Tag: debt reduction strategy

Posted in Debt Free Me

Month End: October Snapshot

Posted on by jamesmachawk


At the end of this month, I was able to pay off another one of my credit cards. Slowly and consistently throughout this year my debt has reduced at a faster rate than the last time I was getting out of debt, and even faster than when I began blogging about Debt Free Me in 2015. Why is there such a difference this year versus previous years and attempts? Honestly, I can attribute it to two factors: My wife’s willingness to let me focus on paying my debt and removing distractions from paying my debt. The extra $350 a month that I’m committing toward my debt vs using it toward our budget is a key factor. Also, I’ve cut back on letting my time and energy be pulled in different directions. I’ve said no to situations, and don’t focus on income opportunities. No is a complete sentence. Am I sacrificing opportunities by not building my asset class? Yes, and I’m completely content saying no. This year has been a year of restoration for me. I’m thankful to my wife for her love and support, finally achieving the salary I’ve wanted, and the consistency of continuing to pay down my debt.

If you notice the amount above is the amount that is being paid toward the principal and doesn’t include the accrued interest. If you’re going to work toward being debt free, then pay more than just the minimum payment or the accrued interest. If you’ve practiced the self-lending principle, you can see how much interest compounding daily can be for your benefit on an income side, but also how much it takes away from the expense side. A good personal goal as you’re paying down debt is to set aside income. Saving money will create a margin and give you the ability to handle unforeseen events. I recommend saving three months’ worth of income as a long-term goal, and one month’s worth of income as a short-term goal. Saving can be challenging at times, so find someone you trust to help you stay committed to achieving this step. If you’re using a credit card, then continue to pay it off monthly. Personally, I have one credit card that I use and pay off monthly. Why? Because debit cards can become compromised, and if a debit card gets compromised then your banking account is compromised. Yes, you could carry cash, but if you have the discipline, use a credit card and pay it off monthly. Find a credit card that offers some form of reward incentive either points or cash back. Personally, I like a cash back rewards, and my wife prefers to use points, so she can use it toward discounted store purchases. Next month is Thanksgiving and I have a lot to be thankful for.

If you want to learn more about how I’m increasing my income while reducing debt, or if you want to have someone to discuss your debt reduction strategy with, or if you need a financial check-up, contact me.

Also, learn more about how I use the self-lending principle through Mustard Seed in the mustard seed section.

This month’s video is THE CURE TO LAZINESS (This could change your life) from the Mulligan Brothers YouTube channel.

“The LORD will send rain at the proper time from his rich treasury in the heavens and will bless all the work you do. You will lend to many nations, but you will never need to borrow from them.”
‭‭‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

Deuteronomy‬ 28:12‬ NLT‬‬
‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

http://bible.com/116/deu.28.12.nlt‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

I believe in your journey to….

A Debt Free Me

Posted in Debt Free Me

Month End: September Snapshot

Posted on by jamesmachawk


I turned 38 this year…Looking back I never expected to be so far behind in my life as compared to others. A lot of the people I went to high school with are married with children, and some are very successful in their careers. I look at my parents and remember where they were at my age, and honestly it discourages me. Comparison can do more harm than good. Even when comparing yourself against others who are attempting to achieve common goals like being debt free. All you can do is stay on your path and stick to your strategy. Everyone’s life, circumstances, and finances are different. That’s why it’s important to have a budget, or some form of knowing how much is coming in, and how much is going out. What is your bottom line number?

I’m focusing through the end of the year on paying down my other credit card debt. I’m continuing to pay just the about the minimum payment to at least reduce my principal balance on the debt above. Remember to look at your credit card statements to not just see your interest rate but also, to see how long it would take you to pay off your balance if you pay just the minimum payment. Also, your interest rate could change if the Federal Reserve raises interest rates. Don’t compare yourself with others and continue step by step toward being debt free.

If you want to learn more about how I’m increasing my income while reducing debt, or if you want to have someone to discuss your debt reduction strategy with, or if you need a financial check-up, contact me.

Also, learn more about how I use the self-lending principle through Mustard Seed in the mustard seed section.

This month’s video is Dana White – From $0 To $7 Billion | One Of Most Compelling Speeches! from the Mulligan Brothers YouTube channel.

“The LORD will send rain at the proper time from his rich treasury in the heavens and will bless all the work you do. You will lend to many nations, but you will never need to borrow from them.”
‭‭‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

Deuteronomy‬ 28:12‬ NLT‬‬
‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

http://bible.com/116/deu.28.12.nlt‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

I believe in your journey to….

