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POST #12
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At this point I am on the path to becoming debt free.

• I acknowledged that I needed to make a change.
• Chose debt settlement.
• Found the right debt settlement company for my needs.
• Stopped making payments.
• Called my bank to let them know I was in a financial hardship.

NOW WHAT?

This next step in the process was probably the biggest shocker of them all. You see, since I had committed my lines of credit and credit card to a settlement program, I could no longer use them.

uh-oh.

I can’t charge anything?

How will I live?

This was a real wake up call. I soon realized that I couldn’t actually afford my lifestyle. The first change I made was to either pay cash or use my debit card for all of my purchases.  This forced me to make hard decisions. If I didn’t have the money in my account, I wouldn’t buy it.
Simple enough………to say that is.  But not that simple to do. I had to undo decades of habitual overspending.
Time to start making choices. So what would I cut out? There were dozens of adjustments I made, but here are a few:

• No more Starbucks
• No more impromptu lunches out with friends.
• Probably don’t need that Netflix subscription.
• Say goodbye to HBO.
• Whole Foods is WAY TOO EXPENSIVE and off the hit list.
• Costco is my friend.
• Instead of turning on the heat, I put on a sweater.
• Cancel the cleaning lady and the gardener. Sunday is family cleaning day.
• Do I really need the extra soft toilet paper?
• I LOVE generic everything! 🙂

The most interesting by-product of these changes was that I started living more consciously.  Every decision was challenged. A distinction was made between my needs and my wants.
I have a greater appreciation for the thriftiness of my grandparents. I used to make fun of my grandmother for delicately unwrapping presents in hopes of trying to re-use the wrapping paper……well….I still laugh about that one. Some things really are ridiculous!!
Stay tuned. Stay afloat. Wealth and freedom are in your future.
Jonathan
P.S. As an aside, I did keep a few low balance, low interest credit cards out of the program for emergency purposes. I have kids, so I do need a safety net. That said, I made a promise to myself, and my family, that these cards were to be used for emergencies only. No frivolous usage.

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