Your Guide on How to Be Debt Free in a Year

Are you currently in debt? If so you’re  not alone because debt is something many people all over the world struggle with, and many want to know how to be debt free.  As you continue to read on I will provide you with three step guide how to be debt free in a year. So let us begin….

In today’s society you have to realize you can’t afford to spend cash on everything, and sometimes you have to use a credit card or get a loan. But things can spiral out of control if the unexpected occurs and you’re unable to pay back those debts it time.

For example, an illness, taking short term disability, or even an unexpected household repair that requires you to use your credit card can all be reasons for you to find yourself with more debt than you can handle.

If you find yourself in these type of situations, you should there are many options available to you to get you out of debt.  You can look into debt counseling services, debt consolidation and even bankruptcy.  But before you do anything that drastic take some time to try to fix your debt situation on your own.

It is possible, even without adding income, to pay off your debt.  It will take time and it will take discipline but if you are committed to living a life without any debt, I believe these tips can show you how to be debt free in a year.

Below is a step by step plan that will help you to get rid of all your debt. It isn’t a quick fix, but it’s realistic and has worked for thousands of people, and it can work for you too:

1) Make yourself a detailed list of all your debt. Add everything, even the smallest of debts should be added to this list. This list should include your monthly household bills (such as house payments, insurance, utility bills, etc etc etc) in one column and your debt in another column.

2) Make a very detailed budget for all your monthly expenses. Be sure to have enough so you are able to make at least the minimum payments on all of your debt.

3) From the lists above pick the smallest debt as your target. Pay as much towards this debt as you can without cutting payments on your other debts. Once you manage to pay off this debt completely, take that money and apply it to the next smallest debt. Keep doing this again and again until your debt is all paid off. Doing this will allow you to pay off all your debt, even if you can’t get extra money coming in.

This method works, it just takes discipline. You’ll have to make sacrifices if you want to be debt free. That means making a reasonable budget and sticking to it.  But if you stay disciplined, and keep at it, you will eventually find yourself out of debt and debt free in a year.

In the end this will bring you peace of mind and will make all the sacrifices seem worthwhile.