Get Out of Debt by Switching to a Cash-Only Policy

International Money Pile in Cash and Coins
Image by epSos.de via Flickr

I don’t talk too much on the blog about money, except where large corporations are concerned…

I have challenges just like everyone with budgeting, buying things that I don’t need, and using credit. I have thought that it might be a good exercise to just use cash instead of credit for a while to see how it goes. Here is an article from Lifehacker about a couple that were in way over their heads and got out of debt

I might just try the cash only policy to see how it goes!

Courtney and Michael Wacker had $83,000 in debt with a 32% interest rate. That’s not the kind of debt you get out of easily, but they managed to nonetheless. They started by seeking help from an organization called CredAbility (formely the Consumer Credit Counseling Service of Greater Atlanta) and were able to get the 32% interest rate cut to 3%. Obviously this was an enormous help, but it still left them with a monthly payment of $1,456 they’d have to make over a little more than five years. That’s like renting a one bedroom apartment in Los Angeles in addition to everything else.

via Get Out of Debt by Switching to a Cash-Only Policy.

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One Reply to “Get Out of Debt by Switching to a Cash-Only Policy”

  1. I really ought to try it for real too! I have tried it and it works till about Christmas and then it all goes bust….well, I actually managed Christmas with cash only last year but then had to go with the cards after that! D’oh!

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