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Get out of Debt

Debt is an anchor. It prevents you from living the life you were intended to live. It makes you a slave to your debtors, and to your job. How much additional money would you have each month if you were debt free?

So get rid of it. Nothing is much more freeing than living without debt.

There are other plans to get out of debt – but I assure you the steps below are among the best for maintaining focus and eliminating your debt once and for all.

1. Stop digging. If you find yourself in a hole, the first thing you need to do is put the shovel down. In the case of consumer debt, put down the credit cards. Lock them in a safe, freeze them in a plastic cup of water, or cut them up – but stop carrying them in your wallet. They only get you into trouble.

2. Snowball your debt. Sort the debts you have from smallest to biggest balance. You will continue to make your minimum payment on all debts, but you will put every extra penny toward your smallest debt. Before you know it, the smallest one will be gone. Then you will be able to put the minimum payment from that debt, with every extra penny toward the next largest. As you continue the money available to put toward each debt will grow.

3. Sell some stuff. Sell the boat, motorcycle or camper – especially if you owe money on them. Downsize your vehicle. Sell the car or truck you owe tens of thousands of dollars on and buy a significantly cheaper used vehicle. Or have a garage sale and use the proceeds to speed up your debt snowball.

4. Track your progress. It is easy to lose sight of your progress. So, monitor it. Create some sort of visible progress tracker. A thermometer you color in as you make progress, a hole filling up or a hiker going up a mountain – anything to provide you visible confirmation of the progress you’re making.

5. Celebrate. Each time you pay off a debt, reward yourself. Cook yourself a nice meal; have a glass of wine or a cigar, watch the sunset – do something to acknowledge the progress.


Once you are debt free you will have all that money you used to pay toward debt to achieve a financial goal.

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