Back to Basics: The Three R’s of Debt Reduction

This week, I’ve been thinking a lot about paying off my credit cards!  While it’s a great feeling to have that debt all wiped out, I also want to make sure that I don’t slide back into the same old behaviors.  Over the past six months, I’ve really changed my relationship with money. 

For most of my credit history, I overspent, took out student loans to pay off debt, and overspent again.  It’s a vicious cycle!  Anyone tempted to follow in my footsteps or take out a home equity loan or consolidate credit will probably discover the same can of worms I did.  Each time, I thought that this was absolutely the last time I would need to use loans to pay off my credit cards.  Then, the next semester, I’d be back in the same old spot.  This time, I feel that I’ve actually made some progress with the underlying behaviors that led to my overspending ways. 

by christopher.woo

by christopher.woo


 Now, I want to keep it healthy!  I’ve identified three key concepts that helped me, the three R’s of debt reduction if you will:

  • Reflect
  • Replace
  • Renew

These three verbs enabled me to change my ways and make it through some rough patches.  In this series, I’ll explain each one in more detail, a three-step approach to my new relationship with money.  It wasn’t simple, and it didn’t happen overnight.  However, it did happen, and faster than I thought it would!  Check in tomorrow to see how important some serious reflection is for successful debt reduction.  Any other R’s come to mind?


9 responses to “Back to Basics: The Three R’s of Debt Reduction

  1. I know what you mean!! Congrats on getting out of debt, recognizing your propensity to spend is the first step in ensuring you don’t repeat past mistakes. Love your blog, I’ll be sure to give you some link love.

  2. I just found your blog & am really enjoying it. Must say I’m very discouraged presently though……$60,000 of credit card debt! I suppose the answer to getting rid of it is like the advice on how to eat an elephant, “a little bit at a time”. AND, I’m 53 years old so I don’t have a lot of time to get this done. I would like advice, and also to serve as a warning example to young people……the future is right around the corner!

  3. mydailydollars

    @ Kari! Thanks. . .I’ll add you to my blogroll too! I like keeping up with your deals.

    @Caroline, I know that feeling. Remember, my big picture includes over $100,000 in student loans! I think one thing that has helped me has been starting out with smaller goals, like paying off my current credit card debt. Acheiving one goal really helps give you steam for the next! Perhaps you can start with one card? Or one year’s worth of debt? Keep us updated on how it goes!

  4. Pingback: Back to Basics: Reflect on Your Debt « My Daily Dollars

  5. Pingback: Back to Basics: Replace Bad Habits « My Daily Dollars

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  7. Pingback: Back to Basics: Renew Your Intentions « My Daily Dollars

  8. Pingback: Carnival of Debt Reduction » Blog Archive » Welcome to a windy and rainy Carnival of Debt Reduction

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