I have a part time job and I have some credit card debts. I am in the process of paying down my debt but I wonder if the money I am using to pay the debt down faster would be better utilized for stocking up.

Do I get out of debt as fast as I can or stock up on food, water and medical supplies?

Jeanette Isabelle

you are pretty much outside hurricane country, but still in tornado country, so a 72 hour kit with water would be a start...a box of 4x4 sterile pads,4x4 non adherent pads, some Kerlix roll, bottle of Betadine, irrigation syringe and Coban elastic bandage material will get you started for first aid..

for my former students that ask similar questions, I typically suggest that they spend an extra $5 a week on adding to their stores of what they already consume... extra case of ravioli, tomato sauce and dry spaghetti etc. from Sam's until they have a 30 day cushion... after that the debt at usurious rates can be crippling... again, the Wendy DeWitt video has a pretty good commentary about the number of people that have cell phone coverage but no food prep

IMO, it isn't an either/or decision. Try to strike a balance between both.

In general, credit card debt is the worst kind, and by paying it down you start saving lots of money on interest. A couple of things that you could consider if the budget will allow it:

1) try to pay off all new credit card charges in full when the bill comes in (don't add to the debt). Or, use cash.

2) Always try to pay more than the minimum amount due, even if it is only a dollar. Then try to keep paying down the remainder using a fixed amount that is in the budget, but always exceeds the minimum payment. The amount you own will go down, interest due will go down and more of what you pay will go into paying off the debt.

3) in this economy, almost everyone has already done it, but really really scrub your budget, especially for those items with the "low monthly payments" --- they can be like a cancer in your budget.

4)Also, find alternatives to just following the crowd. An example: all of the library's around here lend DVD's and CDs--why rent movies or buy music when you can borrow? Small savings add up. Or, "brown bag" lunch. The folks at work who go out every day spend 5 or more dollars a day; call it 25 per week, or 100 a month. I brown bag for about 1-2 $ per day; call it 20-40 per month, saving 50 or 60 a month. We all have better things to do with our $$.

5) If you have a good record with the credit card company, call customer service and ask if they will lower your interest rate, if they ask why, just say you think it is too high for your good record. You will be amazed at how often they can lower the rate; they will not offer to do it, but often can and will if asked.

These are just ideas we have found useful. Good Luck.

I am using cash for the things I buy every month such as gas and food but use a credit card for non regular expenditures such as the safety and emissions testing. The anniversary of Dad's death is next week so I will be putting the rose on plastic.

By sticking to cash as much as possible, I have noticed a change in habits but that is the only conventional approach that works for me. Past conventional budgets did not work so I had to get creative.


I'm doing that too. I am getting everything ready to switch from Windows to Linux, Linux now supports my laser printer, so I don't have to spend $60 a year on security. The laser printer is also a money saver. I bought it on sale four years ago for $60 and I am still on the original toner cartridge.

Jeanette Isabelle

Great that you're analyzing the situation in this manner - very wise. Financial preparedness is extremely important.

If you're responsible only for yourself then for a modest amount you should be able to have two to four weeks of food on hand, some water, candles, flashlight, batteries, radio, basic first-aid items.

If you can reasonably comfortably endure a power outage for a couple weeks then you'll be fine for most non-TEOTWAWKI scenarios.

With just that you'd be way ahead of most people.

Would be good to stash a couple hundred in small bills in your emergency kit.

And then tackle the debt with gusto! It's a great feeling to get off the hamster wheel of debt - especially credit card debt.

Assuming that your most likely threats involve the weather events in the DFW area, I'd agree that a 72 hour kit is worth building sooner than later. After that I'd hold off on unnecessary spending until you were out of debt and saving. After having a 72 hour kit, one of the best things you can have available to solve problems is a wad of cash.

Clear the debt. Being in debt is a crisis, and should something happen (like an accident) it will help to have cash availble (i.e. chances of zombie apocalypse = low, chances of issue you need cash for = high, so think about what is more likely)

Also, basic preps can be pretty cheap - storing tapwater in old soda bottles is not optimum - but it's basically free and better than nothing. A couple of bags of cheap rice or pasta aren't very delicious assole sustenance, but again, better than nothing

Good, specific recommendations are always a challenge based on what people are willing to share in public so here is some general advice.

This is not an all or nothing situation but my guess is that you are already pretty prepared for short term non-financial challenges. Figure out what (if anything) else you need to be "prepared enough" while focusing on the following.

1 - Get yourself some savings. Typical suggestion is around $1000 since this gives you some insulation from the bumps that life has a way of handing out. My suggestion is look at the most likely bad day expense you might encounter over the next 6 months and try to save up for it (i.e. flat tire, medical expense...).

2 - Evaluate your preps and upgrade if needed. I'd suggest being ready for a week long disruption in normal services. This may not be your end goal but like the savings above it provides you some cushion from the more likely disruptions. Don't go overboard on buying stuff- figure out the cheap way to be "good enough".

3 - Work on paying off your debts. Pay them off in order from smallest to largest. As you pay one off, add that payment to the next one and so on.

4 - Increase your preps to be ready for about 2-3 weeks (if you are so inclined). Again - don't spend a lot, think low cost but sufficient.

5- Get some significant savings in place. Typical advice is around 3-6 months of expenses.

Once you get through step 5 you have a lot of financial security and can make a better evaluation of how much you want to afford for longer term preps, which are less likely to be needed. Financial security, especially in terms of cash on hand, is an important part of being prepared.

Hope the above helps,

-Eric

I've heard people say it's helpful to join debt support communities. Like all things, it's easier to stay motivated when you're working towards the same goal with like-minded people. You can easily find them online, and you can participate from the comfort of your home, checking them out in advance to make sure they're welcoming. Also, such communities may have more expertise about managing money and debt than we do.

The vast majority of people can do some basic prep within budget, and the chances are that will tide them over in most situations.

My feeling is to first and foremost get at least several weeks of supplies stocked up. You can do this by purchasing just a little extra each time you go shopping for groceries, etc. You will hardly notice the extra cost if you do it over the course of months or even a year.

Now that you have some piece of mind that you are prepared in terms of food, clothing, etc in case of emergency, do all you can to pay off your debt - including getting a second job.

Then, NEVER go into debt again. Pay with cash. If you do not have the funds on hand, do not buy anything.