1st Step

Today, my weekly post is going to address the first step to become debt free. It is important to point out, that while I am typing this,I am also learning. The big thing of course, is changing our spending habits. Changing those habbits, can be the hardest thing, because we must stop using credit, but if you are like me (and most of you are), you are over extended and using credit cards to make it by. Obviously that is a losing battle, not to mention we are paying more for everything we put on credit, then we would if we would just pay cash. How do I figure? Well you are paying interest on top of what the retail cost is. For example you might as well add about $5,000 to the cost of your car, if you use credit to pay for it. With credit cards, if you pay the minimum payment on your credit cards, then you are likely paying for each item three times. Can you see how, it is better to pay cash? In the long run if we wait and pay cash, we will come out ahead of that person that has the "give it to me now," mentality and thus uses credit to get the items, just so they can impress their friends and family. Anyway more on that, in a latter post.

The first step is making the commitment to do it. First cut up all your credit cards, except one. Take this one credit card and put it in a metal can full of water and put it in the freezer. Why a metel can? Because metal can't be microwaved. In this way, you are forced to wait for it to thaw out, before using it. This is a period of cooling off for you. Often times, by the time the ice thaws, you will have changed your mind about using your credit card.

So let me ask, do you really want to get out of debt? Are you sure? Are you willing to discipline yourself in whatever ways might be necessary to achieve that goal? If you can answer yes to these questions, then let's get started. Check back weekly, for my weekly posts on becoming debt free and hopefully encouragement to stay debt free forever.