Two years ago I found myself being sued over credit card debt. It forced me to open my eyes and look at my financial situation, which included multiple delinquent credit card debts, car loans and school loans. I weighed many options including bankruptcy and debt consolidation, but decided I needed to stop trying to take shortcuts and get out of debt the right way.

I sat in my car at lunch and wrote in my journal. I wrote and wrote so that I understood how much debt I had, why I had it and what I was going to do about it.

Eventually I began to picture my financial life as a ship. But I had created huge holes in the hull with my financial actions and it was sinking. FAST!

My Debt Was Like a Hole in My Sinking Ship

This picture is from one of those sessions of sitting in my car. It shows my ship, the major hole(credit card debt I was being sued for) and some smaller holes(delinquent credit card debts).

I began to brainstorm on ways to fix the sinking ship. I very literally and logically asked myself “How can I stop this ship from sinking?” And I very logically created a drawing that showed my blueprint.

I had planned to have my crew(money) erect a huge steel pseudo floor(lawsuit settlement) and slide it into place. Once it was in place, I would secure it(automate my payments to the debt settlement attorney) and start bailing water(fixing my credit report).

Then I would have my crew(money) start patching smaller holes(unpaid credit card debts). I would likely have to find some extra crew members during some of this and I thought of ways to find some(401k cashout, stop contributing to 401, cashout stocks, ask for a raise, get a side job).

I started following the plan and ended up settling the account I was being sued for and paying off the others. Just as the plan dictated. And a massive weight was lifted from my shoulders and chest.

There were some difficult decisions along the way, like selling my car and taking the train to work, but the plan I came up with was the best solution for me. I automated payments so I was never late and began to really rebuild my financial foundation and credit.

I have a question for you.

What’s a good representation of your financial picture? A sinking ship? A crashing plan? The Leaning Tower of Pisa?

Whatever your financial picture is, draw it out. Don’t worry, it doesn’t have to be good. Draw it out so that you can see it.

Now write a step by step plan on how you can fix that picture! Then leave a comment and let me know what you’re picturing.

Good luck!
-MG