5 Steps to Becoming Debt Free | Less than 6 Months

In 2019 I owed around 13k in credit card debt and had a credit score of 631, in 2020 I owe $3,854.07, and my credit score is at 748 ( excellent).

5 Steps to Becoming Debt Free | Less than 6 Months

1. What happened ( this is simple but hard to look at exactly how much you owe.)
What I did for example:
– I had to check out all the money owed and start listing in down on a piece of paper.
– Heres how: Make a list – Who you owe, how much you owe, and at what interest rate ( just call the credit card to find out or the creditor.)
– Once you have that: I want you to organize in order from highest apr to lowest apr

Ps: It’s okay if looks like the highest apr have the lowest balance and its first.

2. Use the avalanche Method to pay your debt
What I did for Example:
– You don’t want to pay any credit card by random, it might seem like its all the same, but it’s going to cost you more money in interest.
– Solution: Remember how you organize your debt from highest to lowest Apr, well that’s the exact way I want you to pay it in.

Game Plan:
Pay the minimum on the cards, and any extra money like 10-40% of your income put it towards your ( pick a specific amount, or you’ll always put a little)

3. Set a goal: by when do you want to be down
What I did:
I was putting around 40% of my income at the time: so around 450-560 a week I would put towards paying my debt.
– So I just divided my overall debt of 13,000/560 = 5.8 months to pay it off
– Work backwards: just divide your debt by the amount of time: example 12 months and you owe 20000 = 20/12= 1,666/4 for weekly 416 bucks per week.

4. Make A budget
Remember: you create and customize your budget however you want, so it can include fun stuff like a vacation, parties, video games, anything you want. But the point is having a budget will help you.

My budget simple budget:
Is old fashion, I used envelopes for the first year and then after that I used Sofi Money to create different bank account within on one bank.
Old Fashion budget: https://www.youtube.com/watch?v=K2iqN4KT8eo
Sofi Budget video: https://www.youtube.com/watch?v=5vNbyffNvwk

Segway: You won’t see this coming as a solution for getting out of debt but its actually

5. Increase your income
Why: as your paying all this debt and are tight on might, you’ll realize how important having a side hustle is.

So here is what I recommend:
Playlist with 30 ideas: http://bit.ly/bizideas37
100 Side hustle Book: https://amzn.to/31LiTfI
140hr jobs: https://www.youtube.com/watch?v=vkkdctr9cnY
$100 per day side gigs: https://www.youtube.com/watch?v=UF1OkCgp1l0

Segway: now if you do try this, I’ll see you in 6 months and just reply to your comment 6 months later and see what happens. Let’s go

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