#75Hard Day 62: How To Start Eliminating Debt + My Story
▶️ Something I get asked about frequently from clients, friends, and acquaintances is the process of how I paid off 6 figures of debt.
▶️ The ultimate goal of debt elimination is to be freed up from anything that would hinder your ability to make decisions or pursue higher level callings of God on your life. Also, I believe it is import to have the ability to be a blessing to others because you have the ability to give when you see a need.
▶️ If you are constantly stuck having to focus your attention on just meeting ends, you will never be able to advance yourself to a higher level place.
▶️ While I am by no means an expert, I do have personal experience navigating paying off 6 figures of debt. I thought it would be helpful to share the process for those who might want to do something similar.
▶️ When I first got started, I had multiple student loans, multiple credit cards, a mortgage/short sale condo payment, and a car payment.
▶️ My husband and I came up with a plan to eliminate the car payment so that I could roll that into paying off the first of my two credit cards. Our approach to this was for me to pay upfront for a years worth of our health insurance through my employer and for him to reimburse me for his share of it. I then took that money and paid off my car.
▶️ I took what I was paying towards my car each month and stacked that onto the minimum payment for my credit card so I would pay off the principal sooner. Once that was paid off, I rolled it into the second credit card, and so on. We essentially use the debt snowball approach that @DaveRamsey teaches about until we reached the very last bill.
▶️ In order for you to get started, you just need to gather all the information about your debt; how much you owe to each and what the interest rate is.
▶️ Decide if you are going to attack the smallest bill first or attack the one with the largest interest rate. The method works easiest if you attack the smallest bill in most circumstances.
▶️ The main question is how do you come up with the extra cash to throw at the first bill? You either need to spend less or earn more.
▶️ When you start out this process, I encourage you to look at your time and your money as interchangeable entities. What I mean by that is that sometimes your time is more valuable in terms of earning potential.
▶️ So, could you pay someone to clean your house every month and then use the time spent cleaning to earn extra income? You may be able to earn well above and beyond what you pay the person to clean your house because what takes you 8 hours on a monthly basis may only take them 2. This is just one example.
▶️ You just need to get creative with finding a way to earn if that’s the route you go; start a project that earns you money like selling things on Etsy or eBay, sell unwanted items like clothes and home goods on craigslist or Facebook marketplace, etc. You can even find things at yard sales or thrift stores to resell for profit margin.
▶️ The other option is to find a way to spend less than what you currently are in order to live each month. Then use that extra to throw towards the first bill.
▶️ Any questions? Any ideas for earning or saving that I did not mention here that might be helpful to others?
▶️ The ultimate goal of debt elimination is to be freed up from anything that would hinder your ability to make decisions or pursue higher level callings of God on your life. Also, I believe it is import to have the ability to be a blessing to others because you have the ability to give when you see a need.
▶️ If you are constantly stuck having to focus your attention on just meeting ends, you will never be able to advance yourself to a higher level place.
▶️ While I am by no means an expert, I do have personal experience navigating paying off 6 figures of debt. I thought it would be helpful to share the process for those who might want to do something similar.
▶️ When I first got started, I had multiple student loans, multiple credit cards, a mortgage/short sale condo payment, and a car payment.
▶️ My husband and I came up with a plan to eliminate the car payment so that I could roll that into paying off the first of my two credit cards. Our approach to this was for me to pay upfront for a years worth of our health insurance through my employer and for him to reimburse me for his share of it. I then took that money and paid off my car.
▶️ I took what I was paying towards my car each month and stacked that onto the minimum payment for my credit card so I would pay off the principal sooner. Once that was paid off, I rolled it into the second credit card, and so on. We essentially use the debt snowball approach that @DaveRamsey teaches about until we reached the very last bill.
▶️ In order for you to get started, you just need to gather all the information about your debt; how much you owe to each and what the interest rate is.
▶️ Decide if you are going to attack the smallest bill first or attack the one with the largest interest rate. The method works easiest if you attack the smallest bill in most circumstances.
▶️ The main question is how do you come up with the extra cash to throw at the first bill? You either need to spend less or earn more.
▶️ When you start out this process, I encourage you to look at your time and your money as interchangeable entities. What I mean by that is that sometimes your time is more valuable in terms of earning potential.
▶️ So, could you pay someone to clean your house every month and then use the time spent cleaning to earn extra income? You may be able to earn well above and beyond what you pay the person to clean your house because what takes you 8 hours on a monthly basis may only take them 2. This is just one example.
▶️ You just need to get creative with finding a way to earn if that’s the route you go; start a project that earns you money like selling things on Etsy or eBay, sell unwanted items like clothes and home goods on craigslist or Facebook marketplace, etc. You can even find things at yard sales or thrift stores to resell for profit margin.
▶️ The other option is to find a way to spend less than what you currently are in order to live each month. Then use that extra to throw towards the first bill.
▶️ Any questions? Any ideas for earning or saving that I did not mention here that might be helpful to others?
What Can Be Gained | «Small Wins Create Massive Success» 