Five Powerful Steps to Become Debt Free

Mike Valles By Mike Valles, 14th Mar 2014 | Follow this author | RSS Feed | Short URL http://nut.bz/3-x12wpc/
Posted in Wikinut>Money>Debt

It is easy to get in debt. getting out of debt is a lot harder but it can be done. Here are five simple steps to show you how to start to get out of of debt easily.

Five Powerful Steps to Become Debt Free

Being in debt and staying there grows old real quick. You know your money is not being used very effectively, and you never seem to have enough money. You long for a day when you could change it. Hopefully, you have already decided that you have had enough of debt. Now it's time to do something about it, and here are five steps that you can take to become debt free.

Determine to Get Out of Debt

It is important that you make up your mind about getting out of debt. Your action plan must begin here, because if you are not determined, it will not work. Sooner or later you will start to pick up your old habits again.

Make it your goal to become totally debt free. Only this kind of commitment and determination will enable you to get out of debt.

Create a Budget for Better Money Management

Before you create your new personal or family budget, you will need to take about a month and write down all of your expenses. You don't want to let anything slip by – not even your cup of coffee on the way to work, or the fast food on your lunch break. Record your gas for your car and your tips at the restaurant. The more you jot down, the more accurate your budget will be.

This step is very important because most people spend money and they have no idea where some it goes or how it goes so fast. This will let you see what is happening to it.

Eliminate Unnecessary Waste

Most people spend money on some things that are not a necessity. You probably have some of them. You can create more cash to reduce your debt by removing these unnecessary purchases and putting the money toward reducing your overall debt. This could be things like buying cigarettes, soda, magazines, newspapers, prepackaged meals, gym memberships that are not being used, etc. Another thing that you might like to reduce or remove is the cost of your TV programming. Do you really need the most expensive one, or the most costly cell phone service? If you can, get less expensive plans and save a bundle.

Constantly Work Toward Debt Elimination

After you figure out which areas of your spending can be reduced, be sure to put the money saved into paying off your debt. Do not add anything new to your credit cards. You need to always be sure to pay the minimum on each bill.

You can also do other things to save money, too. Remember that every step you take to save money will help you get out of debt sooner. Start using coupons, and buy items you need when they are on sale. Avoid carrying credit cards with you. Combine trips in your car to use less gas. Yes, it does mean you need to live a simpler lifestyle for a while – but you will be glad in the end when all your debts are paid.

Pay Down One Bill First

With the extra money you obtain, apply it on your smallest bill until you pay it off completely. This will enable you to have one less bill rather quickly, and it will also help you save money on interest. When it is paid off completely, put the same amount of money you paid toward that bill toward the next one.

By taking these simple steps, you can soon be debt free. It won’t happen overnight, but you will enjoy the freedom of living without debt so much more.

Tags

Debt Free, Family Budget, Get Out Of Debt, Getting Out Of Debt, In Debt, Living Without Debt, Reduce Debt

Meet the author

author avatar Mike Valles
Hi. I have been a full-time freelancer for over 9 years. Most of the material I write on deals with personal finances, education, and news. I am a published author with a book and several eBooks.

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