Steps to Be Debt Free For Life

ecapz(TipWriter) By ecapz(TipWriter), 29th Aug 2012 | Follow this author | RSS Feed | Short URL
Posted in Wikinut>Money>Debt

Everyone familiar with overspending know that it is easy to five-and-ten-dollar ourselves into oblivion. The good news is that you can five-ten-dollar yourself right back to financial health, too.

How to Get Out of Debt in Five Steps

The key to paying off debt is to make a solid plan and then stick to it as if your life depended on it. (It may.) It is possible to become completely debt free. Here’s how.

1. First, you must repent. Relax. To repent also means to turn around and go in a different direction. You MUST STOP incurring new debts. This step is crucial for the plan to work.

2. You must pay the same amount every month until all of your unsecured debts are paid in full. From this moment on you must adopt the total of your current minimum monthly obligation, not unlike your house or car payment. It will not change from month to month.

3. List your debts according to the number of months left. List the smallest balance first.

4. Ignore the declining minimum monthly payments. The minimum you pay in the first month is the amount you are going to pay until your total debt is wiped out, regardless of a lower “amount due” appearing on your statement.

5. As one debt is paid off, apply its monthly payment to the next debt. No matter how many bills you have paid off, you must commit to pay the same amount every month to become debt free in record time.

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