How to Become Debt Free in 2014

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The average American has over $16,000 in debt not including the mortgage.  While most people will admit that is too much debt it can be overwhelming to get to figure out a way out.

Make a Budget– Consumers build debt when they spend more than they earn.  It’s a basic principle but yet people get over their heads without realizing it.  If you have a budget in place you can avoid over spending.  It allows you to find areas where you may be spending more than you mean too.

If you create a bare bones budget to pay for regular monthly expenses like the mortgage, utilities, food, etc. you will see how much extra is left over to put toward debt. It’s ok to allow a few luxuries in there but it will obviously slow down your debt pay off process.

Prioritize Debts-Lay out your debts from smallest to largest.  Start with the smallest and attack it. Pay it off as fast as possible.  This will create momentum and keep you motivated to keep going.  Use the minimum payment you had on the first debt and add it to the next debts payment.  This creates a “snowball” effect that will grow momentum as you go.

Use Cash Not a Card-This is often overlooked because cards are so convenient.  Switch to using cash for your purchases.  Studies show that consumers will spend more if they are swiping a debit or credit card.  There is something about handing over cash that hurts a little more.

The main thing to learn is that debt doesn’t have to be a way of life.  American culture is quick to accept debt as a part of life.  It doesn’t have to be though and with some planning and work you can be debt free.  You can have more money at the end of each month for you to save or put toward a fun larger purpose.

To learn more click here >>> DebtZero – Debt Payoff System

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