Baby Steps to Overcome a Mountain of Debt
by Naomi Ball, Calico Bazaar

Over time the debts have become bigger and bigger, until you feel like you are at the bottom of Mt. Everest. To go on a major hiking expedition you have to plan and make certain preparations. But to get to the top all you have to do is take one step at a time. Before you know it, you will be at the top of the world!

Plan and Preparation

First you must commit yourself to the plan. If you truly want to get out of debt, you must be determined. Don't let the enormity and hopelessness discourage you - and don't let the sacrifices discourage you either.

The first preparation you must make is to stop using credit cards! Would you climb Mt. Everest behind a bulldozer that is constantly piling dirt in front of you? If you must use a card, use a debit card.

The second preparation to make is to scale down. If you don't want to kill yourself by the effort, only carry the barest of essentials. It would take too much effort to carry a portable TV and microwave up the side of a huge mountain.

Make a list of all your monthly expenses, such as, phone, water, power, pager, cable, etc. Then decide which ones you can do with out. Separate them into categories: which ones can you do without permanently and which ones you can do without until you get out of debt.

The Baby Steps

Now make another list. This time, list all your debts, credit cards, loans, etc.,  in ascending order according to how much you still owe, the least to greatest. Be sure to diligently keep paying on all of them.

Let's say you owe your mom $200, Sears $600 and Ford $2000. If you were paying your mom $50.00 a month, then when that is paid off take that $50.00 and add it to what you are paying Sears. That money was not available to you before and so you'll never miss it!

Once Sears is paid off, take that combined amount and add it to what you are already paying Ford.

Keep adding the combined total to the next biggest bill. You will start building up momentum and in no time you will be on top of that huge gigantic mountain - one baby step at a time.

Now that you are on top of the world, don't lose your footing and slide all the way back to the bottom. You will want to celebrate, but don't go back into debt. The wisest thing to do with the "extra" money is to invest it.

To sum it up

1. Stop using credit cards.
2. Scale down.
3. When the smallest debt is paid add it to the next debt.
4. When that one is paid off add the combined payments to the next one.
5. Keep adding to the next debt and in no time you will be done.

Naomi Ball is the owner of Calico Bazaar, a wholesale distributor and provider of business opportunities for women who want to work from home. Visit her website at http://calico-bazaar.tripod.com.

Copyright 2004 by Naomi Ball. Reproduction without permission prohibited.