or an iPhone or a 10mbps $50 internet connection.

Congrats to you! My eyes bugged out on all the 'luxe' items you gave up. Not eating a brown bag lunch is considered living high on the hog for a lot of us.

@shorty63136: So have them pay for it? If they insist on the higher priced services, that's their cost.

You had that much debt and a gardener?

When you decide to join the gym again it will be at least twice as expensive.

Trix, you're my hero! I think I might have to print out that photo and put it on the back of my front door (where I stick all my affirmations/reminders/things I need to see) to remind me that I have a plan in all of this cutting back.... :-)

@EtoilePB: If you're at that point and you still have a significant amount of debt, then it's time to consider bankruptcy.

Not to belittle the situation, but just considering my car payment, I knock down over $9k in 20 months... and that's only considering my car.

This is a great article. Very inspirational.

By the way, regarding the gardener/gym membership, many people swear by this: Doing your own gardening is better than any workout.

Congrats -- I'm sure you're loving every minute of your success! I managed to get to zero a few years ago (before I bought my apartment), and it is amazing how much extra pocket money you have once everything is paid off.

One extra piece of advice. If you feel too guilty for cutting out non-profits, you can always volunteer for them -- many need helpers as much as cash. I spent a good part of two years volunteering for Habitat for Humanity.

Congrats Trix!
You should really buy books again now.*

*I work in books.

I started using the public library recently too. The online catalogue and branch transfer is excellent! It's saved me so much money. I highly recommend this.

I wish I could cut my cable. I could live without it since I don't watch much TV, and I could Netflix any shows that I want to watch. Unfortunately it's rolled into my HOA dues so I don't have a choice.

Another way you can save on grocery bills is to buy your fruits and veggies at your local farmers market. You can save a LOT of money this way and the variety and quality is a lot better too (or at least it is where I live). I buy large quantities at a time, spend a weekend cooking, and then freeze it. I freeze enough for a month of lunches. It saves me time on cooking too. I eat fruit for dinner, which is a lot cheaper than cooking a full meal. This winter when the farmers market doesn't have a good variety I will buy fruits and veggies at Costco. I always buy my meat at Costco and freeze it.

We only eat out for dinner once a week. It's our last remaining splurge. I'd hate to have to give that up. It may come to that soon though.

I don't have much in the way of debt but I am trying to live more frugally in an attempt to increase my savings accounts incase I lose my job soon. I work for a landscape architecture firm, an industry hit hard by the downturn in the housing market.

@Necoras:
Not true at all.
I'm a college student, take the bus everywhere, don't have a land line, don't eat out, moved back home to live with my parents to CUT my expenses, buy all my clothes secondhand and still have about 9000 of debt over my head already, which I am attempting to even put a small amount of money towards but have no time to work as I'm carrying 18 credits and 6 extracurriculars to look good for grad school.. in 2 years.
It's not just about the person. It's about their surroundings and background as well. College is more expensive than ever and getting out of those loans is hellish.

@ilves: The difference is the discipline that credit cards require. You have to say NO to the temptation to overspend. If you stick to cash, you won't overspend (as much).

Also, you could end up shooting yourself in the foot...paying off the new balances first and not making a dent in the higher interest old balances, depending on how the CC company applies your payments.

I agree, if you have the discipline to handle credit, then by all means do so. You can save/earn a lot by using a credit card.

But for someone trying to get out of CC debt, freezing the card is a great way to go. Whatever works for you, do it.

Wow. I'll be this thrilled when I ONLY have $14K in debt.

My first move: ask for a raise!

Next month: get my GIBill started!

December: minimize Christmas!

I DO have a plan, after all!!

Great job and enjoy your well-deserved vacation!!! :)

@TracyHamandEggs!: Isn't that the truth! I'm impressed that she achieved what she did, but I'm also shocked that what she was spending in a month at Starbucks was almost as much as I spend on groceries.

Way to go Trix. We worked a similar plan in 2006 (Ramsey's Total Money Makeover) and paid off $55,500 in debt in 12 and half months.

I had a pedicure on Saturday and enjoyed every minute. Some how not having debt and paying cash (or debit) for all our purchases (except travel and large purchases that we want/need extra protection and for which we have saved up the cash in order to pay off the CC ASAP) makes those little treats that much sweeter.

If you're willing to make the life changes it is amazing what you can save if you do without. She was obviously overspending, but at least she did something about it.

good for you! i love stories like this. it goes to show that with a little will power, people CAN get themselves in a better situation...and now she's got good money habits for a lifetime!

There was an article on Yahoo.com (cause aren't they the epitome of quality personal finance advice?) that was about saving $1,000 for Christmas. When I first started reading it, I thought, "why do you need $1,000 for Christmas?" And I think that's one of the reasons why we're shooting ourselves in the foot with debt.

We have a culture that wants to condemn people for being in debt, but does not necessarily (as a whole) facilitate people avoiding debt. I don't think there's enough education about financial responsibility, but at the same time, there are articles like [finance.yahoo.com] that assume you should have $1,000 for Christmas. As if the holidays are just SO important that if all the adults don't get a gift, they'll all cry. Or if a child doesn't get a $10 toy he/she will play with and ignore within a month, he/she will end up in therapy later in life.

I love spending money, I do. But this Christmas, we're all on a budget. I hate that there are articles advising people to cut extras not to save money, but to pay for GIFTS.

Awesome, it gives me hope. I always pay about 2x as much as the minimum for each of my 2 credit cards, recently both cards lowered my interest rate to 10% (sweet), but somehow something comes up every month that requires me to use one of the cards: vet bill, car repair, etc. My new project is to learn how to sew...because as much as I like clothes, some things I just don't want to pay $40+ for.