Get Out Of Debt Free

Get Out Of Debt Free

The best method for eliminating debt fast

When was the last time you and a family member argued over the bills?
Are bills a source of friction in your home?

Financial issues are a leading cause of divorce in in North America. According to CNN, a couple with 10k in debt and no saving is twice as likely to divorce as a couple with no debt an 10k in savings.

How much better off would you and your family’s life be if you did not have any bills? Isn’t it time that you do something about it?
What can you do to eliminate your bills?

Stop the bleeding by stopping the credit shopping, credit buying. It’s not impossible to do, use cash, use your debit card and purchase some gift cards. Use these instead of using credit. Each time you use credit and do not pay off the entire balance you give the credit companies your money in the form of high interest rates.

Create a game plan:
  • Do not create new debt
  • Create a budget
  • Pay off old debt
  • Begin to save and invest 

Do Not Create New Debt
Stop the bleeding Doctor…

You are a Doctor working in the Emergency Room when suddenly the doors fly open and you are confronted with a man who was in a car accident. He is suffering from several life threatening injuries among those is his carotid artery has been cut. As the Doctor in charge you must make a decision, do you treat the other life threatening wounds first or stop the bleeding?

You can immediately stop adding to the current debt by not making any new debts. Simply, stop buying with no accountability. Stop buying without a plan.

This is what you do:
  • Write down your take home income
  • Make a list of all of your expenses and debts.
  • Target one debt for elimination

Eliminate that debt
Create a budget that contains your debt elimination plan
For now on you will account for every dollar that you make and will spend all of your money on purpose before your next paycheck hits the bank. How about that for a budget?

This technique I learned from Dave Ramsey’s Financial Peace University. Dave cause this the Gazelle Budget because it gets you out of debt the fastest.

Spend every penny on your budget (that means that everything is accounted for)
That does not mean that you let your bank account bottom out to zero. Always keep about $100 in your account to address any miscalculations with your budgeting.

Your budget will not work perfectly the first month. It won’t even work in the second month. Because you are learning a new skill, it will take you a minimum of 3 months, so by the 3rd month about 90 days which is about the time it takes to learn a new habit, you and your budget will begin to sync.
What’s the best way to eat an elephant?

One bite at a time.

Eliminate your debt by paying the making minimum payments on all of the bills except one debt that has been targeted for pay off.  So just to be clear, you are paying on all of your debts each month but only targeting paying off one debt at a time.

Once that debt is completely paid off, use the entire payment plus any extra amount from the budget to attack the next debt that is targeted for elimination. Continue the process until there is nothing left to pay off.
Make extra money and pour the extra amount into the system to put your debt elimination system into hyper-drive.

What can you do if after you have made a budget you learn that there is not enough money for debt acceleration?

There are many ways to gather extra money, some ways are better and more profitable than others. Money making ideas include: working overtime at your job, finding a part-time job after work, recycling paper, plastic, glass and aluminum cans.

Providing a service in your community can help you bring in a few extra dollars
Selling items around the house at a garage sale. Putting item up for sale on Ebay or Craigslist.

These solutions work but you have to be willing to trade your time in order to make a little more money

There are ways to make extra money using the internet online that are not so intrusive into your time (Take this survey) to learn if you would you rather work an extra 3 hours from home in the evening or spend your weekends looking around neighborhood garage sales.

These activities will take you away from your family and friends but will help you accomplish your goal of making extra money to apply to your debt elimination system.

I have found this to be a more effective make money online strategy.

Once all of your debts have been paid you and your family’s life will change forever. You will be able to pass this gift to your children and their children establishing a legacy for generations to come.

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Michael Gaston
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