Skip to main content

Get out of debt for good with these 3 easy steps...


With the rising costs of everything on Earth, credit cards and financing has become the 'American Way' to get the things you want.  Many people look at debt as the saver of all desire.  "I really want this vacation, I'll just put it on a credit card" or "I want some new furniture this weekend, I'll just get a store credit card". NO! Bad Bad Bad!

Credit should be used as a tool or vessel, to make you even more successful. That's the trick. It's ok to have credit cards, but it's not OK to max them out, or buy things your don't need. Look at it this way: DEBT IS STOPPING YOU FROM FINANCIAL FREEDOM. Period pooh. As long as you owe someone, you'll always be broke.  Lucky for you, I have the most effective way to get out debt in 3 easy steps.

Step 1
Save a nice nest egg for emergencies.  Take a few dollars from each check and have it automatically transferred to a separate account. Your saving goal should be a set amount, so that know how much to save from each check.  $1,000-$2,500 is a substantial amount to cover every day emergencies. The amount you save depends on your lifestyle. Do you have children, an older car? You'll need more than less. Are you single, no kids, nice new car?  $1,000.00 will serve you just fine.

Step 2
Destroy every last one of your credit cards. Don't freeze them, don't bury them, destroy them.  I know what you're thinking "But what if I have an emergency?" Well honey, that's what you saved your emergency fund for in step 1. By doing this, you will stop the excessive spending habits you've developed over the years. New habits breed new behavior and new results. Do not apply for anything that will require you to make payments.  It's all money in now! (TMC).

Step 3
Pay off each debt starting with the smallest.  The smaller payoffs will make you feel good and encourage you to keep going.  This applies to credit cards, student loans, vehicle financing, mortgages, ridiculously priced cell phones and all things debt!  You can be debt free, and you can be financially free.

Labels:

Comments

Post a Comment

Popular posts from this blog

PART 1 OF MY STORY Turning Tragedy to Victory--How I saved $10,000 in 10 months

This past year and a half has completely turned my life upside down.  I am now ready to share my story in hopes that I can be an inspiration. Life is full of ups and downs.  But we always have a choice.  I am bringing my story in 3 parts. This is part one: It was May 10th 2016.  I had a dream the previous night. One of those lucid dreams that felt so real it stayed with me throughout the day.  The dream was that my husband set me up.  He shot me 5 times and instead of getting to the hospital, I was trying to get to the courthouse to file a divorce.  Those words divorce kept ringing louder and louder in the dream.  I woke up that morning and everything was normal.  I got dressed, kissed my husband and 9 month old daughter, dropped my 7 year old off at school then went on in to work.  I was self employed running by business full time.  Life was good. That evening, I came home and relieved my husband from daddy duty. He didn't work...
Post a Comment
Read more

Filed unemployment on your tax return? IRS is recalculating the amount you owe, and you MAY receive another refund check!

  Normally, any unemployment compensation someone receives is taxable. However, a recent law change allows some recipients to not pay tax on some 2020 unemployment compensation. The IRS will automatically refund money to eligible people who filed their tax return reporting unemployment compensation before the recent changes made by the American Rescue Plan. These refunds are expected to begin in May and continue into the summer. Under the new law, taxpayers who earned less than $150,000 in modified adjusted gross income can exclude some unemployment compensation from their income. This means they don’t have to pay tax on some of it. People who are married filing jointly can exclude up to $20,400 – up to $10,200 for each spouse who received unemployment compensation. All other eligible taxpayers can exclude up to $10,200 from their income. Information for people who already filed their 2020 tax return This law change occurred after some people filed their 2020 taxes. For taxpayers w...
Post a Comment
Read more

PART 2 Turning Tragedy to Victory--How I saved $10,000 in 10 months

Once the smoke cleared, one of the very first things I had to do was take accountability.  Although I had not done a huge portion of the things I was charged with, I did have to take responsibility for whatever role I played: knowingly or unknowingly. Life was a whirlwind adjusting to life as a single parent.  I had to move fast enrolling the kids in daycare so that I could continue to work. I had to be mom and dad during the week.  My husband made bond and would have the kids on the weekend.  Which was a huge relief for me. One Saturday in June 2016 while the kids were with their dad,  I sat down in bed and wrote ‘$10,000 by July 24th” (no year) on an orange sticky note and posted it on my wall. I saw it every time I woke up and every time I went to sleep. This sticky note was now my accountability partner.  I couldn't let it, or myself down :). BTW, I’m here to tell you that $10,000 is not a lot of money. But to me, it was. I had $48.00 in the bank a...
Post a Comment
Read more