Trimming Fat and Cutting Debt

[srl28]

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]

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]

Originally Posted by MLI

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.

Great post!

Worked for me....

[KS_Grasscutter]

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]

Originally Posted by KS_Grasscutter

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]

Originally Posted by MLI

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]

Originally Posted by KS_Grasscutter

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]

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]

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]

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