Destroy the Debt
Debt is the worst poverty.
- Thomas Fuller
Debt can be a heavy load, not just on your bank account, but also on your psychology and relationships.
I have never been one to rack on the resolutions; in fact, I dont think I’ve ever made resolutions in my life. However, at the end of 2009, I took a glance at where I have been and where I’m going in life, and even though I’ve had a pretty set idea of what’s happening, things change (and sometimes drastically), at the most inopportune moments.
At 25 years old, and after six years of working, I have no savings and some debt. A part of the debt was inaviodable, but the rest (credit card debt) was unnecessary. And I’m tired of feeling chained to my debts. So 2010 is the year to DESTROY THE DEBT.
The aim for this year is to target the credit card debt and eliminate it. The best way to do this is to:
1. Calculate the amount of debt I have.
Calculating your debts and interest rates allows you to focus on what debts you can focus on and eliminate first.
2. Understand my spending methods. The best way to do this would be to start an excel sheet that tracks down EVERY expenditure. By doing this, it allows you to see exactly where your money is going and when. This way, you better understand yourself as a consumer.
3. Cut down on trivial spending and focus more money on paying the debt. The more you can live without the better. Also, the more you don’t view this as a chore or punishment the better. No need to feel depressed. On the other hand, you can view this in a positive light, as you are consciously building a better, debt-free life for yourself.
4. Pay the debt. If you take out a specific amount every month to repay your credit cards, try doubling the amount paid (and not using it later on during the month). Stick to your outlined budget
Many of us do not know how to live according to our means. In fact, the majority of us live above them, however, to live a comfortable and debt free life, you have to live under your means.
5. Reward yourself. I have a very bad habit. I like being rewarded for good deeds. I like knowing that would I do will be reciprocated. I am not ashamed of this fact 
and neither should anybody out there. And because setting a budget and repaying debt can be unrewarding because you are cutting back on so much, every time you make that extra payment, reward yourself! It cannot be something extravagant, of course. You can buy yourself a cup of your favorite coffee, or a few flowers, or your favorite chocolate. And make sure you tell yourself that you are rewarding yourself! This could be hard for people who tend to give and not take, but it will feel good!
The Frugal Reader:
1. Man vs. Debt: Paying Off A Decade of Debt: A Reader Success Story & Quick Interview “To me, it is legalized slavery. You think you work at your job… you don’t! You work for your debtor (and that is a slave no matter which way you cut it). Not only that, it’s probably one of the most freeing things anyone can do for themselves OR their family.”
2. 8 Tips to Help Your Teenager Become Credit Smart “If you do not have the money in your pocket or in your bank account, don’t buy it!”
3. Financial IQ Test: How healthy is your budget? “Budgeting is one of the hardest things for any of us to do well — and stick to. It requires discipline, attention to detail, and persistence. But it doesn’t have to be impossible; and effective budgeting can actually be quite empowering.”
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* This month, I will start working on my credit card debt. I still have to think of how to reward myself. Do you know what reward you will use? Are you planning on eliminating your debt starting today? 
