Well — it can fell insurmountable, that’s for sure. But a recent post at No Credit Needed provides an alternative view of how the little things in debt reduction add up.
Debt reduction requires the same patient, day after day, commitment. Drip by drip, drop by drop, payment by payment, we work ourselves out of debt, one account at a time. A consistent flow of water, over time, can accomplish amazing things. (Think, Grand Canyon!) Waiting for a “flood” of money? Stop. Focus on creating a consistent flow of money. Think of each dollar that you send to your creditors as a single drop, working with hundreds or thousands of other drops, to eat away at your debt.
Just yesterday, as I was idling in my car at a stoplight on my way back to work from eating leftovers at home for lunch, I thought to myself “how much extra can I put towards the next few month’s credit card payments if I brown bag it every day for the next three months?”
Some weeks I don’t eat out at all, others I might buy 2-3 lunches at an average of, say $7 a pop. Also, I often spend about $4 a few times a week getting McDonald’s breakfast sandwiches in the morning. I quickly did a bit of rudimentary math and I estimated that I could save $15-20 a week on average by consistently eating breakfast and lunch at home.
As NCN points out:
$1 per day = $365 per year
$5 per day = $1825 per year
$10 per day = $3650 per year
$25 per day = $9125 per year
Drip by drip, drop by drop.
Today’s drip — I found some crackers in my purse to hold me over until lunch, saving $1 for a snack from the vending machine. It’s a start.
- Credit Card Debt
Starting = $18,661 (as of April 2007)
Current = Getting updated at the end of June
Paid Off = $0
Current = $68
Goal = $1,000