How to Become Debt Free

Google+ Pinterest LinkedIn Tumblr +

Consumer debt is increasing on a daily basis. Many people have given up hope that they will ever be out of debt. In this article you will learn a few helpful ideas to help you become debt free .

Make a list of all of your debts, listing them from the smallest amount to the largest amount. Include everything, no matter how large or small. Doing this allows you to clearly see what your current financial situation is and what is needed for you to become debt free .

For all of your debts, except the smallest, pay the minimum amount due each month. If you have any additional money left over at the end of the month, add this payment to the smallest amount until it is fully paid. Once this debt is paid, move on to the second smallest amount. You should now be paying the amount from the previous smallest balance AND the minimum on the second smallest amount.

Continue attacking your debt via the prescribed method until you become debt free . Remember that each time you pay off one amount, the amount you pay on the next debt increases by whatever amount you were paying on the previous debt. This will really supercharge your debt reduction efforts.

Eliminate your credit cards. You really do not need them.The credit card industry, and society in general, have made you believe that you cannot live without them. At the very least, you need to put them somewhere that makes it difficult to use them. Open a safety deposit box at your local bank and store them there. While obtaining them for true emergencies would not prove difficult, using them to buy your morning coffee would.

Create a budget and stick to it. Calculate how much money you make each paycheck. Then give each dollar a job to do. Spend all of your money on paper before week begins. You must plan if you want to become debt free .

Constantly monitor your budget. Hold budget committee meetings with you family and make changes as they become necessary. Your first few months will not work the way you plan them. With time, patience, and effort you will how to become debt free .


About Author

Leave A Reply