Simple Steps To Debt Reduction And Financial Freedom

If you are looking for ways to get rid of your debt burden or avoid being trapped in debt, you need to have a plan.

To eliminate the nagging of old, accumulated debts and avoid fear of potential debt, read on and discover simple steps to debt reduction and financial freedom. Now, you can regain control of your finances with these steps.

Step 1
Make a list of all your debts, starting with the smallest debts and ending with the largest amounts of debt. Write down the interest rate of each and the largest high-interest debts should come before the largest low-interest debts.

Step 2
Keep paying the minimum on all debts and put extra money towards the smallest balances first. By doing so, you will feel motivated and have the power to eliminate your debt. Soon, you will be paying off even more of your debts and getting rid of all your credit, one by one.

Step 3
After paying off one debt completely, add the funds that you were paying towards that debt to the next debt on your list. This is called ‘rolling your payments forward’. For example, if you are making $150 payments to your smallest debt, you will add that $150 each month to the next debt on your list once the previous debt has been paid off.

Step 4
Once all your debts have been paid off, cross them off your list. Take the money being used to pay these debts and put it in savings or towards your investments. This ensures that you are not creating a higher cost of living for yourself once your debts are paid.

Isn’t that great?

It’s as simple as 1-2-3!

All you need to do is make an effective plan and develop the discipline for a bright financial future as it helps you to pay off your debts and advance towards your dream of financial freedom.