There is a rule on debt “All Debt Is Bad Debt”. Any debt I accrue will usually be aggressively pursued and eliminated in the shortest time period. For example last month I had a 9000 dollar debt to pay off. In 3 short weeks, I eliminated that specific debt and saved hundreds of dollars in interest. How did I do it? Here are four steps I used to quickly and aggressively eliminate debt (Warning: This approach might not work for everyone)
Step 1: Ice your credit cards and put them in the freezer. Use cash or a debit card instead for any essential purchases
Step 2: Immediately transfer your debt from higher interest credit card to a lower interest LOC or Debit Card
Step 3: If you currently directing money into your savings account. “Stop it”. Instead, re-direct the money to paying off your debt first
Step 4: Eliminate any unnecessary spending and go cold turkey. When I go to make a purchase I usually have two lists on my mind. Is it a need or a want. If it is a need then I will go ahead and purchase the item. If it is a want then I will not purchase the item.