Yahoo finance had an inspiring money story recently about Nick Gabel, who found himself with $100,000 of debt and no job back in 1996. He eventually paid it all off by taking two minimum wage jobs, by drastically cutting all expenses to the bone, and by applying all of his income from one job toward his eventual escape from the trap.
I like the tips he gave in the article.
His tips for others who are working to pay off big debt are:
“Be aggressive. Paying just the minimum won't do the job, he says. "If people can pay off a $35,000 car loan in five years, why do they just pay minimums on student loans? If you just pay the minimum, it will never go away."
Automate it. Don't give yourself the opportunity to spend money that is earmarked for debt. (Also don't risk a late payment or oversight.)
Use windfalls. A birthday check, a bonus or a tax refund can help you reach your goals faster.
One of the tips I would add is to pray and ask God to give you the fruit of His Spirit – self control. It is one of the most profitable of all the fruits because it enables you to deny yourself all those small choices that rob you of financial margin.
You see, most everyone gets into debt over their head because of their poor choices. Certainly, some folks suffer a catastrophe or have a health problem, but in most cases it is a lack of self-control that leads folks over the financial cliff.
So, ask God for His help, get aggressive on your payments, and automate as much as you can to keep the money going to the target. And if you get a bonus, then use it to pay off the debt.