A Debt Free Me

Posted in Debt Free Me

Month End: April Snapshot

Posted on by jamesmachawk


Ending April, I’m thankful to say I’ve made a significant step toward paying off another credit card. By the middle of May, the card I’m targeting should be paid off. I’m very thankful. With each card, or loan I’m paying off I’m taking the loan payment I was paying and rolling it into the amount I’m paying toward debt. It is a snowball effect. There are at least three different ways to pay down debt. The core principles of debt reduction are targeting a balance, targeting an interest rate, and using extra income to target a balance. My wife has taught me a very important extra principle in my journey to be debt free. The extra principle is to set aside a portion to save. I’ve focused on paying down debt and building assets, but it’s important to set aside a reserve. To be honest, getting out of debt is exhausting, and so is saving. But if through your spending whether responsible or irresponsible, you’ve ended up in this position, then I think it’s your responsibility to fight to get to your original place. A place of debt free. It’s exhausting if you’re alone, but I want you to know that you’re not alone. A key component of your journey to being debt free is believing and knowing that you are not alone.

Even if you don’t have a significant other, you have an inner voice that says you can do it, keep going, and press on. Listen to the voice that gives you hope and strength. And if the voice doesn’t say those things, then know I believe you can be debt free. Plan your work and work your plan. You may have to work harder than most, but the seed you plant if it is a good seed will reap a good plant.

If you want to learn more about how I’m increasing my income while reducing debt, or if you want to have someone to discuss your debt reduction strategy with, or if you need a financial check-up, contact me.

Also, learn more about how I use the self-lending principle through Mustard Seed in the mustard seed section.

This month’s video is WHEN LIFE HITS YOU AND YOU FEEL LIKE GIVING UP | MOTIVATIONAL VIDEO from the Lion of Judah YouTube channel.

“The LORD will send rain at the proper time from his rich treasury in the heavens and will bless all the work you do. You will lend to many nations, but you will never need to borrow from them.”
‭‭‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

Deuteronomy‬
‭28:12‬
‭NLT‬‬
‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

http://bible.com/116/deu.28.12.nlt‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

I believe in your journey to….

A Debt Free Me


Posted in Debt Free Me

Month End: June Snapshot

Posted on by jamesmachawk


This month, I’m so thankful for what God is doing in our lives. My wife had her first job interview since graduating college and she got the job she wanted. She passed the NCLEX on the first try and had a successful interview to get her first job in many years on the first try. God has blessed our new family in so many small and dramatic ways that I can’t help but give Him thanks. This month, I personally decided to stay away from actively selling my Legalshield business and decided to personally focus on growing my wife’s Legalshield business through mentoring and motivating. I still lead conference calls, available I’m to answer questions, and I assist in sharing the product, however I no longer actively sell memberships. I choose to instead be a Legalshield member, and mentor. I’m still active in my other businesses and I’m excited about a new business venture that I’m starting with my friend Blake.

The balance on my Capital One card increased due to a balance transfer to help pay my wife’s debt and take care of necessary expenses. With the extra $500 per month, the additional income from my business ventures, and proper budget management, I’m going to begin to focus on paying on the Barclay’s cards because they have an interest rate of 23.24% vs. the Capital One’s interest rate of 23.15%. The best way to pay down debt is to focus on the debt you want to pay down and find ways to increase income while decreasing expenses. Also, if you can build passive income generating assets you can work toward building wealth. You must act and believe that there is an end you can reach.

If you want to learn more about how I’m increasing my income, while reducing debt or if you want to have someone to discuss your debt reduction strategy with, or if you need a financial check-up, contact me.

Also, learn more about how I use the self-lending principle through Mustard Seed in the mustard seed section.

“The LORD will send rain at the proper time from his rich treasury in the heavens and will bless all the work you do. You will lend to many nations, but you will never need to borrow from them.”
‭‭Deuteronomy‬ 28:12‬ NLT‬‬
http://bible.com/116/deu.28.12.nlt‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

I believe in your journey to….

A Debt Free Me

Here’s this month’s video: STOP WASTING TIME – The Most Motivational Video Ever 2017 from the Video Advice YouTube channel.

Posted in Debt Free Me

Month End: May Snapshot

Posted on by jamesmachawk


Thankfully this month, I paid off the Prosper loan, and now I’m focusing solely on the credit card balances. Remember that paying off your debts will give you a raise. Without debt, you will be able to experience your true take home pay (gross profit). Having a budget, will help you know how much your disposable income will be, and your disposable income is how you will build wealth. Mind your own personal investment portfolio. As you pay down debt, look for ways to increase income. I’ll plan on taking advantage of the loan balance transfer offers to reduce my personal line of credit to pay for emergency expenses and look for income producing opportunities. My wife is preparing to interview and will start working in the field that she loves starting next month. I believe you should do what you love and do it with excellence. If it’s possible to do what you love and generate income from it, then leverage the internet to reach as many people as possible. If it’s not possible to generate income from what you love, then let it be your motivator to do your profession with excellence. Our time is finite, but our impact can be eternal.

