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How to Make a Commitment to Eliminate Your Debt - That Works!

Sep 3, 2008
By making a commitment to eliminate your debt, you are taking the first giant leap towards becoming financially free. Imagine the wonderful feeling of total financial freedom. No debts, no financial worries, and best of all not being tied to a job you don't like just to pay the bills. Research has proven that it takes three things to accomplish anything: Passion, Motivation and Accountability.


The first step is to create the passion is by imagining yourself as totally financially free. Everyone is now talking about "The Secret" especially after Oprah recently launched it to the world. But these 'secrets' have been around for many years. I was practicing them 20 years ago and wouldn't be teaching my Money Program now after achieving my own financial freedom if I hadn't.

The first book I read, and its still in print, is Shakti Gawain's "Creative Visualization". If you want a fantastic little book with lots of wonderful and practical ways to imagine yourself as financial free, this is the one. From 'treasure mapping", which is now called "Image Boarding", I believe, through to excellent practical exercises to raising your subconscious belief in creating more income and wealth, this little gem works wonders.

Another way to create passion, is to list all the things you can be, do or have when you are totally debt free. Imagine all the wonderful things you can do. The places you can go. How you can help your family, friends and community. This is what financial freedom is all about.


Secondly, create the motivation by establishing a 'debt-free' plan. There's nothing better to start the ball rolling than to actually sit down and put pen to paper. A debt-free plan does not have to be difficult. And remember, it doesn't have to happen overnight. You just have to start now.

A debt-free plan should incorporate time-frames, a suitable budget that ensures you pay off your existing debt, and realistic goals and action steps. This can include how to reduce any unwanted and unnecessary expenditure, and how to reduce some basic expenses, such as food and grocery shopping. Always take a list when going to the supermarket! You may also want to sell any unwanted items around the house. Large auction websites say that the average household has at least $2,000 of unused items that are still in good condition that other people often want. Or, have a garage sale and remember, all additional money that you make MUST pay off your existing debt.

Always start with your most expensive debt first, such as credit cards, which usually incur 20% interest or more. To give your motivation a little boost, pay off the smallest loan or credit card first. Yes, that's right - the smallest one. That always gives you that necessary sense of accomplishment as a great kick-start. Then you can move on to the larger debts. Paying them off one by one from smallest to largest.


And, lastly, create accountability by taking absolute responsibility for all your debts - and also know that you can change that! More than ever before, we have the ability to earn a lot of money. There are more middle-income earners now than ever before, but the wealth distribution stays about the same - or becoming worse. The more we try to live above our means and buy things we cannot afford, the deeper we dig our debt-ridden ditches.The only way out is to financially mature and to start taking responsibility for our actions.

Know that you CAN change your financial position. If someone in your family is a shop-a-holic, then that is an addiction. Seek counseling. As with any other type of addictions, the first step is in admitting it. We DO NOT need all the materialistic things we surround ourselves with. Think about it. Is it worth it? Financial freedom vs a lot of useless stuff lying around the house. It's not rocket science. So, there must be another cause, and that cause is typically an underlying addiction. Take responsibility, and you are more than half way there.

Good Luck!
About the Author
Ann Marosy is an accountant, consultant, and former university lecturer. She was formally a Financial Controller of a Fortune 500 Company, and Finalist of SA Executive Woman of the Year.

Ann is the author of 'The Money Program' book series, which includes managing the stages of wealth creation, formulas for budgeting, debt-free program and investment strategies. Visit: The Home of The Money Program
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