We can all agree that debt is a drag. It hangs on like a bad relationship or a fixer-upper money pit house. Anyone, when given the choice, would choose to be debt free over paying debt payments every month.
The average family possesses credit card debt, student loan debt, furniture debt, vehicle debt, and a personal loan or two. Then a house payment enters into the picture.
Every single month, 40% or more of the family’s income is “dead on arrival” because it must immediately be sent out to lenders. Let’s work on changing that today!
THE DEBT SNOWBALL TECHNIQue:
List ALL debts from the smallest balanced owed to the largest: The first step towards financial liberation is to get a clear picture of your debts. From credit cards to student loans, list all your debts from the smallest balance to the largest. Include everything – credit card debt, student loans, vehicle loans, personal loans, and that lingering house payment. This comprehensive list is the foundation for your debt-free journey.
Pay the minimum payment on all debts except the smallest one.
Pay as much as you can on the smallest debt: When the smallest debt is eliminated, take the monthly payment you were paying for that debt and add it to the monthly payment you’re making on the second smallest debt.
Continue this process with a vengeance until you are debt free!! It might not be easy, but with every debt payment disappearing from your monthly budget, you'll gain momentum, inching closer to financial freedom with each payment!
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