4 Simple Debt Freedom Solutions

 Debt freedom is only 4 simple steps away. Now I said simple not easy. I know that Guru just told you to pull out your credit card and buy the next big shiny object. He just told you to believe in yourself and spend $995. The super-duper business kit and $150 auto-ship is the key to millions. Just charge it.

That new flat screen is calling. 0% interest for 18 months. It looks good 70 inch and it curves. How about a new car. You just paid this one-off but it's 5 years old and the new car has more lights. The payments are about the same... what is another 5 years paying off another car. You look good in a depreciating asset.

Cash is King

The tough thing about debt freedom is you want to use cash. When you use cash you feel it more. Your brain registers cash leaving your hand. You don't feel it when you use your debit or credit cards. Just try it and see. Dropping $995 cash on a business opportunity, $4000 on a flat screen, or $25000 cash for a new car will have you investigating your purchases more.

Paying cash will have you work that new business more diligently. Being stuck with business debt and all the crappy products that comes with it is a pain. I am not going to get in a debate about good debt vs. bad debt. I rather you boot strap your way to success. If you knew how to use debt you wouldn't be reading this article.

Investing cash into your business and purchases makes you more cautious. It produces delayed gratification and in the end you get better deals because you brought cash to the table. I have bought furniture, electronics, cars with cash, and saved hundreds even thousands of dollars. Cash Is King.

Debts can kill your business, destroy your marriage, and cause friendships to disappear. You don't need the stress and frustrations that come with owing credit cards, banks, and personal loans. Here are 4 Simple Debt Freedom Solutions.

4 Simple Debt Freedom Solutions

Pay More Than The Minimum

Stop the habit of only paying the minimum. Your statements shows you how long it will take you to pay off your credit cards or loans when you pay the minimum. This only prolongs the agony and you are spending more money. Interest payments equals cash flow for your lenders. That's how they make money.

Bite the bullet and pay more. If your minimum payment is $50 pay $100. If it is $100 pay $200. Get rid of it. The money is there. Stop eating out, tell 7-eleven you are on vacation, stop all the bad habits of smoking, drinking, or gambling. Smokers can save on average $35 per week if they stopped smoking.

Sacrifice is the key word here. If you have more month at the end of your money you need a cashflow plan. Financial Peace University teaches you how to create a monthly budget. A budget will help you know where your money is going.

The increased payments will save you more money, time, and frustration. Better to live below your means now than fearing living hand to mouth in the future.

Snowball Effect

I got this from FPU. List all of your debts in order from the smallest debt to the largest debt. The next to each debt list the monthly payments.

Don't worry about who has the highest interest rate. We want something simple. You want quick victories to build momentum. Paying off the smallest debt first will create energy and motivation for you. Seeing progress is the only way you will keep going.

The second part of the snowball effect is to come up with an extra $100 to $200 per month to add to your debt payments. Cut back on expenses, get a second job, sell all that stuff you don't use. Sell so much stuff the kids think they are next. You will find the money hidden in your credit card and bank statements. Go through them and cut expense you don't need.