Part Three: Credit Control

Or How to Manage Debt  


Part One: The World of Debt 

Part Two: The teachings of Scrooge 

Me, Myself and My Debt

Credit card-holders could be cataloged as children in adult clothing. We seek immediate gratification and live under that aura for a good part of our lives. The hardest part in controlling debt is being able to control ourselves. We find a way to spend more than what we earn through the use of a credit card. Some of us want the latest, the best, and more stuff. Stuff fills our lives and we seek that gratification, the self-fulfillment of what is not a need, merely a want. Why does one need a brand new $27,000 car when a used $2,000 does the job?

The world of economics is complex and marketing drives people to have the best clothes, the best car, the best house... At the same time, people are stressed out because they have to pay the mortgage, the credit card loan, the car loan, etc. Someone is in control but it is not you.

It's All About Control

It may be difficult to imagine yourself managing your debt and still be able to vacation at Blue Beach Resort. But it is possible. All you have to do is budget for it while paying down your debt.

In Part Two you were able to read what you can do to reduce your expenses. That's how I am reducing mine. But apart from that, I keep track of all my expenses by inputting them into the computer using EXCEL. I also keep track of my daily income. Of course, I have to sacrifice going to the movies and other things. But as I am able to pay more and more of my student loan, I am reducing the overall interest to be paid.

We subsist on a family gross income of $2,400 a month. My monthly student loan payments are $500. Rent and utilities are $1,200 monthly. I save about $500 a month which I use to pay down my student loan faster and to save for a vacation. Of course, why vacation at expensive Blue Beach Resort in Mexico when I can enjoy a similar beach down in a cheaper destination like Peru?

While we live on a low income, we find time to go swimming, to enjoy time at the public library, or to just go for a walk at the Beaches. My advice to you is to try to find pleasure in the free things.

Current Debt

As of August 8, 2007 my debt stands at $29,481.56

Please email me all your questions, comments, concerns, suggestions at