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Find the Gold with Baby Step #2

On this St. Patrick’s Day let’s talk about where you can find the pot of gold at the end of the rainbow. It’s the second Baby Step!


Pay off all consumer debt. This means pay off every debt that you have except your mortgage(s). What are some examples of consumer debt:


· Credit cards from anywhere

· Lines of credit from local establishments

· Personal loans

· Student loans (yes, student loans!)

· Boat/RV/Motorcycle/ATV loans


Now you may be wondering “how do I pay off all of my non-mortgage debt?” Or, “where is this pot of gold you we're talking about?”


Let's address the first question. Paying off your non-mortgage debt isn’t as easy as accruing it. But it’s not impossible. It will cost you some time, focus and some money. Yes, you will have to use some of YOUR money to pay off the debt that YOU have.


Now that you know what it will take to pay off the debt how do you get started? The question of what debt to pay off first comes up all the time in my conversations. The question here is reasonable but it shouldn’t prevent you from getting started.


I recommend that you use the debt snowball. To do this follow these steps:

  1. List all your debts smallest balance to largest balance.

  2. Make minimum payments on all the debts except the smallest one. Pay all you can towards that debt.

  3. Once you’ve paid off the smallest debt, roll that payment into conquering the 2nd smallest debt.

  4. Continue doing this until all your debts are paid off.

You’ll be surprised how using the debt-snowball method helps you build momentum, see results, and keep you focused.


Spoiler alert: On average, it takes 12-18 months to complete this baby step so don't get discouraged.


To answer the pot of gold question…well, the pot of gold is in your pocket now that you’ve paid off your debt! That money is now all yours to do whatever you want. We’ll get to that in a subsequent post.


What is the one non-mortgage debt that you are hesitating to pay off and what’s preventing you from doing so?


I walk with clients through this step every day. Want to know how? Reach out to me: monica@coaching-freedom.com


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