1. Make the commitment.
Make the commitment to become debt-free as soon as possible.
Everything starts with a commitment. A firm decision to make truly important changes. It takes a lot of discipline and may require a lifestyle change but YOU CAN DO IT.
Make the commitment to become debt-free as soon as possible.
Everything starts with a commitment. A firm decision to make truly important changes. It takes a lot of discipline and may require a lifestyle change but YOU CAN DO IT.
2. Itemize your debts.
Create a list of all your debts, balances, interest rates and minimum payments.
Calculate your total indebtedness so that you can have a true picture of the situation, then start paying it back starting with the ones with the highest interest rate.
Create a list of all your debts, balances, interest rates and minimum payments.
Calculate your total indebtedness so that you can have a true picture of the situation, then start paying it back starting with the ones with the highest interest rate.
3. Don't incur more debt.
Now that you have started paying down your debt, please make sure you do NOT incur more debts.
Debt can be a vicious circle. Unless you’re firm with your NO debt commitment, you may end up circling between more and more debt.
Now that you have started paying down your debt, please make sure you do NOT incur more debts.
Debt can be a vicious circle. Unless you’re firm with your NO debt commitment, you may end up circling between more and more debt.
4. Track your spending.
In order to pay down your debt, you'll need to find a way to free up the money that comes into your hand by spending less.
Start by tracking all your expenses. Then consciously cut off anything that is not a necessity.
In order to pay down your debt, you'll need to find a way to free up the money that comes into your hand by spending less.
Start by tracking all your expenses. Then consciously cut off anything that is not a necessity.
5. Make a budget.
Calculate your annual income and subtract your necessary expenses: housing, transportation, feeding, etc from it.
If the sum of your necessary expenses exceeds the 50% mark, try to cut down on those expenses in any way possible.
Calculate your annual income and subtract your necessary expenses: housing, transportation, feeding, etc from it.
If the sum of your necessary expenses exceeds the 50% mark, try to cut down on those expenses in any way possible.
6. Stick to your budget.
The only way you'll be able to pay off your debt is to avoid incurring more debt. Stick to your budget and live within your means. Avoid overspending at all costs.
The only way you'll be able to pay off your debt is to avoid incurring more debt. Stick to your budget and live within your means. Avoid overspending at all costs.
7. Earn more money.
One of the best ways to get out of debt is to build multiple income streams.
While cutting costs might free up some funds, a solid side business or a second job will add additional income that can help you pay back your debt faster.
One of the best ways to get out of debt is to build multiple income streams.
While cutting costs might free up some funds, a solid side business or a second job will add additional income that can help you pay back your debt faster.
This is NOT an everlasting oath of minimalism. It’s just a strategic decision to hold off some expenses until you’re debt-free.
