My Journey to Eliminate Debt

So from yesterdays exercises you should have at least 4 pages of ideas you brainstormed and quite a few pages written about your previous responses to uncontrollable financial events. Starting to see some patterns yet?

First take the list of brainstormed ideas and cross off all that are obviously unrealistic (win lotto, suddenly inherit money etc). Now start working your way through every item left on the list. how can you do this? What needs to happen for you to take this step? Don't dismiss them too quickly and write down any objections that come up in your mind.

Is there one idea that could get you started on relieving your current worst problem?
Do you need more information before you can make a decision on what action to take?
Where can you get good information? Who do you need to contact?

Write it down and make a list.

Here's an example list that you might end up with after brainstorming.

• call bank & talk to them about lowered payments /interest rates
• phone utility companies and ask for extension so I avoid late fees
• contact the school and ask for fee relief
• redo my resume
• contact local community college and find out if any free/subsidised course are running
• return clothes I bought last week for a refund
• buy an answering machine so I don't have to talk to collections
• find out where free credit counselling is available
• ring Aunty Flo & tell her we can't attend her party (travel expenses)
• phone about taking some money our of retirement funds
• make a budget
• contact charity for assistance with bills and food parcel
• tell mum & dad about our situation
• cancel the cable TV
• cancel subscriptions

What is on your list will depend on your situation and your priorities. It can be hard to ask for help, but we all need it at some stage in our lives. Just make a start with the list and then work your way through it. Each little step is moving you forward.

You should be starting to get a feel for what your real priorities are by now. understanding your immediate priorities will help guide the decisions you take to eliminate debt. Here are some examples of peoples different priorities:

• keep our current home
• avoid bankruptcy
• health care concerns
• keep my business afloat
• find a cheaper place to live
• finish my degree
• pay off credit card debt
• save for a home
• move away and start again
• get a job
• keep the kids in the same school
• keep my relationship solid
• stop gambling, drinking , drugging
• maintain church commitment
• keep the family happy
• declare bankruptcy
• complete career change
• save for retirement

Years ago when we were both unemployed (job loss, and illness) we reached a point where it appeared the only solution would be to sell our home. Interest rates had risen to 18% and I was quite ill and unable work. I can still hear my husband saying to me " We can't avoid it, we're going to have to sell the house." It was like a kick in the guts.

Then the fighting spirit kicked in and we made a decision that keeping our home was the most important thing to us. Moving and being ill would only have increased the stress and caused other problems.

This priority was guiding principle for every decision we made from them on. No matter what was happening or how many payment extensions I had to phone and ask for (I hated it!) I reminded myself that we were going to keep our home. Our first payment was always the mortgage, then we juggled and shuffled everything else until my husband got another job.

Anyway, I digress....

So write down your top 2 priorities and start working your way through your list. Start collecting all your old bank statements and bills for the last year in preparation for starting a budget plan.

With your financial timeline, go through the list of controllable events and ask the same list of questions I posted yesterday. Write it all down. Writing is powerful and it has a different effect than just thinking things through. ( and there is reserach that shows this!).

So start writing, keep moving forward and take action, it doesn't matter how small.