Tag Archives: get out of debt

Welcome to my first ever podcast!

Oh my gosh it works!  I  got the itch to pull the trigger on my first ‘podcast’, so I just went ahead and did it.  Go ahead, click above and listen for yourself.

This episode is 1 of 6 I’m committed to doing over the next six weeks. Among other things, I’m going to chronicle my radical assault on my student loan debt. In this first episode, I discuss:

  • Who I am
  • Why  I recently threw my life into high gear
  • Week three of my crazy mission
  • What’s next

More than anything, I would love to get some feedback from you! Yes, the recording is raw, but it gets the job done. Please let me know what you think, by commenting below! By the way– welcome to my life!

Ps. If the file doesn’t load straight away, give it a minute or two to buffer. 🙂


Been fighting debt for ages? Read this.

Remember the last time you went for a run? Remember how you came to that big hill, and found yourself wishing it wasn’t quite so long or so steep? Now: would you rather a short, but steep run or a long, steady hill?

Well, if you’ve gotten yourself into a tough spot financially, there are two ways you can get yourself on the other side of it. You can tackle the short but steep climb, or you can grind your way up the long, gradual incline. In other words– are you willing to make some significant, but short-term sacrifices in order to be done with your debt?

If you really wanted to, you could put this debt behind you in a matter of months. Think about what you could be doing with your cash if the debt was gone. Why go on making payments forever, when you have better things to do with your money? From tearing off a band-aid to jumping into the cool water at the beach, it’s always best to set your mind to it and face it head-on. Let the reward or freedom at the end be your focus, and just get it over with. It’s the same with the debt– budget, sacrifice, throw every dollar you can at it until it’s gone. Then… freedom!

Have you done something like this before? Why not comment, share your story, and encourage some people?

Jessica Watson shows how to get your parents out of debt in 210 days

Have your mom and dad got a large, steaming pile of debt? Young sailor Jessica Watson shows you how to solve this problem in a matter of days… 210, to be exact.

I’m being a bit cheeky, but my attention was caught by this comment on Australia’s youngest hero after she completed her round-the-world voyage this weekend. Her manager, Andrew Fraser commented,

“[Jessica] was mindful of her family’s financial position. All she said was that she wanted to come home and make sure her mum and dad weren’t in any debt, so my job is to make sure that happens and that she’s set up for life.”

Not that the Watson family’s financial affairs are any of the public’s business, but it’s not a comment I would have expected from a kid who’s grown up in sailboats. At any rate, it’s a pretty noble ambition. Now that Jessica has reached legend status, her sweet sponsorship deals with 43 organizations, debt will likely be a thing of the past for all of the Watsons.

Now, I doubt that debt was the motive for Jessica’s daring voyage. However, it’s always inspiring to see how a financial challenge can cause some people to turn up the intensity and get bold and creative.

So… how to beat your debt? Well, if you’re less than 16 1/2 years old, have a sturdy sailboat and about seven months to burn, why not try to break Jess’ new record? Any takers?

Have you ever done anything a little crazy to avoid or attack your debt? Please, do comment:

The “I Love Debt” Score

Ah, the credit score. This week I’ve encountered a few people chasing after this shiny object. One was a recently single mom and also recently bankrupted. Fresh from that experience, she was after a credit card or personal loan in order to “get started rebuilding her credit”. Wow. That first financial disaster didn’t register as a mistake? Back for more? I told her:

“Personally, I wouldn’t put to much emphasis around building credit. It’s useful if you want to borrow money, but the best way to financial independence is to manage income well, and to build a strong savings foundation. “

Plenty of teenagers seek credit cards too, because they’ve heard somewhere that it’s important to build your credit. Sorry to burst your bubble, guys, but… the credit score would be more appropriately called the “I Love Debt Score”. As Dave Ramsey said,

You don’t want to spend your life building your FICO [credit] score, because it’s just an “I love debt” score.

Credit is not a solid foundation; savings is. Businesses call it retained earnings. Generally, people seek to build credit for the purpose of borrowing money later, such as a home loan. Buying a home is a worthy goal, for sure. But instead of borrowing some so you can borrow more later, why not just save for your deposit? Seriously, there are home loan lenders out there who don’t need you to have an “I Love Debt Score”.

So– don’t bother with the credit score myth. Get yourself a proper financial foundation, one that doesn’t include debt.

Overspending :: Overeating

A friend just returned from checking out a Weight Watchers class recently, and excitedly told me about how it’s all about knowing how much you should consume each day, and eating meals according to that limit. The more I listened, the more it sounds very similar to spending money.

Consuming more products/services than you can afford to gets you in debt. Consuming more food than you can afford to gets you fat. I guess with money, planning your spending and sticking to your budget keeps you in good shape. With food, it’s similarly about not eating more than you can burn off with normal activity. At the end of the day, both are about self-control.

I get the concept, but putting myself on a food “budget” is another thing! Easier said than done. It’s a great way to think about food intake, though! I can’t just buy anything I want all the time, and I shouldn’t just eat whatever happens to be in the kitchen. Thanks, Weight Watchers, for the lesson on being good little consumers…