I just got my financial adivsor/close friend/fraternity brother George Acheampong’s monthly e-newsletter and had to share it with you all. In it, he not only hones in on being financial savvy but also he gives advice to live a more well-rounded life. I strongly recommend subscribing. Since today is #FinancialFriday, I will share 3 of the newsletter’s 7 tips to become debt free. To see the rest, check out his newsletter here and, if you like what you see, please subscribe. Thanks and have a blessed weekend.
7 Steps To become Debt Free
Got debt? You’re not alone. The average American’s credit card balance is over $8,000. In 2001 we paid $50 billion in finance charges, and 1.3 million people declared bankruptcy. Fortunately, you can become debt free. If you’re ready to eliminate your debt once and for all.
Preparing to be debt free
There are no complicated calculators or special tricks to becoming debt free––as personal finance guru Dave Ramsey says, it’s 20% knowledge and 80% action. That action is what’s so hard. Getting out of debt is like making any big personal change–losing weight, starting to exercise, or quitting smoking–it is not easy, but the results will change your life.
The seven steps to become debt free
- Write Down Your Financial Goals — You have to know where you going before you can get there. Often times our debt is the result of short-term thinking. It’s time to think long-term in order to begin to change our short-term habits.
- Determine How Much Debt You Have — Are you afraid to look at your credit card balances? I’ve been there. But ignoring your debt will not make it go away. It’s time to swallow hard and take stock of just how bad your debt is.
- Develop Your Debt Management Plan — Your personal debt management plan is your road map to becoming debt free. It can be a long road, and you’ll need this plan to make sure you stay on course when things get treacherous.