How to get out of bad debt.
- Stop accumulating bad debt: the first step to getting out of bad debt. Is stop digging yourself a deeper debt hole. Every time you take out your credit card intending to use it, if you know you won’t be able to make the payment on next months statement in full, don’t use it!
- Come up with $100 to $200 extra per month. If you cannot generate an additional $500 to $200 per month, then your chances for achieving financial freedom may only be a pipe dream. For many people this can be as simple as mapping your monthly expenses and seeing where you can stop spending on liabilities, eating out more than than you should, buying more clothes than you really need? Paying for online services you hardly ever use! The opportunity is all around. but if you really want to stretch yourself and increase your financial intelligence. Look for ways to actually make a extra $150 to $200 a month. It’s easy to cut expensed, but learning how to make money will pay bigger dividends down the road.
- Focus on one. Then apply the additional $150 to $200 to your monthly payment on only one credit cards. You will now pay the minimum payment plus extra money on that one credit card. Pay only the minimum amount due on all other credits cards. Often people try to pay a little extra each month on all their cards. But those cards surprisingly never get paid off.
- Get it going: once all your credit cards are paid off, continue the procedure, of coming out with extra $150 to $200 dollar monthly and use it to extra finance your debt. You will be amazed at the shortened amount of time it takes for you to be completely debt free. Most people that have use this four step were debt free just within five to seven years. And so can you.
How can you pay yourself first when in debt?
Has we said before that you are going to set aside a percentage like 10 percent of your income, every month for your future. Not for financing the latest Porsche, but for financing a asset.
It has been a question in the mind of many, that how can I pay myself when in debt. It’s simple, don’t need to wait till you pay off all your creditors. First, see yourself as your greatest creditor because you are!
See this particular expense has your most important one. Because your future really depends on it. If you may get it hard, you can get your local bank for automatic transfer.
- But never accumulate new bad debt again.
Sometimes you may be press to lay hand on those money in your asset column, to stuff some bills, but never. Instead look for another part-time gig. To come out with money to stuff those bills. Any money that you have deposit in your asset column is for investment.
This doesn’t mean you won’t afford the finer things of life. What it does means is that, you don’t have to acquire the finer things of life from your income. The cash flow from your investment have to pay for that.
9 thoughts on “Start creating a richer life for yourself, by paying yourself first.”
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My pressure. This so far as being the one step any person can take toward financial freedom. “Setting aside at least ten percent into your asset column” and leave on the rest.
In depth and informative. Thanks!
Hi there. Thank you for visiting and following HoB. Much appreciated!
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