Those of you who read Fruclassity on a regular basis know our mission: To Dump Debt While Still Living Life. We’re not “extreme” frugal, but we are extremely supportive of you finding your own way to debt freedom; the way that allows you to succeed best.
However, I have to share what’s on my heart as we in the Frugal Farmer family prepare for a new year of dumping debt. I really feel in my gut that it’s time for those who are serious about dumping debt to kick it up BIG TIME. Can’t explain this, exactly, but the feeling is there, and it’s nagging at me like the constant drip of a leaky faucet.
It’s Time to Get Out of Debt!
If you read my other site, The Frugal Farmer, regularly, you’ll know that I’m not all that comfy with the financial state of America – not from a national debt standpoint or from a consumer debt standpoint. When I wrote last week on The Frugal Farmer about how to prepare for a financial crisis, I shared some startling numbers:
- Nearly 19 trillion in government debt for America
- Over 11 trillion in debt on a personal level for Americans
From what I understand, Canada’s national debt stands at 1.2 trillion and their consumer debt is 1.88 trillion. What those numbers are per capita, I don’t know, but suffice to say that it’s A LOT of money. Given that America has nearly ten times the population that Canada does, I’m not sure Canada is sitting much better than we are, and that’s a scary thing as well.
A Dump Debt Challenge
My friends, I’d like to play the “What if” game for just a moment, in hopes of giving you, our cherished readers, the same “fire under the tail” I’ve got about dumping debt in 2016.
- Your primary income source went away right now via a job layoff?
- What if you suddenly were sitting at half your income? How would that affect your ability to survive?
- What if you suddenly had a $10,000 home repair or other financial emergency?
Not sure of the Canadian numbers, but most Americans (62%) have little-to-no emergency savings right now. That is NOT good, my friends. Because we’ve been living above our means and carrying increasing debt loads over the years, there’s simply no money to put into savings without some serious sacrifice.
Now, let’s play a “happy” What if, game.
- You were entirely free of consumer debt. How would that affect your ability to handle an economic crash or job loss?
- You were mortgage-free as well. How would that affect your ability to handle an economic crash or job loss?
- The amount of income you needed to survive each month and pay the bills was cut in half? How would that change your life?
I’m not talking a year of nothing but rice and beans here, friends, but I’d like to issue a challenge to all those reading who are in the process of or wanting to begin a journey to becoming debt free. The challenge is this:
Get Serious About Dumping Debt
Get gazelle intense. Get serious. REAL serious about cutting unnecessary expenses, learning to live on less and dumping your debt A S A P. For just one year, dump the cable. Cut the “fun money” spending down real low. Work to learn to feed your family for less. Skip the restaurants and takeout food, skip the new clothes, start watching movies at home. Skip the store-bought lattes, or at least cut them down to once a week.
Work to make extra income and put every extra dime in your pocket toward debt. For most of us, it was nickels and dimes that got us into debt, and nickels and dimes will surely help get us out of debt. All of those simple coins add up to serious debt reduction.
Friends, the urgency on my heart for people all across America and Canada burns strong. It’s time to dump debt, and to dump it quickly. Sell the things you don’t need. Downsize your house if need be. Just get out of debt. Now.
*Photo courtesy of Stig Nygaard