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Well, that's over with.

Longtime readers of re-run might recall some previous complaining about credit card debt.

In December of 2001 I started using a debt consolidation program, paying $406 every month to be distributed among four different credit cards at very low interest rates.

I’m happy to say that almost five years later, with a significant boost from a gift or two from my wife’s grandmother, those four credit cards are now completely paid off.

For the first time in my adult life, I’m going to be able to start saving money.

I’m open to your advice about how best to do that.

Comments [10]

1 November 2006, 13:04

  1. I’ve been meaning to set up a savings account with ing.com, but haven’t gotten around to it yet. They have pretty good interest rates right now with no minimum balance. It’s criminal how low the rates are on most brick-and-mortar savings accounts. Less than 1% is not uncommon.


    — DinoNeil    1 November 2006, 13:26    #

  2. Congratulations! This is a HUGE moment for you. I know you’ve worked very hard to get here. Great job!

    My advice is to have it taken out of your check before you get paid. It’s so much easier for me to save when I never see it in the first place.


    — EricaLucci    1 November 2006, 16:56    #

  3. First suggestion – cut up all of the credit cards but one. That way you can keep your credit rating alive :)


    — Troy    1 November 2006, 17:25    #

  4. Congratulations! As far as high-interest online savings accounts go, I’m a fan of HSBC. The rate is just above 5 percent at the moment. :)


    — Julie    1 November 2006, 18:08    #

  5. Erica is very right. I was going to jokingly suggest that the best way to save money is by not spending it, but basically that’s what she’s saying, and she’s dead-on. If you never have the money in the first place, you can’t possibly spend it.


    — Darren Sussman    1 November 2006, 21:11    #

  6. One word: Plastics.


    — dvg    1 November 2006, 21:30    #

  7. Make it automatic so you don’t even notice it. At least 10% right into a high-interest savings account like HSBC Direct. Build up 3 months’ worth of expenses into an emergency fund.

    Do a 401k if you have one. Then start putting what you can into an inexpensive index mutual fund for a Roth IRA.

    Read personal finance blogs, lots of people smarter than me write about the better things to do, and lots of people are in your position.


    — Flexo    1 November 2006, 21:52    #

  8. tell your sister!!!!!

    congrats, feels good huh?


    — mom    2 November 2006, 10:27    #

  9. Congratulations! I would second the ING savings account suggestion. Depending on how much effort you are willing to put into investing, I would also highly recommend The Intelligent Investor by Benjamin Graham (Zweig edition). If you decide to buy it and follow its advice just email me with any questions or investment ideas!


    — Keith    3 November 2006, 12:23    #

  10. WOOO HOOOOOOOOO

    I’d start with investing the same amount you were paying off. But I’m sure you thought of it.


    — nita    7 November 2006, 11:49    #