In the 1970s, before I even thought of having credit cards as I was in college, and they were for “real adults,” I remember a girlfriend of mine sitting down and working out a credit card payment plan. She had gotten into credit card debt and had worked with a counseling service to arrange payments. Lisa made a chart, showing each credit card and how much would be paid each month.
The cards with the least amount owed money were listed at the top and, in ascending order, the cards were then listed down the page from least to most. Each month she intended to pay an amount to every creditor. Then as the top card was paid off, that money would then be added to the amount due to the card below. When the second card was paid off, that card’s money would be added to the card below it. In a waterfall arrangement, she had control of her debt redemption, it was a workable plan and she felt she was in control. By following her plan and not using her charge cards to incur new debt, Lisa was credit card debt free in a year and a half.
Another way to take care of debts is to get more money, by getting another job, or plan to spend less in keeping with Benjamin Franklyn’s adage that, “A penny saved is a penny earned.” The man in this next video really has a creative way to get control of his finances. To see what I mean, click on play:
In California, Andy decided to pay down debt by not
renewing the lease on his apartment, putting his
possessions in storage and living out of his truck
for over a year.