Welcome to another series here on the wildly popular I Was Broke. Now I’m Not. website. We’re passionate about helping YOU win with your money. In this series, we are going to be talking about a practical, step-by-step plan that you can use to take your finances to the stratosphere!
How To Win With Money
4. Eliminate all non-house, non-business debt
Let’s face it. 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 possesses 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.
And the average family feels trapped.
The average person believes they will always have a car payment and credit cards must be used for every financial emergency.
But they are believing a lie.
The facts reveal that the average family can become free of all non-house, non-business debt with 12 to 36 months. The facts show that an average of between $500 and $1,250 per month could be freed up just by eliminating this debt.
You want to truly win with money? Eliminate non-house, non-business debt and utilize that freed up monthly money to achieve levels 5 through 9!
How to attack debt:
- Understand how much debt you really owe (I really like using the free website www.annualcreditreport.com to determine this)
- Calculate your Debt Freedom Date (use the free calculator HERE)
- Pay off debt using the Debt Snowball technique (focus on smallest debt first)
Read the entire series (available after 4/20/2013)