GETTING OUT OF DEBT

Because I have changed my approach to new year’s resolutions and now have new day’s
resolutions, I have been forced to figure a way to use my new approach to achieve overarching
goals – like becoming debt free. It has been fun. There are so many daily intentions which can
be utilized towards a common goal. Here are some examples of how to achieve great things
using tiny steps and maybe not in the way you thought.

New Day’s Resolution – Courage

1. Make the call to negotiate a debt. Most companies will lower the amount due in return
   for a lump sum or fewer payments. Be careful though as this could affect your credit
   rating.
2. Apply to get a lower interest rate on a credit card or apply for a “no interest for a year”
   card to consolidate some of your debt.
3. Examine one of your credit card statements to see where your spending issues are.
4. Review your credit report. You can get a free report at creditkarma.com.
5. Close any unused or paid off accounts.

New Day’s Resolution – Communication

1. Say “no” an offer to increase a line of credit or a credit card limit
2. Be honest and say “no” to happy hour or a movie with a friend. Find something free on
   TV instead and make popcorn at home.
3. Talk to your kids about what activities they most enjoy and have a conversation about
   ways to participate less expensively – like community sponsored sport instead of paid
   leagues, hiking, learn to make pizza at home, inline skating at school or church
   parking lots instead of rinks.

New Day’s Resolution – Health

1. Cancel your club membership (unless you REALLY use it) and take a walk at lunch
   instead or a walk after dinner with the kids.
2. Clean out a bathroom cabinet and use of the last of products before buying new. I
   recently did this and found that I had enough hotel shampoo to last an entire year – no
   joke.

New Day’s Resolution – Organization

1. Write down a list of all of your debts – highest interest rate to lowest.
2. Create a budget. Make sure to have a cushion for unexpected expenses, such a
   babysitter when your child is sick, and you cannot take off work.
3. Write down everything, to the penny, that you spend in a day.
4. Find a secure spot to put all of your mail, especially bills.
5. Set up autopay for at least one recurring bill, like rent or mortgage or insurance.

New Day’s Resolution – Wealth (and not just monetary wealth)

1. Put any change in your wallet and a one-dollar bill in a jar at the end of the day. Even if
   you only do this occasionally, you will be surprised at how this can add up.
2. Even if it is a small weekly amount, add an allowance for your children to your budget.
   This will teach them to be responsible about and understand money.
3. Help your child make a card or gift for an upcoming special occasion. These can be
   kept until the event rolls around. A card could also include a “coupon” for a chore or
   special time.

New Day’s Resolution – Education

1. Read a book on creating wealth or teaching your kids about money, like Rich Dad, Poor
   Dad, Think and Grow Rich by Napoleon Hill or The Richest Man in Babylon.
2. Sign up for any free credit counseling, courses on managing your debt or on creating a
   budget. These kids of classes are often offered by community centers, churches or
   online.
3. If they are old enough, help your kids open a bank account.