There are so many approaches to getting out of debt. It is my # one goal in life and unfortunately I have spent the majority of my adult life trying to achieve this goal. I have read every book I could get my hands on about getting out of debt and have been blogging about it for about two years. I sometimes feel like the biggest failure, but I also know that I am making true progress.
When one sets up a debt repayment system one starts to eliminate unnecessary expenditures. People talk about cable, cell phone plans, gym memberships, internet service, utilities, food. But we never had any frills in our budget ever. I could not cut cable, I have never belonged to a gym. Our internet connection is the only one available in this remote area. The only place I could cut back was on groceries, but even there you had to eat. Getting out of debt does have something to do with cutting back, but in reality it is about not spending and not incurring new debt. It is also about figuring out a way to make more money.
That's right if you add a new or newer car you will not get out of debt. If you take a vacation that you have not saved for you will not get out of debt. If you buy things on credit with out the money to pay for them at the end of the month you will not get out of debt. If you are deeply in debt and cannot meet the minimum expenses you will fall further in debt unless you can make more money.
Cars eventually get paid off, house loans eventually get paid off . Credit cards that are not used eventually get paid off. Every month you should make progress unless you are going backwards and spending money you do not have.
Disasters happen. Murphy visits. This is why it is so important to have at least a $1000.00 emergency fund. Our family should have at least a $5000.00 but that is far in the future. Big disasters cannot be covered with $1000.00, but as you are figuring out how to climb out from under the large rock that just fell on you, you should still be paying your regular bills. This is what I have continued to do since July and you know what? I am still making progress on my debt.
Even though I have had to incur new debt my house loan has gone down over $3500.00. My truck loan is down $1712.00, My car loan has gone down $1200.00. I paid off a studio loan of $4700.00. I reality I am further ahead even with my new debt than I was and I am going to continue on this path.
My secret has been consistent debt payment and working very hard to always make sure I have money ahead for what ever is coming up in the near future. I have no control over the universe or the weather or the age of my house But I know I will want things and want to do things and I will have birthdays and Christmas and vacations. I work hard and make sure those things are covered. Set goals for one or two things at a time and work hard (pray harder) and you will be surprised what you can do with getting rid of your debt or at least making progress.
What things have you done recently to help on your journey to becoming debt free?
Have a Great and Productive day!