Desperately Digging Out Of Debt?

If your New Year's resolution is to finally get out of debt, or save a bunch of money, you're probably sitting there crunching the numbers trying to figure out where to cut corners. Maybe you've already trimmed the fun stuff - no more coffees out, bye-bye cable, and you haven't eaten out since Aunt Myrtle invited you late last year. Here's a few, albeit more painful ideas, to help eliminate that debt.


Sell off the clutter: Most of us buy way too much stuff. It's a bad habit! Go through your home and look at the non-heirloom stuff that never gets used. Upgraded to a PS3 and never play those PS2 games? Sell them! Have a garage full of camping equipment, but the last time you set foot into a national forest was 1998? What are you waiting for? If you need quick money, you can always take games to places like Gamestop, or take tools to places like your local pawnshop, but be prepared to not get as much as you may like. Instead, take advantage of sites like eBay and Craigslist - you can dictate your price this way.

Take on a renter: Have an extra room now that kids have moved out? Why not rent it? It can be a win-win situation for both of you - you end up with a little more money, and they end up being able to save a little money by not renting a full apartment. If you do this one, be sure to spring for a background check and lay out the rules very carefully. Again, placing an ad on a site like Craigslist is totally free, and you can always change your mind if you decide you're not liking the potential renters.

Get rid of a car: On insurance alone, this should save you at least $1,000 a year. Add in gas, maintenance costs, and car payments, and your savings could be even more substantial. Sure, this is probably the most painful way to go about it for many, but if you have two cars to begin with, it's not that bad. Check into carpooling (or start a carpool of your own), cut back the excess trips, and hop online to your local community transportation site to see schedules for the buses and trains (and subways if you're lucky!). What you would be spending on gas would more than cover your monthly pass. Or if you are close enough, use a bike to get some of the places you need to go - you'll burn off calories too, which will help if you've had to cut that gym membership out as well.

Buy nothing: OK, so this one seems super hard, but it's not quite as hard as you think. Most of us have all the clothing we need hanging in our closet, or put away in storage. We also probably have a healthy dose of entertainment via books, games, and movies that we already own. So stay out of stores and refuse to purchase anything for one month. Chances are, you already have at least a two week supply of food on hand - not going shopping for one month would help cut down on waste in your pantry too. (The average family of four spends between $500 and $700 monthly on groceries alone!) Hit up your local library for books and movies if you're bored with your selection at home.