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" A stay-at-home mom with two little girls under 6, Alexis Sheppard didn&amp;#039;t feel she was living la vida loca \u2014 yet her family&amp;#039;s debts were escalating. She and her husband, Scott, who live in Mesa, AZ, had piled up more than $14,000 in car loans, credit card debt, and other charges. &amp;quot;It was overwhelming,&amp;quot; she says. &amp;quot;And because we were living on one income, I didn&amp;#039;t know how we would find the money to pay it off.&amp;quot; It wasn&amp;#039;t a windfall that finally helped Sheppard pare down her debt. She got help from an online community of women \u2014 all in financial straits as bad as hers or worse \u2014 who have joined forces to eliminate debt from their lives, come hell, high water, or even a 75 percent\u2013off sale at Best Buy. Dubbing themselves the &amp;quot;Women in Red Racers&amp;quot; \u2014 with the idea that each was &amp;quot;racing&amp;quot; to pay off what she owed \u2014 this intrepid group had just formed in fall 2006 when Sheppard found them. &amp;quot;I loved the idea of being accountable to someone. I signed up on the spot,&amp;quot; she says. If you&amp;#039;re envisioning a bunch of gals sitting in a cheery church meeting room, you&amp;#039;d have the spirit right, but not the geography. The Racers, now about 1,000 strong, interact as if they were face-to-face, but most have never met. They talk on the Internet, in a message board forum for women who want to share money tips and overcome financial problems. Although the name sounds competitive, the Racers are anything but. &amp;quot;When we first started, a lot of people kept focusing on who would be the first to get debt free,&amp;quot; says Becky Purvis, a transportation broker in Raleigh, NC, and the driving force behind the Racers. &amp;quot;We had to explain that you&amp;#039;re not racing against anyone but yourself.&amp;quot; The Racers&amp;#039; interactions may be virtual, but their success is tangible: Not long after their one-year anniversary last fall, the 400 or so women then in the group had paid back a total of $1.6 million in debt.  Next Page: Follow the Women in Red Racers&amp;#039; 3 Easy Steps How did they do it? Their three-step method is remarkably simple:  1. Be honest when you tally up what you owe. Admit to every cent. &amp;quot;It&amp;#039;s only when you get real with yourself that you realize you have to make a change,&amp;quot; says Purvis.  2. Update the group regularly on your progress \u2014 or admit to backsliding. &amp;quot;It helps to have a place where you can talk frankly,&amp;quot; says Sheppard. By posting your status, you&amp;#039;ll get motivation when you need it and applause when you deserve it.  3. Don&amp;#039;t give up \u2014 even if success seems far away. The Racers&amp;#039; experience suggests that perseverance is the key. On average, members have each paid off more than $3,800, and many have come up with more. Most important: The group is still going. With U.S. personal debt at an all-time high of almost $2.5 trillion (excluding mortgages), the Women in Red Racers offer hope to struggling families who feel as if they&amp;#039;re facing a life sentence.  Purvis, who calls herself &amp;quot;one of the tortoises&amp;quot; in the race, has paid off her $3,500 credit card debt and reduced her car loan to $8,000. How? &amp;quot;The group forces you to stop spending mindlessly \u2014 we make each other own up to bad habits,&amp;quot; she says.  Another key to the Racers&amp;#039; success: their reward system. Every time a woman pays off $100, she puts a smiley face next to her name on the board. Pay off $500, and you get to show a bigger smiley. After $1,000, you merit the &amp;quot;cool guy&amp;quot; sticker (smiley with sunglasses). When you leave your debt in the dust, there&amp;#039;s a special sticker: a rose. &amp;quot;You wouldn&amp;#039;t think smiley faces could be so important,&amp;quot; says Megan Paterson, a Racer from Washington, D.C. &amp;quot;But the approval makes a big difference.&amp;quot;  The group is also a source of cost-cutting tips. Inspired by other women&amp;#039;s suggestions to analyze her phone bill, Sheppard canceled her caller ID, which saved $11 per month. &amp;quot;That kind of thing inspires you to go through the rest of your bills with a fine-tooth comb,&amp;quot; she says.  Andrea Holder, of Shelby, MI, says the group changed her definition of good value. When her sister coughed up $200 to go skydiving, Holder was aghast: &amp;quot;As a Racer, I realized I could pay my babysitter for a week with what she was spending on a three-minute jump!&amp;quot; In the past year, Holder and her husband have cut their debt by more than $10,000.  Ultimately, the group&amp;#039;s power lies in its ability to encourage and inspire. That&amp;#039;s what Sheppard experienced last summer, when a series of medical bills and car repairs set her family back $4,700. The thought of confessing this new obstacle and giving up her hard-won smiley faces almost made Sheppard quit. &amp;quot;But they told me, &amp;#039;We never take away the smiley faces \u2014 you still deserve credit for the debt you did pay off.&amp;#039;&amp;quot; Sheppard says the feedback meant a lot. &amp;quot;Their attitude was &amp;#039;You have more money on your credit card \u2014 so what? Just keep going.&amp;#039; And I did.&amp;quot;  How You Can Join  Women in Red Racers is the offshoot of a larger Women in Red online community \u2014 which in turn traces back to financial columns on MSN Money. You can join the Racers through their message board at moneycentral.msn.com/community. To find the columns or discuss finance issues (including but not limited to debt) with the larger Women in Red community, go to moneycentral.msn.com/smartbuy/home.asp.  Read the Racers&amp;#039; Tips for Getting Out of Debt "^^<http://www.w3.org/2001/XMLSchema#string>
<http://www.goodhousekeeping.com/life/money/advice/a17703/paying-down-debt/>