Excerpted from the “Money Instruction Book”
by Paul S. Richard – ICFE Executive Director
- Begin immediately. (Getting started can be the biggest obstacle.)
- Make up a written plan of action.
- Take on no new debt including a consolidation loan.*
- Close credit card accounts by returning charge cards to issuers.
- Maintain written accounting of all income and outgo, especially cash.
- Begin collecting receipts to raise awareness.
- Closely examine all expenses looking for ways to increase value.
- Put all extra income towards paying off debts.
- Start doing things yourself and do not pay for services.
- Make all necessary sacrifices to eliminate debt.
- Sell items that are losing value especially those with debt owing.
- Make getting out of debt a family affair.
- Contact creditors in writing to keep them informed and if necessary get temporary reductions in payments.
- Utilize cents-off coupons wherever possible. Send in for rebates.
- Review spending Practices and habits, begin comparison shopping, etc.
* A consolidation loan may be workable ONLY if the loan interest is less than the interest on the debts to be retired AND paid- off charge accounts are closed AND the extra cashflow is put towards paying off the consolidation loan even faster. Otherwise in a year or two many people who only pay off and not close accounts are often paying off a consolidation loan and also new credit purchases.
