Get Out Of Debt - It Isn’t A Race
Yesterday’s post about how to start the process of getting out of debt garnered several comments and good discussion among commentors. Two themes that stood out for me particularly were the idea of budgeting around an irregular income, and the fact that some of us have cut everywhere we can cut and still aren’t making quick progress through debt. Later this week I’ll talk about some more ideas around irregular income budgeting, today I wanted to address the fact that sometimes, there isn’t anything to cut.
When I started taekwondo over 8 years ago, my instructor would often tell our class that the journey to black belt was not a race. That there were many paths to get there, and that each of us had to find our own way and pace, and that the only person you were competing against was yourself. I heard those words, but it took me a long time to actually listen to them. I was running a race, in my head - I was going to become a black belt the fastest way possible. And I did test every testing cycle, even making up classes when my spouse and I got married and we went on our honeymoon so I could stay on that breakneck pace I’d set myself. And the day did eventually come when I was to test for my 1st degree black belt, in basically the shortest time allowable by my martial art.
And for the first time in my short martial arts career thus far, I didn’t break my boards, and I didn’t pass my testing.
I learned a valuable lesson that day, and carry it with me still. Although the impatient person that lives inside me would like everything done yesterday, life is lived in the progress and the journey. I can’t compare my progress and speed and path to anyone else’s - circumstances dictate different things for different people. I also learned about not letting setbacks derail progress, but that’s a lesson for another post.
A person I met online wrote to me a year ago about how my getting out of debt inspired her to do the same. Just a few days ago, I heard that she’d successfully paid off over $75,000 in debt in just about a year’s time. On the other hand, longtime reader and frequent commentor Jinger is on a fixed income, and paying down her debt little by little. Some months, many months, there just is no extra for her to go towards any debt progress above the minimum. My story is somewhere in between. Do I wish that I could have paid off our $36,000+ debt in less than a year? Of course. Do I wish that I could do something substantive to help Jinger make more progress? Yes again. But in the end, the important part is to keep going. Even when the progress is slow, even when it seems neverending - keep on course.
There are ways that one can try to speed up progress that I’ve previously discussed, but sometimes it is all we can do to just keep on making progress at all. The journey might be longer and more fraught with difficulty, but the journey is still there. And at our own pace, we all make progress, if we truly commit to the goal.
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October 7th, 2008 at 7:21 am
I have not been on my debt reduction journey very long, but I have to agree with your comments. I have realised a few things so far:
* Each person’s journey to reducing their debt is unique.
* Although there will be the good months of actually reducing debt, there will be bad months of increasing it.
* The key is perseverance - don’t quit. Any progress is better than no progress.
October 7th, 2008 at 8:17 am
That is so true about having to truely commit to the goal for progress to be made. This post can apply to so many other areas of life as well. It is wonderful great advice. Thank you!
October 7th, 2008 at 8:27 am
absolutely true… the process when I started my climb out of debt was to throw an extra $50 a month against it… now that I’ve been snowballing for nearly two years without adjusting my lifestyle to my raises, my wife going back to work, etc., I’m easily putting $1500/month extra against debt.
The important thing is to start, and start now. The longer the decision gets put off, the harder and longer it will take. I delayed for about 6 years, and instead of keeping my debt about the same, I increased it exponentially. Getting into debt didn’t happen overnight, and getting out won’t either - but every day it gets easier and easier to push even more…
My personal journey won’t be the same as others - but I do get excited when I hear the success stories - it helps spur me on, and encourage me all the more…
keep up the good work!!
October 7th, 2008 at 8:30 am
Thanks, I needed to read this today. Progress has been slow for my family, but we’re down to $3,400 in credit card debt that will be paid off in full no later than May 2009–probably sooner with our tax return money. The most frustrating part was when our debt doubled because an old debt that my partner had ignored for years (and that I was not aware of) came back to haunt us. But what can you do? You just have to keep plugging at your own pace.
October 7th, 2008 at 9:01 am
That is so true, and a great reminder. As I dole out financial suggestions on my blog, I’m battling my own debt…and have been for a while.
Getting out of debt is a roller coaster ride. One month I’ll keep expenses low and maybe get some extra cash to make bigger payments and I get optimistic, the next month I feel stalled and like I’ll never get to the bottom of the pile.
I’ve found that if you are on a fixed income and can only put so much to debt, if you can make those payments absolutely 100% automatic, so you never have to think of them, and then focus on building a small emergency fund (so you don’t go into new debt), you can at least achieve a lot of peace of mind knowing that your debt is dwindling. Even if it will take years–you don’t have to worry about it.
