Debt Makeover Challenge

Take the first step in your debt make over challenge.
This is my mini series to get you on the path towards debt freedom. I know this is profound information so take a moment to prepare yourself. Take a deep breath.....now let’s begin.

Step 1: How much debt are you in?
Materials Needed:
Notebook
calculator
pen and/or pencil
glass of (favorite drink here) In the event you pass out!

Start by laying out ALL your bills on a table or counter. Don't faint....it looks worse than it really is. Write down your current balances in the notebook. Once you're done...ok here’s the tough part...calculate your total. (You haven't fainted have you?) Now that you know exactly how much debt you're working with you can now work toward pulling yourself out of it.

Step 2: Devise a Plan
Material needed:
notebook
pen and/or pencil

Now I'm seen this played out in two ways. Both can work but you have to stick to it. Don't become overwhelmed. If you work on it and have faith you will become debt free. Below are just two examples of ways to get started eliminating your debts.

A) Start by paying off your smallest bill. Once that is paid off you can then take that payment and add it to the next bill and so on.

B) If you have credit cards (most of us do) start with the credit card with the highest interest rate. Since it’s the one raking up the most interest it would be wise to pay that one off first. While you're adding extra money to this payment don't forget to at least make the minimums on your other cards.

*When paying your credit cards what ever you do please pay them on time. It can save you money in the long run. Late fees can range anywhere from $10 to $40 dollar on top of what you already owe. Now add that to over limit fees and there’s no wonder why people end up with so much credit card debt. Don't be a victim!

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