Debt Free Plan

Americans and Canadians now are in their highest level of debt and it is continuously increasing. People are living inside the bubble without realizing the danger that is coming. We know that individual debts leads to family debts which leads to community debts which leads to the whole country debts. The good or bad personal finances health impacts directly the whole community and country finances health.
No one will take charge of paying your debts, even the governments to which you are paying taxes. The best way to clean up your finances is that you take control of them by yourself and the first thing to do is to clear your debts.
In this article we will show you the personal debt free plan that you can follow in order to get out of the trap.

Myths regarding debt

One of the most popular myth about debt is that many people are being convinced that they can create their prosperity using debts. Which means that you can borrow money from the bank and invest it. Actually there are some business debts which can be profitable to the business owner, however, you must know and master what your are doing. Otherwise, most these kinds of advertising are used only to attract people to have credits. The major beneficiary is the bank that sold the credit, not you.
Buy now and pay later is also a trap to get people indebted. The consequence is that actually you buy now but pay later much more expensive than what should be paid.
Many other ways and sophisticated techniques are used to attract people to the debt bubble. Be careful and stay away of them.
The best way to keep yourself away from these traps is to pay cash your bills and master your money. I know that nowadays everything is being sold in Internet and a credit card is the tool to pay your purchases but you have money ready before you do the purchase in order to pay off your credit card immediately.

Debt Free Plan

If you are struggling with your debts and you have many unpaid credit cards, here is the technique to follow in order to pay them off and keep yourself debt free for the rest of your life.
Roll-Down Method as described by Chris Brady and Orrin Woodward in their book FINANCIAL FITNESS which I recommend you to read and apply its 47 principals of Financial Fitness. I am pretty sure that you will be amazed by the changes that you will have in your life about your personal finances. This technique consists of paying your smaller debts with the highest interest rate first and then use the payment amount from the smaller debt to boost your payment for the next smaller debts and follow the same process to the next ones until you pay off all your credit cards.

Other tips that helps to pay off your debts

Track your monthly expenses and write them in a piece of paper or in an Excel sheet. Write all your purchases; cafes, and other drinks, food, clothes, car expenses, your hobbies expenses and ALL the purchase that you do within the month.
Take a moment in a calm area and look at this list and them think about all the items listed. After that do some calculations. Calculate how much money every item costs you monthly and write them. It is important to write and keep your files.
By doing these calculations, you will definitely have a clear idea about what are you buying and how much you are paying for that. The next step is to identify the items that you can stop buying or reduce its purchasing every month and write your findings: items with the corresponding number. As an example: You find that you are buying a cafe 2 or 3 times a day $3 each. You reduce your cafe purchasing by one every day, which means you save $3 a day which is $90 a month. It seems to quite simple, but do the exercises for all your purchases and you will be amazed about the results and the numbers that you will find.
This tip will help you to have extra money that you can use to pay off your debts following the Roll-Down Method described above.

Consistency and perseverance

In order to reach your goal of getting debt free you will need to be consistent and keep perseverance. Don’t aim to pay off all your debts next week but make a plan keep following the techniques, results will come after.





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