In this series of posts, I want to equip you to become debt-free! Jenn and I became debt-free in 14 months by following this process, and I can tell you this – there is NOTHING like living life without the trappings of debt!
Let's review the first step.
Step 1 – Understand WHY you want to be debt-free! If you don't have a clear understanding of why you want to become debt-free, you will have a very tough time sticking to this effort. When you know WHY, you are able to stand firm against the temptation to acquire more debt.
I hope that you have taken the time to write out your hopes/plans/dreams for your life. Again, I cannot overstate the importance of writing this out on paper!
Step 2 – List your debts
During financial counseling sessions, it is a guarantee for any person who has debt that I will calculate their debt freedom date. You should see people's reactions as I put together a list of their debt! Their reactions relay to me the true facts of debt. Here are some very common reactions that I see/hear.
- Hiding their eyes
- "Oh no!"
- "I've never added it up."
- "This is scary."
- Moving to a defensive position as if to guard themselves against the debt
- Turn their head so they don't have to look at the debt total
I KNOW that it can be scary to total up debt. The mere fact that it is so scary tells me two things:
1. People do not like debt.
2. People have not been paying attention to their finances and do not have a well-defined plan for their life. Otherwise, they would not have incurred most of the debt. It is literally ROBBING them of their financial future!
Here is what I say to them – "If you don't know how many heads the dragon has or how large the dragon is, how can you effectively defeat it?"
It is time to slay the dragon. Use THIS FORM to prepare a well-organized list of your debt.
Question of the Day: Why is it so scary to total up debt?
Do you live near Anderson, SC? Sign up for the Financial Freedom Class at NewSpring Church – class begins on Wednesday, September 19 and costs only $20 per household – childcare provided! You can sign up and pay on-line HERE.
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