Easy Steps To Eliminate Debt

A local gym has the following statement on its sign: “Stepping in the door is the hard part.   The results are easy.”

It applies to eliminating debt as well.   The hardest step is getting started!

  1. Stop signing up for more debt!
  2. Save $2,500 and save in your emergency fund – pay minimum payments on all debt until you have $2,500!
  3. Find out which debts you owe and how much you owe
  4. Seek to reduce or eliminate the interest you are paying
  5. Calculate your debt freedom date – using the free tool HERE
  6. Pay minimum payments on all debts except the smallest one
  7. Attack the smallest debt with as much money as possible
  8. As each debt is paid off, use the freed up payment money to add to the payment of the next smallest debt.
  9. Repeat steps 6 thru 8 until you become debt free!!!

You CAN do this!   When is your expected Debt Freedom Date?

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  1. Colby on October 4, 2010 at 3:26 am

    What do you do if your monthly bills alone take up all your income for that month?

  2. Andrea on October 5, 2010 at 9:43 am

    I had the same question when I began entertaining the thought of becoming debt free. Basically, what I was instructed to do was review where my money was being spent each month and cut out things if possible. For example: cable/phone usage/internet etc.

    I thought I would share that. I hope you are able to reach your goal! 🙂

  3. Colby on October 6, 2010 at 4:51 pm

    Thanks! We’ve cut down on alot of those things. But seems to not help! 🙁 Im sure God will help us figure out what steps we need to take! Its going to be rocky road but I got faith!

  4. Ginny on October 7, 2010 at 7:08 am

    Well, I’m going to tell you what I have had to do, though I don’t know that it is the most financially sound advice. Do with it what you want.

    I had gotten to the point where after bills, the money for gas and groceries wasn’t enough for the household. This was because of some stupid mistakes and decisions both on mine and my ex-husbands part.

    To save our credit score and not have to sacrifice food, we began to charge all gas and groceries to our card. Then we put all of our extra money towards our credit cards. We actually came out making a $100 a month gain on all the cards combined (after you figure interest and charges). However, the problem came when that $100 gain was distributed among 6 cards. So, it was getting to a point that the card that was being charged on was nearing the max and the others weren’t going down fast enough. Luckily the person we lended money to paid us some of it back and we were able to pay them down enough that we didn’t have to use this method anymore. Lending the person the money is what put us in the situation and he still hasn’t paid it all back to this day. That was nearly 4 years ago.

    I don’t think this is a solution to your problem, but it helped us maintain our household for a few months. Sorry, I wish I had better advice that was more financially sound.

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