In this series, I want to equip you to become debt free!! Jenn and I became debt free in just 14 months by following this process. I can tell you this – there is NOTING like living life without the weight of debt!
STEP 1 – Understand the WHY before the HOW
STEP 2 – Calculate your Debt Freedom Date
STEP 3 – Accelerate your debt elimination
STEP 4 – Use the Debt Snowball Technique
We can all agree that debt is a drag. It hangs on like a bad relationship or a fixer-upper money pit house. Anyone, when given the choice, would choose to be debt free over paying debt payments every month.
The average family possess credit card debt, student loan debt, furniture debt, vehicle debt, and a personal loan or two. Then a house payment enters into the picture. Every single month, 40% or more of the family’s income is “dead on arrival” because it must immediately be sent out to lenders. Let’s work on changing that!
With Steps 1-3 complete, we can now focus on actually paying off the debt using the Debt Snowball Technique!
Let me explain the process for using the Debt Snowball Technique.
- List ALL debts from the smallest balanced owed to the largest.
- Pay the minimum payment on all debts except the smallest one.
- Pay as much as you can on the smallest debt.
- When the smallest debt is eliminated, take the monthly payment you were paying for that debt and add it to the monthly payment you’re making on the second smallest debt.
- Continue this process with a vengeance until you are debt free!!
I highly recommend this technique because you will see individual debt payments disappear more swiftly from your monthly budget. For more information on the Debt Snowball Technique, grab a copy of my latest book, I Was Broke. Now I’m Not.