Debt Reduction

How to get rid of your debt so you can truly be financially free to do what you want, when you want.

Let me first begin by saying how I hate all those sites that promise to Give and then ask to Get first. I am going to Give right now, and not expect anything from you. They say that is truly the way to wealth, so here it is.

I paid for this information. I won't tell you the company, as they will probably be quite upset with me, but there are quite a few of them out there, so does it really matter anyway. There are people who know how to do this and they are determined to make money on your hope of happiness. But, Anyone can figure it out if they set their mind to it. So, technically, it's free info.

You might have heard that to pay off your bills you need to start with the one with the highest dollar amount owed, and this sounds like good advice, but it's wrong.

First, separate your bills into two lists. One that is absolutely never going to go away, like electric, water, phone. Two bills that will go away, like car payment, credit cards, and even the house payment. We are just going to focus on the second list, we'll put this in column 1.

Put the total amount owed in column 2.

Now, put the actual minimum payment required for each in column 3.

Divide the total amount owed (#2) by the minimum payment (#3) and put that in column 4.

Hopefully, you have figured out by now that you should do this in a spread sheet. If you have, this next step will be a lot easier. Sort the records by column 4, showing the least amount of payments at the top and the bill with the most amount of payments at the bottom.

Back to the first list. Add up your "forever" bills and add the minimum payments from column 3, then add these both together. Make sure you put gas, food, and a little something for miscellaneous in your "forever" bills. This grand total is your actual monthly bills.

Add up all your income and subtract your grand total of bills. This small number is your "bill reducer money".