Eliminate Debt Debt Elimination Debt Free

Would you like to get out of debt? Of course you would and its a good thing you’re here because I have the just the thing to get you started. If you are like most Americans then you are probably in some form of debt. In order to become financially free it is important to set goals and then take the necessary action to achieve them. Now if you got into debt with frivolous spending and unnecessary purchases then you will need to do the exact opposite to get out of it. Below I will share with you the keys to debt elimination.

1. *Most important step* Channel your mind and energy to defeat debt. Debt is the opponent and it is holding you back from independence. FOCUS- Understand your mission it all begins with getting your mind ready for action. STRATEGIZE- Develop an attack plan to stop debt right in its tracks. PERSERVE- Do not quit until you acheive your ultimate goal.

2. Prepare an attack plan to eliminate debt. Note your total income per month relative to expenses per month. Get your financial picture. Set aside a monthly allowance for yourself and try your best to stay within your allowance , this will help establish discipline and keep you from making unnecessary purchases. After a while you will get to a point where you require less and less every month and can use some of that extra cash to eliminate your debt even faster. The key is to set aside enough cash that you are comfortable with using toward your debt. Anything that is left over should be used in a frugal manner. This will not last forever just until your debts are totally paid off. It will surely be worth it in the long run!

3. Eliminate smallest balances first and/or balance with the highest interest rates. Use your best judgement, for instance if you have a car payment of $5,000 at 7% interest and a credit card payment of $5,000 at 18% interest then of course it is better to channel your focus on defeating the credit card debt first. The key is to reduce the amount of total debts you have so you can channel your focus on defeating fewer debts, then eventually one debt, then no debt.

4. Try to stay in cash as much as possible. With the current state of the economy it is hard for me to say this but “cash is king” at least when it comes to debt elimination. Cash on hand helps you to keep tabs on your spending and will not allow you to overdraw. Overdraw fees can really add up on a bank account statement if one is not careful. Realize that you have a mission and try to make every purchase count. 

5. In my opinion, credit cards should only be used for emergencies, not for everyday use. Credit card debt is the toughest to eliminate because it is a revolving line of credit. Meaning that even if you pay it off you still can use the card and put yourself back into debt. Personally I feel that two credit cards are the maximum that any person should have. They are usually a financial burden more often than a convenience. Pre-paid cards are a nice option because they help you control what you can spend and do not allow you to overdraw. They are also great to establish credit with for anyone who has yet to establish any credit.

6. If possible try to earn a few bucks on the side from the internet or use a trade/skill that you may have to earn some extra money. Maybe sell some items on ebay, have a yard sale, cut some grass, or if you have any creative talents, use them. Side jobs can really help to reduce your debt quickly. Understand that debt elimination is the most important step to take for financial freedom and independence. Getting out of debt definitely takes some effort, but it can be done, regardless of how much debt you are in. It all starts once you make up your mind that you want to be free from the burden of owing someone else.

7. Make sure to pay debts on time because late fees are counter-productive and may end up costing you even more in the future if your rate goes higher. Track all of your bills on a notepad, calendar, or electronically. This simple step can separate those that are serious about becoming wealthy in the future and those that will continue to battle the burden of debt down the line. Tracking your progess is an essential key to keeping you motivated and focused on your goal.

8. If you want to stay motivated do this:
Get a piece of paper and write down all your debts or you can track this electronically. Then every month update the debts so you can see how your debts are dwindling each month. I don’t know about you but that gets me excited when I see my debts shrinking month to month. Sometimes I will throw some extra cash on it to push it down further. See, its important to realize that a debt is counting as a negative on your balance sheet but once it is paid off then you can begin to accumulate wealth. Imagine how you will feel when you get your paycheck and you realize that you don’t have anyone to pay. What if you could pay your electric bill for the next six months or your cable bill for the entire year? To me that is financial freedom. That is the ultimate goal and it can be achieved as long as you FOCUS, STRATEGIZE, & PERSERVE.




Pay off small balances & highest interest debt first

Use Cash as much as possible – NO CREDIT CARDS!


Be disciplined with excess money earned, try to use that toward your debt Pay debts on time, overdraw fees are counter-productive

Track your Progess!

PERSERVERE- Do not quit. There is light at the end of the tunnel.