The Business of Trucking
Create momentum to pay off debt
When we get a raise, we plan and think about all the ways we will use that extra money to pay off the credit cards or save for a house, but do those things ever happen? Nope. Instead, we decide to get deeper in debt, so we rush out and buy something we don’t really need. We want what our neighbor has, only we want the better, more expensive model. See how good I’m doing? I make lots of money. I can afford the best. Who are we kidding? Sadly, only ourselves.
It’s time to take control, right this minute. First, let’s get rid of the credit card debt. Make a list of all your consumer debt, including the balances. The best method for paying off debt in the shortest amount of time is to use momentum. Once you have your debt listed, pay the minimum payment on all balances EXCEPT the smallest one. Take every extra penny and pay it towards the smallest balance, because you can pay that one off the fastest. Then attack the next one. This creates momentum. As you eliminate a debt, you then have even more to apply to the next and so on.
There are several strategies for paying down debt. If this one doesn’t fit your situation, you may want to try something else. And if you don’t know how to get started, call us and we’ll be glad to work out a specific plan for your situation.
One last, but most important detail: While you are paying off your current credit card debt, do not use your credit cards at all! As you pay one off, cut it up and throw it out. When you are done, you should have just one card—the one with the lowest rate—available for emergencies only. Keep this one only until you have a fully funded emergency fund, the next step in your plan. After that, use only debit cards.
Remember, when it comes to spending your money, the choice is yours. Which road do you want to take? Do you want to reach your goals and realize your dreams? Control of your money and your future is an absolutely great feeling! As your money grows, you will find that “things” you thought you needed to buy just don’t mean as much. It’s the quality of your life that counts.