How one couple conquers 70k in debt with two simple steps:
Clayton, Project Manager, for a general contractor in Woodland, WA, told Session 4 of Turbo’s Leadership Development Lab (LDL):
“In 2010 my wife and I were over $70,000 in debt. The bills were a heavy burden and there was no relief in sight. In the Fall of that year we made a commitment to get out of debt once and for all. To be debt free we put together a simple (not easy) 2 Step plan: 1) Not taking on any additional debt. We agreed if we can’t pay cash we can’t afford it. 2) Strategically paying off all our current debt, one bill at a time. It sounded easy enough. We verbalized our commitment to each other and created a sensible but aggressive budget. We had had all percentage payments and burden of debt that we could stand and we couldn’t take it anymore.
“The debt pay down started with a monthly overpayment of one of our $75 bills with a $100 check. In four years’ time with discipline and determination we paid off all our debts – $70,000 of credit cards, student loans, and auto loans. Within four months of paying off our bills, we were so proud to buy a $10,000 car with cash. Since then we have paid only cash for all purchases. In 2015 we bought a home with a down payment of $70,000 and immediately did $30,000 in repairs. The home will be paid off within five years.”
“The lesson I learned from this experience is when my wife and I communicate and agree on a common goal we can achieve any goal we put our heads and hearts to.
“The action I call you to take is to set a stretch goal with your partner/spouse, make no compromise, and commit to it.
“The benefit you will gain is a new sense of unity and excited energy in your relationship and you will accomplish the seemingly impossible.”
According to healthcentral.com and the Holmes-Rahe Life Stress Inventory, the fifth biggest life stressor is “getting into debt beyond means of repayment.”
If you are in serious debt you can conquer it in 2016. First, set the goal. Make it specific and measurable. Then, write it down. Studies show that goals have an 80% more likely chance of achievement when they are written down. Finally, verbalize your goal out loud with a witness. Determine your plan, what you must do differently, what action you must take to achieve your new goal. Start moving, take that first incremental step that will be required to create the breakthrough you desire. Keep track of the lead indicators: “paid an extra $25 on the car payment this month.” Report your progress to your mastermind partner on a weekly basis—you will be amazed at the progress you’ve made. In six months reevaluate to see what you have achieved and celebrate each successful step forward.