How did Lynnette Khalfani-Cox erase $100,000 in debt in 3 years?

Posts Tagged ‘debt free’

How did Lynnette Khalfani-Cox erase $100,000 in debt in 3 years?

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In my book, Zero Debt, I explain how I got into debt (mainly via overspending), and also what it took to get me out of debt. To pay off my credit card bills, I used the exact same strategies I outlined in my book – getting a budget together, cutting back on frivolous spending (like vacations & dinners out), refinancing my auto loan, negotiating with my creditors for lower interest rates, doubling and tripling up on the minimum payments I was making, and using “windfalls” or “extra” money, like income tax checks and year-end bonuses from my job to pay off debt, etc.

Making Tough Choices

I also made some tough choices, like taking my two older kids out of private school and putting them in a less expensive private school. (They’re actually now in public school, and doing just great). After nearly 3 years of all this, I’d paid off $70,000 in credit card debt. Then in early 2004, my ex-husband and I sold some land we owned and used $30,000 to pay off the last $30,000 of credit card debt we owed.

In your question, you mentioned joining a debt management plan and taking on a second job. I know those were tough steps for you to take. But congratulations for doing so, because they will definitely help you become debt free faster. Lastly, I don’t know if you have a copy of Zero Debt. (The original version came out in late 2004; the updated, second edition of the book came out in 2009). In any event, in Day 25/Chapter 25 of Zero Debt, I also explained three different debt pay-off strategies that you can use to knock out credit card debt. (In my case, I used Strategy #2). Good luck in eliminating those credit card bills!

What Credit Card Should I Get to Help Build My FICO Credit Score?

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Author: The Money Coach

Q: I Became Debt Free This Month. I Have $4,000 Saved and No Bank Account. Where Should I Go? Also What Credit Card Should I Get to Help Build My FICO Credit Score?

A: Congratulations on eliminating your debt. You should be proud of that accomplishment – and of saving $4,000. As of early 2010, Capital One is offering an attractive savings account that you should investigate. It’s the InterestPlus Online Savings Account. For those who keep $2,500 in the account, It pays a very competitive Annual Percentage Yield and it gives you the opportunity to earn a 10% quarterly bonus. Get more information online at http://www.CapitalOne.com/DirectBanking.

To find a good credit card, also take advantage of the power of the Internet. Go to http://www.CardRatings.com to find a competitive credit card that fits your needs. There are all different types of cards: for students, frequent travelers, people with excellent credit, those with bad credit, etc. The “best” credit card is the one that suits your spending habits and financial profile. Only you know how often you will use the card. No matter what card you choose, only charge what is absolutely necessary and what you can reasonable pay off quickly – ideally every month. This will be the single best thing you can do to boost your FICO credit scores.

Ask The Money Coach

Posts Tagged ‘debt free’

How did Lynnette Khalfani-Cox erase $100,000 in debt in 3 years?

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What Credit Card Should I Get to Help Build My FICO Credit Score?

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