This is the fastest way to pay down debt and smile about it.
Each day we are bombarded by news of spiralling debt, the over-indebtedness of consumers, the credit crisis. And this is a global phenomenon. Sadly, it’s not just hype.
So while the hype has a habit of running away with itself – as hype does – it really is sending you an import message that you are one among many in the swirl of uncomfortable debt.
And there’s only one thing to do and that is take action.
Where to start? That’s always the hardest part.
Get information. Take out all your store cards and the most recent monthly statements.
Sort them from highest to lowest. You are going to tackle the smallest amount first. Although some schools of thought say pay the biggest amount first, I beg to differ.
When you start off small, you get there quicker and achieving something sooner, always has a psychological advantage (see my blog psychology of debt in the next few days). This will encourage you to move on to the next account. So start by paying off the smallest amount first. Then move onto the second highest amount, the third and so on.
You must ensure that you wean yourself off these accounts. At all costs do not create new debt by shopping up a storm on them. Once your debts are paid off, close the account. This will have you on your way to debt free and headache free living in a matter of months.
This is a tried and trusted method, you just need to do it.
Here’s to your journey of debt free living. Enjoy.