Wednesday, March 10, 2010

Get Out Of Debt - Part 7

If this is your first time reading the "Get Out Debt" Series and would like to catch all the drama from the beginning click here and start reading from the bottom up.



Welcome back to my weekly post where I air and even at times exploit my dirty-debt laundry. So let's get right to the update on our debt elimination...

By our fourth month we had reduced our debt by an amazing....18%!!!  For us that equated to a small car.


Next week I'll go over Dave Ramsey's Baby Step Three.  But for this week I'm going to keep it short and sweet with just a few comments.

Comment #1:  It is my belief that most people won't even try this because they think freedoms are going to be taken away, perhaps much like they were by their parents years ago.  I promise, you will only gain more and more freedom, not loose it. I PROMISE!

Yes, your budget and fun may be cut, but you will hit a point where you are no longer a slave to your job.  You will sleep well at night.  Once out of debt you will open up a whole new frontier of possiblities you couldn't even begin to entertain when you were in debt. 

Like what you ask?  Like you can move to another state.  You can quit a job you don't like.  You can start a new career.  You can never work again.  You can be a stay-at-home mom or dad.  You can travel more.  You can build that dream house.  Fill in the blank with what you can do once you are free from debt.

If you think these things happen without any planning or forethought you need a reality check. 


 

Comment #2:  I think a lot of people would like to do this but don't think it is possible because they do not make enough money or they are too old.  All I have to say to you is SO FALSE.  Just try it, you'll see I'm right.  Any amount of debt relief is good.

Comment #3:  Some people thing they are out of debt but really aren't.  If you tell me you are out of debt EXCEPT for a student loan or a car loan you are not out of debt.  Time to be honest with yourself.

Comment #4:  Have you ever figured how much you need to retire on or were you just planing on working forever?  Sit down and figure it out than calculate out how much you would need to put away every month to make that happen.  How are you doing?



Comment #5:  Get a second or third job if you need more money to make this happen.  A little short term pain will go a long way on being debt free.  I started a home based business as a Arbonne consultant and the money I'm making I'm able to put towards our debt relief is amazing.  As Dave says, whether it is a job outside the home or something you are doing from home, it needs to bring in an extra $1000/month to make it worth your time.

Okay, that's it for this week.  Good luck with your debt relief.  Next week - Dave Ramsey's Baby Step Three (a.k.a - what to do once you are out of debt.)

Click here to go on to "Get Out of Debt - Part 8."


7 comments:

  1. thanks for your honesty! There is freedom being debt free! Not to mention actually having savings!!!!! My BIL has been out of work for 14 months, but because they were debt free and had a sizeable savings, added with severence and unemployment, they are not only surviving, but doing very well!!! Just by being prepared and frugel and realizing that they don't need everything!!! They still have cable, cell phones, but have cut way back on plans and don't miss the extra! How would we do in that situation???
    Great post! I will go back and read the ones you did before...thanks!!

    ReplyDelete
  2. Hi there!

    I found you through "Friday Follow" and am now following your blog through Google Friend Connect. I look forward to reading more of your posts! Come on over and visit us when you have a free moment. <3

    ReplyDelete
  3. There is an award for you on my blog!

    ReplyDelete
  4. Good for you. I haven't studied his method, but have heard good things about it. He is very good at what he does in reaching the "emotional" part of debt management and making things seem doable. That is key to his (and others on his program's) success. I would LOVE to hear more about your beach body coaching as well, if you would!

    ReplyDelete
  5. Great post! And thanks for the mention of my SAHM post! I keep hearing about this Dave Ramsey guy...I need to check him out already! We are trying so hard to get to debt free...so damn hard but so damn worth it. Thanks for sharing this! (and btw the song that plays on your site puts a GREAT BIG SMILE on my face!)

    http://thepursuitofmommyness.com/

    ReplyDelete
  6. I love your Getting out of Debt Series! I am actively trying to follow it. Thanks for the comment on my blog! We are actively trying to get rid of the debt in hopes that we will soon be ready to take the leap into buying a home! Thanks so much fo this post!

    ReplyDelete
  7. I have heard of Dave R but am not familiar with the details. We have a mortgage and that is it. I wass raised to believe there is one type of plastic and that is AMEX: a charge card that is paid off monthly. I am constantly shocked by the amount of debt people have in credit cards and car loans. i wouldn't be able to sleep!

    ReplyDelete

Oh I'm so happy you checked out my blog. I absolutely love hearing from each and every one of you - it truely makes my day! Jamie