A Simple Plan To Pay Off Debt [Updated]
If you want something you’ve never had, you must be willing to do something you’ve never done”
If you are struggling with how to get out of debt, follow these steps to get your life back on track. The way you currently live isn’t working, so let’s make some drastic changes to improve your life!
1. Create A Budget
Before you do anything, you need to know how much money you have coming in each month and how much money you have going out. If you are unfamiliar with how to start a budget, check out my related article: How to create a budget – for beginners.
2. Be Honest About Your “Needs” And “Wants”
Take an honest look at your budget and see where there is wasteful spending. Waste can be described as “elective spending” such as entertainment.
3. Decide How Much Should Be In Your Emergency Fund
The short answer is:
$1,500 to $2,000
. However, there is much more you need to know about emergency savings accounts.
4. Choose The Best Way To Get Out Of Debt
There are two major methods to get out of debt.
- Debt snowball method
- Debt avalanche
After you have a fully-funded emergency savings, it’s now time to attack our debt!
Getting out of debt once and for all will take longer than you will want. However, once you finally get out, you will feel a sense of accomplishment that is nothing short of awesome.
That’s Great But How Do I Get Out Of Debt Fast?
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