How Have I Done it?

Ms. Ambitious posted that question, and it's such an important one that I decided to make it a posting.

First, the debt I have paid down is not all credit card. I paid off 2 cars, sold our motorcycle (which we also were making payments on and paying insurance for), paid off and closed a department store credit card, and then paid off a major credit card.

What I have left, one more credit card, a home improvement loan, student loan, and then the house.

How did I do this?

1. I started checking out books at the library on anything about money management. See the list of recommended books on this site. THE most important book you could read would be Dave Ramsey's Total Money Makeover. But, read LOTS of books. Until you change your THINKING about your money, you will not be able to change your ACTIONS.

2. I wrote down all of our expenses. I looked for ANYTHING I could cut out of our spending. In the beginning I cancelled our cable and cell phones (may seem drastic for some, but it was a decision I felt comfortable making).

3. Since I was/am a stay at home mom, I decided I could do something part-time and put the money I earn toward paying off debts. When I get my paycheck, I drive straight to the bank and put it on the last of our credit cards. I am so excited about the day we pay that off and close that account!

The bottom line is that you HAVE to be willing to sit down, put all the information in front of you (no matter how painful it will be to see the truth), and then be willing to do whatever it takes to solve the problem (i.e. no more eating out, cable, cell, new car, new clothes, etc.)

I would sign off by saying "Good Luck," but the truth is that YOU make your own luck. YOU have the power to change your situation, one strong step at a time.

Blessings.