Over the next few months, my goal will be to reduce either credit card balance by $1000. By year end, my goal is to position myself to be able to make $1000 debt payments toward my debt via my job, and businesses. Some of the new habits I’ve adopted is listening to motivational videos, and relaxation videos through YouTube. However, for me, my core foundation remains the same, prayer, the Word, and worship. What’s your 1st response when things go right or wrong?

If you want to learn more about how I’m increasing my income, while reducing debt or if you want to have someone to discuss your debt reduction strategy with, or if you need a financial check-up, contact me.

Also, learn more about how I use the self-lending principle through Mustard Seed in the mustard seed section.

“The LORD will send rain at the proper time from his rich treasury in the heavens and will bless all the work you do. You will lend to many nations, but you will never need to borrow from them.”
‭‭Deuteronomy‬ 28:12‬ NLT‬‬
http://bible.com/116/deu.28.12.nlt‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

I believe in your journey to….

A Debt Free Me

Here’s this month’s video: THROUGH HARD TIMES – Powerful Motivational Video 2017 | PART I from the Motversity YouTube channel.

Posted in Debt Free Me

Month End: February Snapshot

Posted on by jamesmachawk

This month I celebrated my first full month living with my wife. We were fortunate enough to go to the marriage conference together at the last minute, and I was thankful that we did. Our apartment is starting to look like a home, and my wife has begun studying to take her test to be licensed as a registered nurse. This month especially is filled not just with numbers and budgeting but faith also. Faith in things not yet seen and having the will to continue to do a good work regardless of the outcome. I have the opportunity for a new position at my job and having to rely on something greater than myself to handle these new responsibilities. Either way when I get paid my process remains the same and I look to use my self-lending principle whenever I can.

I’m looking to sell as many plans as possible not just to reduce debt, but to also help protect people. My thought process remains the same: increase income, and lower expenses, look for income producing assets, and build wealth to leave a legacy. Over the next few months you should see my debt reduce significantly. My wife and I have talked about using a consolidation loan to consolidate and reduce the payments on my two installment loans which should free up more cash flow. The only drawback of an installment or term loan is the payments are set for the term of the loan unless you can convince the loan officer to re-amortize the debt.

If you want to learn more about how I’m increasing my income, while reducing debt or if you want to have someone to discuss your debt reduction strategy with, or if you need a financial check-up, contact me.

Also, learn more about how I use the self-lending principle through Mustard Seed in the mustard seed section.

“The LORD will send rain at the proper time from his rich treasury in the heavens and will bless all the work you do. You will lend to many nations, but you will never need to borrow from them.”
‭‭Deuteronomy‬ 28:12‬ NLT‬‬


http://bible.com/116/deu.28.12.nlt

I believe in your journey to….

A Debt Free Me

Here’s this month’s video: Retrain your Mind from the Be Inspired YouTube channel

Posted in Debt Free Me

Month End: December Snapshot

Posted on by jamesmachawk


As 2016 ends, I’m thankful to have survived another day, month, and year. I think you can agree that this year has been filled with loss. Loss is a nature of life, but for me there is always hope in me. Hope of a new day, hope of a better future, and hope of a good ending. Earlier this year I started with $31,846.67 in total debt, and at the end of the year the debt has been reduced by $8,061.53. During the year, my debt did increase, but now at the end of the year the debt has been reduced. I guarantee you will have challenges, and your debt repayment plan may have to restructure, but at the end of the year, if your debt is lower than when it started then you are making progress.

I believe in your journey to a debt free me. It begins with one dollar at a time. Every dollar that comes into your account you can control. I suggest following my process to help you in your debt repayment plan. My process will help you not only create a budget but ultimately teach you how much comes out, and even more importantly when it comes out. At the end of this year, I added to income producing assets in the form of two businesses. My fiancé and I had fun growing our business, and at the end of the year I could bring two associates one for my business and one for her business. Thank you for being a part of my journey this year, and next year brings a new chapter in my life as I prepare to marry the love of my life. In the new year, I’m preparing to be even more aggressive with my debt reduction, increase income through my assets, and lower expenses where I can. I’m excited to see what the new year will bring. Also, I’m to be adding videos each month so be sure to scroll to the bottom.

If you want to learn more about how I’m increasing my income, while reducing debt or if you want to have someone to discuss your debt reduction strategy with, or if you need a financial check-up, contact me.

The rich ruleth over the poor, and the borrower is servant to the lender.
https://bible.com/1/pro.22.7.kjv

I believe in your journey to….

