Stage three to becoming debt free and setting up for financial success

Now that we are set up with an emergency fund and budget in place it is now time to start getting rid of all your consumer debts and paying off any loans that you may have along with paying off car payments and if possible any student loans.

You can really start with whichever debt you like.

You could start paying off the smallest debt as this will allow you to see some debt repaid early this quick pay off of one of your debts can provide good motivation early on, that will allow you to stick to your debt reduction plan. Once this first debt is paid off this will then allow you to concentrate the money saved on the first debt to repay your next biggest debt. You can then continue this method to pay off all your remaining debts until they are all paid off. This should leave you with plenty of income to spend to build up your retirement or to save towards a house or other goal. read more

The Debt Poem

Debt Poem

The debt bubble burst many years ago,
The next bubble is growing,
Where is it going to go,
Will it keep inflating,
Till the bubble pops,
Or will we come to senses,
Will it come to a stop.

Bubbles in housing,
Bubbles in stocks,
Bubbles in bonds
Will it ever stop.

Let me know what you think in comments below. read more

Stage two to becoming debt free and setting up for financial success

This is the stage we need to make sure that we have enough money for those small inevitable emergencies that happen in life this could be anything from an unexpected car breakdown to some sort of medical problem that you need to pay for. Really this need to be £500-£1000 it may take several months to build up this small emergency fund but it will be one of the keys that will stop you from having to rely on debt again. The whole idea of this stage is that it stops you from having to get in debt ever again. read more

Stage one to becoming debt free and setting up for financial success

Even though you may not think it, this is the most important stage to becoming debt free and sorting out your finances it is. This is the time when you need to look at how much money you are making from your work, your business and any assets you may have attained that create an income stream so you can then look at what your total income is. read more