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View Full Version : Trimming Fat and Cutting Debt


srl28
01-13-2011, 10:06 PM
Its no suprise that running a business with little debt is a good way to go. Most of us understand that there is some debt that is good debt.

But aside from that, and being that its early on in the new year, what are your ways of trimming some fat in your business and more importantly what are your ways of cutting debt down. Some of us have credit card bills, truck payments, mortgage, etc. What have you done or what are you doing to cut that debt down. Of course every little bit helps

MLI
01-14-2011, 06:44 AM
I started trimming debt and fat in the co. 2 yrs ago. Lazy azz employees should be 1st to go....they are the bulk of the expense. Get those credit cards payed off as well(high interest/late fees bs.) Next start putting all your monthly loans/bills and put them in order smallest to largest, and pay off the smallest 1st(doesnt matter the interest as long as its not credit card) Once you pay off the smallest,leapfrog to the next highest loan. By doing this you are taking the $$$ from the loans you have payed off and applying to the next smallest loan you need to pay off. Some folks will say pay off the higher interest rate loans 1st, but I have found that mentally eliminating loans books gets you motivated to tackle the next loan. Before you know it....you'll have 1/2 the debt you had.

nlminc
01-14-2011, 10:07 AM
I started trimming debt and fat in the co. 2 yrs ago. Lazy azz employees should be 1st to go....they are the bulk of the expense. Get those credit cards payed off as well(high interest/late fees bs.) Next start putting all your monthly loans/bills and put them in order smallest to largest, and pay off the smallest 1st(doesnt matter the interest as long as its not credit card) Once you pay off the smallest,leapfrog to the next highest loan. By doing this you are taking the $$$ from the loans you have payed off and applying to the next smallest loan you need to pay off. Some folks will say pay off the higher interest rate loans 1st, but I have found that mentally eliminating loans books gets you motivated to tackle the next loan. Before you know it....you'll have 1/2 the debt you had.

:drinkup: Great post!

Worked for me....

KS_Grasscutter
01-14-2011, 10:54 AM
I agree with paying off smaller loans first then doubling up on the larger ones. I am also looking at cutting costs by mowing 3 long days vs 5 short days. Also will take my small trailer on days I don't need all my mowers.

The main thing I have done to save a boat load of money is to eat at home about 90% of the time. I spent countless dollars this spring on fast food, and have all but eliminated that. Me and my gf can eat at home for 2 to 3 dollars per person, whereas we were spending 7 or 8 on fast food, or 15 at a sit down restaurant.
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LB1234
01-14-2011, 05:39 PM
The main thing I have done to save a boat load of money is to eat at home about 90% of the time. I spent countless dollars this spring on fast food, and have all but eliminated that. Me and my gf can eat at home for 2 to 3 dollars per person, whereas we were spending 7 or 8 on fast food, or 15 at a sit down restaurant.
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this saves money for your business? does that mean you are writing off all your meals?

corey4671
01-14-2011, 05:52 PM
I started trimming debt and fat in the co. 2 yrs ago. Lazy azz employees should be 1st to go....they are the bulk of the expense. Get those credit cards payed off as well(high interest/late fees bs.) Next start putting all your monthly loans/bills and put them in order smallest to largest, and pay off the smallest 1st(doesnt matter the interest as long as its not credit card) Once you pay off the smallest,leapfrog to the next highest loan. By doing this you are taking the $$$ from the loans you have payed off and applying to the next smallest loan you need to pay off. Some folks will say pay off the higher interest rate loans 1st, but I have found that mentally eliminating loans books gets you motivated to tackle the next loan. Before you know it....you'll have 1/2 the debt you had.

that's the Dave Ramsey plan! stick with it and you'll be out of debt in no time.

corey4671
01-14-2011, 05:54 PM
I agree with paying off smaller loans first then doubling up on the larger ones. I am also looking at cutting costs by mowing 3 long days vs 5 short days. Also will take my small trailer on days I don't need all my mowers.

The main thing I have done to save a boat load of money is to eat at home about 90% of the time. I spent countless dollars this spring on fast food, and have all but eliminated that. Me and my gf can eat at home for 2 to 3 dollars per person, whereas we were spending 7 or 8 on fast food, or 15 at a sit down restaurant.
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that's the one thing I am going to try and do better this year. I spend around $3 on breakfast and $7 on lunch. That's $200 a month! May not sound like much but it adds up!

KS_Grasscutter
01-15-2011, 02:40 PM
Lb1234, you are right, those are personal expenses. But the less personal expenses I have the more money I can apply to paying off debt.
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AintNoFun
01-15-2011, 10:40 PM
good topic... ive done a bunch of small thing like cut back on our cell phone minutes, went with gas station credit cards to get "points/cash" back. most of our major stuff has been cut back pretty good, just doing some fine tuning...

srl28
01-16-2011, 12:39 AM
Thanks-Figured this was a good topic for it being so early in the new year/season. What cards are you using for gas? Looking into tanks at our shop (rented location) to keep things moving smoothly, less time at the gas station/attached conveinience store.

Not sure where else to work on things to keep things moving smoothly. Got some ideas though

LB1234
01-16-2011, 10:32 AM
I have a capital one card, home depot credit card, two bank of america cards, and an open american express card. I only opened the depot card to get 10% off of a larger piece of equipment I purchased which saved over a hundred bucks and now I keep that around b/c sometimes they send me coupons that will help only if I place on my car though. I love my capital one card. I place most, if not all, my expenses that I can on this. If I recall its 1 point for every 100 bucks spent. I have over 90k points...close to a grand I could cash in or whatever. I'm going to use these to fly the family this year to our vacation spot...just for paying my bill every month. My open card I get cash back between 1% and 5% depending on what I use the card for. In the feb statement I receive a coupon for my cash back...I walk into COSTCO and cash it in just like a check. I received over 800 in cash last season...again just for paying the card. I really don't use my bank america cards much if at all, they are just backups if the balances on the others are too high.


with this said...you have to be financially responsible and not place charges on there that you can't pay for. The financing and late fees are what will kill you and not make them worth it.

DanaMac
01-17-2011, 11:32 PM
I bought a new truck in '05, very little money down. And it was on a 6 year note. Rounded up my payments from $520 to $600 each time, and made additional payments. Paid off over 1.5 years early. We also round up our mortgage payment each month.

Also look at reducing your "nut" or overhead. Shop around your business insurance and/or workers comp insurance if possible. Look at different cell phone plans. Can you eliminate a land line? I dropped my home line because of cell phones and two office lines (one is still in the home, other at the shop in town).