getting out of debt: step two

Ok. So how was your list? Did you make one? It looks nasty, doesn’t it? Don’t worry, I’m sure lots of people have it worse. But if you didn’t make one, I don’t blame you. It takes a lot to face one’s fears. And not everybody can make it. But if you’re like us, who got tired and fed up with all the stress debt brings, well then, I suggest you make the list. It’s the first step. And it’s actually the easiest step.

Now we move on to the second step to getting out of debt: make a plan to get out of debt. Like step one, it’s quite simple too. But this is so much harder. This takes a lot of work. In our case, we started with making a budget.

We first listed necessary items like rent, utilities (water and electricity), a modest allowance (say, Php100 a day), a modest grocery budget, and gas. We also allotted some date money. Sounds extravagant? Not really. You need this to relax, cool down, and somehow enjoy yourself. This need not be a huge amount. This can range from Php100 to Php500 a week. We usually use our date money to buy ice cream, dibidi, and/or eat Shawarma and mango shake at the Good Shepherd Bazaar (Ruins). We wouldn’t have made it if we didn’t have this small reward for ourselves.

We also started calling the banks and asked them if we could settle for an agreement regarding the payment terms of our credit card balance. Almost all banks are willing to negotiate. This is also takes away the worries of having to pay late charges and interests if you are not able to pay on time.

Next, we determined how much is left for debt payments. The list we made of our debts came in handy. Our credit card debts were separated according to payment dues. This made it easier for us on which to focus on every payday. Then, for the payments, we followed Dave Ramsay’s Debt Snowball Plan.

• Put all your debts in order from the smallest balance to the largest.
• After necessities are paid, pay the minimum payments on all of your debts.
• Put any surplus money towards paying off the smallest debt first.
• Pay off your smallest debt, get a psychological boost from knowing you’re one step closer to being debt free!
• Once the smallest debt is paid off you roll the money you were paying on that debt over to the next smallest debt.
• Wash, rinse, and repeat until all your debts are paid off!

Every debt that was cancelled out from our list motivated us to finish off paying all of our debt. It empowered us and made us feel in control.

The plans of the diligent lead to profit. (Proverbs 21:5)

It is also our goal to reduce our expenses. While we were doing this, we were also very careful with our consumption and expenses. For example, we started bringing our own lunch, and we limited our going out. All the extra money we saved went straight to debt payments. The faster we finish paying off one debt, the better.

…the little foxes that spoil the vine… (Song of Solomon 2:15)

Little things also matter. For example, taking a cab when you can take the jeepney, leaving appliances plugged in when not in use, etc. These little things, we should be more careful of. Most of the time, when we talk about cutting expenses, we look at the big things. And here’s the thing: we probably don’t waste money on the big things. When it comes to the big things, we’re really careful. We waste money on the small things, which when added up amounts to a whole lot.

So be on the look out for those little foxes.

That’s it! That’s step two. Step three will follow soon enough. Good luck!

VIBES massage

I don’t know if it’s because I haven’t had a massage in such a long time, or the massage I got one day last week was really, really good. After much prodding, my wife and I finally overcame our hesitation and decided to try the massages at the Visually Impaired’s Brotherhood for Excellent Services (VIBES) in the nearby mall.

They offer are two kinds of massage. The first one is called a chair massage, which my wife tried, wherein one lies in an adjustable chair that looks more like a tiny bed and gets a massage with his/her clothes on and without any oil being rubbed on you. You can choose between 30-minute and 1-hour chair massages. My wife tried their 30-minute massage. The only downside here is you get less privacy.

When she told how good it was right after, I decided to have their 1-hour bed massage with healing oil. Bed massages are a lot more private because you are led to a tiny room, stripped to your bare essentials, and massaged with their healing oil. Again, you can choose between 30-minute and 1-hour massages. I choose their 1-hour massage while waiting for my wife do the grocery. The blind masseuse (Danilo) was really good. He applied just the right amount of pressure, and it took a lot for me to muffle my oohs ad aahs, especially when he was massaging my lower back. We felt so good that we were raving about it in the car while going home, up until the next day to our officemates. It’s like finding the best weight loss pill. We now plan to get massages twice a month (maybe more). So how much did the massage set us back, just under 400 pesos! Very cheap!

Check their website for a list of massage centers, clinics, and booths in different locations and try the one nearest you. They also offer home services. This is one great way of helping the blind.