October 7th, 2008 at 9:12 am
I was surprised to read your mention of my journey out of debt today! And I thank you for your kind concern.
When I worry about my debt, I keep remembering…it is debt of the good kind…an educational loan that turned a young person’s life around. Sometimes an investment pays off in ways other than financial.
Your column keeps me focused on my particular journey, which is to make that payment every month and know that one day in the future, the debt balance will be zero.
Thanks for your encouragement!
October 7th, 2008 at 9:14 am
Thank you for this reminder! I struggle with my impatience in paying off our debt almost every day. We have been chipping away at it for 2 years now, and I just want it to be gone! I look back at things I could have done differently, and hindsight being 20-20, I have regrets on the path we’ve made. I struggle with trying to find the balance between living and paying off debt.
October 7th, 2008 at 9:48 am
I was impatient too. But you have to also remember that there’s a finish line on the horizon.
2 years ago, $55k would have been a daunting task and 2 years is a long time to be paying a lot of money to clear debt, and not even build net worth
But now I’m at my 2 year mark, and I’m gonna make it and clear my debt in full.
Thanks. I’m going to link this
October 7th, 2008 at 11:12 am
Excellent post..its taken me three and a half years so far, with at least another year to go. Daily I wish it was gone, but I’ve used the time to learn good habits.
It’s similar to dieting, a crash diet teaches you nothing about eating healthily for the long term.
October 7th, 2008 at 1:04 pm
Thanks for this. We are just starting on our plan and it seems completely daunting. We had used credit to supplement our income when I became ill and had to work less. Now I’m working more and we are on our way to fixing our situation. First we have to live without any more borrowing and continue to make the minimum payments. Once that becomes manageable, we’ll be able to fight the debt using the snowball effect. The challenge now is to be able to sweat out making the minimum payments AND not borrowing. It’s possible, but tight. The other issue is emergency situations. Our cars are old and we need to be able to fix them when something goes wrong. Our emergency savings is very little. In the past, we’ve always used credit lines for emergencies. It’s tough to turn it around, but I’m confident we can do it!
October 7th, 2008 at 2:16 pm
Great post! This is something I’m feeling a lot lately. I was able to sprint through a small success with my credit card debt. Now, I feel like I have this huge mountain of financial plans that we need to attack. I just can’t imagine keeping up my same frenzy for twenty or thirty years. This is an excellent reminder that it’s not really about the end point!
October 7th, 2008 at 3:24 pm
Great Post.
It helps motivate me, or rather keep me motivated. I too get ‘in a hurry’ and just wish it could all go away, but I know in time it will be gone and that is the important thing. I plan to be credit card debt free Dec. ‘09!
October 7th, 2008 at 9:39 pm
Hi! As you can see by my blog name, I do think of debt elimination as a race. But I think of it as a marathon and not a sprint. There is a finish line and I’m making progress as fast as I can, but it’s still going to take a while and I still have to have patience. I just can’t wait until I’m crossing that finish line!
October 7th, 2008 at 10:50 pm
@ Cynthia - it is fine for it to be a race as long as it is a race against yourself. The problem comes when we look at other people and start making comparisons with them and feel discouraged about our own progress (if that makes sense at all).
The title “It isn’t a race against other people it is just against yourself” was too long lol.
October 8th, 2008 at 12:53 am
If it wasn’t for you and your blog, I would probably still be $75,000 (or more) in debt.
You introduced me to Dave Ramsey and to the great PF blogsphere. Thank you so much! The road to personal debt elimination is definitely a solo journey, however, having so many people around you in the same boat, helps tremendously. It is so inspiring to read and hear other people’s experiences as they get their financial houses in order. It gives you hope, inspiration and motivation to get started and to keep on going and sticking with it.
I enjoy reading your blog everyday and I can’t wait until the day that I read your post that you are debt free. You will be there before you know it! It’s truly amazing how fast your snowball gets especially toward the end.
Thanks again!
:kiss:
October 8th, 2008 at 9:48 am
I find myself feeling so discouraged, but I have to remember we decided to take the plunge and Mr. A started his own business last March. I recognize that it takes time and money to start a business. I wish we had been better off financially before we started it, but it can be a risk no matter when or how much money you have saved. Anyway, we’re still plodding along, having incurred more debt due to the business. I am seriously thinking about removing the business debt from my blog tallies, since my blog is for personal finance. Although our business does affect our personal finance! We just got in the Yellow Pages and are planning our first mailing so hopefully that will help get the word out there and bring in some business. I am also anxious to see Mr. A’s business thrive so I can eventually quit my day job which is often stressful. Thanks for the reminder that this isn’t a race.