Debt Elimination Plan - How To Stay Out Of Debt
OK, so you are in debt and you are probably tired of thinking about it.
However, every time you go to the mailbox, you cannot help but think about it as you get a new bill from the mailbox each day.
You have gotten to the most important part of getting out of debt which is to acknowledge it so that you can do something about it.
If you did not care about having debt, then you would not be reading this article right now.
To get started creating a debt elimination plan, then first you need a deep desire to get out of debt and the faith, diligence, and determination to know that you can do it.
The reason why this is stressed because this can be a long journey ranging from a few months to years to reach.
After you have committed yourself to the goal of getting out of debt, then you need to define what being out of debt means to you.
To do this, gather the bills that you want to get paid off - whether it be a car loan or student loans.
Some people may have an extensive number of bills and others may only have their mortgage left to pay off.
Then list your bills from the smallest balance to the largest balance.
You will begin to pay off your smallest balance first until you get to your final bill.
Once you pay off a bill, apply the money that you would have used as extra to pay off the next bill.
This method of bill payment is called the Debt Snowball.
It does not involve the interest rates or percentages in determining which bill to tackle first.
Some experts may disagree with this approach.
However, I believe that by using it, you will begin to see more progress and bills paid quicker.
By seeing this, then you will get more momentum to continue on this journey.
So once you have the list of bills to be paid and in what order, then now you have to go through your expenses and income each month and find extra money that you can use to tackle the first bill on your list.
Most people today will say that they have made cuts in the budget as much as possible.
If you have already cut your expenses, then the next thing that you need to do is to find ways to earn extra income.
You can start by having a garage sale or doing yard work for a neighbor.
There are countless other things that you can do to earn extra money on the side just take the time to jot down some ideas.
However, every time you go to the mailbox, you cannot help but think about it as you get a new bill from the mailbox each day.
You have gotten to the most important part of getting out of debt which is to acknowledge it so that you can do something about it.
If you did not care about having debt, then you would not be reading this article right now.
To get started creating a debt elimination plan, then first you need a deep desire to get out of debt and the faith, diligence, and determination to know that you can do it.
The reason why this is stressed because this can be a long journey ranging from a few months to years to reach.
After you have committed yourself to the goal of getting out of debt, then you need to define what being out of debt means to you.
To do this, gather the bills that you want to get paid off - whether it be a car loan or student loans.
Some people may have an extensive number of bills and others may only have their mortgage left to pay off.
Then list your bills from the smallest balance to the largest balance.
You will begin to pay off your smallest balance first until you get to your final bill.
Once you pay off a bill, apply the money that you would have used as extra to pay off the next bill.
This method of bill payment is called the Debt Snowball.
It does not involve the interest rates or percentages in determining which bill to tackle first.
Some experts may disagree with this approach.
However, I believe that by using it, you will begin to see more progress and bills paid quicker.
By seeing this, then you will get more momentum to continue on this journey.
So once you have the list of bills to be paid and in what order, then now you have to go through your expenses and income each month and find extra money that you can use to tackle the first bill on your list.
Most people today will say that they have made cuts in the budget as much as possible.
If you have already cut your expenses, then the next thing that you need to do is to find ways to earn extra income.
You can start by having a garage sale or doing yard work for a neighbor.
There are countless other things that you can do to earn extra money on the side just take the time to jot down some ideas.