In the Spirit of Getting Out of Debt
Posted by Peter James | Posted in Balanced Life, Learning Off Experience | Posted on 04-09-2008
Tagged Under : credit card debt help, financial freedom, financial help, get rid of my debt now, getting out of debt, help pay bills, help pay my debts, pay down debt, reduce debt, self improvement
After seeing my most recent credit card bill, combined with my lingering credit card debt from my failed mortgage business, combined with my monthly expenses, I have decided to take another necessary but drastic step in my ever lasting battle to get out of debt for good:
Yes, it is time to shred the card. Today is the day I am going to begin paying down my debts for good. I feel that now is as good a time as any to start on this long grueling process. In the spirit of getting out of debt, I have compiled a list of resources for those of you interested in following suit:
- The 12 Step Get-Out-Of-Debt Program from Zen Habits
- 10 Tips To Getting Out Of Debt
- Yes, You CAN Get Out of Debt from Yahoo Finance
- Resolution 3: Get Out of Debt from CNN Money
- How-To Guide: Reduce Your Debt from The Motley Fool
What I Have Found
After my research, I found there are 3 Major Steps to reduce your debt:
- Budget – You need to bring in more than you spend.
- Bye, Bye Credit Cards – Stop using them, but don’t get rid of them.
- Plan – Create a plan for paying down the debts
These are the basic rules to begin. However, each of these steps requires researching some more on your own to find out which way suits you best. For example, I own a business, and have very little ‘steady’ income to count on. Therefore, I am in a totally different position than someone on a fixed salary. Our plans may look totally different, but our steps will be the same.
Since I am still brand new at this, I was wondering if any other readers out there have any further advice for me.
How do you handle your Debts?
Any and all strategies are welcome. Hopefully, we can build a monster list of ways for all kinds of people to begin to pay back their debts, and gain an edge in the battle for financial freedom.
I’ll use a debit card, but I only use a credit card if I absolutely have to. I treat them as though they are pressed by the devil.
Love the animated gif at the top there haha, I’ll have to check out the video at home as work is quite strict on those.
Personally (and I don’t know if it’s possible) but I’m trying to be in a situation where I’m never in debt. I’m still young so haven’t really made or needed to make any big purchases but I am working on my financial situation for times when things like this happen.
I don’t plan on buying a car (i rent) or home anytime soon as I want to travel the world more so I might be in a better position when the time comes
Cheers,
Glen
@WD
That’s a great visual (being pressed by the devil). I’ll have to try that.
@Glen
If only I had your wisdom at your age, things may have been different. But instead, I have learned many things the hard way. BTW…you did not miss much with the video this time.
Congrats on your choices to eliminate debt. It can be hard not to use credit cards, but moving over to cash is one way to be sure you know how much you are spending. I personally only use credit cards online, and cash or debit for “real world” things.
Thanks for the advice. I guess there is no way but CC to shop online, unless you hook Paypal up to your bank account. With all the crazy scams and hacking online, I actually think a CC is the safest way to go.
Did you always stick by the CCs only online rule, or is that something you switched to? If you switched, how have you found the change affect your debt management?
Peter,
Getting out of debt can be a trying time because it can often require a lot of tenacity. But little victories as you go along can make it easier. Good post.
I would recommend listening to the free Dave Ramsey podcast every day. I am not pushing his “system” that he sells, just the free version of his podcast. It’s a half hour long and very motivational.
Good luck and be well.
@Ian
Thanks for the advice. I will have to check that out.
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