Absolutely!
Now don’t get me wrong, eliminating debt should always be your #1 financial priority. However, the first step to getting on track is to BREAK THE DEBT CYCLE. Yup that’s it – the secret to getting rid of debt is to stop adding to it! Live within your means. This doesn’t mean you can’t go outside your house until all your debts are paid off. Just like crash diets, paying down all debt and no play won’t work either. Instead, make a plan – for both spending and saving. Make your plan sustainable by including a positive and rewarding goal to give it energy, to keep you focused and moving forward.
When you get a bonus or tax return do you follow the natural tendency to put it all on the line of credit? Which in one way is great – I am all for paying off debt; but you may have not been moving forward as much as you thought. Did you set yourself up for more debt because you hadn’t planned ahead for your property tax bill or hockey fees? If so, the line of credit gets dipped into again – how depressing! Continue reading