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Financial Times And Debt

 
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Old 11-29-2008, 08:45 AM   #1
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Financial Times And Debt


I thought it would be interesting to know if anyone is on a total get out of debt plan? Ed's thread on Advanta made me re-think my inactive plan...and revise it to current. Last month, we canceled our last credit card, and I now exclusively use a debit card with an account overdraft privilege...kind of like a line of credit in an emergency...mine has $2500 over my account balance.

Now as contractors, many of us cannot be totally debt free....month to month...I have accounts with my suppliers, and generally, unless a job bills out of cycle with the account, they get paid by the due date.

My goal is to only have my mortgage, and quick pay on it, and never again worry about debt.......anyone else? BTW, I use a line of credit to build new homes on....secured by the home, not personally by me.
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Old 11-29-2008, 08:57 AM   #2
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Re: Financial Times And Debt


I am working on it and making it a priority this year. I want all credit cards paid off and pay down my line of credit.

I won't eliminate them completely. If it was not for the ability to use my lines and cards. I would have been in even worst shape. We had three projects tank on us and never got paid on them. and 4 months of no work at all except handyman stuff.

But I made some mistakes and over extended myself and used my own money or cards to keep projects going when I should have waited to get paid and got burnt.

Difinitely was a wake up call. If I don't get paid the work stops. The money was rolling in for so long I lost track and got out of good habits and acquired bad ones. It was a good wake up call for our business

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Old 11-29-2008, 09:30 AM   #3
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Re: Financial Times And Debt


We are looking to eliminate Debt, and start paying all our suppliers by the 10th next year so that we can take a discount. which with our bills is a lot of money to pass up. The only reason we have been using credit cards lately, or charging more to our suppliers lately, has been to make bulk purchases of materials we will always use at prices we simply cannot pass up, which will allow us to stay more competitive over the next year.
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Old 11-29-2008, 09:31 AM   #4
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Re: Financial Times And Debt


I am very fortunate...I have a home to sell...not the one I live in, and it will clear the slate for me totally. Then, avoid, avoid, avoid...temptation......and that has nothing to do with lust....tools, and equipment are really tempting.
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Old 11-29-2008, 09:52 AM   #5
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Re: Financial Times And Debt


I have the mortgage, truck payment as constants every month along with the usual items that go with both, common bills. I still use credit cards and accounts, both get paid in full every month, if a job is slow paying, the accounts will hold (California has great lien laws), cards get paid.

I will not buy a new tool without knowing I can afford it, or trailer or equipment or etc, etc.
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Old 11-29-2008, 09:53 AM   #6
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Re: Financial Times And Debt


We have a small account at the local lumber yard that I use for about $4-6K per month and it's paid by the 10th of the next month. Everything else is paid for with a check when I buy it. Foreman's truck, cargo trailer, utility trailer, and all tools are paid for. Personally have the house and two vehicles to pay off. The only way to financial wealth is to be totally debt free. For who is interested, there is a very good book called 'The Total Money Makeover' by Dave Ramsey. You can google it. It is a common sense approach to getting out of debt with realistic and reasonable methods. Is helping me.

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