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Financial Education

GET OUT OF DEBT AND STAY OUT OF DEBT

"Without a cushion of money in the bank to cover unexpected expenses while you are getting out of debt, you will forever be in this loop of paying down debt and then running it back up when you have an unexpected expense. You must see saving an emergency fund as more important that getting out of debt. I'm serious. You have to do two things at the same time: Crash save and stay current with your debt payments. It's like juggling two balls in the air. You can do it. You just need someone to show you how:

Step One. Stop using the credit cards, cold turkey. Don't close the accounts, just cut up the cards so you cannot use them.

Step Two. Crash save, starting today. No amount is too small to save. Liquidate stuff you don't need to grow your savings faster. Work extra if you can. Become obsessed with saving money. Do not feel guilty that you are saving when you have so much debt. This is the only way you will ever get out for good.

Step Three. Pay only the minimum required on each of these accounts.

Step Four. Line up your debts from small to large. When that smallest debt reaches $0, take its payment and add it to the next debt in line, while continuing to pay the minimum payments on the others."

Mary Hunt - Debt Proof Living