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Freedom From Debt

June 26, 2009 by DebtGeniusNo Comments Tweet this post

Freedom From Debt

We have all heard that in tough times we should get out of debt. Yet somehow it seems that no one follows that advice. Why? Because they don’t know HOW to get out of debt. Here are some simple steps to follow to start you down the road to debt freedom.

Step 1
Stop charging things to your cards. You can’t get out of debt when you are still adding to it. So cut up those cards! Or if you just can’t bare to, put them in a block of ice in the back of the freezer. Either way stop charging!

Step 2
Cut expenses. If you are really wanting to be debt free you can not skip this step. Cut out eating out, manicures, Starbucks, anything that you can to make sure that you are spending less than you make. It is probably these extras that helped get you into debt in the first place. Once your debt is paid you can start doing some of them again but in the mean time cut it out.

Step 3
Start writing down a budget once a month. It doesn’t have to be anything too detailed or overly complicated but writing down your budget and sticking to it will keep you from thawing out those credit cards for something you forgot about and now don’t have the money for.

Step 4
Get your income up. Start working extra hours, mow lawns, sell stuff, write more ehow articles, it doesn’t matter how you do it, just increase that income so you can throw it at your debt.

Step 5
Start your debt snowball. Sit down and write out all of your debts. List then in order of the amount of the debt (least to greatest) or the interest rate (greatest to least). Now, while still paying the minimum payments on all your other debt start throwing all your extra money at the first debt on your list. When that is paid off take what you were paying on the first and add it to the second debt while still making minimum payments on the rest. When the second is paid off add what you were paying on the first and second and put it toward the third. Continue on like this until you are completely debt free.

Step 6
Don’t give up. Everyone will stumble on the way to debt freedom. You will buy something you shouldn’t or get frustrated and want to quit. The key is to not give up. Remember you can never get a different result if you continue to do what you are doing now. Keep going and you will succeed.

  Filed under Debt Relief, Information on Personal Debt

Tags: Debt Freedom, Financial Freedom

This entry was posted on Friday, June 26th, 2009 at 10:40 am and is filed under Debt Relief, Information on Personal Debt. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.