A Debt Free Me

Here’s this month’s video

Posted in Debt Free Me

Month End: November Snapshot

Posted on by jamesmachawk


I’m thankful to see the end of this month, because it’s two more months until I get to say I do to the love of my life. This year has been challenging to say the least, and I’m very blessed and thankful that I’ve could consolidate debt and at the same time use balance transfers to my advantage. I’m thankful to have a job that is allowing me to stick to my debt reduction plan, and the fact that I have a plan in place. I’m also thankful for the assets I’m building over time and the income they will produce. The other side of this situation is I have a supporting relationship that encourages me and my spirit when I get discouraged. Don’t do life alone. Find someone you can openly speak with your finances about, and have someone encourage you to stay committed to your debt reduction plan.

If you want to learn more about how I’m increasing my income, while reducing debt or if you want to have someone to discuss your debt reduction strategy with, or if you need a financial check-up, contact me.

The rich ruleth over the poor, and the borrower is servant to the lender.
https://bible.com/1/pro.22.7.kjv

I believe in your journey to….

A Debt Free Me

Posted in Debt Free Me

Month End: October Snapshot

Posted on by jamesmachawk


Honestly, I’m looking forward to this year being over with and starting my life with my soon to be wife. If you’re struggling with debt and you’re unable to have help emotionally, and financially, then depending on how big your debt level is I suggest three options. Those options are find a way to lower your expenses and increase income, close all open accounts and leave one card open and begin negotiating your debt with your creditors, and finally consider bankruptcy. The third option is an option of last resort, but bankruptcy is a way to start over. Don’t let your debt and finances take you to the place where you would harm yourself or others. If bankruptcy is the only option, then I suggest you contact multiple bankruptcy attorneys.

Fortunately, in my situation, I’ve openly discussed my finances with my fiancé and she’s openly discussed her finances too. We’re considering different debt consolidation options together, discussing a debt repayment strategy as well as how to grow our existing businesses. We openly discuss every topic with each other and being in our mid-thirties we’re comfortable enough to not need much. I encourage you to find someone to openly discuss your finances with. The first step to becoming debt free is in your thinking, and the next step is having a budget. My questions to you are how much do you make? Is that gross or net income? What is your bottom line number? Knowing your thoughts and knowing your numbers is critical to not just get out of debt but grabbing control of your financial future.

If you want to learn more about how I’m increasing my income, while reducing debt or if you want to have someone to discuss your debt reduction strategy with, or if you need a financial check-up, contact me.

The rich ruleth over the poor, and the borrower is servant to the lender.
https://bible.com/1/pro.22.7.kjv

I believe in your journey to….

A Debt Free Me

Posted in Debt Free Me

Month End: March Snapshot

Posted on by jamesmachawk

Over this past month, I’ve had the opportunity to pay off the Wells Fargo Line of Credit and utilize a zero-balance transfer option on my Barclay’s card to reduce the payment amount of my overall debt. My next target will be the Barclay’s card as I chip away at the Capital One card. It’s important to be flexible with your debt re-payment strategy. Set your sight on a balance and target it but be open to opportunities to reduce the debt faster, even if you utilize a promotional balance transfer option. A word of caution, when you do use a promotional balance transfer remember two points: 1) the offer is for a 12-month period on average (check your terms) and 2) you are charged a balance transfer fee (weigh the cost vs. benefit). In the end, a balance transfer can eliminate the high interest debt which can not only eliminate the payment but also create a lower payment overall which increases cash flow.

An increase in cash flow, creates more money to reduce debt, or to be used towards living expenses. In your journey, you’ll experience a lot of emotional forces at play which may encourage you to spend. The best process to fight these forces is to seek help from others, set up small reward systems to curb the spending, and grow your asset column. As I said in one of my earlier posts, I’ve gotten out of debt before, but when I did, I had no control over my spending and got right back in the hole again. Why? Because I didn’t take time to address my spending issue in the first place, and I didn’t grow my asset column. While you’re getting out of debt, see if you can create something which will produce money for you. The one thing we have which is absolutely fixed is time. At some point the clock will reach zero. Value your time and maximize your use of it.

This new year has been challenging, because of the wedding planning and the financial obstacles that present itself. Every obstacle creates an opportunity to trust God and those closest to you. You’re not in this process alone. There’s a four-step process that I do whenever I receive income, which I will share with you in a later post. This process has blessed me in my journey to debt freedom. I’ve included a short video clip from Joe McGee to help you turn an obstacle into an opportunity. Enjoy:

Turning an obstacle into an opportunity is about changing your vision and your thinking. Have someone to discuss your debt reduction strategy with, and if you need a financial check-up contact me.

The rich ruleth over the poor, and the borrower is servant to the lender.
https://bible.com/1/pro.22.7.kjv

I believe in your journey to….

A Debt Free Me