Initially written in 2006, this advice predates smartphone banking apps, buy-now-pay-later schemes, and one-click spur of the moment spending. Despite that, the core principle remains unchanged: debt doesn’t disappear on its own. Lifestyle changes, not tricks, are what move the needle.
Let’s conclude this week’s topic. We talked about the essential plan. Debt reduction lifestyle changes must be made.
In hindsight, you’ll thank yourself for making these changes. During it, you’re most likely going to hate what you are doing. It’s going to be annoying at best, and sometimes even painful. Remember how long it took you to build up this debt. It is not just going to evaporate like the morning dew. You are going to have to work at it every day. Some days are going to be better than others. It is a journey, not an end point.
Your goals are what you must keep in mind, every time you grumble about how you wanted your morning cappucino, or not buying your wife the diamond pendant for Christmas for $1000 (and instead putting that money on your line of credit).
Keep at it. You can do it if you give yourself a chance. But remember, if it was easy, then nobody would be in debt. Now would they?
Debt Reduction Lifestyle Redux
The biggest lie about debt reduction is that it’s a one-time thing. It’s not. It’s a series of small, annoying choices repeated daily. Skipping coffee, delaying purchases, redirecting “treat money” none of it feels good, but it works.
A debt reduction lifestyle also forces you to confront your values. You stop asking, “Can I afford this?” and start asking, “Is this worth slowing my progress?” That mental shift is painful but powerful.
Most importantly, debt reduction builds financial muscle. Once you’ve lived lean on purpose, inflation, job changes, and market volatility hit a little less hard. It will give you choices in the end, not horrible obligations.
Over the years, I have watched people tackle debt in various ways. The pattern is clear. The ones who succeed change their lifestyle, not just ,their math. They stop waiting for motivation and instead build habits. It’s not exciting but it works.
My list of debt commentary articles is quite long, so let's stick with the basics.
- Three Solid Ideas For Your HeLOC is a misdirection title. With interest rates going up, home equity lines of credit are becoming heavier anchors on your financial life.
- Pay Day Loans? Absolutely, positively NO! Go talk to a licensed insolvency professional before you do this.
- Surreal Paragraphs Found in Credit Card Bills, if you carry balances on your credit cards, you are in trouble. Look at their estimate for how long it will take to pay off the debt on minimum payments.
- A Mortgage Changes You, which is very accurate. When you get a mortgage, your life changes, and it will be a major element of your financial decision-making process.
- Make More by Reducing Debt with some elementary (maybe naive) arithmetic.
- Straight Talk on Your Money is not just a good book (and podcast). It explains how debt can get out of control quickly.
- Debt-shaming: Debt is Bad, but You Aren't having a poke at the "influencers" who say my commentaries about Debt being BAD is debt shaming.
- My coup de grace There is No Such Thing as good debt. Debt is a tool, like a chainsaw, and must be respected.
hey cajun..
I agree 100%..
I’ve spoken with many people whose debt has destroyed them physically, emotionally, etc.
Debt is something to not be messed with.
My comment was a little more tongue in cheek. ie.. if you want to boldly spend with your credit cards, you should be willing to put in the time to increase your value as an employee or entrepreneur so as to be able to properly pay off your debts.
People are very excited about instant gratification, but not paying off the bills when they come in.
I do have a concern about paying off debts as a contractionary policy. sometimes people get so niggly about their spending etc, that they get very conservative with their earning ability.
While it’s good to be fiscally responsible, this shouldn’t be a disincentive to people to growing as people and earning more.
Financial Maturity Blog
I hear what you are saying, but I’m not sure I buy it. People keep spending because they think they “deserve” it, um, why not just live within your means? Does your daugher need a new car? Do you need to drive that BMW? Don’t know, all I view it as, is Debt is a dangerous thing to carry, and it can break you, if you aren’t careful. -C8j
As an entrepreneur, my logic is, Yes, become a little more frugal with your lifestyle etc. It’s nice to enjoy everything and have a full life.
It’s not healthy to live under the strains of debt all the time.
At the same time, if people want to spend like there’s no tomorrow, they should be willing to increase their value as people economically.
This means that people should take the time to be worth more at their jobs or businesses. This is extremely difficult to do however.
There should be a correlation there:
Spend more on your credit cards at the same rate that you are increasing your personal economic value. 🙂