Cash. Money. You. No Debt.
Imagine what it would be like to be debt free. I’m talkin’ no credit
card balances, no student loans and no mortgage. Nothin. Just money in
the bank. And you have assets that produce income to cover your monthly
nut. This is possible. Really. It’s probably a long way off but with a
real plan, you could have this.
The first step is getting out of
credit card debt. Ahhh . . . The feeling of having no credit card debt.
It’s such a good one. Seeing those zero balances on all of your credit
cards will make you feel like a million bucks!!! Gangnam style!
Can we get to work and take care of this pah-leez!!! It’s totally doable. Here’s the plan.
Step 1 – Take a deep breath!
Step 2 – Identify how much debt you have. Write that number down. The real number, not a ballpark number.
Step 3 – Create a working monthly budget. Get clear on what your
monthly living expenses are. I have gone through more than 100 financial
plans with clients. The 3 most common areas where spending can get out
of control are: shopping, eating out at restaurants, and travel. Don’t
get me wrong. I love doing these 3 things. But they have to be done
within reason. Instead of using your credit cards for these 3 things,
use cash or your debit cards. Literally put the cash in an envelope and
use it only for these 3 categories. It will force you to stay on track.
Step 4 – Write down your after tax income. Take this # and subtract
your living expenses. Now you know how much additional money you can
save towards paying off your debt. Lets make it happen right here.
Step 6 – Pay off the debt with the highest rate first.
Step 7 – Call your credit card company and ask for a lower rate. See if
they have a special offer or can work with you on this. Ask for a
supervisor. Be nice. Give ’em the cream and sugar treatment.
Step 8 – Consider a balance transfer to another credit with a 0%
introductory rate. If you have more than one card with a balance, see if
you can transfer all of your debt to one single card.
Step 9 –
Make more money too! If you are an employee, ask your company/boss what
you can do to earn more money. See what additional responsibilities you
can take on. Call a headhunter. See what else is out there! If you’re an
entrepreneur, watch this video. Better yet, come to my next live event
in Los Angeles where I will give you 7 ways to grow your business
revenue. Don’t spend the additional money you make on a pair of shoes
for $400. Use it to pay down your credit cards.
Step 10 –
