It’s GO TIME, People!

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

What if?

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.

What if:

  • 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.

What if:

  • 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.

You in?

*Photo courtesy of Stig Nygaard

12 comments on “It’s GO TIME, People!

  1. A great challenge! 12 months? We did it for 50 and so glad we did, because after becoming debt free and saving an emergency fund we suffered a job loss. The major portion of our income was pulled out from under us. If we had not taken the steps to become debt free and save it would have been a crisis in our home. But with the steps accomplished in was and still is a minor bump in the road. When’s the best time to start getting out of debt? Yesterday!

  2. I’m in! $30,000 will be paid off by December 31, 2016 in Jesus name! I am believing for this. Thank you for such an encouraging post!

  3. Love it! Especially love “gazelle intense”!!! I’m using that from now on as much as possible in daily conversation. 😉

    I know some folks like to hate on the new years resolution “season”, but I think it’s great. I think that’s where your feeling is coming from, and there’s nothing wrong with great moments of inspiration and motivation! Heck yeah! Let’s go!

  4. I’m in! A recent time of home expenses followed by holiday expenses has left me keen to get back to basics and take that mortgage down. Canadians definitely need this “It’s Time to GO” message as much as Americans do. For the 6th year in a row, Canadians have said that their #1 financial goal for the New Year is to reduce debt. Yet our debt-to-income ratio remains roughly the same from year to year (163%). Let’s bring those numbers down!

  5. The “working to make extra income” is the side of the equation many people never contemplate. They’ll cut their spending down to the bone, when it may be easier to simply get a weekend job.

    Oh, and this one phrase single handedly keeps me from overspending – “I work TOO HARD to spend my money stupid sh**.” <—sorry, that's what I get for opening my brain in a comment. 🙂

  6. Although I can’t speak to the difficulty of dumping debt, I can say that being debt free has given my husband and I world of advantage in the ability to make choices that are good for our family instead of choices that are only good for our finances!

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