OK, friends. It’s about to get real. I’m praying this entire challenge has encouraged you to rethink they ways you interact with your money. After all, decluttering a sock drawer or a car console or a pantry shelf isn’t just about what sparks joy for you. You have the opportunity to stop wasting money on items you really won’t use. Likewise you can also find money by paying attention to what you already have. Today, we’re talking about decluttering your mess when it comes debt. If you didn’t know already, we paid off $127K in debt in just under four years. Nothing makes me happier than helping folks find their way out.
Just as a reminder, each of the Financial Decluttering assignments should only take 10-15 minutes and you’ve only missed assignments to Clean Out Your Wallet, Clean Out Your Refrigerator Door, Clean Out Your Car Console, Clean Out Your Sock Drawer, Organize Your Coupons, Clean Out Kids’ Backpacks, Clean Out Your Purse or Bag, Clean Out ONE Pantry Shelf, Clean Off Your Desk. Then check out Clean Up Your Phone’s Apps, Clean Out Your Inbox, Clean Out the Junk Drawer, Declutter Your Shoes, Clean Out Your Freezer, Count Your Change, Clean Out ONE Clothes Closet, Clean Your Cleaners, and Clean Out Your Linen Closet. From there, head to Clean Out Old Bills, Clean Out Jewelry, Organize One Garage Shelf, Clean Out the Shower, Organize Medicines, Organize Your Safe or Lockbox, and Declutter Fitness Equipment. Don’t miss Declutter Your Budget, too.
Just a reminder, don’t forget to join the Financial Decluttering Facebook Group of 1500+ people for ideas and encouragement. You’ll love the photos of the clean wallets, clean refrigerator doors, car consoles, coupon binders, backpacks, purses, desks, shoes, inboxes, and more!
Now, on to the challenge!
Day 27: Declutter Your Debt
Probably most of us don’t associate debt with clutter. I mean after all, it’s a bit more philosophical than that. But for many, a broad glance around their homes reveals that some of the clutter is the physical manifestation of their debt. Unfortunately, we can’t pack away our debt into a giant trash bag and haul it off to donate at the thrift store. But, we can get a better handle on what we owe to whom and begin to take steps to declutter and defeat debt.
Why It Matters:
Debt is more than just statements and interest rates. It has a significant impact on your health. Debt numbers among the top reasons why people divorce. Debt prevents you from going to the places you long to visit and becoming the person you want to be. I honestly can’t think of one person I’ve ever met who was happier because of their debt.
If you have debt, odds are good, you haven’t stopped to contemplate its impact on your life. You also may not know exactly how much you owe and to whom. Today, let’s begin cleaning up the mess and getting a plan for the future. You can do this.
How to Do It:
- Pull out your bills and log into your accounts.
- Make a list of the total amount of your debts.
- If you didn’t do this already on Day 1, remove credit cards from your wallet. Or take things a step further and close the account.
- For high interest credit cards, call and request a lower rate. You may get no as an answer, but you won’t know until you try.
- Consider using the debt snowball method (it worked for us!). Line up your debts from smallest to largest, regardless of interest rates. Begin paying off your smallest debt first. When you’ve eliminated the first debt, “roll up” the regular payment amount (and any extra you’ve been paying toward the debt) into the next biggest debt. Rinse, repeat. This way, you gain momentum and use funds you weren’t already living on as a key part of the process.
- Make a commitment to begin Slaying Your Debt Dragon.
- When you’re finished, take a photo and post it to the challenge post in the Financial Decluttering Group. We’ll celebrate your victory. And/or post on Instagram with the #FinancialDecluttering Hashtag.
- You’ll get bonus points and virtual fist bumps for interesting discoveries.
How to Keep It That Way:
We found paying off debt to be addictive. The more success we had, the more sacrifices we were willing to make to reach our goals. Slaying the Debt Dragon is chocked full of practical ideas and encouraging inspiration to help you succeed, too. It’s not as difficult as you think it is. And you’re more than capable.
Need some more inspiration? Read these posts:
- Sallie Mae’s Eviction Notice
- What to Do When You Fail at Paying Off Debt
- Why You Should Name Your Debt
- Why We Didn’t Default on Our Student Loans
- When It Feels Like You Are the Only One Paying Off Debt
A Few More Thoughts:
I can’t wait to see all we achieve together this month. I’ll continue sharing my own journey in the Financial Decluttering Facebook Group and via e-mails. Be sure you subscribe for both.
Post a photo of your debt decluttering victories and tips in the comments! I want to see what sorts of systems you use to organize.
Our new book Your Money, Your Marriage is now available! Be sure to check out videos on managing money together on Facebook.
My book is now available: Slaying the Debt Dragon: How One Family Conquered Their Money Monster and Found an Inspired Happily Ever After. You can also check out The Debt Free Devotional
This post contains an affiliate link. That means when you get a great deal, learn about a way to save, or maybe even something for free, I may end up making a small commission. All prices are subject to change.
