Getting out of debt is an admirable goal at any time of the year. But you have to admit, starting your journey to a life without debt at the beginning of the year has a certain amount of appropriateness to it. When is a better time to start this new chapter in your life?
So, having decided to make 2009 your year to become debt-free, now, you just have to get started. What should you do first, though? How do you decide which debt to get rid of? Following some simple steps will guide you along the path to a debt-free life.
Add up all of your debt. If you want to get debt-free, you need to know how much debt you’re dealing with. Gather up all of your statements and make a list. This list will become your best friend as you work your way through each account and cross it off the list.
Stop buying things on credit. Now that you know how much debt you have, you need to keep the list from getting larger. Pledge to pay for all of your purchases in cash (or check) as you make them.
Make regular monthly payments. You must make the required payments on every account in your list each month. Even if you can’t afford to put any extra money towards paying off the debt, you have to make the minimum payments.
Determine how much extra money you can devote to your debt payments. This is where you can really start making strides towards eliminating the debt in your life. Look for any way you can eke a little extra cash out of your budget and send it to your creditors. You may even want to get a part-time job as a temporary method of getting your hands on some more cash.
Send the extra money to one account on your list. Keep sending your extra money to that account until it’s paid in full. Then, send the money you were sending to that account to the next account on your list. Before long you’ll be working your way down the list.
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5 responses so far ↓
1 debtfree // Jan 2, 2009 at 2:24 pm
Take the struggle to become debt-free for instance. If you simply try to use willpower to curb your spending and cut your expenses, you may become debt-free, but not nearly as fast as you could otherwise. I meet with a lot of people each week, and I find the clients that get out of debt the fastest are the ones that have a purpose and intensity in their life towards becoming debt-free
2 click4group // Jan 3, 2009 at 6:20 am
everything starts with the commitment to really be debt-free. one way of working this out is to write down in specific terms what you want to achieve and how you would want it achieved.
3 Carnival of Personal Finance: Fairy Tale Edition at Clever Dude Personal Finance & Money // Jan 5, 2009 at 9:32 am
[...] in a fictional land called Washington D.C., a fare maiden named Anastasia rescued the handsome, muscular Prince Mike (who has a full head of hair) from the clutches of evil creditors through wise financial advice and frugal habits. She proclaimed the wonders of living a debt-free life and helped him devise ways to become debt-free. [...]
4 thomas // Jan 8, 2009 at 3:23 pm
Being debt free is the ultimate goal, and setting yourself up for success by making plans and taking action.
5 Debt-Free // Jan 15, 2009 at 3:29 pm
But health care reform and a stronger voice for labor would help ensure that the gains of economic growth are shared broadly rather than leaving us stuck in the Bushonomics trap of debt-financed middle class consumption growth.
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