How To Get Debt Free For Life

14
September

Believe it or not, there are a lot of people out there that never even think of becoming debt free, simply because they do not believe that it could ever happen. The fact of the matter is that you really can become debt free. You simply have to know how to get started and make a go for it. The last thing you want to do is to continue to put off this financial transition.

The Basics

You need to write down a list of all of your expenses. This list should include the things that you must pay for and the things that you like to pay for. For example, necessities on your list might include your mortgage payment, car payment, utilities and food. Some of the things that you like to pay for might include cable television, dinners out and excessive shopping.

Elimination

The first thing you want to do is to eliminate all of the expenses that you do not need. This does not mean that you will never be able to spend money on fun things again. However, by freeing up some of this extra money, you will be able to focus on paying off various debts. Once you are truly debt free, you will be able to take advantage of the luxury of spending money for fun.

Payoffs

Take a look at all of the things that you want to pay off. This might include the house, the car, personal loans and credit cards. The expenses with the highest interest rates are the things that are costing you the most money. Pay those off first. If you can, consolidate all of your credit cards onto a new, low interest credit card. Even if the low interest is just an introductory rate, you can take advantage of that time to pay off your credit card debt.

Next, you are going to want to work on paying off your car and house. By making use of a mortgage or car loan calculator, you will be able to figure out how quickly you can pay these things off by applying a couple hundreds dollars extra to base payments.

You are going to want to realize that paying off such large balances may take a few years. However, paying off your mortgage early, no matter how long it takes, is a goal worth putting a lot of effort into it.

Facing Struggles

While a lot of this sounds good, many people find that they have trouble sticking to any plan to really get out of debt. This is typical and something you should except to face. Facing financial struggles can be difficult but it is not something that you are going to want to give up on.

There are many financial courses you can take in order to gain a better hold on what you need to do. You might learn new budgeting skills that will not only help you now, but in the future as well. This can do wonders for you because once you accomplish becoming debt free, you have to make sure that you are staying that way. This means paying with cash and staying away from loans and credit cards.

If you are ready to really make a difference in your life, then you are going to need to get started. Even if you start slow, you are still on the path to becoming debt free, which is the ultimate goal.

This post was written by

jason – who has written posts on Budget Clowns.
Father of three and married to a lovely women. Always looking for ways to save money, and invest it properly for my children's future.

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