Debt = Financial Cancer, Part Two



The Cure – Start moving in the right direction.  

     The first step to getting out of debt is to STOP BORROWING MORE MONEY!  As Dave Ramsey says, “You can’t get out of a hole by digging out the bottom!” It’s time for plastic surgery – cut up those credit cards!

     The second step to getting out of debt is saving $500 – $1,000 for an emergency fund.  This way, when the car breaks down or the hot water heater goes out, you don’t have to charge it to a credit card.  Most people can save $1,000 by having a garage sale, selling some stuff on E-Bay or Craig’s List, working some overtime, and tightening up their budget. 

    The third step to getting out of debt is using the Debt Snowball method to eradicate the financial cancer that is debt.  The method is simple.  Make a list of your debts, smallest to largest.  Pay the minimum payments on all your debts, except the littlest one.  Pay as much as humanly possible on the little one to knock it off your list as quickly as you can.  Then take the payment you used to make on smallest debt and apply that to the next one on the list.  You are always paying the same amount out on debt every month, just concentrating on the smallest one.  By the time you get to the bottom of the list, you are chunking large payments on your debts and knocking them out faster than you could ever imagine.

·        Preventing Relapses.  The best way to prevent debt relapses is to decide once and for all that you are done with debt!  Cut up those credit cards and commit to purchasing cars, furniture, and vacations with cash that you’ve saved up.  Keep reading and studying up on good financial management, budgeting, and investing.  If you do have a minor – or major – debt relapse, don’t give up!  Return to the Debt Snowball method and get your finances back to a healthy state.

Article by Christine Luken Originally Appeared in Healthy Times Magazine, January 2013


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Christine Luken

Click Here to Leave a Comment Below 24 comments
Sandra - February 19, 2014

More people need to read this! Thanks so much!

Brett - February 19, 2014

so important to keep talking about this and educating people. I lived with debt for a few years and it was awful .i’d rather go without than have debt again

Lois Alter Mark - February 19, 2014

“Financial cancer” is such a perfect description for debt. We do everything we can to pay our bills in full so we’re not owing ridiculous amounts to the credit card companies. Great article.

Robin (Masshole Mommy) - February 19, 2014

My husband and I paid off our credit cards (FINALLY) last year and closed the accounts. It was the best thing we ever did.

Milena - February 19, 2014

I love Dave Ramsey! We worked his system and paid off our debt. Great advice.

Jennifer B - February 19, 2014

We don’t have any credit cards and I am so glad for that! These are great tips though to help anyone save money and pay off other stuff!

Dee - February 19, 2014

It would eat me alive if we were in debt! Other than our house, we don’t have any debt. I agree – saving some aside for emergencies is a must! I keep much more than your recommended amount just to be safe.

Helene Cohen Bludman - February 19, 2014

Credit card debt is the worst. Great article to remind us of that.

Sherrie W. - February 19, 2014

Having some extra emergency money (at lEAST $1000) is so so important! Great tips, overall!

Pam - February 19, 2014

This is so important. Debt is awful and can really wear down a family.

Lexie Lane - February 19, 2014

My husband refuses to buy anything on credit. All of these points are definitely great. I know I’m definitely not the only one who might think this.

Lisa J Jones - February 19, 2014

Really Great Tips I’ll Have To Start Doing Things Differently With My Money This Will Definitely Help Thanks

Terin Garrett - February 19, 2014

These are great tips! Thanks!

Natalie @ A Turtle's Life for Me - February 19, 2014

I’ve been wanting to start on the Dave Ramsay method but haven’t made the jump! This is very encouraging, though!

Amy Desrosiers - February 19, 2014

I am trying to save cash up for my new car. I still need like 8k so I’m hoping my current car makes it!!

Elizabeth - February 19, 2014

Great tips— debt really is a snowball effect 🙁

Debi@TheSpringMount6Pack - February 19, 2014

I am working hard ot get out of debt. It is so hard once you get behind to get out of it.

cynthia L - February 19, 2014

Great tips. We worked hard on paying off our debt and are now down to 1 credit card. I am so please with that. I hope to have it paid off by the end of the year!

Mariana - February 19, 2014

I need all the advice I can get when it comes to getting out of debt! Thanks for sharing your tips.

Debbie Denny - February 20, 2014

Very good advice. So much less stress now we have removed Credit cards from our mix.

Mama to 5 BLessings - February 20, 2014

Love Dave Ramsey, I agree, if you cannot afford it you do not need it unless it’s an emergency!

Debbie L. - February 20, 2014

Good tips – staying out of debt is hard but doable. Being debt free is a amazing feeling.

Liz @ A Nut in a Nutshell - February 20, 2014

That’s pretty much how I did it when I got out of debt. With each one paid off, I felt such a weight lifted off my shoulders. I’ll never go back to charging!

Cara - February 20, 2014

These are great tips! I definitely need to work on my finances for sure! I’ve been thinking about using this method!


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