Everyone been there and a lot of us are actually stile there -in Debt- the hardest part is not paying off the debt but to stay out of debt, but today we will be focused on how to be debt free in the shortest amount of time no matter how ugly your situation is. But let’s just agree on something, if you pull it together and follow the following steps consistently you will get out of debt that I can promise you.

For this example, we’ll look into our good friend Tony who works as whatever, and that whatever job pay him $3000/month after taxes, his monthly expenses are worth $2500 and big Tony is carrying a $10,000 credit card debt.

Let’s see if we can help Tony be debt naked (free) in 10-12 months’ period.

  1. Income VS expenses VS Debt

    write down your take home income, fixed expenses (rent, car, student loan, groceries, bills) and then subtract those 2 numbers. If you take Tony’s example you should do ($3000 – $2500 = $500) so after paying all his expenses, Tony would be left with $500 extra. Now write down your total credit card debt ($10,000 for Tony).

    The extra $500 wouldn’t be going all towards the credit card, you can’t pay all the extra money to the credit card and be left with nothing, if you needed something we don’t want you to use the credit card, so let’s say $200 to keep for yourself and $300 goes to pay the credit card.

  2. Get the free cash

    Cash back credit cards offers you 1%-6% cash back on your day to day expenses, gas, groceries, bills, etc. we are not going to go deep into the credit card details but let’s say Tony will be getting an average of 2% cash back on what you spend, so how much cash back would he get on his $2500 monthly expenses on an average of 2% cash back return. ($2500 * 2% = $50). So Tony will be getting an extra $50 (on average) every month that would go towards paying the credit card balance.

  3. Make extra income

    We all have that extra 2-3 hours a day that we watch the same commercials in, so why not divorce the commercials and start earning extra cash and secure at least $500 every month extra. got a car, why not drive with Uber or Lyft. Got extra room, why not rent on Airbnb or homeaway. You can do anything? and I am literally saying anything why not sell it on Fiverr ( I paid someone $5 on Fiverr before to write my wife’s name with seashells on the sand ,send me a picture and that was a birthday gift) what I am saying is there is people out there that want your whatever service, so offer it. Want something a little professional, freelance with Upwork. The beauty of it is that you can secure 2nd, 3rd, 4th income for a little bit of extra work. Let’s say Tony will Drive with Uber and sell whatever on Fiverr and pull an extra $500 a month (when you can pull a lot more than that)
    Those $500 will be going towards the credit card debt.

  4. Stop paying interest

    If you have been carrying balance on your credit card(s) you are definitely paying interest and a hack of interest to be precise, an average of 15-23% goes to the bank as of free money. Now that is a lot of money my friend and it would be a lot better for you if you can send that money towards paying off the actual debt not the interest. Now that’s when Balance transfer credit cards comes in handy, find yourself a card that offers no APR for a period of time that is enough for you to pay the balance while paying no interest. On a $10k debt you are paying an average of $150 every month on interest. By transferring the balance to a 0% APR credit card this $150 would be going toward the actual principle.

  5. Pull it together and Do it.

    “if you have $10k in credit card debt, APR 21%, pay $275/month. It will take you 59 months to pay that debt and it would cost more than $6k in interest only. Follow the 4 steps above and you will find that you will be paying an average of $1000/month towards your principle with $0 in interest and you will give that $10,000 debt a kiss goodbye in 10 months’ period.