Debt consolidation reviews

How do I become debt free? Becoming debt free isn’t an overnight thing but it is simple.

Apply these basic principles and you will be well on your way to a debt free life:

1. Work out what you need vs what you want - what’s really important? Are there things you can really do without until you eliminate that debt?

2. List all of your debts and prioritise the ones you want to pay off first. Sometimes it’s best to pay off those with the higher interest rates, but sometimes you get a better outcome prioritising those with the smallest balances.

3. List all of your income sources and determine any surplus (income minus expenses).

4. If you have no surplus, think about clearing your house of junk - is it worth having a garage sale or selling your excess junk on ebay?

5. If this is not possible and you have no surplus, consider earning income from other sources (see the website below for ideas).

6. Download the free debt elimination calculator from the website below and fill it in to determine how quickly you can have all of your debts paid off using the “snowball effect”. This is really a fantastic tool!

7. Commit to paying off your debts - sometimes you need to suffer “pain” now to achieve success later.

8. As soon as practical, consider setting up a savings account - aim for a 10% contribution to this account if possible, or build up to that amount. This is what we call “paying yourself first”.

9. Educate yourself financially - your school didn’t do it, so it’s up to you to make sure you know what you need to know to achieve financial success.

10. Remain focused on your goals - visualising yourself as wealthy and debt free is the first step towards achieving success!

Achieving a debt free life may look a long way away right now, but if you get your mindset right you will find that things start falling in to place for you - try it and see!