Deb is in Debt!

My church, Palm Valley Church, is currently doing a series called "I've Got Issues". I think that this may be my most favorite series they've done. I can relate to so much of it and it makes me feel less alone. So far, we've covered: "I've Messed Up", "I'm Stressed Out", and "I'm In Debt". Yesterday's message on Debt and how to climb out from under it was powerful!
I am in more debt that I even imagined! OK, I guess I knew, in theory, but seeing the numbers written down was so depressing.
However, I am going to do something about it.
Since I am well on my way to conquering my weight and health issues, I am now going to tackle the debt. And you, my lucky blog readers, can come along for the journey! :-) I figure the accountability worked with the diet, so it will work with the debt, too! [Sidenote: I smile everytime I type "debt" because it is my name with a "t" at the end. Don't know why I find that funny!]
I decided yesterday that I will follow the steps that were outlined for us.

• Track Everything You Spend: I got a notebook and starting yesterday I am writing down every penny I spend, including the money I spent on the notebook. :-) Not only will this help me see where my money is going, but I think it will also help me not to buy People magazine almost every week. It works on the same principle, for me, as a diet journal ~ I don't want to write down a "cheat" so I don't eat it!
• Establish An "Oh-No" Fund: This should be a fund of at least $500-1,000 that you set aside for any emergencies that come up. One suggestion was to have a yard sale or sell unwanted/un-necessary items in your house. With the exception of a couple of old TV's and a few items of clothing, I don't think I have enough stuff to even make it worthwhile to have a yard sale. So, I will need to come up with an alternative way to establish my fund. This morning, while I was paying bills, I did transfer $100 into my fund, which made me feel like I'm on my way.
• Eliminate Expenses: As of right now, I don't feel like I spend foolishly, but I know that I will find stuff to eliminate as I start tracking my spending. I think my first step in this area will be to contact Qwest and DirectTV to see if I can cut back my bill in any way. I know that many people say that Satellite TV is a luxury, and a part of my definitely agrees, but I don't think I can completely cut it out yet. It is a large part of my entertainment ~ you know, all those shows I DVR and then delete when the DVR is full. And I believe I need to keep my landline for my security system which I REFUSE to give up. I am a big chicken and my security system is what makes me able to sleep well at night.
• Expect God To Help: I know it sounds bad, but this is a hard one for me. I have committed to tithing regularly, which I got a good start on over the past few months. It is just such a leap of faith. So, I am working on trusting that God cares about me and my finances.

My church is offering a Financial Peace University but I am not sure that I am going to sign up at this time. I had already requested Dave Ramsey's book from the library and have looked up several online sites/stories about people getting out of debt.

Here is my plan-of-action, which I will update on a regular basis:

1. Establish my emergency fund: I started this one today, 1/17/11, with $100

2. Track everything I spend: Started this on 1/16/11 and will maintain it for one full month and then go from there with seeing what can be cut.

3. Eliminate expenses: I will contact Qwest and DirectTV to see if I can lower either of those bills.

4. Establish a budget: I will use my spending journal as a starting point for the budget, so that I can see realistically where my money is going and needs to go.

5. Pay down debt: I am going to use the "snowball effect". Today I wrote down all of the outstanding debt I have: Visa, Discover, Car Loan, Student Loan, and Mortgage. My first goal is to pay off my Visa card ~ to do this I will throw any extra money I have each month at this balance.

6. Use the Cash Envelope system: After I have established my budget, I am going to convert to a cash-only system for my monthly expenses. I will still pay my bills online but items like groceries, household goods, entertainment, clothing, etc. will be budgeted and paid for in cash. I am still reading up on this area and how best to implement it.

So, there you go. A REALLY long post, mainly for my own benefit, of how I am going to get out of this hole I've dug for myself. It's really discouraging right now, but I am hoping that as I work on it, I will begin to see a light at the end of the tunnel.