I recently posted about my ingenious “mini-escrows” (in my case bi-monthly budgeting for yearly expenses) and how they are the number one reason we haven’t (and hopefully won’t have to) resort back to credit card use.  If you are REALLY serious about getting out of debt, next to having $500 in the bank, I believe this method is THE most important way to get out of the credit-card-crutch cycle.

I’m not the only one.  I just found the other term used for this method is a “SINKING FUND”.  Everybody’s doing it!     These are some great posts about how other Personal Finance bloggers are using the same strategy:

Deliver Away DebtHow to Create Sinking Funds

Fiscal Geek Sinking Funds:  taking Budgeting to the Next Level

Frugal Dad: Sinking Fund Eases Strain of Annual Expenses

Call it a “Personal Escrow Account”, “mini-Escrows” or “Sinking Fund”, by any name you are prepared for the bills you know are coming!