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Get out of that hole you’ve been digging for years

  • Published
  • By Airman 1st Class Kali L. Gradishar
  • 92nd Air Refueling Wing Public Affairs
FAIRCHILD AIR FORCE BASE, Wash. --  "Debt" is one of those words that can make your skin crawl. If you're in debt, it may seem as though getting out of the hole is an impossible task. You can see the light at the end of the tunnel, but there are blockades all around you driving you further and further back.

There is hope if you can at least admit that there's a problem and desire to get out of debt.

"Unless you get to the issue of why you are abusing debt, you'll stay in it," said Della Gooding, Airman and Family Readiness Center financial advisor.

One initial step is to sit down with a financial advisor and find the reason why you are in debt. Maybe it's a car payment that is too high, you enjoy shopping a little too much or any other of the various reasons people accumulate so much debt. Either way, it is a good idea to review purchasing decisions and purchases you can actually afford.

"Getting out of debt is a long process, but once you make up your mind to do it," said Ms. Gooding, "it can be done."

Consolidating debts into one bill is one solution that may work, but for some it may just be another metaphorical shovel digging an even deeper hole. Oftentimes, Ms. Gooding warns, consolidating can be a 'band-aid fix,' and it may not be long before you're driving up new debts.

There are a few steps Ms. Gooding has found successful.

"Number one is to pay your bills on time," said Ms. Gooding. "Though it may be hard to find that extra cash and cut down on entertainment and personal habits, it is very necessary."

Attending one movie per weekend could cost approximately $384 over the course of a year. Smoking a pack of cigarettes per day could amount to $1,680 per year. Imagine setting that money aside for making bill payments instead.

"The second step is to organize your finances. Write down the balance and interest rate of each bill. The smallest bill should be paid off first. This is because, as Americans, we need that sense of instant gratification," Ms. Gooding said. "I've seen that this is the most successful way of paying down debt."

From that point, start on the next bill while making minimum payments on all others. Eventually "debt free" will be a part of your vocabulary.

"One other step in paying down debt, if necessary, is to sell items around your home that you don't use," Ms. Gooding advised. "You can use that money toward your bills."

Following one or all of these steps can take you down the road of freedom, escaping the debt dragon. All you need is a goal, the dedication to meet it and perhaps a financial advisor to guide you along the way.