Line them up and knock them out. Destroy your debt and don’t add any more. Just think of all the money that could be added to your net worth instead of the debtor’s pocket. Keep as much of your money as you can.
The first step in phase three of our financial freedom strategy is to list your debts with their balances and applicable interest rates. Then sort the list by the interest rate, highest to lowest. Typically any credit card debt will be at the top.
Next, pay the monthly minimum payment on all your debts, but pay more towards the debt with the highest interest rate. Pay as much as you can possibly scrape up every month until that one debt is paid off. Consider selling some unused items in your home to add to your payments to destroy that debt.
Once the first debt is paid, take all the money you were paying towards that debt and attack the next debt with the highest interest rate. Of course continue to pay the minimums on all the other debts. And so on until all the debts have been destroyed!
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As a reminder, until Friday, June 19th, we are offering a FREE analysis of your financial situation. Just complete the worksheets by clicking the link. There is no cost or obligation and of course your information is kept confidential and secure. Simply submit your worksheets, we will carefully review them, then schedule a follow up call to discuss how to accelerate your financial freedom journey.