You Can Get Rid of Debt Series - Part 3

You are well on your way to becoming debt free

Welcome back to Part 3 of "You Can Get Rid of Debt." This is a series of hubs that will encourage and give you advice on how to wipe out debt and stay out of debt. If you have been following the steps of this series to get rid of debt, by now you should have compiled your bills into one place, cut up your credit cards and have spoken to all of your creditors. If you accomplished those steps, you are well on your way to tackling that first bill. This is where the fun begins. Yes I say fun - yes - keep this mission positive and don't look at it as a negative experience. You are well on your way to becoming debt free. Say it over and over "I am going to be debt free". I'll share ways on how to tackle that first bill in this hub.

Stay Focused on Becoming Debt Free

You Can Become Debt Free
You Can Become Debt Free | Source

It is bill extinguishing time

Get out your bill with the lowest balance and study it. Study the interest rate and how much money is going towards that interest every month. Pay as much as you can towards this bill over the minimum payment and enough to cover the interest. You can even pay small amounts of money towards the bill during the month - make sure to specify that the extra payments are for principle and not interest. Now, while you are tackling the first bill, make sure to pay the minimum payments on the rest of your bills. After you've paid off that first fill, apply the same amount you did to the first bill along with the minimum payment towards the next bill with the lowest balance while continuing to pay the minimum balance on your other bills. Dave Ramsey calls this the "Debt Snowball". Dave Ramsey suggest that you save $1000 first in an emergency fund before paying off debt. Some people can do this and other can not. The choice is yours. The main mission is to start tackling that first bill to get you started on the road to becoming debt free.

The Debt Snowball Courtesy of Dave Ramsey

Sell items you do not need anymore

We all have items in our closets, basements and attics that we don't need and are collecting dust. These items can be a blessing to help you get out of debt. Take a day to search these places in your home and to see what you can sell to make some extra cash to put towards that first bill. You can even consider joining sites like Ebay or Craigslist to sell some of your items you don't need anymore; and you may even consider having a yard or garage sale. Items that may seem like trash to you will be someone else's treasure. Items such as books, china, Christmas ornaments or baby and children's clothes sell well.

Find Ways to TackleThat First Bill

Get busy tackling that first bill.
Get busy tackling that first bill. | Source

Consider Moonlighting

When you're determined to get out of debt, you will naturally become motivated to work hard to achieve that goal. Consider getting a part-time job to help you achieve debt freedom. There are many things you can do. Check out the want ads or online for part-time jobs. Just working an extra 8 hours per week will help you to tackle debt. During the summer months many people need their lawns mowed and during the winter many need their door yards plowed of shoveled. This will give you some extra cash to put towards your bills.

Sell Your Crafts

Are you a crafty person? If so, strongly consider selling your crafts or offer services. If you sew, you can do minor alterations for people, you'd be surprised at how many people need their pants, skirts or dresses hemmed. If you crochet or knit, make some simple dishcloths or washcloths and sell them for $5.00 a piece. People love handmade cotton dishcloths and washcloths because they are very strong and durable. If you know carpentry, get the word out; I can assure you that you'll probably get more work than you can handle. Enter local craft fairs and farmer's markets to sell your crafts. Before you know it people will be knocking on your door for your products or services. Also consider selling your crafts on sites like Etsy.com Etsy is visited by people all over the globe everyday looking for unique handmade crafts.

Stay Positive and Focused

Stay positive and focused when paying off your debt. You are in control!
Stay positive and focused when paying off your debt. You are in control! | Source

Stay Positive

Remember to stay positive and focused during this season in your life. Before you know it you will begin to see the light at the end of the tunnel. Remember that it took a while to get in debt which means that getting out of debt will not happen overnight. Just remember that with determination, a positive attitude and ambition, you will become debt free. Believe in yourself. You can do it!

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10 comments

Ericdierker profile image

Ericdierker 23 months ago from Spring Valley, CA. U.S.A.

An excellent piece and well worth the read for everyone. Tackling money problems seems a lot like tackling any problem. One step at a time.


drpennypincher profile image

drpennypincher 23 months ago from Iowa, USA

Logically, it makes sense to pay off debts with the highest interest rates first to save the most money on interest. Psychologically it is nice to pay off the smallest debts first so you can feel the success of actually getting debts paid off more quickly and get rid of a minimum payment amount that you can use to pay down other debts. I think either strategy is great if you can get your debts paid off!


creativelycc profile image

creativelycc 23 months ago from Maine Author

Hi Eric,

Thank you very much for your comments; and you are right taking one step at a time is the best way to go for tackling money problems.


creativelycc profile image

creativelycc 23 months ago from Maine Author

Hi Dr. Penny,

It does seem to make more sense to pay the bill with the highest interest rate first but as you said getting that first bill paid givea you such a boost, you'll feel like continuing on to pay off the rest of the bills. Thank you so much for your comments.


FlourishAnyway profile image

FlourishAnyway 23 months ago from USA

It's a real boost to trick your mind by reducing the total number of lenders owed. I tend to make it a challenge to pinch pennies, then send in extra payments in between billing due dates.


creativelycc profile image

creativelycc 23 months ago from Maine Author

Hi FlourishAnyway,

Thank you for your comments, you are so smart to pinch pennies and send in extra payments in between billing cycles. That's how you get the balance down fast; and yes we have to go through a mind altering process to stay out of debt.


poetryman6969 profile image

poetryman6969 22 months ago

Dave Ramsey can be one of the keys to getting out of debt. That and budgeting.


creativelycc profile image

creativelycc 22 months ago from Maine Author

You are correct to say that Dave Ramsey can be one of the keys to getting out of debt! Thank you for your comment!


creativelycc profile image

creativelycc 22 months ago from Maine Author

Yes it is peachpurle and that is what I'm going to focus on in the next series. Thank you so much for your comments!


peachpurple profile image

peachpurple 22 months ago from Home Sweet Home

selling own talented craft is one useful idea

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