Welcome to Day 2 of reducing your debt. This first week will focus on more philosophical underpinnings of debt reduction. And then the following weeks will be more focused on the nuts and bolts of how to reduce your debt. The tips I’m sharing are what have worked for our family in our debt slaying quest (over $75K paid off since April of 2008). Nothing I’m sharing is revolutionary. It’s all been done and said before but perhaps something that I share will spur you on in a new direction or get your batteries recharged.
Day 2: Be Honest
If it worked for George and Abe, it should work for you.
When it comes to paying off debt, excuses have to drop to the wayside. Even though we had a big ‘ole heap of debt (the majority of which was/is student loan debt) when we began our journey close to three years ago, you would have never thought we were in over our heads.
We didn’t go out to eat often.
We didn’t vacation to exotic locations.
We weren’t concert goers.
We don’t have pets.
We don’t have hobbies.
And our kids aren’t involved in travel sports, expensive lessons of any variety, or pageants (have you seen that Toddlers and Tiaras show?!).
We live in a small ranch home built in the 1950s with no frills.
So how was it we were in so far over our heads? It was a question we asked ourselves more than once.
We had nickeled and dimed our way to $16,500 credit card debt (no longer on our backs). We put emergencies on the credit card – like several thousands of dollars in car repairs. But we also used it when there wasn’t quite enough in the bank account to cover our date night meal. We had a car loan. We had medical debt. We had furniture purchased on a payment plan. And we had a couple of small department store credit card balances. A lot of little bills were sucking the life out of us. Every. single. month.
But we didn’t live extravagantly. I’m not exaggerating, either.
But realizing and being honest about the fact that “that much” or “that often” or “that extravagantly” is often too much, too often, and too extravagantly is key to getting out of debt.
You MUST be honest with yourself and your spouse in your debt slaying journey. You will get absolutely no where without honesty.
It truly is the best policy.
