How To Get Out of Debt and Live Debt Free! Pay/Paying Off the Mortgage Early..Yes I Should!

I find that most people really don't care if they are debt free or not.  If they can "afford" their current lifestyle, they are fine with debt.  What they really are not factoring in is RISK. Something bad might happen.  More than likely, their lives will not continue to be exactly as they are now.  They fail to ask themselves "What if".  What if they lose their job?  What if someone in their family has a major illness?  Those "what if's" are scary enough to me to make me want to eliminate (or at least significantly reduce) the risk.  Follow these steps to start your path to debt freedom. 

Step 1.   COMMIT TO IT!   Decide that you are 100% DONE WITH DEBT!  No if, and's, or but's.  Credit cards are not an option, CASH ONLY.  Done.

Step 2.   BUDGET TIME.  Figure out exactly where you are and how you will get to your goal.

A written budget giving each dollar a name is important.  Track every expense. Know exactly when you will reach your debt free date.  Have little celebrations for each debt that you pay off. 

Step 3.  NEW LIFESTYLE.  Your old lifestyle was fun but expensive.  It got you into this mess, time to say goodbye to the old and into the new.  You will be more frugal in many ways.  Eating out will be a real special treat.  Figure out how to reduce every expense (cable, cell phone, energy bills, vacations, etc.) while still enjoying your life.  Don't be a miser, just live much more financially responsible.  Read/listen to Dave Ramsey for motivation & advice.

Step 4.  SELL MORE, WORK MORE.  How much "stuff" do you have that you no longer want or need? Put it on ebay or craigslist today.  Another stream of income is huge.  Find a part-time job that brings in the very valuable extra income to increase your debt payoff.

Following these steps will make you debt free (except the house) in probably about 2-3 years.  Kill the mortgage and you will be part of the really weird 2% of Americans.  Live debt free for the rest of your life.