January Money Diet Day 9 – Get Serious About Eliminating Debt

Pay off debt at Happy Simple Living

Paying off debt doesn’t just help us sleep better at night; according to personal finance blogger Trent Hamm in this article for U.S. News, it’s one of the best financial returns for your money in today’s economy.

Our family’s finances finally got moving in the right direction thanks in part to Dave Ramsey’s Debt Snowball Plan, which I used to pay off $12,000 of debt spread among four credit cards. Based on the plan, I focused on aggressively paying down the card with the lowest balance first, while making minimum payments on the other three cards. Once the first was paid off, I moved to aggressively paying off the card with the second-highest balance — which went faster (like a snowball!) since I had one less bill to pay. You get the idea.

Today I have one credit card, which I rarely use. I carry a debit card instead, which doesn’t allow me to spend money I don’t have.

Are you struggling with credit card debt? Perhaps you’d like to make a plan for paying off your balances. Here’s Dave Ramsey’s simple worksheet that you can use to write out your own personalized plan. Also, what if you took your credit cards out of your wallet and put them in a safe place for now? Physically removing the temptation is a big help to me, and it might work for you, too.

Today’s Homework Assignment:  Make a plan today to get your balances paid off, and commit not to take on even one single dollar of new debt in 2014. What would financial freedom mean for your life? If you’re willing, share a few words in the Comments about your goals and hopes for getting out of debt. If you’re already debt-free, tell us how you achieved that victory and how it has affected your life.

No matter what your circumstances are, I promise you that people in worse financial shape have gotten out from the burden of debt and you can, too. So let’s agree to attack debt head-on this year.

Here’s to real, lasting financial freedom in the days ahead. Together, we can do this!


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About Eliza Cross

Eliza Cross is a full-time writer and the author of a dozen books about food and home design. She has been blogging about simplicity and sustainable living since 2006.

January Money Diet Day 9 – Get Serious About Eliminating Debt

  • Mea, you should be very proud of yourself for making the call and coming up with a game plan. Here’s to your success! I am pulling for you. xoxo

  • Mea Johnson

    Thanks so much! I have taken on this diet so that I can changed my money spending habits and put my money to use in a snow ball system…I also contacted the LearnVest folks who were really nice and gentle in helping me start to make a real plan…I have to admit,it is scary, but I am taking one step at a time. Most of my debt is in student loans, but I have credit card debt as well. Thanks again for posting this as a step in the right direction!

  • Sara

    I was inspired by this post and made an extra payment on my student loans, just for the fun of it 😉

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