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| Sunday, November 27, 2005 |
| How I focused on getting out of debt |
Back when I was younger and in debt I came up with some personal strategies for paring down and eventually eliminating my debt. These may not work for everyone, but I thought I would share.
First I created a debt journal. This was a notebook that I kept with me at all times. I listed all of my credit card, student loan, and car loan balances in it. Everytime I made an installment payment I updated the outstanding balance in the journal. I also listed any income made during the month in the journal and noted how it could be used to pay down the debt.
I still have my old debt journal and flipping back through it periodically strengthens my resolve to never again be in debt.
Second I moonlighted and devoted all of those extra checks to debt payment. Some of the extra jobs I worked during the three years of debt repayment was weekend tour guide, evening cashier at a video rental store, holiday stock auditor at a department store, and for a short two day period traffic counter (don't ask - it was a highly paid but mind numbingly boring job and the only time I have ever quite without giving proper notice).
Frankly I hussled like crazy during those years to make extra money to pay off debt. It was not fun and some friendships suffered because I was never available to socialize. My career was stuck pretty much in neutral during that period since I just did not have the energy or the time to do anything other than the 9 - 5 duties my job entailed. But looking back it was so worth it.
Third I rewarded myself every time I reached a milestone. When I finished paying off my credit cards I stopped working weekends. When I paid off my car loan I quit moonlighting all together. When I paid off my student loans I made myself a month of "for me" appointments - expensive hair cut, manicure & pedicure, massage, facial. It was a chance to indulge in luxuries I had not experienced for three years.
Basically I identified and tracked what I owed (debt journal), maximized my earning potential (moonlighting), and kept myself motivated by having clear milestones (and rewards). |
| posted by Boston Gal @ 9:32 PM *
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| 1 Comments: |
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I am very impressed. You look to be doing great with such persistence
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I am very impressed. You look to be doing great with such persistence