Debt Firefighting

When you were little did you want to be a firefighter? Maybe you did. I certainly didn’t. There are so many things that I hate about fire. One of my biggest fears is being burnt and the thought of cremation just about makes me squirm out of my skin. If we were playing the, “would you rather” game.  I’d much rather drown than die in a fire (yes I just went there and I realize it’s gross and morbid to think about death that way).

The heat, the sparks, the burning, just about everything about fire feels dangerous to me. And I know I’m not the only one, just ask Laurie from The Frugal Farmer or John at Frugal Rules about their experiences with fireworks accidents.

Where am I going with this post? Well…since I’ve been big on analogies lately, here’s another: when you’re in debt, you’re a firefighter!

The Fire “Life Cycle”

Smoldering Debt

When your “debt fire” begins to smolder, you might not even notice. Maybe you’re spending on a day-to-day basis at a rate you can’t afford, but you’re largely oblivious to the fact that you’re in danger. Hidden among a pile of bills is a debt ember just waiting to ignite. The debt smolders silently in your bill basket for weeks or even months until the corner of one bill ignites.

Breathing in Smoke

The flames start out small, but they’re visibly noticeable pretty quick. What started out as a few credit cards charges here, and a few student loans bills there, are now starting to choke you. The fire has used all the oxygen in the room to “feed itself” and it’s getting hot and difficult to breathe. When you finally realize your wallet is on fire you need to put it out before you “feel the burn.”

Stop, Drop and Roll

You stop making purchases, drop the credit cards and roll your debts into a consolidation loan. But it’s too late. The consolidation loan doesn’t fix the problem, it just covers it up.

The Debt Inferno

All those small bills that you thought you had under control have turned into a giant fiery debt inferno, and guess what? You’re right in the middle of it. The Heat is On!

Putting Out the Fire

Fire is scary, but you don’t have to get burned. Grab an extinguisher (a side job) and start putting out the small fires. The bigger your hose (income) the faster you can “put out” the fire (pay off the debt). But that doesn’t mean a small hose can’t get the job done. You just have to be dedicated and motivated to put out the fire and not play with matches.

If All Else Fails Call 911!

Remember, if things get really bad you can call 911. You’re not alone and there are plenty of people who want to help you succeed. Depending on your situation and your support network, you might want to seek the advice of friends or family, personal finance communities, blogs, and/or trained professionals.

Is your debt extinguished or are you still debt firefighting? 

Image: AMagill