The Secret to Getting Out of Debt

I am a “get off your butt and do something” kind of person. I value planning and thinking and strategizing about a problem, but in the end you actually have to do something to see some progress. That’s why I loved this post by frugaldad.

In his article, The Secret to Getting Out of Debt: Forget Snowballs and Interest Rates, frugaldad writes:

“The last two years of my personal journey to debt freedom, something finally clicked. It didn’t matter how I ordered my debts, how many half payments I made, how many times I transferred balances from card to card chasing a lower rate, or how many times I consolidated my credit card balances; the only thing that was going to get me out of debt was boosting my income.”

He goes on to argue that in order to get out of debt you must find more work for a short period of time. Working 70 hours a week and devoting all the money earned from those extra hours is how he got out of debt.

I think he’s on to something here for several reasons:

1)     Simple math

Extra income to pay down debt pays debt down faster

2)     Focus

This should probably be number 1. If you are working when others are relaxing, you must remind yourself of your focus several times a day. I am making this sacrifice because I am getting out of debt. What are the chances you would “forget” your mission and make a non-essential purchase at the mall while working 70 hours a week?

3)     Boredom

If you’re working a side hustle, especially if you can find one that inspires you, there is less chance to spend money out of boredom. This type of spending wrecks budgets all the time.

He goes on to say:

“Debt has a way of trapping you – in bad jobs, in bad relationships, in bad locations. It’s a suffocating financial cancer that eats away at your future dollars, and your current enjoyment. It adds immeasurable risk to your life. It is not to be ignored for another moment.”

Clearly, frugaldad figured out he hated debt and that it was worth a short-term sacrifice to conquer it.

Maybe today is the day you develop that warrior mentality.