This is part three of a series
about my journey through debt and how I climbed out of the debt trap. If you
are new to this blog, you will find my debt story here, and also be sure to
read Part 1 and Part 2 before reading today’s post.
Once I stopped my out-of-control
spending habits and started writing down every penny I spent, I started to see
a little money left over at the end of each paycheck. This money went towards
paying down the principle of my loans.
Minimum payments on credit cards
pay mainly the accrued interest and a few cents (if any) of the principle of
the loan. That must-have deal on your favorite brand, quickly becomes quite
pricey once the balance is on the credit card, and you are stuck paying for it
(with interest) for the next decade.
By paying down the principle of
the loan, you are lessening the amount of the original loan. Do not be
discouraged if you only have 87 cents to pay towards the principle. I have been
there. 87 cents is exactly what I had left in my pocket book at the end of the
pay period. That is exactly what I added onto my minimum balance due and sent
in to the credit card company.
Never let yourself be tricked
into believing that whatever money amount you have available is too little. No
matter WHAT it is, it will help pay down your debt. As you pay down the
principle, you will slowly see a shift in how much of the money you pay the
credit card company goes to interest, and how much goes to the principle
balance.
I have been asked which card I
paid down first. After paying all the minimum payments to each card, I put the
extra money for the principle towards the card with the highest interest rate.
In this way, I was getting the worst load off of myself the fastest way
possible.
This is NOT an overnight quick
fix. It took quite a while for me to get myself into the amount of debt I had
on credit cards, and it took me quite awhile to get out. The difference was, I
actually came to the point of looking forward to receiving the credit card
statements in the mail and sending my payment in.
I knew that everytime I sent in a
payment, I was inching closer to getting out of my debt pit. Sometimes it was
87 cents. Sometimes, it was $100. whatever it was, it was a step closer to my
goal of paying off my credit card balances.
In order to make extra money so
that my principle was paid down faster, I took on extra jobs. I cleaned homes,
tutored, and did any other odd jobs that were available. I also sold items that
I did not need and put the cash earned towards principle. Every Christmas and
birthday gift that was given to me as cash went towards my debt. No it was not
what I WANTED to do with it, but it was what I NEEDED to do.
I came very close to rationalizing
that it was my BIRTHDAY present. I DESERVED to splurge on something with that
money. But you know what? No, I didn’t. I had put myself into slavery of the
credit card debt, and I was slowly, little by little, getting my freedom back.
Out of all of the things I was doing, turning over my birthday and Christmas
present money to those credit card companies was the hardest.
Ok, so I have shared with you how
I got into debt, my realization that I was debt, my immediate actions, how I
started to keep track of my money, how we changed our food habits, and why it
is important to always pay towards the principle. In a future post I shall
delve into how I started the very necessary, yet very painful process of making
cuts in our budget so that more money was freed up to pay down the principle of
the loans.
Thank you for staying with me on
this topic. While debt, and money in general, seem to be a taboo subject in our
society, it is one that needs to be discussed and shared. Remember, this is MY
story. I have been there. Do NOT give up. No matter how deep your debt pit is,
there is ALWAYS a way out.
As Aristotle said, “We are what
we repeatedly do. Excellence, therefore, is not an act, but a habit.”
~Annie







