My Journey out of Debt

Featured customers currently enrolled in a CareOne Debt Relief Plan, share journey to become debt-free; hear how they juggle family, finances, and more.

The ABCs and 123s of Debt Management

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I have a philosophy when it comes to most things in my life - keep it simple. 

Stick to the basics and when the going gets tough - go back to the basics.

The same goes with how I handle my debt. Sometimes we tend to overcomplicate things, make things bigger than what they actually are. It's human nature. 

So, I think it may be a good time to re-group and remember the basic concepts to managing your debt - you know the ABC's and the 123's.

The ABCs and 123s of Debt ManagementA...ALWAYS use cash. If you can't buy it with cash, you can't buy it.

B...BUDGET your expenses. Daily, weekly, monthly, minute by minute - whatever....without a guide and a complete understanding of what is coming in and what is going out - you are going to wander and get yourself back in trouble.

C...CREDIT CARDS are to be paid off immediately if you have to have one at all. If you need a friendly reminder on what you truly spend on purchases on credit cards, take a minute and figure out the interest. That should be enough to scare you back to cash!

1...It only takes 1 overdraft purchase to spark endless overdraft fees. Fees that you don't have the money to cover and even if you do - what a waste of money it is! Know what you have before you spend.

2...2 jobs are better than one! If you are able to, find another way to bring in some extra income while you are climbing your way out of debt. 

3...3 strikes you're out. The bottom line is that at some point you have to make the decision to get out of debt. The longer you put it off, the more "tricks" you try,  the more trouble you will get yourself into.

Check out this article about easy tips to becoming debt free, Notice anything? The articles talks about the basics - no big secret, no silver is just going back to basics. 

Keep it simple and keep your focus.  It's as easy as 123.

 Related Posts:

Baby Steps on the Royal Road to Fitness

5 Easy Steps to Get Your Finances Back On Track

Why an Accurate Budget is Important

Katie SimmonsKatie Simmons

Katie is currently enrolled in the CareOne Debt Management Plan (DMP). You can read more about Katie's experiences in the My Journey out of Debt blog. In her blog, Katie explores living life without credit cards and how things are going on the DMP. A newlywed, Katie candidly addresses how debt has influenced her choices in love and life. Look for other posts from Katie under the Single and Settling In blog or tag. Compensated CareOne Blogger.

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  • That is great advice.. Do you have any advice as to how to rebuild your credit score?

  • I wish I could help you in that area, but the whole credit score thing is very tricky!  My only suggestion is take some time to really understand your score and what effects it.  There seems to be more and more resources out there to help us understand and even tips on improving scores.  Good luck...but remember, it will take time and patience, but worth it in the end!

  • Keep it simple - wonderful advice.  It doesn't get any more simple than paying with cash, it's a habit we all need to acquire.  I learned sometime ago that it takes 21 days to acquire a habit so that means, if you try, you can become credit card user free in just 21 days.  Thanks for reminding me to keep it simple!

  • The steps outlined below can help you reach this goal. Now you won't solve your financial problems overnight, but if you remain committed to the plan and take the time to find the right debt management partner, your hard work will pay off.

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