In the United States, consumers owe $2.5-$3.00 TRILLION (not including their mortgages). Consumers need to take heed now. The country is in full economic recession. Employers are laying off employees, offshoring and declaring bankruptcy faster than ever. The housing market is going through it’s worst foreclosure experience since the great depression. The United States is in over it’s head by $53 TRILLION, and we can barely pay the interest. With gas prices soaring, and inflation raising the prices of everyday staple goods, debt represents one of the biggest burdens on American’s today. Debt is an addiction, the cycle of which must be broken. Here is a simple system that consumers can follow to get free of debt:
1) Raise Cash Now – Reduce Excess Monthly Spending
This first step requires some real discipline and guts. Look around your house for things you aren’t using, that might have value to someone else. Have a garage or yard sale, list items on services like Craigslist, Ebay or Amazon, or put an ad in the newspaper. Cancel unnecessary subscriptions. Review your bank account transaction history to determine where your money goes every month. DO THIS NOW! One of the best ways people learn how to pay off debt fast, is by trimming the monthly fat in their budget, and use the freed up cash to pay down the lowest balance credit card or other debt.
2) Get Some Small Victories
Now that you’ve freed up some cash, make a one-time payment to your smallest debt. Then, use the excess cash you freed up in your monthly spending to continue paying on this debt until it is paid in full. Let’s say you found $250 in spending on Starbuck’s every month. Stop drinking yourself into bondage. Redirect that money toward paying off your lowest balance credit card, and you’ll see how to pay off your debt fast, and work toward fully eliminating it faster than you might have thought possible.
3) Build Up to the Bigger Bills
Once your smallest debt is paid off, take the cash you were paying to your now paid off account, and direct it to your next smallest debt every month (along with the payment you were already making to it), and watch what starts to happen. It doesn’t take long to see how to pay off debt fast using this method. Some “experts” argue that you should focus on paying off the account with the highest interest rate. This is good in theory, but in practice, I have seen between 60-90 people get on stage and share how they collectively paid off between $2.5 and $3.5 MILLION of debt within an average of 8-12 months, while freeing up an average of $1,000 per month in wasted spending.
4) Build Your Investment Portfolio – After Your Debts are Paid
When it comes to spending money, focus on paying cash and on buying things that will actually make you money, like training and education, buying a business, buying real estate. Use the cash from these investments to pay for vacations, recreation, automobiles, etc.
Don’t forget, debt is an addiction just like alcoholism and smoking. When people ask me how to pay off debt fast, this is the model I share with them. To get free of debt requires making hard choices every day about how you spend money. With the economy headed deeper and deeper down the wrong path, it is more critical now than at any time in our history to get ourselves released from the bondage of debt, and start making wise decisions about how we spend our money.
Gavin Berkey is a Successful Entrepreneur, and owns multiple home-based businesses in the largest and fastest growing industries in the world. He helps individuals asses home business options, and provides Free Coaching and Consulting to people who are interested in pursuing a home-based business. Mr. Berkey can be reached at 877-463-6811 (Toll Free) or via email at gavin.berkey@gmail.com or via his website at http://www.BigBusinessTrends.com
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